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News
New Contracts & Safety
Welcome to CB&I World
Message from Philip Asherman
Technology & Innovations
Reducing Cost and Environmental Impact
Special Features
Interview with World Energy
World Focus
Current Projects

News
New Contracts & Safety
Welcome to CB&I World
Message from Philip Asherman
In this Issue
Welcome to CB&I World
Technology & Innovations
Reducing Cost and Environmental Impact
Special Features
Interview with World Energy
Welcome
Special Features
World Focus
Current Projects
Produced by
CB&I
Editor
Katerina McGregor
CB&I
40 Eastbourne Terrace
London W2 6LG, UK
Tel: 44 (0) 207 053 3532
Fax: 44 (0) 207 053 3895
e-mail kmcgregor@CBI.com
Editorial Advisory Panel
Chip Ray, Bruce E Steimle,
Suzanne Gates, Juliet M DeBruin
Design
Mark West
MITIE Document Solutions
Tel: 44 (0) 207 957 3694
Print
AOK Printers
3 WELCOME TO CB&I WORLD
News
Message from Philip Asherman
4 NEWS & CONTRACTS
5 SAFETY NEWS
World Focus:
Current Projects
7 EUROPE
Buzzard Project on Target for Completion
in Late 2006
8 MIDDLE EAST
Innovative Solutions Keep Complex
Project on Schedule
10 Qatar Projects:
Building the Largest LPG tanks
in the Middle East
11 ASIA & AUSTRALIA
Worsley Alumina: Debottlenecking and
Expanding Production
12 NORTH AMERICA
Work Commences on Cove Point
LNG Expansion Project
14 CB&I DIFFERENCE
Meeting the Needs of the
EPC Marketplace Worldwide
Technology & Innovations
16 Reducing Cost and Environmental Impact
of Onshore Pipeline Systems
Marketing News
19 Multi-Language CB&I Web site
Hydrogen Plant Technology Video
Tradeshows in 2006
Hot Off the Press
Philip K. Asherman
President and
Chief Executive Officer
I am pleased to welcome you to the latest edition of CB&I World, our periodic
publication about CB&I activities worldwide.
We are proud to report that CB&I was recently recognized as one of the world’s
leading contractors in the Engineering News-Record 2006 Annual Survey.
We were ranked fourth globally in the Top 20 Industrial Process/Petroleum
Contractors, seventh in the Top 50 Contractors Working Abroad and 20th in the
Top 400 Contractors.
Today’s hydrocarbon industry is experiencing an unprecedented upturn in
capital spending, driven by rapidly escalating energy demand around the world.
Projects resulting from the need to boost energy supplies to meet this demand
are increasing in every sector of the oil and gas industry globally.
In addition, market fundamentals for LNG remain strong as a result of the
ongoing push for cleaner energy sources and the decline of natural gas
production in many western nations. Refineries around the world continue to
upgrade their facilities to meet environmental regulations for air quality. The
market for various clean fuels solutions for diesel and, outside the United States,
for gasoline remains strong. The emerging market for renewable energy sources
for both power generation and transportation fuels is gaining strength, driven
by sustained high oil and gas prices that have resulted from the supply/demand
disparity as demand continues to rise.
We believe CB&I is extremely well positioned to benefit from the surge in capital
spending in the global energy market. We are fortunate that our company has
been able to develop enduring relationships with our customers, and we are
focused on making sure that we have the resources and the expertise to meet
their upcoming project requirements.
13 CENTRAL & SOUTH AMERICA
Gas Processing Plant for
Camisea Expansion Project in Peru
This issue of CB&I World highlights several of our current projects around the
world, as well as our latest technology and marketing initiatives. We hope you
enjoy it.
www.CBI.com
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processing
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This document is intended for general information purposes only and does not in any way constitute offer to provide specific services. Some services may not be available in
certain countries or political subdivisions thereof. All the quotations in this document have been reproduced with the kind permission of our customers.
Any enquiries about content from this publication should be directed to the Editor (email: kmcgregor@CBI.com)
2
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Copyright 2006 by Chicago Bridge & Iron Company. All rights reserved. Printed in UK. CW06-04
3

4
New CB&I London Office
During the summer months CB&I’s London Office will be relocating to the new
office building. While this is a physical move of only a few hundred meters it’s a
world away in terms of the comfort and style that the new building offers. The
exterior has a striking glass and terracotta finish. The light and airy reception
area with full height glass atrium and central oak and steel spiral staircase
makes an impressive area to greet clients and a comfortable waiting area.
The building has been designed with the flow of natural light in mind and thus
offers an inspiring working environment. Additionally, our new office will have
a sophisticated and environmentally friendly heating and air conditioning
system. The geothermal heating and cooling via groundwater drawn from
four 150m-deep boreholes in the car park, will lead to energy savings of 40%.
This will not only be a cost saving but is very much in keeping with CB&I’s
fundamental policy of protecting the environment.
The Paddington area’s central location, excellent road and rail connections -
with easy access to Heathrow International Airport, in just 15 minutes - make it
a prime office location in London and thus an ideal choice for an international
Engineering & Construction Company like CB&I.
CB&I to Supply Large Hydrogen Plant
for Refinery in Texas
Our New Contact Details are:
CB&I
40 Eastbourne Terrace
London, W2 6LG
Tel: 0207 053 3000
Fax: 0207 053 3001
April 7, 2006 - CB&I has been awarded a lump-sum contract by a major U.S.
refiner to supply a large-scale hydrogen plant for one of its refineries located in
Texas. The project is valued at approximately US$40 million.
CB&I’s scope of work for the project consists of the engineering, procurement
and fabrication of an 80 million standard cubic feet per day hydrogen plant
that will supply high-purity hydrogen for the refinery’s ultra low sulfur diesel
program. The customer will be responsible for construction of the facility.
The plant will use CB&I’s proprietary HYFORMING box furnace technology
for steam methane reforming that provides superior process performance
within a robust mechanical environment. Delivery of the plant is scheduled
for summer 2007.
News & Contracts
CB&I Wins Award for Gas Storage Project
in Qatar
March 28, 2006 - CB&I has been awarded a lump-sum turnkey contract valued
in excess of US$150 million to engineer and construct multiple tanks for the
storage of liquefied petroleum gas (LPG) and gas condensate. The project
is located in Ras Laffan Industrial City in Qatar. The new tanks will provide
common LPG and gas condensate storage in Ras Laffan Industrial City which
will be jointly owned and used by multiple LPG producing entities. The
additional storage is needed to accommodate increased capacity within Qatar
to produce and process natural gas and its marketable components. CB&I’s
work scope encompasses the engineering, procurement, fabrication and
construction of two double-wall steel full containment LPG tanks, 14 floating
roof tanks for gas condensate storage and one caustic storage tank. CB&I
also will be responsible for the foundations, as well as piping, electrical and
instrumentation. This latest award builds on CB&I’s previous work in Ras Laffan
Industrial City. The LPG tanks will be among the largest the Company has built
in the Middle East, a region that continues to offer significant opportunities for
natural gas-related projects.
