DUBAI, August 21, 2006 (WAM) - The Dubai Multi CommoditiesCentre (DMCC), Techno Park and LNG Impel (IMPEL) today announcedthe development of a world class Liquefied Natural Gas (LNG)storage facility to be located at Techno Park in Dubai. The totalcost of developing the storage facility is estimated to be US$1billion.

Envisioned as a massive infrastructure facility with a totalstorage capacity ranging from 40 - 65 billion cubic feet (bcf),Dubai LNG Storage Hub is the first of its kind in the world andwill offer customers the ability to store, trade and plan suppliesof LNG.

The hub will also provide other services such as LNG loans andLNG quality blending. Over time, it is expected to offer financialderivatives around LNG and shipping.

DMCC and IMPEL will begin the Open Season bid process for storagecapacity at the Dubai LNG Storage Hub with an initial non-bindingbid round commencing August 28th 2006.

This announcement follows the signing of a Memorandum of Understanding (MoU) between LNG Impel and the DMCC in June, 2006, to jointly pursue this project.

"This project is a signal achievement for DMCC's objective tomake Dubai the energy hub of the Middle East, and is in keepingwith our key role as a promoter of commodity trade and its requisiteinfrastructure," said Ahmed bin Sulayem, Chief Operating Officerof DMCC. "We plan to work closely with LNG Impel and Techno Parkto ensure that all stakeholders will be able to leverage thefacilities offered by Dubai LNG Storage Hub to their best advantage,"he added.

"Techno Park, with its core focus built around Oil & Gas, Energy& Alternate Energy and Water Desalination projects, presentsthe ideal location of choice for such a venture," said Ms SalmaHareb, CEO of JAFZA and Economic Zones World where Techno Parkis located. "We are committed to the successful implementationof such innovative projects, which will greatly enhance and strengthenDubai's role in regional energy distribution," she added.

Commenting on the joint venture project, Thom Dawson, Presidentof LNG Impel said: "We are very pleased and excited about theDubai LNG Storage Hub which will help meet the demands of theindustry as LNG transitions into a globally traded commodity.

It will provide industry participants with choices and optionsnot accessible to them before.""The launch of this facility would offer greater flexibilityto both buyers and sellers and would release them from beingtied to strict and inflexible supply schedules over long periodsof time," said Dr. Tilak K. Doshi, the Executive Director forEnergy at DMCC. "The Dubai-based storage facility will enablecore LNG suppliers and buyers to capture value by storing andtrading across different months, as seasonal price variationsare a key attribute of global LNG pricing. It will also allowa multiplicity of buyers, sellers and traders to arbitrage acrossseveral regions, and support derivatives trading as a spot marketemerges around the storage facility," he added.

Abdelkader Elrahal, Managing Director of LNG Impel Middle East,pointed out that "Dubai is ideally positioned to host this storagefacility as it is centrally located between the natural gas richsupply area of the Middle East and the demand driven global markets.

Dubai also offers a business climate and a host of services thatare unparalleled in the Middle East."