Market Prospects

Market Prospects

November 200 1 Pump Industry Analyst Pump Company Index 12,14 ABS Pumps 7 Andrews Sykes 12 Aro 10 Assopompe 5 AxFlow 15 Baker Hughes BigMachines 10 ...

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November 200 1

Pump Industry Analyst

Pump Company Index 12,14 ABS Pumps 7 Andrews Sykes 12 Aro 10 Assopompe 5 AxFlow 15 Baker Hughes BigMachines 10 Blackmer 5, 10, 11, 12, 14 16 BOC Edwards 5 Bredel 10 Caprari 10 Cardo 11 Cardo Pumo 14 Carver Pur;lp 13 AW Chesterton 1 Corporation EG 11,15 Crane 1,15 Derlan Industries 13‘15 Dover Ebara t, 6 6 Ebara Techno-serve 5 Eco 10 Finder 12,15 Flowserve IO Fluidigm 15 Gardner Denver 5 George Meller 12, 13,15 Gorman-Rupp 11 Goulds Pumps Grace 11,12,15 16 Grundfos 15 Halliburton 16 Hibon 16 Hick Hargreaves II,15 ldex 12 Ingersoll-Rand 7 Interpump Group 5 lsochem 11,15 ITT Industries 8 Johnson Pump 5 Johnson Pump (UK) 14,15 KSB 8 Layne Christensen 12 Linatex 10 Lowara 12 McLanahan 15 Met-Pro 5, 10 Micropump 5, 12 Mono Pumps 11 NikklSo Odell Pump & Motor Service 12 15 Pentair 9 Pfeiffer Vacuum 15 Precision Castparts 5, 10 Pulsafeeder Robbins 8 Myers 9,11,15 15 Rooer Industries 1 Ruhrpumpen 5 Sandpiper 12.15 Schlumberger 13, 16 Smiths Group 11 Spirax-Sarco 15 SPX Sterling Fluid Systems 12 16 Stokes.Vacuum1.5 Sulzer 11 Sundyne 13,15 Textron Torishima 15 Tsurumi 15 12 United Pumps United Technologies II,15 10 Versa-Matic Viking Pump 5 Warren Rupp IO 5 Waukesha Weir 15, 16 Wilden Willy Vogel 1: ;;onsin Energy 15 16 Zenith 5

US UTILITIES TACKLE SECURITY ISSUES US water utilities are increasing security following the recent terrorist attacks in the USA. While they have not received any direct threats, the water utilities are operating on heightened alert as a general precaution. The American Water Works Association (AWWA) says it wants to reassure all Americans that utilities across the country are at work to protect the nation’s water supplies. AWWA has reissued infrastructure protection materials that were originally released to utility members in May this year. At a national level, water utilities are working together as part of the Critical Infrastructure Protection Advisory Group led by the Association of Metropolitan Water Agencies (AMWA).

WILLBROS ANNOUNCES FOUR NEW AWARDS Willbros Group subsidiary companies have been awarded four new projects in the USA, Venezuela and Oman. Willbros Engineers Inc of Tulsa, Oklahoma has secured an engineering, procurement and construction (EPC) contract for approximately 17 miles of dual water pipeline for an 810 MW natural gas-fueled power generating facility to be Columbus, built near Mississippi by Caledonia Generating LLC. Work has started and the project is scheduled to be completed by September 2002. Houston-based Rogers & Phillips is to install 21.5 miles of 12-inch products pipeline in

St Martin Parish, Louisiana for Enterprise Products. Work is Eurrently underway and is Expected to be completed in December 200 1. In Venezuela, Constructora CAMSA CA is to support the Jusepin field development for Total. The work includes fabrication and construction of flowlines, installation of fibre Dptic cable and cathodic protection systems, and civil, electrical and instrumentation work. The contract term is for the remainder of 2001, all of 2002 with an option for 2003. Petroleum Jn addition, Development Oman has selected Oman Construction Co to build 16.8 miles of 8-inch flowline from Natih to the Fahud pump station. This project is underway and is planned to be completed by the end of November 200 1.

