November 2003

The project includes theconstruction of a new gasolinedesulfurization unit and acoker naphtha splitter unit thatwill produce 87 000 barrels ofgasoline per day in compliancewith the Clean Air Act regula-tions recently mandated by theUS Environmental ProtectionAgency. The EPC services willbe provided by Shaw’s Stone& Webster Process Groupbased in Houston, Texas, USA.

SUBMARINEPIPELINE

PROJECT FORCHINA

Hyundai Heavy Industries’Offshore & EngineeringDivision has won a US$130million contract to constructa submarine gas pipelinefrom China Petroleum andChemical Corp (SINOPEC)and China National OffshoreOil Corp (CNOOC).

The project involves laying345 km of 28-inch diameterpipes to connect the Chunxiaooffshore platform with anonshore processing plant inSan Shen. In addition, 127 kmof submarine pipes will be laidto connect infield offshoreplatforms in the Chunxiaofield.

The division will be incharge of the installationdesign and pipeline laying,including hydraulic test of laidpipelines. The project is sched-uled for completion by April2005.

KINDER MORGANTO EXPAND GAS

TRANSPORTNETWORK

Kinder Morgan Inc (KMI) isplanning a US$50 millionexpansion of its Trans-Colorado gas transportationinfrastructure. The upgradefollows the signing of a 10year firm natural gas trans-portation contract with anundisclosed shipper.

The project will provide anadditional 125 000 dekathermsper day (Dth/d) of firm naturalgas transportation capacity inthe TransColorado systemfrom northwestern Colorado toBlanco, New Mexico. Threenew compressor stations willbe built, and equipment modi-fied at two existing locations,to increase compression bymore than 20 000 horsepower.

KMI expects to file for aUS Federal Energy RegulatoryCommission certificate beforethe end of the year for theauthority to construct the facil-ities and place them into serv-ice. Subject to appropriate reg-ulatory approvals, the addi-tional capacity is anticipated tobe available during the thirdquarter of 2004.

CB&I WINS LNG TERMINAL

EXPANSIONCONTRACT

CB&I has been awarded acontract valued in excess ofUS$80 million for engineer-ing, procurement, construc-tion and commissioningwork related to the expan-sion of a liquefied natural gas(LNG) terminal in LakeCharles, Louisiana, USA.

CB&I’s work scope for theproject includes a new 140 000m3 LNG storage tank; modi-fied send out pumps andvaporizers to increase plantsend out; and related civil,mechanical and electricalworks. The project willincrease the facility’s send outcapacity to 1.2 billion standardcubic feet per day (SCFD) ofnatural gas from its currentcapacity of 630 million SCFD.The project is expected to becompleted by the end of 2005,and the terminal will remain inoperation during CB&I’swork.

Selas Fluid ProcessingCorp, meanwhile, has receivedan order in excess of US$2.5million for a LNG vaporizer tofeed the Lake Charles pipeline.

Owned and operated byTrunkline LNG Company, aunit of Southern Union Co, theLake Charles terminal is NorthAmerica’s largest operatingLNG terminal.

FLUOR SECURES MIDDLE EAST

EPC CONTRACTFluor Corp has been award-ed a US$22 million engineer-ing, procurement and con-struction (EPC) contract bygas processing giant AbuDhabi Gas Industries Ltd(GASCO).

Under the contract, Fluorwill modify existing facilitiesat GASCO’s Habshan gas pro-cessing plant and install a newpropane refrigeration packageand absorber column.

The work is aimed at max-imizing ethane recovery at thesite, with the target being anextraction rate of 400 tons ofethane per day upon projectcompletion. The ethane will beused as feedstock to down-stream petrochemical compa-nies related to GASCO and itsparent, Abu Dhabi NationalOil Co.

Fluor’s office in AlisoViejo, California, USA, is incharge of the project, which isscheduled for completion inDecember 2004.

