CB&I Awarded Contract for LNG Terminal Expansion in U.K.

THE WOODLANDS, Texas -- CB&I (NYSE:CBI) has been awarded a contract to add capacity to National Grid's liquefied natural gas (LNG) import terminal at the Isle of Grain. This new expansion contract, with a value of approximately $500 million, will increase the terminal's capacity by 700 million cubic feet per day to 2.1 billion cubic feet per day. The facility, located about 40 miles east of central London, is owned and operated by National Grid Grain LNG Ltd., a subsidiary of National Grid plc.

Under this expansion contract, CB&I will construct a new jetty capable of berthing LNG carriers with capacity up to 265,000 cubic meters and with an unloading rate of 12,000 cubic meters per hour. The work scope also includes construction of another 190,000 cubic meter full containment LNG storage tank and new gas processing facilities. This work is scheduled to be completed in 2010.

CB&I has engineering, procurement and construction (EPC) responsibility for the current expansion project at the Grain LNG terminal, which includes three 190,000 cubic meter full containment tanks, a control and administration facility and associated systems. This phase is approximately 65 percent complete and on target to achieve first export on schedule in the Fall of 2008. With the addition of the third phase, National Grid's Grain LNG terminal is expected to supply about 18 percent of forecasted UK natural gas demand.

CB&I executes more than 500 projects each year and is one of the world's leading engineering, procurement and construction companies, specializing in projects for customers that produce, process, store and distribute the world's natural resources. With more than 60 locations and approximately 13,000 employees throughout the world, CB&I capitalizes on its global expertise and local knowledge to safely and reliably deliver projects virtually anywhere. Information about CB&I is available at www.CBI.com.