JGC Corporation and its joint venture partner, Kellogg Brown & Root, a business unit of Halliburton, have been selected by Shell Gas & Power (Shell) as contractor for its first large scale Gas to Liquids (GTL) project. The joint venture's contract covers the definition of the engineering design. The location of the first project has yet to be determined, but an investment decision is expected by the end of 2002. Shell intends to commit to four projects by the end of 2010.

"This is a very important step forward in realizing Shell's plans to commit to four large scale gas to liquids plants by the end of 2010. We are delighted to be working with the JGC / KBR joint venture as both companies have considerable experience with the technologies involved in this emerging industry," said Niels Fabricius, Shell vice president of SMDS projects.

"It is a great honor and a pleasure for JGC Corporation to have been selected as contractor for the SMDS-2 project, following the SMDS-1 project which JGC executed in Malaysia as the first commercial GTL plant," said Yoshihiro Shigehisa, president and representative, JGC Corporation. "Our management motto is 'Development of energy for quality of human life' and we are delighted to be permitted the opportunity to handle this eco-friendly GTL project. We also look forward to continuing our great working relationship with our joint venture partner, Kellogg Brown & Root."

The project will use Shell's proprietary GTL technology, the Shell Middle Distillate Synthesis (SMDS) process. This process converts gas intro ultra clean liquid products that are free from aromatics and sulfur. Recent technical advances in the SMDS technology have created potentially attractive opportunities for the commercialization of large gas reserves in an environmentally sustainable manner. The next generation facility will have a capacity of 75,000 b/d (barrels per day), requiring a gas intake of around 600 mmscf/d (million standard cubic feet per day) - roughly equivalent to the gas intake of a large liquified natural gas train.

The definition phase activities will be executed over a period of 18 months at the offices of M.W. Kellogg Ltd., as Kellogg Brown & Root and JGC's affiliate company in London, with support from JGC in Yokahama and Kellogg Brown & Root in Houston. At peak, 175 professionals will be assigned to the project.

The JGC / Kellogg Brown & Root joint venture has broad experience in all the constituent technologies involved in GTL, having executed large projects for Shell related to the commercialization of gas reserves for 22 years. JGC and Kellogg Brown & Root are leading service providers in the industry, having executed more than 20 LNG projects together, many in remote pioneer greenfield locations. The joint venture's capabilities in building next generation technology plants will also be an asset to the SMDS-2 project.

JGC Corporation is a leading, internationally recognized contractor, with total engineering, procurement and construction (EPC) capabilities, having its global headquarters in Yokohama, Japan. During its more than seventy-year history, JGC has executed in excess of 20,000 projects, the majority on a lump-sum turnkey basis, for a wide range of industries in over 50 countries. The company's World Wide Web site can be accessed at www.jgc.co.jp.

Kellogg Brown & Root is an international, technology-based engineering and construction company, which provides a full spectrum of industry-leading services for public infrastructure and to the hydrocarbon, chemical, energy, and forest products industries.

Halliburton Company, founded in 1919, is the world's largest provider of products and services to the petroleum and energy industries. The company's World Wide Web site can be accessed at www.halliburton.com.

Shell Gas & Power, one of the world's largest private gas enterprises, has the largest portfolio of proven gas reserves of any private company and is a leading player in the LNG industry. It is part of the Royal Dutch / Shell Group of companies.