Based on this backdrop of successful transportation of LNG by water, Argent Marine Operations, Inc. (AMO) has been developing an LNG barge transportation system, the next step for a maturing industry. Demand for natural gas in the United States is at an all time high and projected to only increase. The future demand for natural gas will be met, in large part, by the importation of LNG to exisiting and proposed LNG receiving terminals. A key factor in meeting customer demand will be delivering LNG (natural gas) to the customer's door step. Although the majority of natural gas will be transported to the customer by conventional pipeline, there exists a need to move smaller quantities of LNG by water to sites remote from the large LNG import terminals. Water side peak shaving plants, industrial uses, Local Distribution Companies (LDCs) and localities not currently served by pipeline supplied natural gas are just some of the potential customers for LNG delivered by purpose built LNG barges along the navigable waterways of the United States.

Of particular interest, is the potential to augment and capitalize on exisiting LNG peak shaving plants that are located on, or near to, navigable waterways. By transporting LNG to these facilities by barge from LNG import terminals the capacity and throughput of the plants can be substantially increased, with minimal additional capital outlay, limited only by the vaporization capacity of the peak shaving plant and the size and/or number of LNG barges. Economic analyses have shown that LNG can be transportated by barge very economically, even if the barge is utilized only during the "peaking season" and out of service for the balance of the year.

Argent Marine Operations, Inc. has produced detailed conceptual barge design(s) that incorporate innovative tank pressure controls, as well as other unique features, and addresses the unique operational design requirements associated with LNG transportation by barge. Utilizing thess barge designs, AMO has developed transportation cost estimates for emerging LNG barge trades on both the East and West coasts of the U.S. AMO has been contracted by the Alaska Intrastate Gas Company to provide LNG transportation services by barge for the SEAGA project, to provide natural gas servcies to the remote cities, towns and communities of south east Alaska .

Argent Marine Operations, Inc. and affiliated Argent Marine Companies have the unique combination of ability and experience to develop, implement, finance and operate an LNG Barge operation dedicated to the safe and efficient transportation of LNG.