CB&I to Supply Gas Processing Complex
in Angola
March 27, 2006 - CB&I has been awarded a lump-sum contract to provide a
gas processing and treating complex in Cabinda Province, Angola, for Cabinda
Gulf Oil Company Ltd. (CABGOC), a wholly owned Chevron subsidiary. CABGOC
operates Block 0 in Angola on behalf of the Cabinda Association, consisting
of Sonangol, Total, ENI and CABGOC. The project is valued at approximately
US$250 million.
CB&I’s scope of work for the project consists of the engineering, procurement,
fabrication and construction of a gas processing and treating complex that
will help CABGOC eliminate flaring of associated gas and recover hydrocarbon
vapors from its oil storage terminal, and produce saleable natural gas
liquids (NGLs). The project will include facilities for gas/oil separation, vapor
compression, amine treating for acid gas removal, glycol dehydration,
refrigeration for NGL recovery, molecular sieve dehydration of hydrocarbon
liquids, and liquids fractionation to produce NGLs for export and local
consumption. Residual gas will feed three turbines for electricity generation.
Completion of the project is planned for summer 2008.
Consistent with CB&I’s practice of using local resources and supporting local
economies at its project sites worldwide, a portion of the Company’s site
construction team for this project will be staffed with local Angolan labor.
The Company will also draw upon its worldwide resources for this project.
Engineering and procurement will be performed in CB&I’s Houston office,
equipment modules will be fabricated in CB&I’s Texas fabrication facilities, and
project management of the site construction activities will be sourced from
CB&I’s London, Dubai and South African operations.
U.S. Refiner Selects CB&I for Clean Fuels Project
March 6, 2006 - CB&I has been awarded a lump-sum turnkey contract by a
major U.S. refiner to supply a diesel hydrotreater for one of its refineries in the
United States. The project is valued in excess of US$50 million.
CB&I’s scope of work for the project consists of the engineering, procurement,
fabrication and construction of a 16,000 barrel per day diesel hydrotreater plus
related ancillary equipment and systems. The unit will enable the refinery to
produce ultra low sulfur diesel to meet U.S. Environmental Protection Agency
and state specifications. Mechanical completion is expected by spring 2007.
“We are pleased to continue our association with this valued customer as a
key provider of clean fuels systems for their refineries,” said Philip K. Asherman,
CB&I’s President and CEO. “We plan to leverage our extensive experience in
the design and installation of hydrotreating units to meet our client’s goals for
safety, value and reliable operation.”
CB&I Awarded Contract for Gas Processing Plant
in Western U.S.
Feb. 13, 2006 - CB&I has been awarded a contract by a U.S. midstream energy
company to design and fabricate a 650 million standard cubic feet per day
(MMSCFD) cryogenic gas processing plant in the Western United States. When
operating at full capacity, the plant will have the flexibility to operate from a
conditioning mode to full recovery with the ability to recover a minimum of
2,500 barrels per day (BPD) and a maximum of 30,000 BPD of mixed natural
gas liquids (NGLs).
The plant is scheduled for completion in fall 2007. The contract was awarded
on a cost reimbursable basis, with a value to CB&I in excess of US$100 million.
The plant will process natural gas from fields that have been among the fastest
growing sources of new natural gas production in the United States.
“Increasing the domestic supply is critical as energy companies strive to
meet the growing U.S. demand for natural gas,” said Philip K. Asherman,
CB&I’s President and Chief Executive Officer. “We are pleased to continue our
association with this valuable customer to help bring natural gas and NGLs to
market from unconventional sources.”
CB&I Wins Award for Second Gas Processing Plant
in Western U.S.
Feb. 13, 2006 - CB&I has been awarded a contract by a U.S. midstream energy
company to design and fabricate a cryogenic gas processing plant in the
Western United States. The project will include a 750 million standard cubic
feet per day (MMSCFD) cryogenic natural gas processing plant and associated
dehydration, separation, treating and compression facilities. The plant is being
designed with operating flexibility to range from gas conditioning to full
recovery with the ability to recover a minimum of 2,500 barrels per day (BPD)
and a maximum of 35,000 BPD of mixed natural gas liquids (NGLs) depending
upon processing conditions and natural gas quality.
The project is scheduled for completion in mid-2007. The value of the award to
CB&I is in excess of US$110 million.
The plant will process natural gas from one of the largest natural gas fields in
the United States, with an estimated resource base of 5 to 10 trillion cubic feet
of proved and potential natural gas reserves.
Frontier Oil Selects CB&I for Refinery Expansion
Project
Dec. 21, 2005 - CB&I has been awarded a contract by Frontier El Dorado
Refining Company to design and build a crude and vacuum unit expansion
at Frontier’s refinery in El Dorado, Kansas. The expansion project will enable
Frontier to increase crude charge rates, achieve higher yields of gasoline and
distillates, and run a significantly higher proportion of heavy crude oil. CB&I’s
contract to supply the new preflash and vacuum units is valued in excess of
US$85 million.
The project will be executed on a lump-sum, turnkey EPC basis. CB&I will
apply its extensive experience in engineering, fabrication and innovative
construction execution approaches to achieve Frontier’s goals. The crude
and vacuum expansion will utilize a basic process design package by Process
Consulting Services, Inc., combined with CB&I’s detail design expertise.
Mechanical completion is scheduled for spring 2008.
CB&I is currently building two units for Frontier at El Dorado as part of the
refinery’s clean fuels program: a 24,000 barrel per day diesel hydrotreater and
a 35,000,000 standard cubic feet per day hydrogen plant.
General Cooperation Agreement
with Aker Kvaerner
CB&I has signed a general cooperation agreement with Aker Kvaerner
Engineering and Technology of Norway. This agreement is specifically targeted
at harsh environment offshore projects (e.g. ice infested waters) and other
technically challenging prospects, where the synergies and strengths of CB&I
and AKET are advantageous to both companies. Both offshore and onshore
oil & gas projects are included in the agreement, which may be expanded by
agreement of both companies.
Both companies view this as an opportunity to secure significant work together
for the foreseeable future, and to offer the industry an enhanced service in
terms of engineering through to fabrication and installation.
Safety News
At CB&I, protecting the environment and the health of our employees,
customers, subcontractors and the public in the areas where we work
and live is a key component of our culture. Every employee across the
organization is responsible for using safe work practices in their job every
day, and it is their commitment to do so that has helped us achieve a record
of exemplary safety performance year after year. As a company, we strive
to do the right things for the right reasons, embracing all HSE regulations
and educating our employees through extensive and ongoing training
programs. We developed our goal of zero incidents because anything short
of that is unacceptable, and we are all accountable for achieving that goal
- every day on every job.
