CB&I Wins Phase II Award for U.K. LNG Import Terminal.

THE WOODLANDS, Texas -- South Hook LNG Terminal Company has awarded CB&I (NYSE:CBI) a lump-sum turnkey contract for Phase II of a new liquefied natural gas (LNG) import terminal to be built near Milford Haven, Wales, U.K. Phase II is valued in excess of US$325 million.

CB&I's work scope for Phase II of the project includes complete engineering, procurement and construction (EPC) responsibility for a doubling of the facility's regasification and sendout capacity, refurbishment of a second loading berth on the existing jetty, two additional 155,000 cubic meter full containment LNG storage tanks, and expansion of the associated facilities. The second phase will be concurrent with Phase I, with construction beginning in mid-2005. The project is being executed through the CB&I John Brown office in London.

As previously announced in November 2004, CB&I's scope for Phase I of the project -- which is valued between US$725 - $750 million -- 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. Completion of Phase I is expected in late 2007.

The facility will be owned and operated by South Hook LNG Terminal Company, a U.K. company owned by Qatar Petroleum LNG Services QG II Ltd. and ExxonMobil Qatargas (II) Terminal Company Limited. 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.

"We are pleased that South Hook LNG has awarded CB&I the second phase work," said Gerald M. Glenn, CB&I's Chairman, President and CEO. "With a combined value now in excess of US$1 billion, we believe these awards are a testament of the customer's confidence in our experience and ability to engineer and deliver this landmark project."

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 11,000 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.