CMS Energy Announces Initial Operation of Atlantic Methanol Production Project in Equatorial Guinea

DEARBORN, MI May 3, 2001 -- CMS Energy Corporation and its partners in the Atlantic Methanol Production Company (AMPCO) project, Noble Affiliates, Inc. through its wholly owned subsidiary Samedan Oil Corp. and the Government of Equatorial Guinea, today announced that the Atlantic Methanol Production plant has begun initial production of commercial grade methanol.

The AMPCO plant, located on Bioko Island in the Republic of Equatorial Guinea, converts captive natural gas into commercial methanol for export on the world market. When operating at full capacity, the facility will monetize over 100 million cubic feet per day of stranded gas production from the Alba block, north of Bioko, to produce 2,500 metric tons or more of methanol per day for commercial markets.

The AMPCO plant is currently continuing its start-up testing to verify contractor performance guarantees. "This week we have demonstrated the capability to sustain production rates of at least 2,250 tons per day," said James W. Cook, CMS Energy's senior vice president of technology and development and chairman of AMPCO's management committee.

"In the next few weeks, AMPCO expects to produce enough methanol to schedule its first lifting by the end of May. This would result in the first AMPCO produced methanol reaching the commercial market by mid to late June." The plant's output is fully subscribed for the balance of the year. AMPCO took delivery earlier this year of its two 45,000 DWT methanol tankers chartered from Mitsui OSK Lines. These ships will deliver methanol to AMPCO's customers in the United States and Europe.

CMS and Noble each own a 45 percent interest in AMPCO, which owns the plant. The Government of Equatorial Guinea holds the remaining ten percent interest. CMS Energy's oil and gas exploration and production unit, CMS Oil and Gas Co., holds a 52.38 percent ownership interest in and operates the Alba block. Noble holds a 34 percent ownership interest in the Alba block.

Noble Affiliates, Inc., is an independent energy company with exploration and production operations throughout major basins in the United States, including the Gulf of Mexico, as well as international operations primarily in Argentina, China, Ecuador, Equatorial Guinea, the Mediterranean Sea, the North Sea and Vietnam.

CMS Energy Corporation has annual sales of $11 billion and assets of about $16 billion throughout the U.S. and in selected foreign markets with businesses in electric and natural gas utility operations; independent power production; natural gas pipelines, gathering, processing and storage; oil and gas exploration and production; and energy marketing, services and trading.

Media Contacts: Kelly M. Farr, 313/436-9253 or John P. Barnett, 713/989-7556