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Yankee Gas Services Company
P.O. Box 270
Hartford, CT 06141-0270
(800) 989-0900

www.yankeegas.com
News Release
  
Yankee Gas Awards Contract to Build LNG Plant
CB&I hired to build full containment LNG storage tank in Waterbury, Connecticut
 
MEDIA CONTACT:Mary B. Ingarra
Office:(860) 665-6212
 
BERLIN, Conn., October 18, 2004 (NYSE: NU) -- Yankee Gas Services Company, Connecticut’s largest natural gas distribution company, has awarded a contract to a subsidiary of Chicago Bridge & Iron (CB&I) to build a liquefied natural gas (LNG) peak shaving facility in Waterbury. The contract award follows approval by the Department of Public Utility Control for the project. The facility will provide natural gas service during peak demand periods to Yankee’s residential, commercial and industrial customers. With construction starting this fall, the facility is expected to be completed and ready for use during the 2007/2008 heating season. The plant will be built at Yankee’s Eagle Street work center in Waterbury’s south end.
“This is a major milestone in our effort to secure a more reliable, in-state supply of natural gas to meet the growing energy demands of our customers,” said Dennis E. Welch, president & chief operating officer of Yankee Gas. “Having this facility ready for dispatch during periods of high demand will help to stabilize prices for our customers and give us greater control over our supply portfolio. CB&I is a world leader in LNG plant construction and their expertise will ensure that we will not only have a state-of-the-art facility, but one that will operate safely and reliably for years to come.”
The total project cost is estimated at around $100 million. The facility will not impact customer rates until construction is complete and the plant is in-service. The project will generate significant tax revenues to the city of Waterbury. In addition, CB&I, headquartered in Texas, intends to hire a portion of the construction workforce from the Connecticut area which will help the local economy.
The project will include a full containment LNG storage tank with a capacity of 1.2 billion cubic feet and will consist of an inner tank built of 9% nickel steel and an outer tank and roof built of reinforced concrete. CB&I pioneered the full containment design in the early 1960s and has extensive experience with the concept. Yankee’s facility will include liquefaction and vaporization systems. The flexibility of having liquefaction and vaporization capabilities allows Yankee to choose the most cost-effective means of filling the tank – either by truck (specially designed trucks capable of hauling LNG from other LNG facilities) or by interstate pipeline (natural gas taken directly off the interstate pipeline, processed, liquefied and stored in the tank).
“Credit for Yankee’s ability to proceed with this facility is shared with our state regulators who are working hard to ensure Connecticut’s energy needs are met well into the future,” added Welch. “We also appreciate the support we have received from the city of Waterbury – from local leaders and neighborhood community groups who have worked closely with Yankee for the past three years to make this important project happen.”
“Natural gas continues to grow in popularity because of its reliability, efficiency and cleanliness,” said Welch. “As demand increases, it is critical that we have infrastructure in place to deliver new supplies to market. This facility is one piece of an important puzzle in Connecticut’s and New England’s efforts to expand capacity and supply to meet the region’s growing energy needs.”
An official ”groundbreaking” for the facility will be held early next year, with plant commissioning expected for spring 2007.
For more information about Yankee Gas, visit www.yankeegas.com; for more information about CB&I, visit www.CBIepc.com.

Yankee Gas Services Company (Yankee Gas) is Connecticut’s largest natural gas distribution company, delivering safe, reliable natural gas service to approximately 194,000 customers in 71 cities and towns. Yankee Gas is expanding Connecticut’s energy options and increasing customer choice by extending the availability of clean, efficient natural gas throughout the state. Yankee Gas is part of the Northeast Utilities System (NYSE: NU). For more information, please visit www.yankeegas.com.
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