Gold Standard: CB&I Has Struck Gold Again
CB&I London has been awarded the 2006 RoSPA (the Royal Society for the
Prevention of Accidents) Gold Medal Award for Occupational Health and
Safety. The Gold Medal Award recognizes CB&I London’s five consecutive years
of winning the RoSPA Gold Award. RoSPA awards are made to organizations
that demonstrate an ongoing commitment to occupational health and safety,
and that are able to prove they have implemented the guidance contained
in the Health and Safety Executive’s (HSE) publication “Successful Health and
Safety Management”. RoSPA was established over 80 years ago to campaign
for change, influence opinion, contribute to debate, educate and inform in the
field of occupational health and safety. The RoSPA awards are non-competitive
and are based on the entrant’s individual occupational health and safety
performance assessed against the judging criteria. Entrants must also provide
evidence of a good health and safety management system by answering key
performance questions and supporting their answers with a concise portfolio
of relevant documents. Awards are made at Gold, Silver, Bronze and Merit level,
progressing to higher awards for sustained achievement, for example, the Gold
Medal Award is recognition of at least five consecutive annual Gold Awards.
CB&I Receives Several Safety Awards in USA
In May 2006, CB&I received several Awards for Meritorious Safety Performance
at the National Petrochemical & Refiners Association (NPRA) National Safety
Conference in Austin, Texas. The conference recognizes the individual facilities
and contractors that support the petrochemical refining and manufacturing
industries through their excellent records of safe operations. In 2005 CB&I was
recognized for achieving a total recordable rate of 0.00 out of:
20,142 hours worked at the Lemont Refinery of CITGO Petroleum
Corporation
163,121 hours worked at Michigan Refining Division of Marathon Petroleum
Company LLC
37,754 hours worked at Paulsboro Refinery of Valero Refining
140,248 hours worked at Port Reading Refinery of Amerada Hess
82,922 hours worked at Wood River Refinery of ConocoPhillips Company
136,574 hours at Convent Refinery of Motiva Enterprises LLC
CB&I Safety Managers Recognized for
Outstanding Achievements
In March 2006, CB&I Area HSE managers from around the world convened
in The Woodlands, Texas, to participate in the 2006 Worldwide Area HSE
Managers Meeting. The purpose of this annual weeklong meeting was to
give managers the opportunity to discuss current HSE issues, attend training
courses and share best practices. In addition to the discussions and training,
coordinators took time out of the meeting’s busy schedule to present several
safety awards. Overall, CB&I 8 Area HSE managers received 35 (29 Excellence
and 6 Achievement) Health & Safety Awards of Excellence and Achievement
for their performance.
CB&I Receives Five-Star Safety Grading from
National Occupational Safety Association
CB&I was recently presented with a safety plaque in recognition of receiving a
five-star grading from the National Occupational Safety Association in South
Africa for maintaining excellence in safety organization and compliance with
governmental regulations. This is award is the highest honor given in the HSE
audit category and is an outstanding achievement.
5

EUROPE
The Production platform receives multiphase reservoir fluids
via the bridge linked Wellhead platform and processes these to
separate crude oil, gas and water. Key aspects of the production
process are as follows:
Crude Oil is processed to separate water and gas and is then
exported via an 45.7centimeter diameter, 30km pipeline to
join the existing Fortes Pipeline system.
The three jackets and the Wellhead topsides were installed in
the North Sea during the summer of 2005. The Quarters/Utility
platform is complete and on a barge in Hartlepool waiting to
be towed out to location and installed. The bridges and the
flare are in Norway waiting for the big day. The production
platform is currently being installed along with all the other
components.
Gas is passed through a mercury removal bed, an acid gas
removal unit and mercaptan removal beds. It then undergoes
dehydration and Hydrocarbon dewpointing and is then
exported via a 24.5 centimeter diameter, 39km pipeline to join
the existing Frigg gas Pipeline.
Water is injected into the reservoir to provide pressure
maintenance and improve oil recovery. Sea water is passed
through a sulphate removal plant to reduce the sulphate
concentration and thereby minimize the potential for scaling.
The de-sulphated water is then de-aerated and mixed with the
treated produced water prior to injection.
Under normal operating conditions produced water will be
reinjected into the reservoir. Overboard discharge may occur
when injection equipment is unavailable.
To ensure legislative requirements for disposal are achieved
during an upset condition, the produced water is treated using
hydrocyclones and a combined degasser/surge drum.
All three topsides as well as the bridges and the flare boom
were designed by CB&I. The Wellhead deck measures 40 x
54 meters and has an operating weight of 4,300 tonnes. The
Production deck measures 37 x 88 meters and has a 13,300
tonnes operating weight.
Buzzard Project on Target for
Completion in Late 2006
The Buzzard field is a major offshore development located
in the UK Outer Moray Firth, central North Sea, some 100
kilometers northeast of Aberdeen and 55 kilometers from the
nearest landfall at Peterhead. Buzzard was discovered in May
2001 and approved for development a mere 30 months later.
The Buzzard field development, operated by Nexen Petroleum
U.K. Limited and its co-venturers, is one of the largest North
Sea crude oil projects in more than a decade and is scheduled
to begin producing in late 2006. CB&I is responsible for the
engineering design of the three platform topsides facilities:
the production, utilities and wellhead decks, with a total dry
weight of approximately 25,000 tonnes. Today, Buzzard is
on time and on budget. Development is forging ahead with
hundreds of people working together on the design and
facilities fabrication at multiple sites.
Pictured is the production deck, weighing more than 10,000 tonnes, loaded out and ready to
set sail from the fabrication yard in Cadiz, Spain where it was built.
CB&I was awarded a major offshore contract for Concept
Definition and Project Specification (CDPS) for the Buzzard
installation in August 2002 and following the award our
team started preliminary work on the Nexen Buzzard Project.
We spent about a year developing the concept, proving the
project viable and preparing the project specification. That
was followed by the detail design phase which lasted for 21
months and at peak we had almost 700 people working on the
project. Our team has continuously provided a support role to
the onshore fabrication and commissioning phases.
The Buzzard reservoir lies between 2,375m and 2,800m and the
development consists of three piled steel structures supporting
separate Wellhead, Production and Quarters/Utility facilities
linked through bridges to support well production, oil and gas
processing and living quarters and utility systems. Recoverable
reserves are estimated between 346 to 617 MMstb.
The Quarters and Utilities deck measures 34 x 86 meters
and has a 11,600 tonnes operating weight. Each of the two
bridges linking the topsides weighs over 300 tonnes and the
Production platform also supports the inclined Flare boom
measuring some 85 meters and weighing 440 tonnes.
The Quarters and Utility (QU) deck, weighing around 10,000 tonnes, being loaded out at
Heerema fabrication yard in Hartlepool, UK.
The offshore hook-up and commissioning phase will begin
when all the pieces are in place. CB&I will have a number
of people offshore during this final stage of the project. In
addition to this, we will continue to have a team in London to
support the offshore activities.
Charles Harding
6 7

Construction is well under way on a new grassroots refinery
being built by the Sohar Refining Company for the Sultanate
of Oman. This project, which is one of the most significant,
oil-based projects to be set up in the Port of Sohar since
the commissioning of Oman’s first refinery 20 years ago, is
scheduled for completion in the third quarter of 2006.