INTEC WINS FEED CONTRACT

FOR MEDGAZPROJECT

Intec Engineering has wonthe front-end engineeringdesign contract for theMEDGAZ offshore pipelineproject in the MediterraneanSea.

The MEDGAZ pipelinewill transport high pressuregas from Algeria to Spain forboth Spanish and Europeanmarkets. MEDGAZ partnersinclude Sonatrach, Algeria’snational oil company; CEPSA;BP; TOTAL; ENDESA; Gazde France; and Spanish energy

company Iberdrola. The pro-posed pipeline will traverse amaximum water depth of 2160m in the Mediterranean Sea.Total offshore distance is 200km from Beni Saf, Algeria, tolandfall at Playa del Charco,near Almeria, Spain.

MEDGAZ pipelines arebeing designed to transport atotal volume of 16 billion m3

per year of gas through twosubmarine pipelines, with anestimated start-up rate of 7 bil-lion m3 per year targeted forthird quarter 2006.

Intec’s contract includesthe design/engineering of theoffshore pipeline, shoreapproaches and short onshorepipeline sections to theonshore terminals at either endof the trunkline. It is scheduledto complete its work inFebruary 2004.

ENGINEERING &CONSTRUCTION

BOC INVESTS INCHINA

BOC Gases is involved inthree industrial gas supplyprojects in China, with theschemes representing a totalinvestment of more thanUS$100 million.

The first project is seeingBOC work with China’slargest stainless steel manufac-turer, Taiyuan Iron and SteelCorp (TISCO), in a joint ven-ture to build two new air sepa-ration units (ASUs). The unitswill supply 1400 tonnes perday of oxygen to TISCO’splant in Shanxi province innorth-central China. The ASUswill cost US$82 million andare scheduled to come onstream at the end of 2005.

The investment is inresponse to strong demand forstainless steel in China andwill support TISCO’s vigorousexpansion plans. TISCO hasbeen selected by the centralgovernment as one of twostainless steel developmentcentres. Its current production

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of nearly 600 000 tonnes peryear of crude stainless steelwill rise to 900 000 tons by2005, which will make it oneof the five largest stainlesssteel producers in the world.

The BOC-TISCO jointventure was formed in 1996with an initial capital invest-ment of US$30 million. Thejoint venture entered into a 15-year a agreement to supplyindustrial gases to TISCO.BOC has been investing inChina since the mid-1980s andis continuing the strategy thathas established it as the lead-ing industrial gases companyin the country.

In a second project, BOChas reached an agreement withGuangzhou Iron & Steel (GIS)for their joint venture companyPearl River Gases (PRG) tobuild a further two ASUs,adding around 400 tonnes ofproduction to its current opera-tions. Costing a total of US$19million, this new investmentwill come on stream by the endof 2004, supporting GIS’sexpansion of its steel manufac-turing operations in southernChina.

GIS is a major steel pro-ducer in China with an annualsteel production capacity of3.5 million tonnes. PRG wasformed in the early 1990s andhas three joint venture compa-nies under its management.These three companies togeth-er supply oxygen via pipelineto two steel sites, and bulk andcompressed gases to the mer-chant market within the PearlRiver Delta.

And in another project,BOC’s wholly owned sub-sidiaries in Suzhou have begunconstruction of new on-sitesupply scheme pipelines tomeet increasing demand forindustrial gases from key cus-tomers in Suzhou IndustrialPark and Suzhou New District.Coming on stream at the end of2003, the US$10 millioninvestments further strengthenBOC’s position in theShanghai/Nanjing area.

POWER GENERATION

BLCP POWERORDERS

COAL-FIREDPOWER PLANT

Mitsubishi Heavy Industrieshas been awarded a contractfor the construction of a 1434MW coal-fired powerplant.by BLCP Power Ltd ofThailand.

The plant will consist oftwo subcritical pressure boilersand two 717 MW steam tur-bines, all to be manufacturedby MHI. The plant will be con-structed in the Map Ta PhutIndustrial Estate in RayongProvince, approximately 200kilometers south of Bangkok.The No 1 unit is planned tostart operation in October2006, and the No 2 unit inFebruary 2007.

