CB&I Wins EPC Contract for Expansion of U.S. LNG Terminal.

Energy Editors/Business Editors

THE WOODLANDS, Texas--(BUSINESS WIRE)--Oct. 7, 2003

CB&I (NYSE:CBI) has been awarded a lump-sum turnkey contract valued in excess of US$80 million for a liquefied natural gas (LNG) terminal expansion project in Lake Charles, Louisiana, USA. Owned and operated by Trunkline LNG Company, a unit of Southern Union Company (NYSE:SUG), the Lake Charles terminal is North America's largest operating LNG terminal.

CB&I's work scope for the project includes the engineering, procurement, construction and commissioning of a new 140,000 cubic meter (approximately 880,000 barrel) LNG storage tank; modified send out pumps and vaporizers to increase plant send out; and related civil, mechanical and electrical works. The project will increase the facility's send out capacity to 1.2 billion standard cubic feet per day (SCFD) of natural gas from its current capacity of 630 million SCFD. The project is expected to be completed by the end of 2005, and the terminal will remain in operation during CB&I's work.

CB&I has a long history of providing reliable LNG service at this location. In 1958 CB&I designed and built the first large field-erected LNG storage tank at a U.S. import/export terminal in Lake Charles, from which the first transatlantic shipment of LNG was shipped aboard the Methane Pioneer in 1959. In 1981, CB&I designed and built the three existing 600,000 barrel LNG tanks at this terminal.

"We are pleased to join with Trunkline LNG in this important project that will help meet the growing U.S. demand for energy," stated Gerald M. Glenn, CB&I's Chairman, President and CEO. "We are confident our substantial technical base and field execution experience in LNG terminals will enable us to add value to this project from engineering to final commissioning."

CB&I is a global specialty engineering, procurement and construction (EPC) company serving customers in several primary end markets, including hydrocarbon exploration, production and refining; natural gas; water; and the energy sector in general. We offer a complete package of design, engineering, fabrication, construction and maintenance services. Our products include hydrocarbon processing plants, LNG terminals and peak shaving plants, offshore structures, pipelines, bulk liquid terminals, water storage and treatment facilities, and other steel structures and their associated systems. Information about CB&I is available at www.CBIepc.com.