Iran Gas Contract

Costain Group PLC
24 June 2005

Costain Group PLC



COSTAIN AWARDED $1.6 BILLION IRANIAN CONTRACT



Costain Oil, Gas & Process (COGAP), part of the Costain Group, has been awarded
the $(US)1.6 billion contract (as lead contractor in the joint venture) for the
Bid Boland 2 gas treatment facility, by NIGC, the National Iranian Gas Company.



The Bid Boland gas treatment facility will process up to 2 billion cubic feet
per day of sweet and sour gas plus condensates and liquefied petroleum gas.  The
Bid Boland project, which is known as Bid Boland 2, is located in the south-west
of Iran, approximately 15 km from Behbahan City in Khuzestan province.



The project will be developed in consortium with partners Dragados, Sazeh and
Jahanpars. It is expected to take four years to complete and mobilisation will
start immediately.



The treated associated gas will be fed into the national IGAT pipeline network,
whilst ethane will be supplied as feedstock to the nearby Arvand petrochemical
complex. Propane and butane (LPG) will be exported for sale via a new storage
facility to be built at Mahshahr, some 100km distant.



The existing Bid Boland 1 facility, constructed by Costain, has been processing
some 800 million cubic feet per day of associated gas since the early 1970s.



Costain's first project in Iran was the construction of the Trans-Iranian
railway in 1935.



Charles Sweeney, Managing Director of COGAP, said:



 'Costain has a long history of working in the Middle East and we are delighted
to have been selected for this prestigious project.'



Stuart Doughty, Costain Group Chief Executive, said:



 'Against intense competition, we were awarded the contract in recognition of
our overall technical, engineering and construction expertise.  This contract is
a significant boost to our strategy of developing an international gas
processing business.'



                                                                    24 June 2005



Enquiries:
Costain Group PLC                                    Tel: [phone]
Stuart Doughty, Chief Executive
Graham Read, Public Relations

College Hill                                         Tel. [phone]
Mark Garraway
Matthew Gregorowski




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