Costain Regulatory News (COST)

24 Jun 2005 07:21

Costain Group PLC24 June 2005 Costain Group PLC COSTAIN AWARDED $1.6 BILLION IRANIAN CONTRACT Costain Oil, Gas & Process (COGAP), part of the Costain Group, has been awardedthe $(US)1.6 billion contract (as lead contractor in the joint venture) for theBid Boland 2 gas treatment facility, by NIGC, the National Iranian Gas Company. The Bid Boland gas treatment facility will process up to 2 billion cubic feetper day of sweet and sour gas plus condensates and liquefied petroleum gas. TheBid Boland project, which is known as Bid Boland 2, is located in the south-westof Iran, approximately 15 km from Behbahan City in Khuzestan province. The project will be developed in consortium with partners Dragados, Sazeh andJahanpars. It is expected to take four years to complete and mobilisation willstart immediately. The treated associated gas will be fed into the national IGAT pipeline network,whilst ethane will be supplied as feedstock to the nearby Arvand petrochemicalcomplex. Propane and butane (LPG) will be exported for sale via a new storagefacility to be built at Mahshahr, some 100km distant. The existing Bid Boland 1 facility, constructed by Costain, has been processingsome 800 million cubic feet per day of associated gas since the early 1970s. Costain's first project in Iran was the construction of the Trans-Iranianrailway in 1935. Charles Sweeney, Managing Director of COGAP, said: "Costain has a long history of working in the Middle East and we are delightedto have been selected for this prestigious project." Stuart Doughty, Costain Group Chief Executive, said: "Against intense competition, we were awarded the contract in recognition ofour overall technical, engineering and construction expertise. This contract isa significant boost to our strategy of developing an international gasprocessing business." 24 June 2005 Enquiries:Costain Group PLC Tel: 01628 842444Stuart Doughty, Chief ExecutiveGraham Read, Public Relations College Hill Tel. 020 7457 2020Mark GarrawayMatthew Gregorowski This information is provided by RNS The company news service from the London Stock Exchange