TEC was awarded Contract for PMC Work on Rejuvenation and Revamp of a Gas Plant in MalaysiaFeb. 26, 2002

Toyo Engineering Corporation (TEC, President Toshihiko Hirose) through our local subsidiary company has formed an international consortium with OGP Technical Services Sdn Bhd (Head Office: Kuala Lumpur), a subsidiary of PETRONAS, the national oil company of Malaysia. PETRONAS Gas Bhd (PGB), the partly-owned subsidiary of PETRONAS recently entered into a contract with the Consortium for the implementation of PMC (Project Management Consultant) work on rejuvenation and revamp of its Gas Processing Plant 1 (GBB-1), associated facilities and the Export Terminal (ET-1&2), which are now operating in Kertih, Trengganu state, and PMC work on construction of an ethane producing facility at this site.

In 1985, TEC constructed the GPP-1, associated facilities and ET-1&2. The current PGB rejuvenation and revamp project is to achieve a recovery in plant performance, to improve operational efficiently, and to construct a new ethane producing facility (160,000 t/y). Following on from basic work for this project TEC Consortium completed in November 2001, the main scope of Consortium's PMC work is to perform a bid assistance work with PGB and a technical evaluation at the time of selecting the EPC contractors, and to perform consulting services during the implementation of the project.

Thus, since it was awarded a contract for the Feasibility Study work in June 2000, TEC Consortium has performed a continuous series of work undertakings on this project involving Feasibility Study, basic design, and PMC.

Regarding the tendering for EPC for this project, the ITB was issued in December last year, and at the beginning of this summer, it is intended to select the EPC contractors. The EPC for rejuvenation, revamp and the ethane facility is scheduled to be completed in 27 months after award.

This PMC contract was awarded to the TEC Consortium based on the excellent track record that TEC has built up in Malaysia through numerous gas plants petrochemical plant projects and the good relationship it has developed with the client through the construction of these plants and following many soft projects, as well as the positive evaluation placed on TEC's technical capabilities and the fairness of our prices.

In the Malaysian market, there is a decline in gas and petrochemical projects involving new components and plants. In view of this, TEC has shifted its target to focus mainly on the planning, design, and consulting services, and TEC's sales efforts in this area have been rewarded by winning this contract.

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