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SUBJECT: World's first CNG Centre of Excellence dedicated to large-scale marine transport of compressed natural gas to be located in St. John's, Newfoundland, Canada

DATE: Sept. 11,2003

{EnerSea Canada}
EnerSea Canada Inc., in partnership with Memorial University, will lead the establishment of the world's first research and development centre for large-scale marine transport of compressed natural gas (CNG). The centre will be a federally incorporated not-for-profit entity and will be located at the St. John's campus of Memorial University of Newfoundland. This centre will establish a fully dynamic research and development test facility dedicated to large-scale marine transportation of CNG.

"We applaud the vision EnerSea Canada has shown by leading this Centre of Excellence initiative," said Memorial President Dr. Axel Meisen. "We are also very grateful that the Atlantic Innovation Fund supports this research and development activity in Atlantic Canada".

The Centre of Excellence will conduct innovative research and development in CNG marine transportation and related issues with the goal of advancing technologies capable of delivering natural gas from off-shore locations where pipelines do not exist or are impractical. The centre will address the technical challenges associated with developing a complete transportation system (gas processing, loading/offloading, storage and safety practices) for global applications, including for harsh environments such as those offshore Atlantic Canada.

The Centre of Excellence will conduct innovative research and development in CNG marine transportation and related issues with the goal of advancing technologies capable of delivering natural gas from off-shore locations where pipelines do not exist or are impractical. The centre will address the technical challenges associated with developing a complete transportation system (gas processing, loading/offloading, storage and safety practices) for global applications, including for harsh environments such as those offshore Atlantic Canada.

The current and future partners in the Centre include CNG technology providers, shipping companies, classification societies, natural gas infrastructure providers, offshore technology providers, petroleum producers, universities, research organizations and the governments of Newfoundland and Nova Scotia.

"We wish to recognize and extend our appreciation for the broad support received from academia, in particular from Memorial University, industry and government for the CNG Centre of Excellence, as this initiative has truly been a collaborative effort from the outset", Henley added.

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