Mustang Wins First LNG Order, Will Upgrade Lake Charles Facility

The Wood Group

Mustang Engineering, a subsidiary of international energy services company John Wood Group PLC, has been awarded a contract by Trunkline LNG Co. to provide engineering design, procurement, and construction management services (EPCM) for infrastructure enhancement at Trunkline's existing LNG terminal in Lake Charles, La.

The project involves the installation of Mustang's LNG Smart Air Vaporization Process and a natural gas liquids (NGL) extraction plant to recover ethane and other heavier hydrocarbons from the LNG stream. The approximate cost of the completed project, including the EPCM services being supplied by Mustang, is $250 million. Operation is scheduled for the third quarter of 2008.

The LNG Smart Air Vaporization Process captures the natural heat in ambient air and humidity to vaporize LNG. This is the first commercial-scale application of Mustang’s LNG vaporization process.

"Mustang expects this equipment will provide a significant saving in operating costs to Trunkline LNG as well as an equivalent reduction in air emissions by not burning gas to vaporize the LNG as is traditionally done," said Steve Knowles, Mustang’s president.

Wood Group is an international energy services company with $2.8 billion in sales, employing more than 16,000 people worldwide and operating in 40 countries. The group has three businesses--Engineering & Production Facilities, Well Support, and Gas Turbine Services--providing a range of engineering, production support, maintenance management and industrial gas turbine overhaul and repair services to the oil and gas and power generation industries.

Mustang is an independent services provider to the global oil, gas, and chemical industries. The company specializes in design, engineering, procurement, project management, and construction management. It offers these services through its six business units: upstream oil and gas, midstream, pipeline, automation and control, refining and petrochemicals, and process and industrial

Trunkline LNG Co. is a unit of Southern Union Co., headquartered in Houston. Southern Union is a diversified company engaged primarily in the transportation, storage, gathering, processing, and distribution of natural gas. It owns and operates the nation's second-largest natural gas pipeline system with more than 22,000 miles of gathering and transportation pipelines and one of North America's largest LNG import terminals.