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Norwegian Company Plans LNG Terminal Offshore Alabama

Norwegian-based TORP Technology announced last week that it has completed financing for a $400 million liquefied natural gas (LNG) terminal to be located 50 miles offshore Dauphin Island, AL. TORP officials now plan to file regulatory documents in 4Q2005, with planned startup in early 2009.

Sendout capacity for the proposed TORP LNG Terminal I is projected at 1.4 Bcf/d. The gas would flow through existing natural gas pipelines to Alabama, Louisiana and Mississippi. TORP officials said they expect to receive a deepwater port license by 4Q2006.

"We selected this location for the high takeaway capacity to some of the best gas markets in the U.S.," said CEO Lars Odeskaug. "And at this location, deep offshore, the terminal is well over the horizon and does not represent a safety threat to the coastal population."

TORP's planned LNG facility would compete with several others in the vicinity, including the Compass Port terminal proposed near Dauphin Island by ConocoPhillips. The Maritime Administration is expected to issue a final decision on Compass Port this month.

TORP said that its offshore LNG regasification system will connect directly into the pipeline grid. Unlike the newly commission Gulf Gateways Energy Bridge offshore Louisiana, which relies on tankers with onboard regasification, the TORP terminal will have regasification facilities on site. The same technology, which was developed by one of TORP's owners, Remora Technology, also is expected to be used for the Dorado HiLoad LNG terminal proposed by Tidelands Oil & Gas offshore Tamaulipas, Mexico.

"We believe that the HiLoad technology for regasification is the most economical, environmentally friendly and safe offshore LNG regasification technology available in the market," said Odeskaug.

The terminal would use two TORP HiLoad LNG regasification units, powered and controlled from a new service platform. It would operate one HiLoad unit at a time while the other is standing by awaiting the arrival of the next LNG carrier.

TORP said it will use ENTRIX Inc., an international environmental consulting firm experienced in developing environmental permits for major LNG facilities in the Gulf of Mexico, to prepare the project's LNG application.

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