BLCP Power is an inde-pendent power producer joint-ly owned by Banpu Power Ltdand CLP Power Asia Ltd.Banpu Power is a whollyowned subsidiary of BanpuPublic Co Ltd, Thailand’slargest coal supplier. CLPPower Asia is a wholly ownedsubsidiary of CLP HoldingsLtd, one of the largest investor-owned power businesses inAsia.

DEMAG DELAVALWINS ��230 MN

IN ORDERSDemag Delaval IndustrialTurbomachinery AB hassecured power plant ordersworth approximately ��230million from Sweden,Greece, Russia and India.

The company will build aturnkey combined heat andpower (CHP) plant forGothenburg Energy, Sweden,and has secured orders for fourindustrial turbines from cus-tomers in Greece, Russia andIndia.

The CHP plant will pro-vide electricity and districtheat for the city ofGothenburg. It comprises three43 MW gas turbines and a 141MW steam turbine. It will havean overall efficiency of 92.5%,and is scheduled to be opera-tional in late 2006.

Demag Delaval will alsosupply two gas turbines eachrated at 29 MW for a new CHPplant to provide power genera-tion for the town of Sochi inRussia. Contractor is JSC CityEnergo, Moscow, and the endcustomer is RAO UESR(Unified Energy System ofRussia). The plant is scheduledto come on line in the fall of2004.

The Siemens subsidiarywill also supply a 100 MWindustrial steam turbineincluding the instrumentationand control system and spareparts to Jindal Power PrivateLtd (JPPL) in the BellerayDistrict of India. In addition, ithas secured an order to supplyan 17 MW gas turbine to arefinery in Corinth, Greece.Technip placed the order onbehalf of the end-user, MotorOil Hellas.

WORLD’S FIRSTORDER FOR

REPLACEMENTPRESSURIZER

Mitsubishi Heavy IndustriesLtd (MHI) has received anorder from Omaha PublicPower District (OPPD) for apressurizer and reactor ves-sel head to refurbish anuclear power station.

Pressurizer replacement isunprecedented, and the proj-ect is a global first. The pres-surizer is an integral compo-nent of the equipment thatforms the primary system inpressurized water reactors. Itcontrols pressure in the reac-tor to prevent coolant waterfrom boiling.

The equipment will beinstalled at the Fort CalhounNuclear Power Station located

30 km north of Omaha,Nebraska, USA. Equipmentdelivery is scheduled for 2006.Installation work is not includ-ed in the contract. The pressur-izer to be manufactured willmeasure 8.5 m in height and2.5 m in exterior diameter andwill weigh roughly 60 tonnes.The reactor vessel head will be2.5 m high, 4.3 m in exteriordiameter, and weigh 40 tonnes.Both will be made of low alloysteel.

The Fort Calhoun facilityhas a single reactor with anelectrical output of 492 MW.Replacement of its majorequipment is being carried outin preparation to extend theplant’s operating life by anadditional 20 years beyond thecurrently scheduled close in2013.

SHAW SELECTEDFOR NUCLEAR MAINTENANCE

SERVICESStone & Webster Con-struction, a subsidiary of theShaw Group, has been select-ed to provide maintenanceand modification services forfour stations in the NuclearNortheast fleet of US-basedEntergy Nuclear OperationsInc. The company expects tofinalize contractual arrange-ments by 31 December 2003.

The award represents anexpansion of similar work cur-rently being performed byStone & Webster at five unitsin Entergy’s South Nuclearfleet. Stone & Webster has pro-vided maintenance and modifi-cation services for the SouthNuclear fleet since 1996, andwas awarded a renewed six-year contract for a continua-tion of these services in April2003.

With the addition ofEntergy’s Northeast fleet, theShaw Group is now providingmaintenance and modificationservices to 32 of the 103 oper-ating nuclear plants in theUSA.

November 2003

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