When completed, the refinery will receive a mixed feedstock
of Omani crude oil and atmospheric residue. The crude oil
feed will go to the new refinery’s crude unit, which will have a
capacity of 116,000 barrels per day (BPD), while the atmospheric
residue will go to the refinery’s cutting-edge residue fluid
catalyst cracker, which has a capacity of 75,260 BPD.
Until now, the atmospheric residue has been sold in the
international marketplace. By building a new refinery that can
process the residue, the Sohar Refining Company not only adds
value to this by-product, but also creates new jobs; provides
feed for such downstream industries as polypropylene,
ethylene dichloride and aromatic products; and generates
additional revenue for the country.
The Sohar Refinery project is a large, complex project, made
more challenging by the aggressive schedule required to bring
the facility online by 2006. The tankage alone for this project
includes 55 petroleum product storage tanks, 16 spheres and
one elevated water storage tank. In total, there are 39 uniquely
designed structures amassing 25,000 metric tons of steel. Upon
completion of the refinery, these structures will provide more
than 1 million cubic meters of bulk liquid storage and more than
40,000 cubic meters of pressurized storage for propylene and
liquefied petroleum gas. CB&I, the EPC contractor responsible
for the engineering, material supply, fabrication, construction,
testing, and insulation of all tankage at the refinery, found
innovative ways to address the challenges encountered by
the size and scope of this complex project and still keep tank
construction on schedule.
Some of the challenges encountered on this project involved
meeting the requirements for local content, training the local
crews, getting materials to the site on time, and staying on
schedule even when materials were late. In finding solutions
for these challenges, additional benefits were provided,
including project cost savings and the presence of a trained
workforce for future projects in Oman.
Meeting Local Labor Requirements
MIDDLE EAST
Innovative Solutions Keep Complex Project on Schedule
contractor’s workforce. This practice benefits the contractor,
the local economy, and the country as a whole, since it
contributes to raising the number of skilled workers available
for future projects in the country.
To implement this practice, it is beneficial to have a local
presence in the country and prior experience working with the
government. Since 1977, CB&I has had a presence in Oman
and has had significant previous experience working with the
Omani government. The company has been actively involved
in the Omani tank business, primarily through the oil-producing
initiative “Petroleum Development Oman” and several largescale
tankage projects, including a 600,000-barrel storage
facility in Muscat in 1999, as well as a 1 million-barrel facility
in Mina al Fahal in 1993 – the largest tank in Oman. In 2003,
after being awarded a new contract to construct two ammonia
tanks, a permanent office was established in Oman, to which
the company is able to ship project cargo and equipment from
regional warehouses around the globe, as well as effectively
manage project logistics and costs.
To assist in the recruitment of local employees, the Omani
Ministry of Manpower provides a list of candidates for training
for positions that require skilled labor, as well as for other tradespecific
positions such as drivers, watchmen, office clerks,
etc. The Ministry of Manpower also provides governmentfunded
education programs and on-the-job training for local
labor. For the Sohar refinery tanks, training was needed for 60
workers in three different areas: welding, fitting and rigging.
The government financed this training, which took place over
a span of seven months, followed by one month of on-the-job
training on site.
For the 60 Omani who took part in the training program, the
first phase of the training focused on communication skills
to enhance their ability to communicate with supervisors
and fellow colleagues from multinational backgrounds. The
second phase of the program focused on safety, and the final
phase of the program focused on skill development in specific
trades. Although not all 60 original workers “graduated” the
program, the government assisted in replacing any participant
who didn’t work out or chose not to continue.
In addition to the candidates provided by the Omani
government, some of the workers selected for this project
were Omanis who had been previously recruited and trained
for the ammonia tank project in 2003. These employees,
already familiar with company policies and procedures, were
willing to share their knowledge with their fellow countrymen.
Because they shared a similar cultural background with the
new employees, they were able to quickly communicate
information about the company, its requirements, and the
specific tasks that needed to be undertaken on the project.
During the on-site phase of the training program, experienced
traveling crewmembers helped integrate new employees.
These employees were given a safety orientation first and then,
under the supervision of experienced employees, they were
integrated into the crews to learn basic construction practices.
On-the-job training began initially with a chance to observe
the construction activity and then followed with opportunities
to participate in it. Arabic-speaking superintendents, foremen
and site construction managers were on hand to communicate
with the new additions and ensure that they were compliant
with all regulations and safety standards. The site manager also
had opportunities to mentor and motivate the crew, gaining
their trust and cooperation as the project progressed. In this
environment, local employees developed a sense of ownership
and pride, as well as an understanding that the skills they took
away from this job would prove helpful to them in getting
future work.
Meeting the Schedule
In addition to the labor issues, other challenges were presented
by the need to meet the 19-month construction schedule. As
various situations were encountered during the normal course
of the project, innovative solutions were found to resolve each
situation.
For example, significant non-uniform settlement occurred due
to soft subsurface soil layers under erection and hydrotesting
loading. This issue was discovered early on by the project team,
who monitored and recorded the movement of the foundations
while under loading. The team came up with innovative ways
to counteract this settlement by using air bags and jacks to lift
the structures and reinforce the foundation where needed.
These ideas and methods allowed the team to ensure the
safety of the structure and the crew while continuing to stay
on schedule.
Another way this project was kept on schedule was by
implementing the philosophy of standardized components
and drawings. This practice reduced the number of drawings
that required submittal, checking and approval. For instance,
nozzles, man ways, sumps, as well as many other tank and
sphere components, were detailed on one or two drawings for
all structures instead of individual drawings for each structure.
In addition to reducing the number of drawings by 20%, this
standardization allowed for fabrication to be completed in
an assembly line manner rather than requiring individual
drawings to be completed before work could commence on a
particular structure.
Also, in the ordering of the bulk steel plate, the number of
plate sizes was reduced. For instance, if one design called
for 6 mm plates for the bottom but the majority of the tanks
required 8 mm plates, 8 mm plates were used for all of them.
Although perhaps more costly in raw material purchase price,
this practice helped improve the efficiency of the mill, reduced
administrative checking and paperwork, minimized the chances
for error due to the plate interchangeability between designs,
and decreased the segregation and temporary storage effects.
This same philosophy was also used for ordering piping, pipe
supports and structural steel.
Cost Savings
Several cost-saving practices were implemented on the tank
project. One such practice was the advanced purchasing of
all bulk materials in addition to the main steel plate, which
allowed consolidation of purchase orders for such items as
pipe, pipefittings, flanges and structural steel. In addition to
the cost benefits, advanced purchasing helped to manage the
schedule by facilitating the arrival of materials at the required
location well ahead of the dates the materials were needed for
the construction activities.
One of the other ways in which costs were reduced was
through the elimination of chemicals to treat sea and brackish
hydrostatic test water. Through proper testing and analysis
of the brackish well water used for hydrostatic testing on this
project, CB&I was able to verify that chemical additives were
not required. Without the need for chemical additives, the
brackish well water used for testing could be directly discharged
to the sea without harm to the environment. This resulted in
significant savings and made it much easier for Sohar Refining
to obtain an environmental permit.