EIB FUNDS MOROCCAN DRINKING WATER SCHEMES The European Investment Bank (EIB) is providing =O million to supply drinking water to 70 medium-sized local authorities in Morocco. The Office National de 1’Eau Potable (ONEP) is being granted this EIB loan with a view to enhancing water supply services through individual smalland medium-scale schemes in areas where water production and distribution are already or will soon become overloaded. The works will be completed by 2004.

ADB FUNDS WATER SUPPLY PROJECT IN UZBEKISTAN Nearly 500 000 people in three citiei in Uzbekistan will have a better water supply as a result of a US%36 milllon loan approved by the Asian Development Bank (ADB).

ADB will also provide a LJS$600 000 technical assisante grant to train government &aff and strengthen the capacsty of the water agencies in Djizzak, Gulistan and Karshi. The Urban Water Supply Project will rehabilitate and upgrade aging infrastructure, improve management of the water supply systems, and build local government capacity to maintain and operate the systems. The ADB loan will cover 55% of the total project cost of US$65.5 million. The project is expected to be completed in December 2006.

EMCOR TO BUILD FLORIDA WATER FACILITY Emcor Group has won a number of public sector infrastructure projects with a total value of more than US%300million. Major contracts include building one of the world’s largest membrane water facilities in Boca Raton, Florida, constructing a new high service pump station, and supplying emergency generators and air quality control systems.

METS0 TO DELIVER LWC PAPER LINE TO CHINA Metso Paper is supplying an LWClnewsprint production Lineto China’s Jilln Paper Co Ltd. The new production line includes a paper machine which is designed for a speed of 1600 m/min and has a wire width of 6950 mm. The main basis weight of the LWC paper will be 60 g/m2. The paper machine is designed to also produce newsprint paper, with a basis weight of 45 g/m2. In

Pump Industry Analyst

November 200 1

addition to the paper machine, the order includes stock preparation equipment, a winder and the chemical handling system of the whole process. The order is valued at mom than a0 million. The line is scheduled for start-up in late 2002. The construction work of the new mill in Jilin has already started. Machinery assembly work will begin in mid-2002.

and associated units, such as monoethanolamine treatment, sour water stripper, flare and offsites. The project will be executed out of Foster Wheeler’s Paris and Milan offices. Work will start in November 2001 and start-up of the units is planned for the third-quarter 2004.

HHI SECURES

Kellogg Brown & Root (KBR) has been selected to supply Phase 1 engineering, procurement and construction services for a new underground gas pipeline from the Port Campbell area in Victoria to Adelaide, South Australia. The proponent is SEA Gas Pty La a new 50150joint venture recently incorporated by Australian National Power and Origin Energy. KBR’s role includes Phase 1 engineering, pipeline flow simulation, development of specifications and tendering for the procurement and construction of the 660 km pipeline as well as its associated compressors and meter stations. It also involves preparing a project cost estimate, and managing the work of sub-consultants engaged for regulatory and environmental approval processes, land acquisition and surveying. At present, almost all of South Australia’s gas is supplied by the Cooper Basin in Central Australia via the Moomba to Adelaide pipeline. When completed in early 2004, the A$250 million SEA Gas pipeline will bring gas to South Australia from the Otway Basin, considerably strengthening the state’s energy infrastructure and providing security of supply for both existing and potential industrial expansion.

US$600 MILLION OFFSHORE ORDERS South Korea’s Hyundai Heavy Industries (RID) has won two orders worth USS300 million each from Indonesia and Qatar. Au order from Unocal of Indonesia involves building an undersea pipeline and floating facilities for gas production, while the Maersk of Qatar order is for a crude oil production facility. The Unocal order is scheduled for delivery in April 2003, while the Maersk project is slated for June 2003.

