CB&I Follow-on Award for Sakhalin II LNG Project

CB&I CB&I has been awarded a lump-sum contract valued in excess of US$50m for an additional LNG storage tank at the natural gas liquefaction plant and export terminal under construction at Prigorodnoye on Aniva Bay, Sakhalin Island, Russia. CB&I was previously awarded a contract for two LNG storage tanks, two LNG spheres and related civil works at the site.

CB&I's work scope includes the engineering, procurement and construction of a third 100,000 cubic meter full containment LNG storage tank, along with site preparation work.

CB&I was selected for the construction of the LNG tank by Chiyotec Limited and CTSD Limited, who were awarded contracts together with their Russian partners, NIPIgasperabotka and Khimenergo Consortium, for the implementation of the overall LNG project by the owner, Sakhalin Energy Investment Company Ltd.

The Sakhalin II Project represents the largest single foreign direct investment project in Russia to date, with a total investment estimated at US$10 billion. The Sakhalin LNG production facility will consist of two trains, each with an annual liquefaction capacity of 4.8 million tonnes, making it the largest in the world. First LNG is expected to be delivered from the terminal in 2007.