Bechtel’s LNG prospects have never been brighter than they are in Australia.

On Curtis Island, in eastern Australia, we are building three world-scale plants to process the region’s vast coal seam gas reserves. In 2011, we started work on two plants—for Australia Pacific LNG and GLNG—adjacent to our Queensland Curtis LNG project for QGC, a BG Group business, where work began in 2010. The proximity of these three projects and their concurrent execution present opportunities both for execution synergies and improved quality and significant labor, accommodation, logistical, and related challenges.

We also received full notice to proceed on the Wheatstone LNG project for Chevron Australia. Wheatstone is one of Chevron’s largest projects to date, encompassing two trains with a combined capacity of 8.9 million tons per year and a gas plant for Australia’s domestic market.

In the United States, Cheniere Energy, Inc., has invited us back to construct the first two trains of its Sabine Pass liquefaction plant on the same site as the LNG receiving terminal and regasification facility that we completed in 2009. We expect to receive full notice to proceed on the liquefaction project in 2012. When it opens in 2015, the new plant will be the first to export liquefied U.S. shale gas.

In downstream work, we completed the addition of three process units to the Wood River refinery in Illinois for WRB, a joint company of ConocoPhillips Company and Cenovus US Refineries LLC. We also neared completion of a major expansion of Motiva Enterprises’ refinery in Texas. We made progress on Chevron’s Pascagoula Base Oil Project in Mississippi. In May, we signed a 10-year agreement with BP Group to provide EPC services for new onshore gas plants worldwide. Teams in London and New Delhi are performing engineering for the first contract—BP’s West Nile Delta project in Egypt. In Northern Alberta, Bechtel’s Canadian affiliate, Bantrel, is in the early stages of constructing the Surmont Phase 2 steam-assisted gravity drainage facility—the largest ever built as a single train. This project is being built for ConocoPhillips and Total.

As upstream customers invest in larger and more complex offshore and deepwater field developments, we have expanded our capabilities, forming a separate business line to address deepwater subsea systems and floating production units.

Finally, OG&C is creating an integrated offering of shale gas field development, pipelines, and
LNG liquefaction.