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Projects
Fully Funded Through Development Stage
Houston, TX, May 22, 2006 - NorthernStar Natural Gas
Inc., a U.S.-owned and managed company focused on the development
of domestic LNG terminal projects on the West Coast of the United
States, today announced it has successfully completed a $100 million
private offering of convertible notes to qualified institutional
buyers. The company is committed to providing a safe, affordable
and environmentally superior solution to the growing need for additional
natural gas supplies in the western United States.
The net proceeds of the notes will be used to fund
the development of NorthernStar's existing LNG projects in Oregon
and California, as well as potential new opportunities. To date,
the company has already expended in excess of $35 million on furthering
the development of its existing terminal projects: Bradwood Landing
located on the Columbia River in Oregon and Clearwater Port located
on an existing oil platform 12.6 miles offshore of Southern California.
Both projects, if completed on schedule, are expected to be the first
operating LNG terminals in their respective markets. At this time,
Bradwood Landing is the only LNG terminal project in the Pacific
Northwest that has advanced to the final stages of the Federal Energy
Regulatory Commission (FERC) permitting process. Because Clearwater
Port utilizes an existing platform and does not require construction
of LNG storage facilities, NorthernStar believes that it can complete
construction in a substantially shorter timeframe compared with other
offshore terminal proposals in Southern California. The company is
currently finalizing improvements to the Clearwater Port project
and preparing to file an updated application in June with the U.S.
Coast Guard and California State Lands Commission.
“This funding provides the necessary capital
needed to successfully complete the development stage of our LNG
projects in Oregon and California,” stated Paul Soanes, NorthernStar's
President. "We believe our portfolio of projects will be more attractive
to potential suppliers than single project entities because we can
provide them with flexibility to deliver LNG to multiple receiving
points connecting to several major pipelines and West Coast markets.
This competitive advantage will translate into lower costs and better
services for consumers in the markets we serve."
"Simultaneously pursuing a portfolio of LNG terminals
will provide economies of scale at the development, marketing, financing,
construction and operating stages," said William S. Garrett, Chief
Executive Officer of NorthernStar. "We will be able to leverage our
knowledge and experience as we develop our projects to expedite the
permitting process and to increase the likelihood of success for
each successive project.
“The completion of this offering further enhances
our competitive position,” added Mr. Garrett. “With our
development funds in place, NorthernStar will move forward quickly
to complete the development of its projects and position itself to
have a competitive advantage in securing suppliers and project financing.”
NorthernStar is over 35% owned by management and 50%
owned by private equity funds managed by MatlinPatterson Global Advisers
LLC. The company has an experienced management team with significant
project development experience, having been involved in the development
of more than 50 energy infrastructure projects with an aggregate
investment of over $15 billion - including involvement in the development,
construction or operation of nine LNG projects worldwide.
About NorthernStar Natural Gas Inc.
NorthernStar Natural Gas was founded to develop, build,
own and operate LNG receiving/importation terminals on the West Coast
of the United States. The ownership of the company's initial LNG
projects was consolidated in March 2006 to take advantage of project
portfolio diversification, economies of scale and greater access
to capital, and to offer multiple receiving points to customers.
NorthernStar’s projects, when complete, will provide natural
gas suppliers with direct access to major West Coast demand centers,
and provide the region with direct access to a low cost reliable
source of new gas supply.
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