Shaw Proceeds with Front-End Engineering Design for Chevron Phillips Chemical’s 1500 KTA Ethylene Plant in U.S.

  Shaw Proceeds with Front-End Engineering Design for Chevron Phillips
  Chemical’s 1500 KTA Ethylene Plant in U.S.

Business Wire

BATON ROUGE, La. -- April 30, 2012

The Shaw Group Inc. (NYSE: SHAW) today announced it has executed an agreement
with Chevron Phillips Chemical Company LP (Chevron Phillips Chemical) to
proceed with front-end engineering design (FEED) for a 1.5 million metric tons
per year (3.3 billion pounds per year) grassroots ethylene plant. The scope of
work, which will be released in phases, follows Shaw’s previous award of a
contract to license its proprietary technology and provide a process design
package for the project. The plant will be located at Chevron Phillips
Chemical’s Cedar Bayou Plant in Baytown, Texas.

“This plant will be among the first to use economical supplies of ethane
feedstock derived from shale gas resources in the United States,” said James
Glass, president of Shaw’s Energy & Chemicals Group.

Shaw has a long history of providing services to Chevron Phillips Chemical,
having designed ethylene plants in the Middle East and major expansions of
crackers in Port Arthur and Sweeny, Texas. In addition, Shaw has conducted
studies, performed revamps and supplied furnaces at some of the company’s
other sites.

The undisclosed value of the contract will be included in Shaw’s Energy &
Chemicals segment’s backlog of unfilled orders as work is authorized to
proceed.

The Shaw Group Inc. (NYSE:SHAW) is a leading global provider of engineering,
construction, technology, fabrication, remediation and support services for
clients in the energy, chemicals, environmental, infrastructure and emergency
response industries. A Fortune 500 company with fiscal year 2011 annual
revenues of $5.9 billion, Shaw has approximately 27,000 employees around the
world and is a power sector industry leader according to Engineering
News-Record’s list of Top 500 Design Firms. For more information, please visit
Shaw’s website at www.shawgrp.com.

This press release contains forward-looking statements and information about
our current and future prospects and our operations and financial results,
which are based on currently available information. The forward-looking
statements include assumptions about our operations, such as cost controls and
market conditions, that may not be realized. Actual future results and
financial performance could vary significantly from those anticipated in such
statements. We undertake no obligation to update or revise any forward-looking
statements, whether as a result of new information, the occurrence of certain
events or otherwise.

Among the factors that could cause future events or transactions to differ
from those we expect are those risks discussed under Item 1A “Risk Factors” in
our Annual Report on Form 10-K for the fiscal year ended August 31, 2011, our
Quarterly Reports on Form 10-Q for the quarters ended November 30, 2011, and
February 29, 2012, and other reports filed with the Securities and Exchange
Commission (SEC). Please read our “Risk Factors” and other cautionary
statements contained in these filings.

As a result of these risks and others, actual results could vary significantly
from those anticipated in this press release, and our financial condition and
results of operations could be materially adversely affected.

Contact:

The Shaw Group Inc.
Gentry Brann, 225-987-7372
gentry.brann@shawgrp.com