January 2005

commercial size demonstra-tion plant for installation inCanada.

The CCPC was created in2000 to protect and enhanceCanada’s vast coal and othercarbon-based resource wealth.The CCPC represents powergenerators and coal suppliersof over 90% of Canada’s coal-fired power generation. Theirgoal is to develop a demonstra-tion project at commercial util-ity scale, which will allow allemissions, including CO2, tobe controlled to meet all fore-seeable new regulatoryrequirements. The emissionstarget will allow a coal-firedplant to be as clean as a mod-ern natural gas combined cycleplant.

MHI RECEIVESENEL ORDER

Enel SpA has awardedMitsubishi Heavy IndustriesLtd (MHI) an order for threesteam turbines on a turnkeybasis.

The turbines, each featur-ing an output of 680 MW, arepart of a large-scale equipmentreplacement project at theTorrevaldaliga Nord powerplant in Lazio. The replace-ment systems for power gener-ation units No 2, 3 and 4 arescheduled to go into serviceprogressively starting in May2008.

The Enel order marksMHI’s first delivery of steamturbines to Italy.

CHEMICALS

BASF PLANS CHINESE

COATINGS RMPLANT

BASF is investing in a newUS$30 million polyiso-cyanate plant in theShanghai Chemical IndustryPark in Caojing nearShanghai, China to supplythe entire Asian market.

Construction of the 8000metric tons per year plant is tobegin in mid-2005. The facilityis scheduled to go into opera-tion at the end of 2006.

JACOBS TO BUILDPURIFIED ACID

PLANTA Jacobs Engineering GroupInc subsidiary company hasreceived a contract from asubsidiary of Potash Corp ofSaskatchewan Inc for theexpansion of its purified acidplant in Aurora, NorthCarolina.

This project represents thefourth manufacturing trainbuilt by Jacobs at this site andwill produce 90 000 tons peryear of purified phosphoricacid. The contract covers basicand detailed engineering, pro-curement, modular fabrication,and construction.

PETRO-CHEMICALS

EXXONMOBILEXPANDS

CAPACITY IN SINGAPORE

ExxonMobil Chemical isexpanding the capacity of itssteam cracker in Singapore.

The Singapore chemicalplant, ExxonMobil Chemical’ssingle largest investment in theworld, started up in 2001. Thisproject will increase its ethyl-ene capacity by 75 000 tonsper year to more than 900 000tons per year. Project comple-tion is expected by 4Q 2006.

“The economic growth inAsia Pacific has been robust,and the demand for petro-chemical products closely mir-rors this trend. This expansionwill help position us to contin-ue to meet the growingdemand in this region,” saidLynne Lachenmyer, AsiaPacific manufacturing director,ExxonMobil Chemical AsiaPacific.

LNG TERMINALCONTRACT

GOES TO AK/IHI CONSORTIUM

Sempra Energy has awardedthe Aker Kvaerner andI s h i k a w a j i m a - H a r i m aHeavy Industries consortium(AK/IHI) a US$500 millioncontract for the engineering,procurement and construc-tion of the Cameron LNGregasification terminal inLouisiana, USA.

The project will run forthree and a half years from the start of construction tooperation start up in 2008.Engineering will take placeprimarily in Houston.

The Cameron developmentis the first new onshore LNGterminal that has been granteda Federal Energy RegulatoryCommission permit in theUSA in over 20 years. TheUS$700 million facility,scheduled to begin commercialoperation in 2008, will process1.5 billion cubic feet of gas perday and is an important part ofSempra LNG’s strategy.

CHENIEREAWARDS EPC

WORK TO BECHTEL

In a US$647 million agree-ment, Bechtel Corp is toundertake engineering, pro-curement and construction(EPC) work on CheniereEnergy Inc’s Sabine Pass liq-uefied natural gas (LNG)receiving, storage and regasi-fication terminal in westernCameron Parish, Louisiana.

Construction at the site isexpected to begin during thefirst quarter of 2005, and theterminal is scheduled to beoperational in early 2008.

The terminal will consistof three 160 000 cubic metrestorage tanks and two unload-ing docks capable of handlingships of up to 250 000 cubicmetres.

FEASIBILITYSTUDY FOR

NIGERIAN LNGFACILITY

ChevronTexaco, the NigeriaNational Petroleum Co(NNPC) and the BG Groupplan to conduct a feasibilitystudy on a potential liquefiednatural gas (LNG) project inNigeria.

The study will consideravailable gas supply, marine/LNG loading concepts, avail-able LNG technology options,LNG market options, projecteconomics, and the social andenvironmental impact of thepotential project. Any futuredecisions to move forwardwith Olokola LNG will dependon the results of the feasibilitystudy.

OIL & GAS

BP OUTLINESNORTH SEA

SPENDING PLANSBP is to invest US$2 billion inits UK North Sea business in2005.

The company intends tospend US$780 million of capi-tal on a range of projects andactivities. In addition, US$1.2billion will be invested in oper-ating, supporting and main-taining its producing assets.

BP’s total capital and oper-ating investment in the UKNorth Sea over the next fouryears is expected to be overUS$7 billion.

An important element ofthe 2005 plan will be the opera-tion of up to six mobile drillingrigs across the UK. BP will alsostart a platform drilling plat-form on up to six of its assets inthe UK and Norway.

BP’s programme includesdevelopment drilling for theClair oilfield, west of Shetland,which is expected to come on-stream in the next few weeksand development of the Rhum

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field, the UK’s largest undevel-oped gas field, due to start-uplate in 2005.

