Sunday, November 20 – 2005, Dubai, United Arab Emirates: S.S. Lootah Group joint venture, Lootah BC Gas will be providing project management support for the engineering, procurement, construction and operation contract of two natural gas distribution projects in Turkey worth Dhs 185 millions.

Palmet, a Turkish company engaged in contracting, operating and manufacturing, and Terasen International Inc. have formed the Palmet-Terasen Joint Venture in Turkey to support Palmet's subsidiary licensed natural gas distribution companies Palgaz in Gebze and Palen in Erzerum.

Lootah BC Gas, the international business arm of Terasen International Inc., based in Dubai, will provide project management services to ensure the smooth, timely implementation of the project that will provide natural gas to over 60,000 residential and industrial customers. 'Gebze is one of the largest industrial centres in Turkey and Erzerum is a densely populated residential city, the economic and environmental benefits of using natural gas to provide the energy needs of both cities have a direct impact on not just cost savings, but also an improvement of public health.' said Denis Lefrancois, Project Director, Lootah BC Gas, and Member of the Board for the Palmet-Terasen Joint Venture in Turkey. 'Our joint venture business strategy allows us to provide our services to license holders in Turkey where we are in the process of securing additional projects,' he added.

The government of Turkey has embarked on a program to issue licenses to private companies for the distribution of natural gas in over 50 cities, with the aim of increasing overall gas consumption in Turkey. Privatization of existing licensed distribution companies has also started in parallel with the issuing of new licenses.

'Our natural gas projects providing energy to residential, industrial and transportation sectors have been a tremendous commercial and community success; it is an important step for IEG towards providing commercially viable advanced energy technologies and applications.' Said Eng. Yahya bin Saeed Al Lootah, Vice Chairman, S.S. Lootah Group. 'We believe that integrating cleaner and renewable energy sources with finite energy sources in use today is the answer to the sharp rise in energy demand in our region and the world.' He added.

Lootah BC Gas, a leader in gas transmission and distribution, provides an extensive range of services, including: engineering, procurement, construction, consulting, feasibility studies, training, operations and maintenance, LNG Satellite Plants and Natural Gas Vehicles in the Gulf region and beyond. After successful completion of the Sharjah Natural Gas Distribution, Lootah BC Gas secured several local and regional contracts. These contracts include: a pioneering pilot project with ADNOC to use CNG for vehicle fueling in Abu Dhabi, a BOOT (Build Own Operate Transfer) contract for LPG distribution networks for Nakheel projects in Dubai, and more recently contracts for natural gas distribution networks in Tanzania and Turkey, three separate technology transfer and training projects in Iran and the operation and management of a gas transmission network in Oman.