Moving Forward
The completion certificates for the first tanks were issued in
June 2005. Although these tanks became operational in July,
the majority of the storage units will not be used until the
overall refinery has been commissioned in 2006.
Once this refinery is completed, however, the Sultanate of
Oman will have more than just additional refining capacity.
With the help of the Ministry of Manpower and international
contractors, Oman will have a trained workforce with the skills
necessary to work on future petroleum projects, as well as
the problem-solving skills needed to handle scheduling and
construction challenges encountered.
Aaron Stryk and Cal Lipscomb
Source: This article appeared originally in Hydrocarbon Engineering, Feb. 2006.
Reprinted with permission from Hydrocarbon Engineering, all rights and copyrights reserved.
Based on local content requirements, all contractors who
worked on the Sohar refinery project were required to use
at least 30% local labor. This requirement was a good fit for
contractors who direct-hire local labor as a matter of practice.
The goal of this practice is to not only hire the required number
of local employees for a particular project, but also to train
and retain them as long-term, productive members of the
8 9

Qatar Projects: Building the Largest LPG Tanks
in the Middle East
In Qatar, looks can be deceiving. Although this small Middle
Eastern country has a population of less than a million and
a land area of only 11,437 square kilometers, it contains the
third largest natural gas reserves (910 trillion cubic feet)
and the largest non-associated gas field in the world. In
recent years, the country has emerged as a major exporter
of liquefied natural gas (LNG), exporting more than 1 million
barrels per day of liquids in 2004. And in 2006, the country will
add one more asset to its growing oil and gas infrastructure
– the largest liquefied petroleum gas (LPG) tanks ever built in
the Middle East.
In March 2006 - CB&I was awarded a lump-sum turnkey contract
valued in excess of US$150 million to engineer and construct
multiple tanks for the storage of LPG and gas condensate. The
project is located in Ras Laffan Industrial City in Qatar.
The new tanks will provide common LPG and gas condensate
storage in Ras Laffan Industrial City which will be jointly owned
and used by multiple LPG producing entities. The additional
storage is needed to accommodate increased capacity within
Qatar to produce and process natural gas and its marketable
components.
CB&I’s work scope encompasses the engineering, procurement,
fabrication and construction of two double-wall steel
full containment LPG tanks, 14 floating roof tanks for gas
condensate storage and one caustic storage tank. CB&I also will
be responsible for the foundations, as well as piping, electrical
and instrumentation.
This latest award builds on CB&I’s previous work in Ras Laffan
Industrial City. The LPG tanks will be among the largest the
Company has built in the Middle East, a region that continues to
offer significant opportunities for natural gas-related projects.
Following the award in March 2006, CB&I will continue its
presence in Ras Laffan for most of the next three years.
CB&I team is currently working on the engineering and has
already bought most of the plate steel. Geotechnical work is
now well under way with site grading and foundations to start
soon.
The company is nearing completion of four double-wall steel
full containment LPG tanks that are being built at a nearby site
in Qatar.
Brian Goedken
Worsley Alumina: Debottlenecking and
Expanding Production
CB&I is set to complete its portion of the $300 million Worsley
Alumina DCP expansion. Worley Alumina is a mining and
processing operation, which mines bauxite in the Darling
Ranges southeast of Perth. The bauxite is then transported
on a 51km conveyor belt to be refined at a plant near Collie,
Western Australia.
The refinery originally started production in 1984 with an
output of 1 million tonnes a year. A number of upgrades over
the years, including one major expansion involving CB&I in
1997/2000, have seen the capacity of the plant steadily rise.
The current expansion will increase alumina production to 3.5
million tonnes a year through a number of debottlenecking
process changes within the refinery and the conveyor system
The CB&I portion of the Worsley refinery expansion was
broken down into nine work packages. The basis for all the
packages was the installation of new piping, structural steel
and mechanical equipment required for debottlenecking the
process. Notable work packages included:
•
•
•
•
•
•
The design and construction of a new 2,330m 3 Desilicator
tank .
Upgrade Liquor Purification – including the 16m horizontal
extension of an existing 20m 5-story building and the
installation of new disk filter with associated piping.
Modified Precipitation Process Train 1 & 2 – including the
installation of 2 new piping trains over 2 existing banks of
process tanks.
Train 3 Additional Precipitators – including the design
and construction of 3 new 4,230m 3 Precipitator tanks plus
associated agitators, platforms and piping train.
Classification Section Upgrade - including the installation
of a new cyclone cluster, 4 new platforms, piping and
mechanical equipment.
Coarse Seed Filtration – including the installation of 1
new and the relocation of 2 existing 400kW pumps plus
the installation of new suction piping while maintaining
continuous pumping.
ASIA & AUSTRALIA
Broadly speaking debottlenecking involves removing existing
process piping and equipment and replacing it with a new
more efficient process. This in itself created huge challenges,
as it required CB&I to work in and around the existing plant.
Each debottlenecking system requires a tie-in to the existing
process at two points and the installation of new piping and/
or equipment between these points. 584 tie-ins have been
completed, ranging in difficulty from the simple rerouting of
a pipe to the installation of a new weir and overflow pipe in an
existing tank. All work required an individual risk assessment
for each tie-in and a corporate safety review for any work
outside CB&I’s guidelines.
One aspect that has made this project a standout success in
Australia has been the safety performance. In excess of 450,000
labor hours have been worked by CB&I at Worsley without a
lost time injury. This is what every project team strives for, but it
is especially outstanding considering all of the risks associated
with working in a brownfield site.
To help combat the risks associated with brownfield work
CB&I implemented a behavior based observation system and
further developed its job observation program to ensure all
employee and supervision involvement. CB&I’s dedication paid
off, not only with its people going home safe every night, but
with recognition from the customer shown by CB&I receiving
Contractor of the Month four times, and numerous individual
awards being presented to employees and staff members. In
May 2006 CB&I won the “Contractor of the Project” award from
the customer.
Kim Paddick & Mark Hulbert
10
11

NORTH AMERICA
Work Commences on Cove Point
LNG Expansion Project
SOUTH AMERICA
Gas Processing Plant for Camisea
Expansion Project in Peru
CB&I is participating in one of the major LNG Projects in the
United States - the Cove Point terminal expansion project.
The reason for expansion is a growing demand for natural
gas and the purpose is to deliver the new gas supplies,
increase supply diversity and reliability and provide
enough energy for 2.7 million homes each day.
We will be able to draw upon our decades of LNG
experience to complete the terminal expansion
project safely and on schedule without
impacting the terminal’s ongoing operations.
In December 2004 CB&I was awarded a lumpsum
turnkey contract for a liquefied natural
gas (LNG) terminal expansion project located
near Lusby, Maryland. CB&I’s scope of work for
the Cove Point Terminal Expansion Project
includes the engineering, procurement,
construction and commissioning of an
additional 800 million standard cubic
feet per day (SCFD) of regasification and
sendout process equipment; gas turbine
generation; two 160,000 cubic meter LNG
storage tanks; and new administration,
control and maintenance buildings and all
ancillary systems. The project will increase
the facility’s sendout capacity from 1 billion
BCFD to 1.8 billion BCFD, and nearly double
storage capacity from 7.8 billion cubic feet to
14.6 billion cubic feet of natural gas.
