UNITED STATES OF AMERICA

BEFORE THE FEDERA TRADE COMMISSIO

SECRETR'

CHICAGO BRIDGE & IRON COMPANY

a corporation

CHICAGO BRIDGE & IRON COMPANY N.V. ) a foreign corporation, Docket No. 9300

In the Matter of

PUBLIC

PITT-DES MOINES, INC.,

a corporation.

SUPPLEMENT TO PETITION TO RECONSIDER THE OPINION AND ORDER IN

LIGHT OF ENTRY AFTER THE CLOSE OF THE RECORD AND OVERBREADTH

Respondents! file this Supplement to their Petition to Reconsider the Opinion and Order

in Light of Entry After the Close ofthe Record and Overbreadth (the "Petition to Reconsider

CHENIERE ENERGY RECENTL Y AWARED

AN LNG TANK PROJECT TO COMPETITORS OF CB&I

On February 4, 2005, CB&I learned that, once again, firms wrtten off by the

Commission as unable to establish a successful presence in the United States "in the foreseeable

future 2 have won a 

competitive bid for a U.S. LNG tan constrction project in direct

competition with CB&L Cheniere Energy, Inc. ("Cheniere ) has selected the team ofMitsubishi

Heavy Industres, of Tokyo, Japan, and Matrix Service Company ( Matrix ), a United States

corporation, to perform the LNG tan constrction work on its LNG import terminal planned for

! Respondents Chicago Bridge & Iron Company N.V. and Chicago Bridge & Iron Company are

referred to herein collectively as "Respondents" or "CB&L" 2 Op. at 57.
Sabine Pass, Texas. See Declaration of Ronald E. Blum, dated February II , 2005, attached at

App. I (the Blum Dee!.

Cheniere is pursuing this project in tandem with a project it plans for Corpus Christi

Texas. Bidding for both projects proceeded on a two-project, single bid basis. CB&I originally

submitted its bid for the two projects in 2003. In 2004, Cheniere s Engineering, Procurement and

Construction Contractor, Bechtel Corporation ("Bechtel ), sought tan subcontract bids on

behalf of Cheniere a second time. CB&I again submitted a bid. In the summer of 2004, shortly

after the second bid submission, Cheniere and MHI/atrix announced the award of this contract

to MHI/atrix. See, e.

g., 

App. 6 to Petition to Reconsider.

As reported in the Petition to Reconsider, despite the summer 2004 anouncement

Bechtel, in December 2004, indicated that MHIIMatrix and CB&I were still in competition with

each other and requested that CB&I update its proposal for the Sabine Pass project, which it did.

Petition to Reconsider at 10. Shortly after the filing of the Petition to Reconsider, CB&I learned

that MHI/atrix beat CBI and won the LNG tank award for the Sabine Pass project. See Blum

Decl
II.

CONCLUSION

Events as recent as this month confirm that the market is very different than what the

Commission was led to believe ITom the record, demonstrating that today there are ample and

adequate bidders to give customers significant competitive options. Respondents urge that the

Commission re-open the record to take additional post-acquisition, post-hearng evidence

regarding the continued course of competition since the close ofthe record.

Dated: February 14, 2005

Respectfully submitted

/IJ.

Clifford H. Aronson

SKADDEN, ARs, SLATE, MEAGHER & FLaM LLP

4 Times Square

New York, NY 10036-6522

Telephone No. : 212-735-2644

Facsimile No. : 917-777-2644

Charles W. Schwartz

SKADDEN, ARs, SLATE, MEAGHER & FLaM LLP

1600 Smith, Suite 4400

Houston, TX 77002-7348

Telephone No. : 713-655-5160

Facsimile No. : 888-329-2286

ATTORNYS FOR RESPONDENTS

CHICAGO BRIGE & IRON COMPAN N.

AN CHICAGO BRIGE & IRON COMPANY
CERTIFICATE OF SERVICE

, Sara Bensley, hereby certify that on February 14, 2005, a true and correct copy

of the foregoing Supplement to Petition to Reconsider the Opinion and Order in Light of Entry

after the Close afthe Record and Overbreadth and of one appendix, the Declaration of Ronald E.

Blum, dated February 11 , 2005 , were served on the following persons by hand delivery: 

Donald S. Clark

Secretary

Federal Trade Commission

RoomH- 159

600 Pennsylvania Avenue, N.

Washington, D.C. 20580

Rhett R. Krlla, Esq.

Assistant Director

Bureau of Competition

Federal Trade Commission

601 New Jersey Avenue, N.

Room NJ-6120

Washington, D.C. 20001

Steven L. Wilensky, Esq.

Federal Trade Commission

601 New Jersey Avenue, N.

Room NJ-6120

Washington, D.C. 20001 d)rt

Bensley

UNITED STATES OF AMERICA

BEFORE FEDERA TRAE COMMISSION

CHICAGO BRIDGE & IRON COMPANY

a corporation

CHICAGO BRIDGE & IRON COMPAN N.V. )

a foreign corporation

Docket No. 9300

In the Matter of

PITT-DES MOINES, INC.

a corporation.

