CB&I Wins EPC Contract for LNG Import Terminal in Wales.

THE WOODLANDS, Texas -- CB&I (NYSE:CBI) has been awarded a lump-sum turnkey contract with a value estimated between US$725 - $750 million for Phase 1 of a grassroots liquefied natural gas (LNG) import terminal in Milford Haven, Wales, U.K. The facility will be owned and operated by South Hook LNG Terminal Company, a U.K. company owned by Qatar Terminal Company Limited and ExxonMobil Qatargas (II) Terminal Company Limited.

CB&I's work scope for the project encompasses the engineering, procurement and construction (EPC) of the complete turnkey facility. The terminal is designed to process the 7.8 million tonnes per annum (MTA) baseload LNG supply from the first phase of the Qatargas II Project. The scope includes a ship unloading system, three full containment 155,000 cubic meter LNG storage tanks, and a regasification and sendout system. Marine works include major refurbishment of an existing jetty to allow berthing of LNG tankers. The facility is scheduled for commissioning in the fourth quarter of 2007.

LNG for South Hook will be supplied from the Qatar Liquefied Gas Company Limited (II) ("Qatargas II") LNG plant being built at Ras Laffan Industrial City in Qatar, which will feature the world's largest LNG production trains. Qatargas II is a joint venture between Qatar Petroleum and ExxonMobil Qatargas (II) Limited. The feed gas for the LNG trains will be sourced from the reserves of Qatar's North Field.

"We are pleased to have been selected by South Hook LNG for this project," said Gerald M. Glenn, CB&I's Chairman, President and CEO. "This award builds on our decades of proven experience in the LNG industry, our strong technical presence in the U.K. through CB&I John Brown, and our ongoing relationship with Qatar Petroleum and ExxonMobil. We are proud to play a role in helping to meet the future energy needs of the United Kingdom."

CB&I is one of the world's leading EPC companies, specializing in lump-sum turnkey projects for customers that produce, process, store and distribute the world's natural resources. With more than 60 locations and approximately 10,000 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.