CB&I has been given the go ahead to begin
engineering and procurement on the project.
Field construction is scheduled to commence
upon receipt of required regulatory approvals,
with completion expected in late 2008. CB&I is
currently in the engineering phase of the project,
which is being led by the Pittsburgh office with
support from Plainfield. CB&I has begun construction of
the new support buildings, which includes a warehouse,
maintenance building, administration building and control
building. CB&I has also completed the procurement of most
major equipment and materials. Fabrication is under way in the
Warren, PA, and Clive, IA shops. In addition, CB&I recently supplied
technical information in support of the permit filing process with the
U.S. Federal Energy Regulatory Commission (FERC). Field construction is
scheduled to commence in 2006 upon receipt of these required regulatory
approvals, with completion expected by late 2008.Although still in the early
stages of this project, CB&I has already achieved several milestones. In addition to
the design engineering, procurement activities, and the start of construction of new
support buildings, CB&I conducted a three-dimensional model review.
Greg Maring
CB&I has been involved in the Camisea project, located
in the Amazonian region of Peru, one of the key energy
infrastructure projects in Latin America since its inception.
Providing a clean-burning fuel supply to meet growing
domestic demand and a valuable export commodity, the
expansion of the Camisea development will generate
substantial benefits for Peru.
In November 2005 CB&I was awarded a lump-sum
contract to supply a natural gas processing plant in
Malvinas, Peru, as part of an expansion of the Camisea
gas project.
CB&I’s contract, valued in excess of US$45 million, is
with Pluspetrol Peru Corporation S.A. as operator
and contract administrator acting on behalf of
the licensees Pluspetrol Peru Corporation S.A.;
Hunt Oil Company of Peru LLC, Sucursal del Peru;
SK Corporation, Sucursal Peruana; Tecpetrol del
Peru S.A.C.; Sonatrach Peru Corporation S.A.C.;
Repsol Exploración Perú, Sucursal del Perú; and
Pluspetrol Lote 56 S.A.
CB&I is responsible for the engineering,
procurement, modular fabrication and FAS
supply of two cryogenic trains each designed to
produce 360 million standard cubic feet per day
of gas. The units will treat gas extracted from the
Pagoreni field to remove water and then separate
the heavier hydrocarbons (natural gas liquids) out
of the gas stream. The fast track project schedule
calls for delivery of the two cryogenic units one year
from contract award.
CB&I has been involved in the Camisea project since
its inception, having supplied the initial cryogenic plant
at Malvinas, as well as a fractionation and topping plant
at Pisco and the associated refrigerated and atmospheric
storage tanks.
Brent Dominy
12 13

14
Special Features: CB&I Difference
World Energy: CB&I has gone through some changes over the
past few years. Can you update us on how these changes will
impact your business going forward
Asherman: I’m glad you asked that question. To understand
the business of today’s CB&I, it is important to look back over
the past few years. Starting in 2000, we made key acquisitions
in targeted areas. As a result of these acquisitions, plus our
organic growth and our ability to integrate these businesses
with our legacy capabilities, we have made tremendous
strides.
Today’s CB&I is a specialty EPC company that sells a focused
range of projects into a limited group of industries – those
that produce, process, store and distribute the world’s natural
resources. Because we are fully integrated, we provide
complete projects rather than a series of independent services
to our customers. Because we are focused on a limited group
of industries, we have been able to attain the experience,
resources and expertise in these industries to become a
leader.
World Energy: As the company’s new President and CEO,
do you have any plans to change the company’s strategic
direction
Asherman: Our strategy has been well thought out, and our
attention is focused on its implementation. We will continue
to create shareholder value through a combination of organic
growth and carefully selected acquisitions that complement
our core capabilities. We have a culture that supports this
strategy and the talent pool necessary to maximize full value
from its implementation.
Meeting the Needs of the
EPC Marketplace Worldwide
World Energy interviews Philip Asherman, President and CEO of CB&I
CB&I is one of the world’s leading engineering, procurement and construction (EPC) companies,
specializing in lump-sum turnkey projects for customers that produce, process, store and
distribute the world’s natural resources. CB&I is a fully integrated EPC service provider,
offering a complete package of conceptual design, engineering, procurement, fabrication,
field construction, mechanical installation and commissioning.
CB&I serves customers in a number of key industries including oil and gas; petrochemical
and chemical; power; water and wastewater; and metals and mining. Its projects include
hydrocarbon processing plants, LNG terminals, offshore structures, water storage and
treatment facilities, and other steel structures and their associated systems. CB&I has
approximately 10,000 employees and operates from more than 60 locations worldwide.
World Energy: Tell us more about your company’s strategy.
How does CB&I differ from your competitors
Asherman: Our culture instills a drive toward operating
efficiently, controlling risk and capitalizing on new and
emerging markets where we can bring value to our customers.
For this reason, we are very comfortable with lump-sum
turnkey as our preferred method of selling projects. Through
our expertise and project controls, we understand, manage
and mitigate the risk on large, complex projects.
We often say that we are focused, competitive and local, with
results second to none. To us, being focused means that we
provide specific projects to selected industries, instead of trying
to be all things to all people. In this way, we have developed the
expertise to be able to add value to our customers’ projects.
We recognize the importance of being competitive, and we
know of no better way of demonstrating that awareness than
providing our customers with cost-effective solutions to help
them remain competitive in their markets. We understand the
importance of being local. We have the global resources and
the local presence to deliver projects virtually anywhere, and
we direct hire and train local labor whenever possible.
Our “results second to none” philosophy signifies our
commitment to get the job done right – safely, on time
and on budget.
World Energy: How is CB&I positioned financially
Asherman: Financially, CB&I is very strong. Our revenue growth
between 2000 and 2004 was an industry leading compounded
annual growth rate of 33 percent. The company has a healthy
backlog of projects, a good cash position and a solid balance
sheet to carry us forward. In addition to this, the strength of
the markets we serve is encouraging. We are pleased by the
prospects for the future growth of the company.
World Energy: Tell us more about your markets. What is driving
them
Asherman: We have core capabilities in industries that are
undergoing strong growth. Because of the increasing need
for energy and energy infrastructure around the world,
capital investment in the production, processing, storage and
distribution segments of these markets is expected to remain
high.
The industrialization activity that is occurring in China and
India, for example, is driving a number of oil and gas projects
in these countries and in countries that provide them with
energy. China’s economy alone is expected to grow at an
average rate of 6 percent per year through 2025. The economic
growth during this timeframe will continue to create a need
for more energy to support developing business operations
throughout the country.
Other drivers of our markets include worldwide clean fuels
regulations that continue to require more stringent reductions
in emissions around the world, the growing need for refineries
to be able to process heavier crudes and the development of
unconventional energy sources worldwide. Unconventional
energy sources include oilsands recovery projects as well as
natural gas processes, such as gas-to-liquids and liquefied
natural gas. We believe these markets will continue to be
strong and will continue to provide opportunities for CB&I.
