Saipem Wins Guangdong LNG Project

A joint venture comprising Saipem, together with its fully owned subsidiary Technigaz, and the engineering companies Tecnimont and Sofregaz has been selected as the winning bidder of the lump sum turnkey contract for the engineering, procurement, construction (EPC) and start-up of the Guangdong regasification LNG terminal in the Peoples Republic of China.

The contract, awarded by a consortium comprising CNOOC, BP and other Chinese partners, has an approximate value of US $240 million, of which Saipem's 60% share is approximately US $145 million. The contract is due to receive formal approval by Chinese local authorities.

The scope of work of the Joint Venture involves the overall terminal facilities, including the site preparation, two LNG storage tanks, the associated marine works and the regasification facilities. The project is expected to be completed by mid 2006. The Guangdong LNG terminal is the first LNG import terminal project to be implemented in China.