Aker Kvaerner Wins Reliance MEG Contract

Aker Kvaerner has signed a contract with Reliance Industries Limited for the design and delivery of a monoethylenglycol (MEG) reclamation system for Reliance's KG-D6 gas project. The total estimated contract value for Aker Kvaerner is approximately USD 25 million.

The scope to be performed by the Aker Kvaerner subsidiary, Aker Kvaerner Process Systems, includes engineering services, technical services, license agreement and supply of key equipment.

Large quantities of MEG are used to prevent hydrate formation in the gas pipelines during transport of gas from the offshore wellheads to the onshore facility at Kakinada in India. In this process, the MEG is polluted with water and salts from the gas reservoir, production chemicals and various particles.

The MEG technology developed by Aker Kvaerner will condition the MEG at the onshore facility by removing water, salts and other undesirable constituents, enabling continuous re-use of the MEG in a closed loop.

The gas production is dependent on MEG injection. The MEG system is therefore designed with a very high overall reliability. Aker Kvaerner has delivered several MEG reclamation systems to international clients in recent years, and is currently the worlds leading supplier of these systems.

"Technology gives us a competitive advantage. Reliance's recent contract awards confirm the importance of maintaining our strategic focus on R&D (research & development)," says Martinus Brandal. "We will continue to use technology as a differentiator in several key areas."

"The award of this contract confirms Aker Kvaerner's strong position in Reliance's KG-D6 project and that our MEG technology is well positioned in all areas of the international oil and gas market", says Per Harald Kongelf, President of Aker Kvaerner Process Systems.

Engineering has commenced in Aker Kvaerner Process Systems office in Norway. Detailed engineering and fabrication management will soon be started up by Aker Kvaerner's entity, Aker Kvaerner Powergas in India. The delivery is scheduled for third quarter 2008.

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