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Northwest Upgrading Awards Project Management Contract to SNC-Lavalin and PCL Industrial Management Inc.

Edmonton, Alberta -- North West Upgrading (North West), a Calgary-based, privately-owned company committed to building an independent, heavy oil upgrader in Alberta’s Industrial Heartland, today announced it has signed agreements with SNC-Lavalin and PCL Industrial Management for the provision of overall project management services as project management contractor (PMC) and for the provision of engineering, procurement, and construction (EPC) for more than 50 per cent of North West’s project scope.

SNC-Lavalin and PCL Industrial Management have formed a joint venture to utilize their renowned experience and high-quality resources to help manage and construct the independent upgrader.

North West will greatly benefit from the knowledge and experience that SNC-Lavalin and PCL Industrial Management bring to the project,” said Robert Pearce, President and CEO, North West Upgrading. “We are confident our project management and construction will be well executed by these highly capable organizations.”

SNC-Lavalin and PCL Industrial Management will provide the primary link between North West Upgrading and the working level engineering and construction contractors until the completion of the project’s first phase. There is opportunity for the contracts to be extended into phases two and three, potentially lasting more than ten years.

“Upgrading is an important cornerstone for Alberta’s oil sands and SNC-Lavalin will assist North West Upgrading in developing this resource, while maintaining the province’s downstream benefits,” said Jean Beaudoin, Executive Vice-President, SNC-Lavalin Inc. “This project is a strategic opportunity for SNC-Lavalin’s Chemical and Petroleum Business Unit to showcase its expertise and ability to take a project from early inception or conceptual stages to complete EPC execution.”

SNC-Lavalin has successfully partnered with PCL Industrial Management on previous initiatives and they understand each others abilities, strengths, and people.

“PCL Industrial Management is proud to once again partner with SNC-Lavalin and to execute this world-class project by using our collective expertise and resources,” said Peter Stalenhoef, President and COO, Heavy Industrial, PCL Constructors Inc. “This also is an opportunity for PCL to engage our entire range of construction management and construction services for this flagship project – North West’s Upgrader.”

About North West Upgrading

North West Upgrading Inc. is a Calgary-based, privately-owned company committed to building an independent, heavy oil upgrader in Alberta’s Industrial Heartland. The Upgrader will enhance the economic value of Alberta’s bitumen and heavy oil production by producing light, low sulphur products and diluent. The Upgrader will have a total processing capacity of 231,000 barrels per day of blended feedstock (150,000 barrels per day of crude bitumen) over three phases. North West anticipates it will receive regulatory approval by mid-2007, with construction to begin immediately to achieve start up for the first phase in 2010. All three phase are expected to be operating by 2015. www.northwestupgrading.com.

About SNC-Lavalin

SNC-Lavalin (TSX: SNC) is one of the leading groups of engineering and construction companies in the world, a major player in the ownership of infrastructure, and in operations and maintenance services. The SNC-Lavalin companies have offices across Canada and in 30 other countries around the world and are currently working in some 100 countries. www.snclavalin.com.

About PCL Industrial Management

PCL Industrial Management Inc. is one of several independent construction operations that make up the PCL family of companies, the largest contracting organization in Canada and one of the largest in the United States. The PCL family has major offices in 27 locations across continental North America, the Hawaiian Islands and the Caribbean. PCL is on the 50 Best Employers in Canada list and is a Platinum Member of the 50 Best Managed Companies in Canada program.


For further information, please contact:  

Jennifer Peters for North West Upgrading
P: 403.538.5641 ext. 102
C: 403.542.6751
jpeters@brooklinepr.com

Wade Wilson
Communications Specialist
PCL Constructors Inc.
Phone: (780) 435-9750
Email: wwilson@pcl.com