Press release 30/07/1999 00:00 CET

Kvaerner’s international expertise in civil engineering and processing technology is being combined in a £146 million turnkey project to design and build a Liquified Natural Gas supply facility for a new power station on the west coast of India.

In an integrated joint venture Kvaerner Construction and Kvaerner Process have won the contract to design, supply and construct all facilities and processes needed to transfer LNG from ships to the power station.

Kvaerner will supply and construct equipment to offload LNG from ships in low-temperature liquid form, pipe it to a storage centre, vaporise it into gas and pump it to the power station. Work on the project, 150 kilometres south of Mumbai, is due to be completed in mid 2002. The first deliveries of of LNG are expected to arrive in late 2001.

The work involves:

· fitting out a new LNG offloading jetty with mechanised LNG unloading arms;

· installing insulated supply pipelines running two kilometres from the jetty-head to a storage and processing area closer to the power station; and

· building a LNG storage and processing area, consisting of three concrete and steel insulated storage tanks each with a 160,000 cubic metre capacity, vaporisation and pumping process facilities to feed the new power station

Commenting on the contract, Kvaerner Construction chief executive Keith Clarke, said: "Kvaerner Construction recognised the importance of LNG as a growth market, particularly in India, during 1998. We have developed our own technology for LNG storage systems and have brought together the technical skills of other companies within the group to provide clients with an integrated service. This project combines our broad technical and management abilities with experience of the Indian construction market.."

Director of Construction’s India-based company, Anup Chattejee, commented: "This contract shows Kvaerner Construction’s real commitment to securing more projects in India where Kvaerner Cementation India is currently working on contracts ranging from ports to power projects, bridges and specialist engineering works."

Kvaerner will be responsible to ENRON affiliates, which will manage the construction of the LNG facilities on behalf of the Dabhol Power Company.