Group defends use of open loop vaporizers in LNG import terminals

New York (Platts)--9May2006

Open loop vaporization systems are "a proven and environmentally sound
technology" for use in returning liquefied natural gas to a vaporous state,
according to the Washington-based Center for Liquefied Natural Gas.

In a statement released late Monday, CLNG said it "steadfastly supports"
the use of open loop -- also known as open rack -- vaporization systems for
proposed LNG import terminals in the Gulf of Mexico, stressing that
environmental impact statements from the US Coast Guard "conclude that
offshore LNG facilities will have only minor adverse impacts on the
environment, including fisheries."

Late last week, Louisiana Governor Kathleen Babineaux Blanco rejected
McMoRan Exploration's application to build the Main Pass Energy Hub offshore
Louisiana, stating concerns that the proposed LNG facility's use of open rack
systems would irreparably harm the state's marine life.

"CLNG continues to back the use of OLV technology as an environmentally
responsible method of delivering clean-burning natural gas to meet US energy
needs," said CLNG Executive Director Bill Cooper. "Not only is it critically
important to US energy needs, building LNG facilities in the Gulf of Mexico
will further economic recovery and redevelopment along the Gulf Coast."

CLNG noted that OLV systems are in use in more than 40 LNG import
terminals worldwide. "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," Cooper said.

---Melanie Tatum, melanie_tatum@platts.com

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