DECLARTION OF RONALD E. BLUM IN SUPPORT OF

RESPONDENTS' SUPPLEMENT TO PETITION TO RECONSIDER

THE OPINION AND ORDER IN LIGHT OF ENTRY

AFTER THE CLOSE OF THE RECORD AND OVERBREADTH

Ronald E. Blum states as follows:

1. My name is Ronald E. Blum, I am over the age of 18 years and am competent to make

this Declaration. This Declaration is bascd on my pcrsonal knowledge obtained through

my employmcnt as Group Vicc President, LNG Global Sales with Chicago Bridgc & Iron

Company ("CB&I

2. In the course of my employment, I have responsibility for LNG facility sales in North

America. In the course of my employmcnt, I am familiar with CB&I's efforts to obtain

awards on the following projects:

. A ncw LNG import tcrminal planned for Corpus Chrsti, Tcxas, by Chcniere Energy

(the "Cheniere Corpus Proiect

. A new LNG import terminal planned for Sabinc Pass, Texas, by Cheniere Energy (the

Chcniere Sabinc Pass Proiect

3. Thc Cheniere Corpus Project and thc Chenicre Sabinc Pass Projcct will each include

three single containment tans.

4. In the carly stages of dcvelopmcnt on both Cheniere projects, CB&I had discussions

with Chenjere in regards to CB&I providing technical services for Cheniere s FERC

application for the Sabine Pass and Corpus Chrsti projccts in cxchange for a
application for the Sabine Pass and Corpus Chrsti projects in exchange for a

commitment ITom Cheniere to negotiate exclusively with CB&I for the full engineering,

construction, and procurement for each project. Instead, Cheniere hired Black & Vcatch

for FERC assistance and FEED. At that time, CB&I understood that Black & Veatch

would have a preferred position with respect to obtaining the award of the EPC contract

for both thc Chenicre Corpus Projcct and the Cheniere Sabine Pass Project.

5. In 2003 , Black & Veatch solicited proposals for the tank work subcontract on both of the

Cheniere projects.

6. Chcniere ultimately selected Bechtel as the EPC contractor, and negotiations between

Bechtel and Cheniere commenced for the EPC contracts for thc two projccts. Evcn

though Bechtel had been named EPC for both projects, Cheniere requested that CB&I's

tan proposal be submittcd to Black & Vcatch and CB&I did so. CB&I understands that

Mitsubishi Heavy Industries ("MHI ), in association with Matrix, and Toyo Kanetsu KK

TKK ), in association with AT&V, also submitted bids for the tank work on the two

projects.

7. Apparently preferrng its own specifications, Bechtel subsequently askcd CB&I and

others to submit new bids for LNG tank construction on both projects. CB&I again

submitted a proposal for this work, this time to Bechtel. Based upon Bechtel'

spccifications for the bids, the value of the tan work subcontracts for the Chcnicrc

Corpus Project and the Cheniere Sabine Pass Project would have bcen substantial, as

each project included three LNG tans with technical specifications unique to the project.

fter CB&I submitted a bid to Bechtel, Chenierc announced that MHIIMatrix had been

selected as the tank subcontractor on the Sabine Pass Project and Corpus Chrsti Project.

8. Bechtel has sincc executed a contract for the EPC work on the Cheniere Sabine Pass

Project. Although Cheniere previously announced that MHI/atrix had been sclccted as

the tank subcontractor on this projcct, CB&1 understands that the LNG tank contract has

not actually been awarded. In Oecemher 2004, Bechtel rcquested that CB&1 updatc its

proposal for the Chenierc Sabinc Pass Project.

9. On February 4, 2005 , I leared that the LNG tank subconstract for the Sabine Pass

project has bccn awarded to MHI/atrix.

I declare under penalty of peIjury that the foregoing is t

/f'
CERTIFICATE OF SERVICE

Sara L. Bensley, hereby certify that on February 15, 2005 , true and

correct copies of the Declaration of Ronald E. Blum, dated Fcbruary 2005 , an

attachment to Respondents Supplement to Petiton to Reconsider the Opinion and Order

in Light of Entry after the Close of the Record and Overbreadth were served on the

following persons by hand delivcry:

Donald S. Clark

Secretary

Federal Trade Commission

Room H- 159

600 Pennsylvania Avenuc, N.

Washington, D.C. 20580

Rhett R. Krlla, Esq.

Assistant Director

Bureau of Competition

Fcderal Trade Commission

601 New Jersey Avenue, N.

Room NJ-6120

Washington, D.c. 20001

Steven L. Wilensky, Esq.

Federal Trade Commission

601 New Jersey Avenuc, N.

Room NJ-6120

Washington, D.c. 20001