Apr. 9, 2012 CB&I

CB&I Announces Petrochemicals Expansion Project in the U.S.

CB&I announced today that it has been awarded a contract valued at about US$300 million, by Williams Olefins, LLC for a petrochemicals expansion project in Geismar, Louisiana.

The scope of the award includes the license and basic engineering for the ethylene technology, the supply of the cracking furnaces, and the detailed engineering, procurement, and construction of the expansion project. Plant capacity is expected to be increased from 1.35 to 1.95 billion pounds per year.

“We are very pleased to be selected for this important U.S. ethylene project,” said Philip K. Asherman, President and CEO. “The petrochemicals market is re-emerging in the U.S. due to the abundance of lower cost ethane feedstock, directly attributable to increased shale gas production. This award reflects the industry’s confidence in CB&I’s ability to provide both proven technology and EPC services to the petrochemicals market.”

Ethylene, mainly produced via steam cracking, is the world’s largest volume hydrocarbon. As the primary building block for the chemical industry, it is used to produce a variety of products including plastics, fibers and rubbers.

About CB&I

CB&I engineers and constructs some of the world’s largest energy infrastructure projects. With premier process technology from its Lummus Technology business, proven EPC expertise, and unrivaled storage tank experience, CB&I executes projects from concept to completion. Safely. Reliably. Globally.

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Williams, including its assets held through Williams Partners L.P., is an energy infrastructure company focused on connecting North America’s significant hydrocarbon resource plays to growing markets for natural gas, natural gas liquids (NGLs) and olefins. Williams’ operations span from the deepwater Gulf of Mexico to the Canadian oil sands.

Williams owns and operates midstream gathering and processing assets, and interstate natural gas pipelines. In addition, Williams processes oil sands off-gas and produces olefins for petrochemical feedstocks.

Williams Olefins, L.L.C.

Williams’ olefins business provides customers in the petrochemical industry a full suite of products and services.

Gulf Coast Olefins

The Geismar, La. facility annually produces approximately 1.3 billion pounds of ethylene and 90 million pounds of polymer grade propylene. Also in Louisiana, the olefins team is responsible for the ethane transportation business consisting of approximately 200 miles of pipelines, as well as a refinery-grade propylene splitter.

Canadian Olefins

Williams’ Canadian olefins business extracts natural gas liquids and olefins from oil sands refining near Fort McMurray, Alberta. The liquids are then fractionated into various products at a Williams facility near Redwater, Alberta. Williams also has a business office in Calgary.

Cryogenic Liquids Extraction Plant Located Near Fort McMurray

• An environmentally-friendly project as it reduces sulphur emissions and other green house gases
• Extracts natural gas liquids (NGLs) from coker off-gas produced from an oil sands plant
• Coker off-gas includes olefins such as propylene which is typically produced through ethane or propane cracking

Olefins Fractionation Plant Located Near Edmonton

• Only olefinic fractionator in Western Canada
• Fractionates NGL mix from Fort McMurray
• On a yearly basis, produces approximately 2.4MM bbls of propane, 140MM lbs of polymer grade propylene, 727,000 barrels of normal butane, 672,000 barrels of alky-feed  and 230,000 bbls of olefinic condensate

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June 22, 2007 BASF

BASF Agrees to Sell its Minority Ownership Interest in Geismar, LA Ethane Cracker and Associated Facilities

BASF Corporation today announced that it has agreed to sell its minority ownership interest in a 610,000 tons per year ethane cracker and associated pipeline and storage facilities located in Geismar, Louisiana. Subject to regulatory approvals, Williams Olefins, L.L.C., will purchase BASF's ownership interest in the cracker and PetroLogistics, LLC, will purchase BASF's interest in the associated pipeline and storage facilities. Terms of the agreements were not disclosed. Closing is expected to take place in July.

The ethane cracker is jointly owned by GE Petrochemicals, Williams Olefins, L.L.C. and BASF, and operated by Williams Olefins, L.L.C.

The pipeline and storage facilities are jointly owned by GE Petrochemicals, PetroLogistics, LLC, and BASF, and operated by PetroLogistics.

BASF purchased its ownership stake in the cracker and associated facilities in 1970 as part of its acquisition of Wyandotte Chemicals. Each owner supplies raw materials to the cracker and independently markets its share of production from the cracker.
"BASF's strategy to more closely balance olefins supply capability with captive demand is well served by our world-scale joint venture naphtha steam cracker in Port Arthur, Texas, reducing the strategic importance of the Geismar ethane cracker to BASF," said Peter Cella, NAFTA Group Vice President, Petrochemicals. "We believe our investment in the Port Arthur cracker and the latest technology deployed at this facility will provide BASF with a sustainable first quartile competitive position in the marketplace."