Fw WINS

FRENCH FEED CONTRACT Esso Rafftaage SAF has awarded Foster Wheeler France SA a contract for the front end engineering design (FEED) of the major part of the PJ21 project, developed for its Port-Jerome Gravenchon refinery in Normandy, France. The US$200 million PJ21 project includes a new grassroots Gofiner unit, the upgrading of the existing fluid catalytic cracking unit to increase the automotive fnel and propylene production, the expansion of the sulfur recovery units,

KBRWINS AUSTRALIAN PIPELINE CONTRACT

VMALLIANCE WINS WATER INJECTION PROJECT The VM alllance, formed by Halliburton, Fabricom and Sarco, has won the main contract to modify the Heidrun platform in the Norweglan Sea. The contract includes engineering work, procurement, construction, installation and completion. The project is planned for completion in October 2003. Two modules will be installed on the platform in order to reinject seawater and produced water into the Heidrun field to provide pressure support for the production wells. One of the modules will contain three water injection pumps, while the other will remove the sulphate from the seawater, before the water is injected into the reservoir.

SEMPRA, CMS TO DEVELOP LNG TERMINAL IN MEXICO CMS Energy Corp and Sempra Energy are to jointly develop a major new llquefied natural gas (LNG) receiving terminal to bring natural gas supplies into northwestern Mexico and Southern Callfomia. The joint venture will develop, finance, build and own the LNG facility and related port infrastructure, located on the Pacific Coast. The plant will have a send-out capacity of about 1 billion cubic feet per day of natural gas. The natural gas will flow north into Baja California and the southwestern United States via a new 40-mile pipeline between the terminal and existing pipelines in the region. Commercial operation of the LNG terminal is scheduled to begin in late 2005.

IEA CUTS WORLD OIL DEMAND FORECASTS World oil demand is set to contract sharply as the 11 September terrorist attacks in the US adversely afE?ctair travel and global economic growth. According to the International Energy Agency’s October Oil Market Report, global oil demand growth, which was already falling before the attacks, has been cut to only 120 kbld for 2001. Jet fuel demand accounts for the bulk of the reduction. Demand growth for 2002 has been lowered to 600 kbld.

TECHNIP/ CHIYODA EXPAND QATAR LNG PLANT Liquefied Gas Qatar Company (QATARGAS) has awarded an El40 milllun EPC contract to the joint venture between Technip and Chiyoda to expand the LNG faclllty located at Rat4Laffan on the north east coast of the State of Qatar will TechnipKhiyoda carry out detailed engineering, procurement and construction for the debottlenecking of the three LNG process trains. The work involves mainly replacing or upgrading some of the key process equipment such as compressors and turbines in order to expand the capacity of each of the 3 LNG trains from 2 to 3 million tons per year. Works will be executed during four shutdowns scheduled between 2002 and 2005, the duration of which will be limited to about one , month each. This project will be handled under a single integrated i project team pooling the expertise of both partners in the joint venture. The engineering centre will be located , in Paris, France.

Pump industry Analyst

SHI CONFIRMS OIL TANKER ORDER Samsung Heavy Industries (SRI) has won an order from BP Shipping, UK and the Italian shipping company Premuda, to supply 11 aframax and panamax tankers worth USs457 million, with an option for five more units. BP Shipping’s order includes eight 115 000 dwt aframax oil tankers with an option for four extra units. Each ship is worth US544 million and will be delivered successively from late 2003. SHI has already supplied 10 of the 22 ships currently owned by BP Shipping including VLCC and LNG carriers. Premuda’s three 73 000 dwt panamax tankers with one option unit are contracted for US$35 million per unit, and they are expected to be delivered in 2003,

DOMINION PLANS US$600 MILLION POWER STATION Dominion has announced preliminary plans to construct and operate a natural gas-fired electric generating station in the Person County Industrial Park, adjacent to The Old Durham Road in Roxboro, North Carolina, USA. If developed, the 1100 MW combined-cycle facility would represent an investment of US5600 million in Person County. The company plans to build the facility in two phases: the first 550 MW would begin commercial operations in June 2005, and the second 550 MW would come online in October 2005.

