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SNC-Lavalin awarded four contracts by Sasol

SNC-Lavalin (TSX: SNC) has announced four recent contracts awarded by Sasol in South Africa. The first three contracts are based in the town of Secunda, located at approximately 130 km east of Johannesburg. They are:

EPC modifications for the Dorr Oliver filters and their respective auxiliaries at the Coal Processing West Plant for Sasol Synfuels;
Monitor Fugitive Emissions Project; and
Welding Hot-work Services for Sasol.

SNC-Lavalin will be providing services through both its Projects (EPC) service line and through SNC-Lavalin Kentz Field Operations, which retains the Kentz constructions and field operations expertise acquired in 2014. For the first project, SNC-Lavalin will provide the detailed engineering, procurement and construction to achieve improved capacity of the filter parts. Work on the project has already begun and is due for completion in early May 2016.

For the second project, SNC-Lavalin will be responsible for monitoring the fugitive emissions at predetermined points on the piping systems of the Sasol Secunda plant. When completed, the Sasol Environmental Department will transfer the readings into a database for interpreting and monitoring purposes. This project – which will have 100, 000 points monitored per year – is due for completion in July 2017.

And for the third project in the town of Secunda, work has begun on a five-year term agreement, which commenced in October 2015. SNC-Lavalin Kentz Field Operations is providing the management support, coordination and supply of hot-work resources to undertake off-site prefabrication and on-site welding maintenance work on the existing gas, Tar Phenosolven & Sulphur (TPS) and oxygen plants.

The fourth project is based in Sasolburg, closer to the city. This is where the SNC-Lavalin Kentz Field Operations team is working on the preparation for the Q1 2016 Wax Plant Shutdown. The planning and preparation phase began in October 2015 and consists of comprehensive on-site scope validation, development and a ratification phase, culminating in a 20% pre-shutdown cost budget estimate for Sasol, which will allow for better management of the overall project expenditure.

"These awards highlight our strong relationship with Sasol, " said Christian Brown, President, Oil & Gas, SNC-Lavalin. "We pride ourselves on our aligned values with this valued client, in terms of safety, quality and certainty of delivery, and look forward to continuing our successful association with them."



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