CB&I Wins Turnkey Contract for LNG Storage Terminal in China.

THE WOODLANDS, Texas -- CB&I (NYSE:CBI) has been awarded a lump-sum turnkey contract valued at approximately US$100 million for the design and construction of storage tanks at a new liquefied natural gas (LNG) import terminal in Fujian Province, Peoples Republic of China. The facility will be owned and operated by CNOOC Fujian LNG Co. Ltd., a co-investment of China National Offshore Oil Corporation (CNOOC) and Fujian Investment and Development Corporation.

Located in the city of Xiuyu, Fujian Province, in southeast China, the LNG regasification terminal has Phase 1 capacity of 2.6 million tonnes of LNG per year with Phase II expansion under planning. The natural gas from the terminal will be provided to gas-fired power plants that will be built during the project's first phase and to household users in five cities in the province.

CB&I's work scope includes the turnkey engineering, procurement and construction of two 160,000 cubic meter full containment LNG storage tanks, including deep foundations, tank topsides, and electrical, instrumentation, equipment and piping to grade. The project is scheduled for completion in late 2007.

"We are excited to announce our first LNG project in China," said Gerald M. Glenn, CB&I's Chairman, President and CEO. "It is estimated that a large percentage of China's future energy needs will be met by LNG imports. We are proud to be able to help satisfy this growing demand with what will be China's second major LNG import terminal." CB&I is working with a leading Chinese design institute, Chengda Engineering Corporation, and other strategic local partners on the project.

CB&I is one of the world's leading engineering, procurement and construction (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.