Yokohama, Japan - JGC Corporation has been awarded a lump-sum contract by The Bahrain Petroleum Company (BAPCO) for the expansion of its refinery, including the construction of a new hydrocracking unit, the largest of its kind in the world. The contract signing was held on January 10. JGC will provide design, procurement, construction management and commissioning assistance services. The contract is worth approximately US$430 million and completion is scheduled for the end of 2006.

This project has been planned by BAPCO in order to increase production of low-sulfur diesel that meets strict European environmental regulations, pursuant to a company policy of expanding diesel oil exports into European markets and emphasizing light oil products.

JGC will undertake the construction of facilities that include a hydrocracking unit with a 60,000 BPSD hydraulic processing capacity, a hydrogen unit, a sulfur recovery unit and off-site & utilities, as well as increasing processing capacity of the existing mild hydrocracking unit from 54,000 BPSD to 70,000 BPSD and revamping it to an ultra-deep desulfurization unit, achieving a sulfur reduction in the diesel product down to 10 ppm.

To date, JGC has executed four projects for BAPCO in Bahrain, as part of the refinery modernization, and three projects including a gas processing plant for BANAGAS. Further, JGC enjoys an excellent reputation amongst its clients for the superb past performance of its hydrocracking and ultra-deep desulfurization units. It is believed that these factors were influential in the awarding of this contract. At the same time, this project will also enable JGC to further strengthen its presence in Bahrain.

Today, with the worldwide demands for products to meet new environmental regulations, such as those requiring the reduction of sulfur in diesel oil, JGC intends to take proactive measures to win an increasing number of clean energy plants, including ultra-heavy desulfurization units in the petroleum refining field and LNG, GTL, DME and hydrogen fuel facilities in the gas business

JGC Corporation is an international engineering and construction company based in Yokohama, Japan, having multiple operating centers and executing large-scale projects worldwide. JGC is currently executing projects in UAE, Saudi Arabia, Oman, Iran, Egypt, Algeria, Malaysia and other countries. Established in 1928, JGC has a strong background in lump-sum turnkey operations of both hydrocarbon and non-hydrocarbon related projects with annual sales turnover of approximately $3 billion.