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LNG Industry Defends Offshore Project Technology

Maritime Activity Reports, Inc.

May 9, 2006

The Center for Liquefied Natural Gas (CLNG) supports the use of open-loop vaporization (OLV) systems proposed in LNG terminals in the Gulf of Mexico, calling it a proven and environmentally sound technology predominately used in more than 40 LNG import terminals throughout the world. Environmental impact statements (EIS) issued by the U.S. Coast Guard conclude that offshore LNG facilities will have only minor adverse impacts on the environment, including fisheries. CLNG commissioned the highly respected research firm, Exponent, to analyze the methodologies used by the federal government in these EIS. Exponent found that the government's methodologies are sufficient for licensing purposes, even though they overestimate the negative impacts to fisheries.

"CLNG continues to back the use of OLV technology as an environmentally responsible method of delivering clean-burning natural gas to meet U.S. energy needs," said Bill Cooper, executive director, CLNG. "Not only is it critically important to U.S. energy needs, building LNG facilities in the Gulf of Mexico will further economic recovery and redevelopment along the Gulf Coast. "History shows that tight natural gas supplies and high gas prices make industry less competitive and lead to jobs moving overseas," continued Cooper. "New LNG terminals are needed. The use of seawater vaporization in offshore terminals reduces costs and makes more natural gas available for use by industry, utilities, manufacturing, agriculture and consumers."

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