AMEC Wins Contract for Cheyenne Plains Pipeline Work

The U.S. pipeline subsidiary of AMEC has been awarded a contract valued at approximately US $60 million with Cheyenne Plains Gas Pipeline Company, LLC to construct two-thirds of its Cheyenne Plains Pipeline Project.

It is the largest U.S. cross-country pipeline project planned for construction in 2004.

AMEC’s Houston-based U.S. Pipeline, Inc. will construct 255 miles of 36-inch natural gas pipeline and four miles of 30-inch natural gas pipeline between Eastern Colorado and Western Kansas for the Cheyenne Plains’ pipeline project. U.S. Pipeline’s work also includes the construction of nine launcher/receiver facilities, 13 mainline valve installations and six delivery side-tap installations.

“This contract win firmly establishes U.S. Pipeline as the premier pipeline construction company in the United States,” said Greg Curran, President of U.S. Pipeline, Inc. “In addition to the significance of the project’s size, this project will be constructed using automatic welding with X-80 pipe. This project will employ the latest advances in pipeline design, materials and construction that will result in a safe, dependable and cost effective pipeline for Cheyenne Plains and its customers.”

Upon approval by applicable regulatory authorities, U.S. Pipeline is expected to begin construction in July and complete its portion of the pipeline in November of this year. Approximately 800 people are to be employed during peak operations.

The overall Cheyenne Plains Pipeline Project will run 380-miles and will extend from Northern Colorado to Greensburg, Kansas. Providing an outlet for the growing supply of Rocky Mountain natural gas to markets in the Midwest region of the United States, Cheyenne Plains will initially be able to transport 560 thousand dekatherms of natural gas per day.

Cheyenne Plains Gas Pipeline Company, LLC is a subsidiary of El Paso Corporation, a leading provider of natural gas services and one of North America’s largest pipeline companies. U.S. Pipeline successfully completed several other projects in 2003 for El Paso, including the Newark Bay Pipeline Replacement Project. This project involved two pipeline replacements under Newark Bay and a third under the Arthur Kill River. The project also included approximately one mile of on-shore pipe on Staten Island, NY. U.S. Pipeline also completed the second phase removal portion of the project, which will allow for future dredging operations. The project consisted of a cumulative total of more than 2-1/2 miles of pipeline replacement in New York and New Jersey.

Kelly Osborn, Vice President of Operations for U.S. Pipeline said: “This contract provides us with an opportunity to continue our relationship with El Paso Corporation. U.S. Pipeline won this contract over numerous other pipeline contractors due to the company’s competitive pricing and superior safety record.”

U.S. Pipeline, a pipeline construction and engineering services company operating in the United States and select international markets, is recognized as one of the safest, most reliable and innovative pipeline construction companies in the market place.

AMEC is an international project management and services company headquartered in London, United Kingdom. With office networks across the Americas, continental Europe and Asia, AMEC manages projects worldwide. It generated annual revenues of US $8.4 billion in 2003 and employs 45,000 people in over 40 countries.