CB&I Receives Award for LNG Facility in Equatorial Guinea

Source: www.gulfoilandgas.com 4/6/2004, Location: Africa

CB&I awarded a lump-sum turnkey contract valued in excess of US$60 million to design and construct a liquefied natural gas (LNG) storage facility for Marathon Oil Company on Bioko Island in Equatorial Guinea.

The facility will store LNG produced by a new liquefaction plant that Marathon and GEPetrol, the National Oil Company of Equatorial Guinea, plan to construct on the island, which is located about 20 miles (32 kilometers) off the coast of Cameroon in west central Africa. The plant is designed to produce 3.4 million metric tonnes of LNG per year, with a projected start-up in late 2007. Bechtel Corporation is the prime contractor for the overall project.

CB&I's work scope for the project encompasses the engineering, procurement and construction of LNG tankage with a total capacity of 272,000 cubic meters, including civil and foundation work, tank insulation, in-tank pumps and piping to grade. CB&I's scope also includes the design and construction of nine smaller tanks for miscellaneous storage.

The Company is currently on site on Bioko Island constructing three low temperature tanks for liquefied petroleum gas (LPG) storage as part of Marathon's Phase 2B LPG expansion project. In addition, as part of the expansion project CB&I Howe-Baker designed and fabricated a modular cryogenic gas processing plant that was delivered to the island earlier this year and is currently being installed. With a capacity of 870 million standard cubic feet per day (MMSCFD), it is the largest plant of its type ever built by the Company.

"We are pleased to continue our association with Marathon as they develop a new LNG source to help meet the growing worldwide demand for natural gas," said Gerald M. Glenn, CB&I's Chairman, President and CEO. "Our current mobilization on site should allow us to transition our forces seamlessly to this important project."

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