The company is also in theprocess of tendering a range ofmajor long term supply con-tracts to support its North Seaoperations. These contractsaccount for approximatelyUS$400 million per year of theoverall spend. They includecontracts for well services,currently under tender; forsub-sea construction; inspec-tion, repair and maintenancewhich will be awarded in thecoming months; and for engi-neering, maintenance andmodifications services, whichwere awarded in June 2004 toWood Group and KBRProduction Services.

ICA FLUOR TOBUILD PEMEX

REFININGCOMPLEX

ICA Fluor has signed aUS$690 million contract forthe engineering, procure-ment and construction serv-ices for Package II of PemexRefinación’s Lázaro Cárd-enas refining complex inMinatitlán, Veracruz,México.

Package II includes threemain work areas: auxiliaryservices, a water treatmentplant and works to integrate allservices of the refinery. Theproject is scheduled to be com-pleted by the end of 2008.

CHEVRON-TEXACO FINDS

OIL IN CAMBODIAChevron OverseasPetroleum (Cambodia) Ltd(COPCL) has discovered oilin four exploration wells inoffshore Cambodia Block A.

Oil pay logged in the wellsranges from 41 ft to 139 ft.Analysis of samples indicatesthe oil is 44 degree API crude.The 6278 sq km block, encom-passing the Khmer Basin withwater depths averaging 240 ft,

was awarded to COPCL andits partners in March 2002.

The drilling program willconclude with one more explo-ration well that is expected tobe completed in February2005.

PULP & PAPER

METSO TO DELIVER

EQUIPMENT TOMYLLYKOSKI

Metso Paper will supplyalmost �40 million worth ofequipment for groundwoodpulp and paper makingprocesses to MyllykoskiGroup’s paper mills inGermany, Finland and theUSA.

Metso Paper will rebuildMD Plattling’s PM 11 inBavaria, Germany. The rebuildof the paper machine will com-prise a new headbox, a wiresection, rebuild of the presssection as well as modifica-tions of the dryer section. Thedelivery will also include aux-iliary equipment for themachine sections to be rebuilt.Metso will also renew thegroundwood department of themill. The rebuilt PM 11 willstart up in December 2005.

Metso Paper will alsodeliver the main equipment ofa peroxide bleaching plant forPM 6-7 of Myllykoski Paper’sAnjalankoski Mill in Finland.In addition to the main equip-ment, the order includes prepa-ration of the bleaching chemi-cals as well as MetsoAutomation’s process controlsystem. The plant will be readyfor production in early 2006.

Metso Paper will alsoexpand Madison PaperIndustries’ pressure ground-wood plant in Madison, Maine,USA. The delivery will include a new grinder and the extension of MetsoAutomation’s process controlsystem. The project is scheduledto be delivered in October 2005.

SHIPBUILDING

HHI TO BUILDWORLD’SLARGEST

CONTAINERSHIPS Hyundai Heavy IndustriesCo Ltd (HHI) has secured acontract to build four 10 000TEU ultra-large container-ships from Chinese shippingcompany Cosco. This is theworld’s largest containershipever to be built.

The ordered vessels willhave the capacity to carry 10000 units of 20 feet containersand will measure 349 m inlength, 45.6 m in width, and27.2 m in depth. Each ship willbe fitted with a 94 000-horse-power engine for a servicespeed of 25.8 knots or 48km/h. The ships are expectedto be delivered in 2008.

According to HHI,shipowners want bigger andspeedier containerships toremain competitive. In order tomeet this market trend, HHIhas already completed thedesign development of a 12000 TEU containership.

HHI has also receivedorders for two 8600 TEU con-tainerships from Germany’sHapag Lloyd and for one 35000 cubic metre LPG carrierfrom Orix of Japan.

MINING

FW/ SNC-LAVALINTO DEVELOP

GORO NICKEL-COBALT PROJECTFoster Wheeler (Qld) PtyLtd, in a joint venture withSNC-Lavalin Australia PtyLtd, is to provide engineer-ing, procurement and con-struction management serv-ices for Goro Nickel SA’sUS$1.878 billion Goro nick-el-cobalt project in NewCaledonia.

The CEG joint venture willprovide services as part ofGoro Nickel’s integrated team,led by Inco AustraliaManagement Pty Ltd.

The A$200 million con-tract follows CEG’s involve-ment in a comprehensive studyto re-examine the project,which identified valueimprovement measures andprovided detailed engineeringto optimize project capitalcosts.

The Goro mine will bedesigned for an estimatedannual capacity of 60 000tonnes of nickel and over 4000tonnes of cobalt. Based on thefinal results of the projectreview, construction shouldbegin in early 2005 and be car-ried out over a period ofapproximately 35 months.Initial production is estimatedto begin in September 2007.

AKER KVAERNERTO PROCEED

WITH CHILEANPROJECT

RioChilex SA has contractedAker Kvaerner to undertakethe engineering, procure-ment and construction man-agement for the developmentof the Spence copper projectin Chile in a US$50 millioncontract.

The Spence project willdevelop the copper ore depositlocated in Chile’s Region II,near Calama in northern Chile.The project includes an openpit mine, crushing, conveying,dynamic heap leaching, dumpleaching, solvent extractionand electrowinning facilities.

Consistent with the corpo-rate goals of both BHP Billitonand Aker Kvaerner, an objec-tive for this project will be zeroharm for people, the environ-ment and the community.

Aker Kvaerner was award-ed the initial work in April2003 which included a revisionof the existing feasibility studyincluding several trade-offstudies.

January 2005

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