New Middle East order adds to Alfa Laval’s success in liquid natural gas

Alfa Laval – a world leader in heat transfer, centrifugal separation and fluid handling – has received an order for the supply of plate heat exchangers to a liquid natural gas (LNG*) plant in the Middle East. The order is valued at around SEK 80 million and final delivery will take place during 2007.

The order consists of around 50 all stainless steel process plate heat exchangers of different capacities. The heat exchangers will be used on the process side in one of the world’s largest LNG facilities. In the past ten months Alfa Laval has received major contracts to the LNG market worth more than SEK 500 million, for delivery between 2006 and 2008. Among others Alfa Laval heat exchangers are used in gas treatment processes as well as for central cooling. This project is dedicated to deliver liquid natural gas to the US market, with start in 2009. Natural gas accounts for almost one-fourth of all energy consumed in the United States. Today 40 percent of natural gas consumption is for industrial activities; 22 percent is for residential uses; 15 percent is accounted for the business sector; and 14 percent is used for electricity generation. Currently there are six LNG terminals in operation in North America. Another 18 LNG terminal projects have been approved and an additional 28 projects are proposed**. * = Liquid Natural Gas (LNG) ** = Source: US Federal Energy Regulatory Commission (FERC) Editor’s notes: Large demand in Liquid Natural Gas Natural gas is a long lasting and environmentally friendly fossil fuel source. The demand of natural gas is continuously increasing, particularly in countries with strong economic expansion like China and India. However, there is a geographical imbalance between supply and demand of natural gas. The largest gas reserves are located in the Middle East and Russia while the largest demands are found in North America, Europe and Asia. Therefore, natural gas has to be exported and transported, often long distances. This can be done in pipelines or, in liquid form, in transport carriers. Transporting LNG The pipeline exports still account for the largest part, but Liquid Natural Gas (LNG) chains are increasing rapidly. The LNG demand is expected to increase fivefold between 2000 and 2030. In the LNG chain the gas is transported from the offshore platforms to a gas treatment and liquefaction plant. Here it is transformed into a liquid phase, before it is transported - with a temperature of minus 160 degrees Celsius - in a LNG ship. At the reception terminal, the liquid is transformed into gas again in a regasification plant. There are currently around 140 ships which transport more than 120 million metric tons of LNG every year. Alfa Laval supplies plate heat exchangers to LNG facilities which enable cooling of fresh water by means of seawater. Where is LNG used? LNG is normally warmed to make natural gas to be used in heating and cooking as well as electricity generation and other industrial uses. LNG can also be kept as a liquid to be used as an alternative transportation fuel. About Alfa Laval Alfa Laval is a leading global provider of specialized products and engineering solutions based on its key technologies of heat transfer, separation and fluid handling. The company’s equipment, systems and services are dedicated to assisting customers in optimizing the performance of their processes. The solutions help them to heat, cool, separate and transport products in industries that produce food and beverages, chemicals and petrochemicals, pharmaceuticals, starch, sugar and ethanol. Alfa Laval’s products are also used in power plants, aboard ships, in the mechanical engineering industry, in the mining industry and for wastewater treatment, as well as for comfort climate and refrigeration applications. Alfa Laval’s worldwide organization works closely with customers in nearly 100 countries to help them stay ahead in the global arena. Alfa Laval is listed on the Stockholm Exchange and, in 2005, posted annual sales of about SEK 16.5 billion (approx. 1.8 billion euros). The company has some 9,800 employees. For more information please contact: Peter Torstensson Vice President, Communications Alfa Laval Tel: + 46 46 36 72 31, Mobile: +46 46 709 33 72 31 Mikael Sjöblom Investor Relations Alfa Laval Tel: +46 46 36 74 82, Mobile: +46 709 78 74 82