World Energy: Can you tell us a little bit about your own
background
Asherman: Certainly. I’ve worked in the engineering and
construction industry for more than 26 years, and I’ve held
positions in operations, sales and marketing. I’ve served clients
in the oil and gas, industrial and manufacturing, chemical and
petrochemical, pharmaceutical and mining industries in the
Middle East, Asia, Africa, Europe, North America and South
America.
I joined CB&I in 2001 and, prior to my current role, held the
position of executive vice president and chief marketing officer.
I have an undergraduate degree from the University of South
Florida and an M.A. from Tufts University.
World Energy: What do you see in the year ahead What will
be your priorities during your first year at the helm
Asherman: When I look at CB&I, I see 10,000 talented people
with unique skills, working in a culture that has developed from
the combination of several great firms. We’ve been extremely
fortunate to have captured the best of the best through our
acquisitions, blending company cultures and skills to create an
organization that is unrivaled in our industry. What impresses
me most is that no one culture has dominated another.
Employees from every function and region have been willing
to listen to new ideas and learn more efficient ways to do their
jobs. This is a testament to the strength of our people and a
critical success factor for the future.
When I look at our clients, I realize again how fortunate we are
to have been able to develop robust and enduring relationships
with them. Knowing that our clients will be launching many
major projects in the months and years ahead and need
EPC companies with the resources and expertise to execute
these projects, we are focused on meeting this need. We will
continue to look for ways to improve our processes so that we
can operate even more efficiently in the future than we have in
the past. Over the next several months, we plan to roll up our
sleeves alongside our clients, as together we find the best way
to meet the evolving needs of the marketplace.
World Energy: Any final thoughts
Focused Competitive Local
Results Second to None
Asherman: CB&I has a great history and, as I see it, an even
greater future. I’ve talked about our employee talent, our
financial condition and our client relationships, all of which
are strong today. I’ve discussed our strategy and our lumpsum
turnkey business model that I believe is among the best
in the EPC industry. When you add in the current strength of
the markets we serve, you can see why the prospects for CB&I
are so promising. I believe we are well positioned to meet the
challenges ahead. Indeed, the future looks bright for CB&I.
Source: This article appeared originally in World Energy, Volume 9, Number 1- 2006.
Reprinted with permission from World Energy, all rights and copyrights reserved.
www.CBI.com
p r o d u c t i o n p r o c e s s i n g s t o r a g e d i s t r i b u t i o n
15

The continuous increase in energy demand in conjunction with
production capacity constraints in the established oil and gas
regions have increasingly led to the search and production of
hydrocarbons in more remote and challenging environments.
Inevitably this requires transporting hydrocarbons over longer
distances.
Recognizing the need to reduce the cost of pipeline
infrastructure, BP worked closely with all sectors of the oil
and gas industry to lead a number of significant pipeline cost
reduction initiatives. Known as the Pipeline Cost Reduction
project, the aim was to find ways of reducing pipeline system
costs by 25%. Early work focused on new design concepts,
higher grade materials and novel construction practices.
However, it was recognized that pipeline facilities are a
source of significant cost. With this in mind CB&I, which has
been active in a number of cost reduction studies for BP, was
asked to lead a study to look at the cost of pipeline facilities
and develop cost reduction options.
FACILITIES STUDY
Analysis of recent project costs indicated that the pipeline
facilities can represent between 25-30% of the overall cost of a
project, as shown in Figure 1 below.
Facilities Costs (30%) Pipeline Costs (70%)
Figure 1 – Typical Cost Breakdown of major BP Pipelines
Technology & Innovations
Reducing Cost and Environmental Impact
of Onshore Pipeline Systems
Pipeline Materials
Pipeline Installation
Pipeline Services
Pipeline Other Costs
Facilities Materials
Facilities Installation
Facilities Services
Facilities Other Costs
COST REDUCTION ON PIPELINE FACILITIES
Recent projects were analyzed to establish the approximate
costs of facilities on major projects and then to understand
the breakdown of these costs, as shown in Figure 2 below. This
information was then used to target areas where cost savings
may be appropriate.
Figure 2 – Typical Cost Breakdown of Facilities
Services 23%
Civil and Site Development 12%
Materials 48%
Installation 9%
Other Direct Costs 8%
Early work indicated that the significant cost reductions could
be realized by:
• Minimizing standby equipment
• Remotely operating sites
• Using modular construction and repair
• Employing process optimization
As the pipeline systems have contractual obligations to deliver
certain throughput, it was important to establish that any
reduction in standby equipment did not lead to any supply
failure. To investigate this fully, generic performance curves
were developed and used in conjunction with equipment
reliability and repair data to ascertain residual flow loss (RFL).
This is the loss in pipeline throughput in the event of a single
machine train failure.
Removal or Minimisation of Standby Units
The main cost reduction concept was to eliminate standby
machines. The initial study showed that it was possible to
remove all standby units except at the first site and still achieve
the design throughput by optimization of facility spacing in
conjunction with prudent machine selection. A typical example
is shown in Figure 3 over page.
Figure 3: Single Station Failure Recovery
24" Optimisation Study
120
110
100
90
80
70
60
50
40
30
20
10
0
0 500000 1000000 1500000 2000000 2500000
Machinery Performance Review.
For transmission of 100% of the design flow of gas, all the
facilities of each station are required. However, where reduced
throughput is required on a frequent basis or during the early
life of the pipeline, different combinations of stations and
trains can be used. For example, operation with one 50% train
on every fourth station can provide 40% to 50% flow on the
same system.
Using this methodology, the effect of loss of one machine
train can be considered for a number of configurations, station
spacing (L), design pressure ratios and additional stations as
shown on the table below. The values for RFL shown in Table 1
below are the loss of production in percentage terms during a
single machine shut down.
Table 1: Variation of RFL with Compression Ratio and Configuration
Reliability, Availability & Maintainability (RAM)
Studies
RAM analysis was used to test the reliability data for the major
compressor station components and the influence of spares
holding and maintenance regimes.
By appropriate compressor specification and spacing of stations
such that pipeline RFL is small for loss of a single station, then
pipelines with a single unit compressor station can have similar
availabilities to pipelines with dual unit stations.
Remotely Operating Facilities
Remote operation removes the personnel support
infrastructure. Combined with removal of standby trains, a
reduction of over 70% in plot size and costs can be realized.
The study identified up to 30% in cost reduction resulting from
reduced plot size and equipment.
Information gleaned from experienced operators confirms
that remote operation is preferred, but it is clear that this must
be built into the base design. The principle that the pipeline
should be operated as a single entity rather than a group of
individual stations becomes more apparent when consideration
is given to currently available communications equipment and
techniques. The issues of operation, maintenance and security
will have particular requirements, depending on the location,
climate and culture of the pipeline owners.
