Minister Noel releases Compressed Natural Gas study

Mines and Energy Minister Walter Noel today released a study on Compressed Natural Gas (CNG) research, development and fabrication opportunities for the province. This study was commissioned in December 2001 through a federal/provincial funding initiative with the goal of evaluating opportunities associated with various non-pipeline options for the development of the natural gas resource offshore Newfoundland and Labrador. The study was completed by Davis Engineering and Associates Limited of Clarenville, a subsidiary of the ConPro group of companies.

Four proprietary CNG technologies were chosen for this study including EnerSea Transport Volume Optimized Transport and Storage (VOTRANS) system, Williams Energy�s Coselle system, Trans Ocean Gas Incorporated�s system and TransCanada�s Gas Transport Modules.

"After evaluating all four CNG technologies, the study has found that all systems were well developed to be used on the Grand Banks and worldwide," said Minister Noel. "The study also concluded that significant opportunities exist for Newfoundland and Labrador to take advantage of the development of this technology for stranded gas.

"Various institutions were identified that could be poised to play a key role in developing a CNG industry including C-CORE, Memorial University and the National Research Council. Fabrication yards were also identified to potentially manufacture and install components of each of the systems.

"The study recommends a continued dialogue with the proponents to establish a CNG Centre of Excellence in the province and to undertake more detailed studies of the potential benefits that could flow to the province. Government will continue to monitor all natural gas technologies to ensure the development of our natural gas sooner rather than later."

Copies of the CNG study can be found at www.gov.nl.ca/mines&en/compressed/

Media contact: Darrell Mercer, Communications, (709) 729-5777.

2003 08 05                                       4:00 p.m.