SNC-Lavalin said Thursday that, following a successful bid in response to a European tender call, its subsidiary SNC-Lavalin in Europe has been awarded a contract by GRTgaz--a subsidiary of Gaz de France--to construct two natural gas compressor plants in France.

The contract is valued at approximately (euro)180 million, and covers turnkey construction of two natural gas compressor and interconnection stations located in the communes of Fontenay-Mauvoisin (Yvelines) and Saint-Avit (Drome).

Jean Claude Pingat, President of SNC-Lavalin in Europe, was openly enthusiastic about the contract: "We are very proud to be working with GRTgaz. SNC-Lavalin will be making all its expertise and experience in the energy sector, where we are a recognized world leader, available to GRTgaz for this important project."

The project is part of Phase ll of a program to revamp and upgrade compressor facilities which GRTgaz has been working on since 2007. The Fontenay-Mauvoisin and Saint-Avit stations will each have two, 10 MW, electric motor-driven compressors. These new generation stations will help reduce greenhouse gas emissions, especially CO2 and nitrogen oxides (NOx).

The compressor stations are located at regular intervals (every 120 to 150 km) along pipelines to compensate for pressure losses caused by natural gas flow through the lines, and thus allowing the natural gas transport network to function under the best technical and economic conditions.

Work on the stations begins immediately and will be completed in 2010.

SNC-Lavalin is one of the leading engineering and construction groups in the world and a major player in the ownership of infrastructure, and in the provision of operations and maintenance services. The SNC-Lavalin companies have offices across Canada and in 35 other countries around the world and are currently working in some 100 countries.