First Oil Free Thor-Lube Stern Tube Bearing System on Shell LNG Carrier Built in Korea

For Immediate Release - January 26, 2004

After successful sea trials, Shell Gas & Power has accepted delivery of the first oil-free Thor-Lube stern tube bearing system built by Daewoo Shipbuilding and Marine Engineering Co. (DSME) of South Korea. This second generation oil free Thor-Lube stern tube bearing system developed by Thordon Bearings features TL3G, a new, significantly improved, biodegradable water-based lubricant, a new non-metallic Thordon XL bearing configuration and new 5000 Series lubricant circulation and monitoring system.

Similar in operation to oil-lubricated systems, Thordon's Thor-Lube Stern Tube Bearing system eliminates the potential legal consequences of stern tube oil leakage pollution as the lubricant leaves no sheen and is categorized as "relatively harmless/non-toxic' to fish according to U.S. EPA test OPPTS 850.1075. The system also allows emergency operation on seawater and outperforms mineral oil in several important stern tube lubricant characteristics.

In addition to the Shell-owned Granatina, oil-free Thor-Lube Stern Tube Bearing Systems have been ordered by DSME, Hyundai Heavy Industries and Mitsubishi Heavy Industries for ten other LNG carrier projects for Shell (1), ALSOC (1), Bergesen DY ASA (4) and Nigeria LNG Ltd. (4).