June 2, 2008

Canadian Superior Energy plans construction of liquefied natural gas project

Richard Gilbert

staff writer

A Calgary-based company is planning to build a multi-million dollar liquefied natural gas (LNG) project off the coast of New Jersey.

It is being built to meet the needs of the northeast U.S. market by bringing natural gas from Trinidad and Tobago.

Canadian Superior Energy Inc. announced it will participate in the proposed development of a $550 million LNG regasification project in U.S. federal waters.

The project consists of the construction of a fully-submerged, offshore gas importation turret anchored to the seafloor 24 kilometres off the coast of New Jersey, 80 kilometres of 36 inch offshore pipeline and almost 18 kilometres of onshore pipeline to Linden, New Jersey, where it will interconnect with existing gas pipelines.

“We are very pleased to announce our participation in the Liberty Natural Gas Project which is part of Canadian Superior’s overall growth strategy to sell natural gas into the best market in the world,” said Canadian Superior chairman Greg Noval with reference to the growing energy needs in the U.S. Northeast region.

“The Liberty Natural Gas Project will deliver clean-burning natural gas from overseas, including natural gas from the Republic of Trinidad and Tobago and the Government of Trinidad and Tobago has been formally invited to participate in this exciting project.”

The Liberty Natural Gas project will be overseen by Excalibur Energy (USA) Inc., which is a 50/50 joint venture between Canadian Superior and Global LNG Inc., a Delaware company

If the project obtains regulatory approvals, delivery of up to 2.4 billion cubic feet per day of natural gas will begin by late 2011.

Liquefied natural gas is cooled to enable transport by ship to markets beyond the reach of pipelines.

Upon arriving at a terminal, the fuel is returned to a gaseous state and is then distributed to residential and commercial customers.

According to the U.S. Energy Department, Trinidad and Tobago was the leading supplier of liquefied natural gas to the U.S. last year. The U.S. is Trinidad and Tobago’s largest market for liquefied natural gas, importing nearly 60 per cent of the LNG exported from the country.

Trinidad is the Caribbean’s second-largest energy producer after Venezuela.

Canadian Superior currently has a major natural gas drilling and development program underway in Trinidad with BG International Limited, a wholly owned subsidiary of the BG group plc.

Canadian Superior Energy Inc. is a Calgary, Alberta based oil and gas exploration and production company. It has operations in Western Canada, offshore Trinidad and Tobago, and offshore Nova Scotia.

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