Remote operation with maintenance teams based in one or
more central locations can provide cover more efficiently. This
is more easily achieved with stations and equipment being of
a common design. The implementation of service agreements
with suppliers of major equipment trains can produce
significant benefits, particularly where the supplier is prepared
to carry replacement spares, taking a failed component to
repair and replace operators’ stock. For gas turbines, spare gas
generators have for some time been available to operators
with agreements of this type. Many machinery suppliers
already have the technical capability to monitor equipment
condition and performance remotely, thus providing scope for
preventative maintenance on a planned basis.
Modularization
Modularization for construction is well known as a strategy
being used to a large extent offshore but has also been used for
large onshore plants and, by some organizations, for pipeline
stations.
It is also clear from discussions with experienced operators that
this is very much a beneficial route. The extent of modularization
and the parties involved need careful consideration to ensure
properly qualified companies are utilized. Packages supplied
by compressor and/or turbine suppliers can often be a module
of themselves, but further packaging should be evaluated
carefully. Modularization for maintenance by contrast is closely
linked to remote operation. The intent would be to have small
modules encompassing high technology equipment that can
be removed and replaced readily by a competent maintenance
worker who would not need to know the details of the enclosed
components. This is used successfully in other industries.
Replacement and/or repair of the components within the
module can be carried out by skilled technicians in a central
establishment, which may well be the suppliers’ establishment.
Additional benefit could also be gained from the practice of
keeping common spares.
For pipelines utilizing highly reliable machines, the availability
advantage of providing spare machines at each station
becomes minimal. Operator’s experience seems to suggest
that spare machine trains may not be appropriate for many
pipeline designs.
16 17
Pressure barg
Distance m

Process Optimization
Process optimization may offer some of the greatest benefits
to cost reduction in the future. The base premise should be
that there is a requirement to move fluid and that some device
is needed to provide this movement and some form of energy
must be applied to achieve the removal.
Multi-language CB&I Web Site
Marketing News
Tradeshows
Anything other than this basic requirement should be
considered surplus to requirements until a valid and
unshakable argument is put forward. Many pipeline stations
are equipped with emergency generators, building complexes,
water supply and treatment, back up fuel supplies and so on
that often require as much, if not more, maintenance than
the machinery trains. Buildings require heating and lighting,
and often air conditioning, which use energy and require
maintenance.
According to recent demographic data, while English remains
the world’s most popular language, it is the native language of
only around 35% of the global Internet population. In fact, it
is projected than in the near future, 60% of Internet users will
speak a language other than English. To ensure we continue
to provide valuable information about CB&I to our potential
customers – many of whom speak different languages – CB&I’s
Web site, www.CBI.com, is now available online in Russian and
Chinese. Arabic and Spanish versions are coming soon.
We will demonstrate our experience, technology and track
record at a number of forthcoming global trade shows in
2006:
• Global Petroleum Show 2006, 13-15 June 2006,
Calgary, Alberta, Canada
• Power-Gen International, 28-30 Nov 2006, Orlando,
Florida, USA
• GASTECH 2006, 4-6 Dec 2006, Abu Dhabi, UAE
18
By using the capabilities of the machinery train such as would
be available from exhaust heat, secondary drivers or even the
incoming air supply, much of the extra energy required by the
machinery train can be provided without additional fuel use.
In addition, the availability of the train depends on its own
reliability and not that of an ancillary piece of equipment.
Removal of building and personnel support systems further
reduces complexity, as well as power and maintenance
requirements, leaving the machinery train as a self contained
and sustained entity.
ENVIRONMENTAL BENEFITS
While the initial focus had been on cost reductions, it became
quite apparent that the proposed techniques will also produce
considerable environmental benefits from the reduction in
energy consumption due to the following:
• Reduced manufacture of equipment for each
facility
• Reduced construction activities at site from the
reduction in buildings and equipment
• Reduced energy consumption at sites by adopting
remote operation
• Improved fuel utilization due to improved machinery
design
APPLICATION TO PROJECTS
These concepts were tested against various BP in-house
projects and confirmed that such savings can be achieved.
Areas for further design optimization were identified. The
confirmed concepts are being used on some BP projects
already. A similar analysis has been carried out for oil pipelines.
However, the effect of topography makes the analysis projectspecific
and general methodology difficult to apply.
CONCLUSIONS
This study work has demonstrated that an order of 20% cost
reductions can be achieved for gas pipeline facilities. The
other big bonus is the reduction in carbon footprint leading
to reduction in environmental impact from reduced facilities
and more efficient fuel usage. Many of these concepts can
also be used on oil pipelines as many of the principles for cost
savings relating to remote operation and modularization are
applicable to all pipelines.
Gurdial Singh
Hydrogen Plant Technology
Video
In April 2006, CB&I introduced a new video on hydrogen plant
technology. The video utilizes three-dimensional computer
animation to depict CB&I’s hydrogen plant capabilities and
EPC services. It integrates animated images, photos and
other graphics to describe the features and benefits of using
hydrogen plant technology, as well as CB&I’s experience in
designing and building these plants. The new video is available
on CD-ROM, runs six minutes and is playable on any computer
system.
Hot Off the Press ….
“Sulfur Review and Major Projects Review”, Hydrocarbon
Engineering, April 2006. CB&I recently contributed to
Hydrocarbon Engineering’s comprehensive overview of
the key sulfur technologies available to plant/refinery
operators. The section dedicated to CB&I spotlights our
proprietary sulfur recovery unit (SRU) technologies, our
oxygen enhancement technologies, our family of Resulf
tail gas treating unit (TGTU) technology, and the various
construction options we offer for SRU and TGTU projects.
“Coke Drum Design: Reliability Through Innovation”,
White Paper for the NPRA Annual Meeting, March 2006.
The paper examines the theories behind coke drum failure
and demonstrates ways of improving their reliability such as
installing CB&I’s vertical plate technology, which eliminates
the circumferential weld seams in the area prone to distortion
and cracking. In addition, the paper includes a description
of the new skirt attachments that have been developed for
coke drums, as well as an economic case for implementing the
vertical plate design. This paper also will be featured in the 3Q
2006 edition of Petroleum Technology Quarterly.
“Operation Hydrogen”, Hydrocarbon Engineering, February
2006. The article examines steam methane reforming (SMR)
based hydrogen plants and the design nuances that are
now typically a part of designing a modern hydrogen plant.
Factors to consider include the capability to handle multiple
feedstocks, setting an export steam amount that will fit within
a refinery’s steam balance, and controlling the export steam
purity.
19

A world of EPC Solutions
CB&I executes on average more than 700 projects each year
and is one of the world’s leading engineering, procurement and
construction (EPC) companies, specializing in lump-sum turnkey
projects for customers that produce, process, store and distribute
the world’s natural resources.
With more than 60 locations and approximately 10,000 employees
throughout the world, CB&I capitalizes on its global expertise and
local knowledge to safely and reliably deliver projects virtually
anywhere. Information about CB&I is available at www.CBI.com.
Focused Competitive Local
Results Second to None
www.CBI.com
p r o d u c t i o n p r o c e s s i n g s t o r a g e d i s t r i b u t i o n