Gasnor AS

Po Box 69

N4299 Avaldsnes

Norway

Gasnor distributes natural gas in pipelines, as well as LNG and CNG. The company owns and operates production facilities for LNG (Karmøy and Bergen). LNG is distributed by two small tankers (1000m3 / 7500m3) and several trailers. CNG is distributed by 13 CNG trailers. This makes production and transport of natural gas robust, and the company can offer good delivery regularity. Gasnor today delivers natural gas as LNG from Bodø in the north of Norway to Lista in the south of Norway. The company also delivers natural gas as fuel to cars and busses (CNG) and to supply vessels and car ferries fuelled by natural gas (LNG).

LACK OF INFRASTRUCTURE is perhaps the greatest barrier to the increased use of natural gas in Norway. Transporting liquid natural gas in bulk (LNG) is emphasized as the most appropriate solution for a country with the topography and population pattern of Norway.

Gasnor has two production facilities for LNG (Liquefied Natural Gas) at Karmøy, and for both LNG and CNG (Compressed Natural Gas) at Kollsnes. To meet a growing demand, Gasnor is now building a third production plant for LNG at Kollsnes.

GASNOR DISTRIBUTES NATURAL GAS THROUGH PIPELINES (both low and high pressure) as CNG (Compressed Natural Gas) and as LNG (Liquefied Natural Gas). Gasnor has a very flexible distribution system with tank lorry and an LNG vessel (Pioneer Knutsen). Gasnor is now looking into ordering another LNG vessel.

SINCE 1994 GASNOR HAS EXPANDED the distribution network continuously and now covers large parts of the Karmøy and Haugesund municipalities. All industrial use of heavy oil in Karmøy and in Haugesund has now been replaced by natural gas. Gasnor also has a smaller distribution network in Bergen, but the distribution of natural gas in Bergen is mainly based on CNG and some LNG. The environmental benefits are significant, and our customers both save money and protect the environment.

GASNOR CURRENTLY SUPPLIES NATURAL GAS to more than 200 static users through its distribution system. We also export some LNG to England and Sweden as fuel for vehicles, mainly buses and heavy duty trucks. There are plans for a range of new customers/plants in the course of the coming year. Norwegian industry and other static users consume a major part of the natural gas in Norway, but there are also some 150 vehicles using natural gas.

COASTAL TRAFFIC(car ferries, supply vessels etc.) is a coming market, and there are already two supply vessels (operated by Statoil) and five car ferries (Fjord 1) that are using LNG as fuel. When one of the supply vessels replaces fuel oil with LNG it will reduce the emissions of NOx equivalent to the emissions of, approximately 20,000 cars.

The use of natural gas in coastal traffic therefore represents an important tribute to a better environment for us all.

GASNOR AS WANTS TO CONTRIBUTE to the development of the Norwegian natural gas market, and participates both as an owner and with resources in several natural gas companies in Norway.