ABB wins $90 million contract to boost natural gas flow in Algeria

New compressor station and upgrades will add capacity to pipeline system

Zurich, Switzerland, November 10, 2004 - ABB, the leading power and automation technology group, said today it has signed a $90 million contract with Algerian oil and gas company Sonatrach TRC to expand and improve gas compressor facilities for the country’s pipeline system. The improvements will speed up the flow of Algeria’s natural gas.

The order – the latest in a series with Sonatrach – calls for ABB to design and construct a new gas compressor station at Tin Fouye Tabankort, some 300 kilometers south of the refining hub of Hassi Messaoud. ABB will also upgrade an existing compressor station near the natural gas fields of Rhourde Nouss.

“This project demonstrates our continuing leadership in application-specific solutions for the energy industries,” said Dinesh Paliwal, head of ABB’s Automation Technologies division. “By enabling customers to produce, transport and use energy more efficiently, ABB has become a key player in helping to sustain natural resources.”

The new Tin Fouye Tabankort compressor station will be built along the existing GR1/GR2 gas pipeline to increase the overall transport capacity of the pipeline. Upgrading the existing compressor station at Rhourde Nouss will further increase the flow rate.

The current project is part of Sonatrach’s 30-month plan to install seven new turbo compressors rated at 25 MW each, and upgrade five compressors across Algeria’s Sahara region. ABB has several ongoing projects with Sonatrach, including the development of an oil treatment plant in the Bir Berkine basin, awarded in mid-2003.

Under the terms of the latest contract, ABB is responsible for the engineering, procurement, construction, commissioning and start-up of the compressor units. The project is scheduled for completion by September 2006. The order was booked in the third quarter 2004.

ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 103,000 people.

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