Foster Wheeler Awarded Contract for Uruguay's First LNG Receiving Terminal

02/08/2010


ZUG, Switzerland, Aug 03, 2010 (BUSINESS WIRE) -- Foster Wheeler AG (Nasdaq: FWLT) announced today that its Global Engineering and Construction Group has been awarded an owner's engineer contract for a new LNG receiving terminal (the "GNL Del Plata" facility) to be built in Montevideo, in the region of Río de la Plata, Uruguay. The contract was awarded by Uruguay's state-owned oil company, Administración Nacional de Combustibles, Alcohol y Portland (ANCAP).

The Foster Wheeler contract value for this project was not disclosed. An initial release of work was included in the company's fourth-quarter 2009 results. The remainder of the work will be booked as soon as formal release is given by the client.

Foster Wheeler's scope of work includes technical assistance through the initial phases of the development of the project, conceptual design of the terminal, and development of the invitation to bid for the role of owner and operator of the terminal. The owner/operator role will include the responsibility for, among other elements, the engineering, procurement and construction (EPC) contract. Foster Wheeler's scope also includes the supervision of the EPC contractor from detailed engineering through to start-up.

In order to help meet their projected gas demand, Uruguay and Argentina signed an Energy Cooperation Agreement in July 2007 for the construction of a regasification plant in Uruguay.

The project will supply natural gas for local consumption in Uruguay (enabling the expansion of this source in the energy mix) and also will supply gas to help meet demand in Argentina. It will use the existing natural gas infrastructure between both countries, called Cruz del Sur Gas Pipeline, which connects Montevideo to Buenos Aires through an underground structure of about 200 km long, 50 km of them beneath Río de la Plata, to deliver up to six million cubic meters per day of natural gas to the Greater Buenos Aires area.

The promoters of the "GNL DEL PLATA" facility are the state-owned companies ANCAP, UTE of Uruguay, and ENARSA of Argentina. The project will involve a competitive process that includes the selection of a private enterprise by the promoters to act as developer, owner and operator of the terminal, and the award by the promoters of other contracts for the supply of LNG to the terminal.

Foster Wheeler AG is a global engineering and construction contractor and power equipment supplier delivering technically advanced, reliable facilities and equipment. The company employs approximately 13,000 talented professionals with specialized expertise dedicated to serving its clients through one of its two primary business groups. The company's Global Engineering and Construction Group designs and constructs leading-edge processing facilities for the upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and petrochemicals, power, environmental, pharmaceuticals, biotechnology and healthcare industries. The company's Global Power Group is a world leader in combustion and steam generation technology that designs, manufactures and erects steam generating and auxiliary equipment for power stations and industrial facilities and also provides a wide range of aftermarket services. The company is based in Zug, Switzerland, and its operational headquarters office is in Geneva, Switzerland. For more information about Foster Wheeler, please visit our Web site at http://www.fwc.com.

Safe Harbor Statement

Foster Wheeler AG news releases may contain forward-looking statements that are based on management's assumptions, expectations and projections about the Company and the various industries within which the Company operates. These include statements regarding the Company's expectations about revenues (including as expressed by its backlog), its liquidity, the outcome of litigation and legal proceedings and recoveries from customers for claims and the costs of current and future asbestos claims and the amount and timing of related insurance recoveries. Such forward-looking statements by their nature involve a degree of risk and uncertainty. The Company cautions that a variety of factors, including but not limited to the factors described in the Company's most recent Annual Report on Form 10-K, which was filed with the U.S. Securities and Exchange Commission and the following, could cause the Company's business conditions and results to differ materially from what is contained in forward-looking statements: benefits, effects or results of the Company's redomestication or the relocation of our principal executive offices to Geneva, Switzerland; further deterioration in the economic conditions in the United States and other major international economies, changes in investment by the oil and gas, oil refining, chemical/petrochemical and power generation industries, changes in the financial condition of its customers, changes in regulatory environments, changes in project design or schedules, contract cancellations, changes in estimates made by the Company of costs to complete projects, changes in trade, monetary and fiscal policies worldwide, compliance with laws and regulations relating to its global operations, currency fluctuations, war and/or terrorist attacks on facilities either owned by the Company or where equipment or services are or may be provided by the Company, interruptions to shipping lanes or other methods of transit, outcomes of pending and future litigation, including litigation regarding the Company's liability for damages and insurance coverage for asbestos exposure, protection and validity of its patents and other intellectual property rights, increasing competition by non-U.S. and U.S. companies, compliance with its debt covenants, recoverability of claims against its customers and others by the Company and claims by third parties against the Company, and changes in estimates used in its critical accounting policies. Other factors and assumptions not identified above were also involved in the formation of these forward-looking statements and the failure of such other assumptions to be realized, as well as other factors, may also cause actual results to differ materially from those projected. Most of these factors are difficult to predict accurately and are generally beyond the Company's control. You should consider the areas of risk described above in connection with any forward-looking statements that may be made by the Company. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any additional disclosures the Company makes in proxy statements, quarterly reports on Form 10-Q, annual reports on Form 10-K and current reports on Form 8-K filed with the Securities and Exchange Commission.

SOURCE: Foster Wheeler AG

Foster Wheeler AG
Media:
United States
Julie Stanisz, 908-730-4047
julie_stanisz@fwc.com
or
Spain
Elizabeth Szikszai, +34-91-336-27-35
Elizabeth_Szikszai@fwiberia.fwc.com
or
Investor Relations
Scott Lamb, 908-730-4155
scott_lamb@fwc.com
or
Other Inquiries
908-730-4000
fw@fwc.com

Return to topTop