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KBR Joint Venture Awarded Contract to Prepare for Historic PERU LNG Facility

Source: www.gulfoilandgas.com 10/4/2005, Location: North America

KBR announced that the joint venture between KBR and JGC Corporation of Japan recently executed a contract with Peru LNG Company, LLC (PLNG) for the preparation of the lump sum turnkey (LSTK) price for a liquefied natural gas (LNG) facility to be located in Pampa Melchorita, Peru. This 4.45 million metric tons per year (MMTPA) grassroots facility will be Latin America’s first LNG export facility. KBR is the engineering, construction and services subsidiary of Halliburton.

“The opportunity to play an important role in this historic undertaking is further indication of KBR’s position as the leading provider of gas monetization solutions for our clients around the world,” said Lou Pucher, senior vice president, KBR Energy and Chemicals. “We are pleased to work with PLNG toward the monetization of Peru’s natural gas via this historic LNG export facility.”

This contract comes on the heels of front-end engineering design (FEED) preparation and ongoing engineering and project development support for this proposed facility that the KBR / JGC joint venture has been providing to Hunt Oil Company and PLNG since 2002. Along with the work under the LSTK agreement, which is due to be completed in the fourth quarter of 2005, the joint venture will begin negotiations with PLNG on the engineering, procurement, construction (EPC) and commissioning contract to allow for the timely start of work on the project in early 2006. The facility is scheduled for completion in 2009.

In August JGC and KBR renewed their Natural Gas Alliance that began in 1999, thereby enabling the two companies to build upon their respective strengths and work together to pursue and execute the engineering and construction of LNG and gas-to-liquids (GTL) projects around the world. The alliance is composed of three global operating hubs: JGC in Yokohama, KBR in Houston and MWKL (a JGC/KBR subsidiary) in London, covering the world’s GTL/LNG market.

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