November 200 1

SHAW TO BUILD POWER PLANTS FOR NRG The Shaw Group Inc and NRG Energy Inc have signed an agreement to construct two gas-fired power plants in the South Central United States. Shaw has been given limited notice to proceed on the two plants which total 1520 MW of generating capacity and will execute the engineering, procurement and construction services for the projects. Engineering work has already started on the 1200 MW combined-cycle Pike plant located in Holmesville, Mississippi. The project calls for 600 MW to begin operations in the summer of 2003, and an additional 600 MW to start during the fourth quarter of 2003. The second facility is the 320 MW simple-cycle Bayou Cove plant located near Jennings, Louisiana, where engineering work is underway and the plant is expected to begin operations in the summer of 2002.

KINDER MORGAN .TO BUILD TEXAN PIPELINE Kinder Morgan North Texas Pipeline Company LLC (KMNTP) plans to construct a 30-inch Hinshaw pipeline in Texas, USA. The new pipeline will transport natural gas from an interconnect with Kinder Morgan’s Natural Gas Pipeline Co of America (NGPL) system in Lamar County, Texas to an existing 1000 MW electric generating facility in Lamar County, as well as a new 1789 MW electric generating facility currently being built in Kaufman County, Texas by FPL Energy LLC. FPL Energy has executed a long-term, binding firm-transportation contract for the entire capacity of the pipeline. The KMNTP

pipeline will be the primary gas supplier for the new plant, which is located near Fomey, Texas, about 20 miles east of Dallas. The new 86-mile pipeline will cost approximately US570 million to construct and will have a capacity of 325 000 MMBtu per day. It should be completed by spring 2003.

FL SMIDTH TO EXPAND SPANISH PLANT FL Smidth is to increase the production capacity of Cementos Atlantic0 SA’s plant in A&ala de Guadaira by 1000 tonnes per day to a total production of 3800 tonnes of clinker per day. The contract covers machinery and equipment, engineering and commissioning services. FL Smidth will supply a TUMS 5,4 x 12 metre ball mill for grinding of raw material, a 4-stage calciner string, modification of the existing rotary kiln, a SF Cross-Bar cooler, and conversion of an existing raw mill to coal mill.

ICA FLUOR DANIEL TO BUILD POLYMER PLANT IN TAMAULIPAS ICA Fluor Daniel is to construct a new Styrolux polymer plant for BASF Mexicana SA de CV. The Altamira, Tamaulipas, Mexico plant involves a total investment of nearly US%53 million. ICA Fluor Daniel’s 2 1-month contract includes detail engineering, procurement services, construction, and assistance to commissioning and performance test.

“This project gives us the opportunity to establish a longterm relationship with BASF, one of the world leaders in the chemical industry,” said Jorge Borja, general director of ICA Fluor Daniel and executive vice-president of ICA.

CIBA INVESTS AFTER EXPLOSION Ciba Specialty Chemical’s production plant in Schweizr erhrlle, Switzerland, which was badly damaged in an explosion and fire earlier this year, will not be rebuilt. Instead Ciba will invest SFr14 million into an existing production building at the company’s Klybeck site in Base1 for the production of two photoinitiators and their intermediate. Currently unused this building will be equipped with modem, automated production plants within the next 12 months. Production is expected to resume in the fourth quarter of 2002.

AI&O NOBEL EXPANDS ASIAN SURFACTANTS Akxo Nobel’s Surface Chemistry business unit is investing in a new faclllty for the production of.surfactants on Jurong Island, Singapore. The plant will support growing demand for Surface Chemistry’s product line of quatemary ammonium compounds and speciality surfactants. This represents an investment of a3 million, with start-up scheduled for 2003. At the same time, Surface Chemistry plans to invest e6.5 million in a capacity increase for fractionated fatty acids in Pasir Gudang, Malaysia, and an additional e5 million in increasing industrial surfactants capacity in LACO, its Japanese joint venture with Lion Corp.