Aker Kvaerner Wins Isola di Porto Levante LNG Project

Qatar Petroleum, ExxonMobil and Edison have awarded Aker Kvaerner a US $900 million contract for engineering, procurement and construction management services associated with development of the Isola di Porto Levante liquified natural gas (LNG) terminal, to be located offshore the coast of Italy in the North Adriatic Sea.

The contract comprises engineering, procurement, and construction management of the concrete gravity based structure, LNG storage tanks and topside regasification facilities. The contract will be booked as order intake in the 2nd quarter 2005.

"It is a stepping stone for our company to be awarded the contract for the execution of the Isola di Porto Levante offshore LNG terminal", said president and CEO Inge K. Hansen in Aker Kvaerner. "There is a future market for offshore LNG-terminals and Aker Kvaerner is well positioned with proven competence and technology in concrete substructures and excellent execution skills."

The terminal will be located about 15 kilometers from the Veneto coast and positioned in approximately 30 meters of water. The terminal, with a total storage capacity of 250,000 cubic meters, will be equipped with a berthing/mooring system for offloading LNG, designed to accommodate ships delivering up to 150,000 cubic meters of LNG. Delivery frequency is anticipated to be an average of two ships a week. The gas for the project will be sourced from Qatar's giant North Field, which has recoverable resources of more than 900 trillion cubic feet of gas.

The terminal will be a state-of-the-art facility with a capacity of 8 billion cubic meters a year, and will provide dependable supplies of natural gas to the Italian energy sector to meet the country's growing demand.

Executive Vice President Simen Lieungh in Aker Kvaerner, said, "This project utilizes the joint competence in Aker Kvaerner, such as our regasification expertise in Houston and our concrete expertise in Oslo, as well as the group's proven project execution model." The partners in the Isola di Porto Levante LNG Terminal project are Qatar Petroleum, ExxonMobil and Edison, a major Italian energy company. The contract is signed by Aker Kværner Contracting AS, a company within the Aker Kvaerner group.