Brindisi LNG Awards the EPC Contract for the LNG Terminal

Brindisi LNG SpA has awarded the Engineering, Procurement and Construction (EPC) contract to a consortium led by Tecnimont SpA, for the construction of the liquefied natural gas (LNG) regasification terminal in the port of Brindisi, in the area of Capo Bianco.

The winning consortium, a temporary association of companies (ATI), is led by Tecnimont and comprises Grandi Lavori Fincosit SpA, Consorzio Cooperativa Costruttori, Sofregaz S.A, Vinci Construction Grands Projets SAS and Mitsubishi Heavy Industries Ltd. The ATI will shortly commence the activities that will lead to the design and construction of the LNG terminal.

Speaking today, Franco Fassio, managing director, Brindisi LNG, said: "The award of the EPC contract is the final step of a process conducted in compliance with the EU procurement directive that began with the prequalification of the bidders and was followed by the award of the EPC contract. It involved several consortia which represented the leading worldwide companies in the sector. Thanks to this investment, up to 1000 jobs will be created during construction and about 200 (direct and indirect) during operations. The winning consortium submitted the strongest tender in respect to construction, health, safety, security, environmental impact and the involvement of local companies".

Mr. Fassio, alongside the announcement, underlined: "we recently assigned, through a primary institute on agronomic researches, a detailed study for the development and benefits that could derive to agriculture and agro-industry of the local area from the availability of cold produced naturally by the terminal, and that, I can confirm, will be supplied by Brindisi LNG to the local community".

The Italian authorities have already granted, in accordance with Italian law, an exemption from the regulated third party access provisions required by the second EU gas directive, and are liaising with the European Commission. The facility, with a gross capital expenditure of about €390 million (inclusive of internal cost, insurance and EPC contract), will have a send out capacity of 8 billion cubic meters of regasified LNG a year and will be operational in 2008.