Foster Wheeler Awarded Contract for Gas-To-Liquids Project in Qatar

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Oct 8, 2001

Foster Wheeler Ltd.'s (NYSE:FWC) UK subsidiary, Foster Wheeler Energy Limited (FWEL), has been awarded a front-end engineering and design (FEED) contract for an estimated $800 million gas-to-liquids (GTL) project, based in Ras Laffan Industrial City, Qatar. The GTL facilities will provide fuel, naphtha and liquefied petroleum gas for domestic consumption. The contract was awarded by a Sasol and Qatar Petroleum (QP) joint venture.

Foster Wheeler is the first contractor, using the Sasol GTL technology, to be involved in a Sasol GTL plant outside South Africa. The contract places the company in a position as the world-leading contractor using this technology.

Foster Wheeler's scope of work includes preparation of the FEED, selection of long lead package vendors and a geotechnical survey, and preparation of the invitation to bid. The company is also responsible for prequalifying engineering, procurement and construction (EPC) contractors and will assist in the selection of bidders, lender evaluation and award of the EPC contract.

The project will provide 24,000 barrels per day of fuel, 9,000 barrels per day of naphtha and 1,000 barrels per day of liquefied petroleum gas from a daily supply of 330 million standard cubic feet of lean natural gas. The liquid fuels produced by the GTL facility have virtually no sulfur, a high cetane number and a very low aromatic content and enable significant reductions in noxious emissions such as particulates, nitrous and sulfur oxide, carbon monoxide and hydrocarbons.

Ian Bill, chairman and chief executive, FWEL, said: "This contract follows five years of close cooperation between Foster Wheeler and Sasol. We are delighted to have the opportunity to continue our involvement in GTL and environment-friendly fuels."

The complete project from FEED to beneficial operation is on a fast-track schedule with commercial production expected in the first quarter of 2005.

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