Shaw Selected to Provide Technology and Design Services for Yanchang Petroleum Group's Olefins Recovery Unit in China

BATON ROUGE, La. - (BUSINESS WIRE) - The Shaw Group Inc. (NYSE: SHAW) today announced it has been selected to license its proprietary Refinery Offgas (ROG) purification and recovery technology and supply process design services for a 1,500 kilo tonnes per annum (kTA) deep catalytic cracking (DCC) unit in Shaanxi province, China. The unit, which produces ethylene and propylene from heavy oil feedstock, is owned by Yulin Energy and Chemical Co. Ltd., a subsidiary of Yanchang Petroleum Group Co. (SYP).

Shaw's ROG technology will enable SYP's unit to produce an incremental 270 kTA of ethylene and 320 kTA propylene. Under the agreement, Shaw also will provide the technology for two Ultra Selective Conversion (USC) furnaces and other proprietary equipment, as well as technical support during basic and detailed design, commissioning and startup of the DCC unit.

The undisclosed value of the contract will be included in the Energy & Chemicals segment's backlog of unfilled orders in the first quarter of fiscal year 2010.

"SYP is a new client for Shaw, and we look forward to contributing our advanced technology and engineering capabilities, not only in traditional ethylene plants, but in broader olefins fields," said Lou Pucher, president of Shaw's Energy & Chemicals Group.

Sinopec's Research Institute of Petroleum Processing (RIPP) and Sinopec Engineering Inc. (SEI) will provide technology and engineering for the reactor/regenerator and primary fractionation sections of the DCC unit.

The award follows the successful startup of the first olefins unit to include commercial installation of RIPP's technology to convert heavy crude feedstock to ethylene and propylene. Shaw also provided its proprietary USC furnaces and basic engineering for this project.

SYP is a state-owned enterprise affiliated with Shanxi provincial government and one of four oil and gas exploration companies in China.

The Shaw Group Inc. is a leading global provider of technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation and facilities management services for government and private sector clients in the energy, chemicals, environmental, infrastructure and emergency response markets. A Fortune 500 company with fiscal year 2009 annual revenues of $7.3 billion, Shaw is headquartered in Baton Rouge, La., and employs approximately 28,000 people at its offices and operations in North America, South America, Europe, the Middle East and the Asia-Pacific region. Shaw is the power sector industry leader according to Engineering News-Record's list of Top 500 Design Firms. For further information, please visit Shaw's Web site at www.shawgrp.com.

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The Shaw Group Inc.
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