TOKYO(December 31, 2002)--Nissho Iwai Corporation, in collaboration with Mitsubishi Heavy Industries, Ltd. and two Russian companies, has been awarded a consecutive order from Gazcomplektimpex (Head Office: Moscow), the Equipment Procurement Division of Gazprom (Head Office: Moscow), the world's largest natural gas production/sales company, for a Gas Pumping Unit (GPU) for the Russian gas pipeline compressor station.

Gazprom laid a 760 km long natural gas pipeline across the Black Sea from Stavropol in Russia to Samsun in Turkey, and is executing the "Blue Stream Project" to provide Turkey with 16-billion m3 of gas per year. The company is currently proceeding with the construction in preparation for operation commencement, which is scheduled for early 2003. In addition, the company is promoting the "Yamal-Europe Project" to reinforce the transport capacity of the trunk pipeline, which is 5,100 km long and passes from Poluostrov Yamal in northern Russia, through Belarus and Poland to Germany.

Nissho Iwai has signed a fourth agreement, worth approximately 7 billion yen, to provide the GPU for the Torzhokskaya Compression Station in the "Yamal-Europe Project, following agreements to provide the same units to the Krasnodarskaya and Stavropolskaya Stations in the "Blue Stream Project", and for the Smolenskaya Station in the "Yamal-Europe Project", and the said agreement has come into effect. Through adoption of Russian gas turbines to drive compressors, in line with the Russian policy of favoring domestic products, the order was awarded for 7 units of large compressors for pressurizing natural gas, and for incidental equipment.

Gazprom, the world's largest natural gas production/sales company, owns approximately 25% of the world's natural gas deposits, and provides 40% of the natural gas consumed in Europe. The company possesses over 4,000 GPUs at the pipelines, which cover a distance of 150,000 km, and at compressor stations in over 250 locations. Over 1,000 GPUs have been superannuated, as they were produced over 20 years ago, and demand is expected to upgrade a considerable number of compressors.

The use of natural gas, which carries a minute environmental burden, is being promoted worldwide. Considering the order received to represent a foothold, Nissho Iwai and MHI will strive to boost compressor order receipts from Gazprom for its natural gas-related projects.