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April 28, 2005
Sonangol Purchased Equity Interest in Gulf LNG Energy, LLC
FOR IMMEDIATE RELEASE
Contact: Joseph W. Peacock
Phone: (866) 485-3564
E-mail: jpeacock@gulflngenergy.com
Sonangol Purchased Equity Interest in Gulf LNG Energy, LLC
Gulf LNG Energy, LLC, of Houston, Texas (Gulf LNG) and Sociedade
Nacional De Combustiveis De Angola, Sonangol, jointly announced today
that Sonangol has purchased a significant equity interest in Gulf LNG
Energy, LLC.
Previously, Gulf LNG executed an agreement with the Jackson County Port
Authority and Jackson County Mississippi, (collectively, Port of
Pascagoula) regarding the use of land in Bayou Casotte that is
controlled by the Port of Pascagoula for the purpose of siting an LNG
import and regasification terminal (Terminal).
Gulf LNG has engaged a team of experienced engineers and environmental
consultants to complete final design work and is now moving forward
with regulatory authorities in order to obtain all necessary permits.
The Federal Energy Regulatory Commission is acting as the lead agency
for permitting the facility.
Gulf LNG also announced today that Technip USA has been awarded the
contract to perform the front end engineering and design for the
terminal. Gulf LNG anticipates the Pascagoula receiving terminal will
be ready to receive LNG mid 2009.
Sonangol is an Angolan company that manages the hydrocarbon resources
of Angola. Sonangol is a fully integrated company with over 6,000
employees that is involved in upstream production, downstream
activities including refining, and transportation. Sonangol is
currently responsible for managing Angola’s oil production which is
currently in excess of 1.1 million barrels per day and is expected to
reach 2 million barrels per day within several years. Sonangol has
substantial natural gas resources and has announced that it is
currently in the process of performing the front end engineering and
design work for a liquefaction facility in Angola to be built in
conjunction with Chevron Texaco, British Petroleum, TOTAL, and Exxon
Mobil under the name of ALNG. ALNG is anticipating constructing
initially a 5 million metric ton facility in the Northern part of
Angola that will be ready to start production in late 2009.
Manuel Vicente, President of Sonangol, stated that Sonangol, as part of
its long term vision, plans to make strategic downstream investments in
projects that complement Angolan hydrocarbon resources. Mr. Vicente
went on to say that the Gulf LNG terminal fits ideally into
Sonangol’s long term investment criteria for global expansion.
Joseph Peacock, the President of Gulf LNG, commented that Gulf LNG is
very pleased to have as a partner an organization with the financial
resources and professional reputation of Sonangol. Mr. Peacock went on
to say that Sonangol is widely recognized as one of the most
progressive and well managed integrated oil companies in the world.
Gulf LNG, having performed extensive due diligence, has concluded that
the Pascagoula site is the optimal site on the Gulf Coast for an LNG
terminal. In addition to being remotely located, the site affords
direct access to four major gas pipelines serving the Northeast and
three gas pipelines serving Florida and theSoutheast. The strategic
location of the Pascagoula site, east of the Henry Hub, offers
potential customers in the Eastern US the possibility of meaningful
transportation savings. From a marine standpoint, the site is excellent
in that it is easily accessible from the Bayou Casotte Ship Channel
which is 42 feet deep and 350 feet wide.
Gulf LNG's terminal is intended to provide an abundant and much
needed long-term source of natural gas supply to consumers and
industrial users in Mississippi and the entire south. In addition, it
will be a major asset to local governments in attracting desirable new
industry to the area dependent upon access to clean burning, efficient,
natural gas.
The Gulf LNG project has received strong political support in
Mississippi. Governor Haley Barbour, a supporter of the project,
commented, “These projects address a growing demand for energy in the
US and would position Mississippi as a leader in the supply of clean
and reliable energy to the region.� Mark McAndrews, the Pascagoula
Port Director stated, “The Gulf LNG project is an environmentally
friendly type of project that the Port has been actively seeking that
will provide substantial economic benefits to the region. The
management team and associated consultants assembled by Gulf LNG is one
of the most professional teams the Port of Pascagoula has worked
with.
April 25, 2005
Technip Awarded Contract for Mississippi LNG Import Terminal
FOR IMMEDIATE RELEASE
Contact: Joseph W. Peacock
Phone: (866) 485-3564
E-mail: jpeacock@gulflngenergy.com
Technip Awarded Contract for Mississippi LNG Import Terminal
Houston, Texas, April 25, 2005, Gulf LNG Energy, LLC (Gulf LNG Energy) has awarded Technip (NYSE: TKP) a contract for front end engineering and development (FEED) of a new liquefied natural gas (LNG) import terminal to be built in the Port of Pascagoula, MS (the Project). The total construction cost of the Project is currently estimated to be over $450 MM. The Project will be sited on land controlled by the Jackson County Port Authority and Jackson County and will be owned and operated by Gulf LNG Energy. The site is adjacent to the Bayou Casotte ship channel (east harbor) and is bordered by more than 200 acres of dredge material on one side and the wide-open Mississippi Sound on the other.
"It's probably the best site on the Gulf Coast," said John McCutchen, Chief Operating Officer of Gulf LNG Energy. "We're a long way from the next industrial user and the closest resident is almost two miles away." Mr. McCutchen has over 25 years of experience in the LNG and Natural Gas industry with Southern Natural Gas (subsequently El Paso Energy), where his past positions included that of Plant Manager at the Elba Island facility.
On December 16, 2004, the Federal Energy Regulatory Commission's Office of Energy Projects authorized Gulf LNG Energy to use the Commission's National Environmental Policy Act pre-filing process in conjunction with its preparation of applications for authorization under the Natural Gas Act (NGA) to construct, own and operate the Project, which has been assigned docket number PF 05-5-00. Gulf LNG Energy anticipates starting construction in 2006 with completion scheduled for mid-2009.
Technip's work scope for the FEED includes process development, plot plans, equipment specifications, and additional engineering data required for permits filing support for the terminal. Project units include a new marine dock capable of handling 250,000 m3 LNG tankers, the unloading system, 2 full containment storage tanks each with 160,000 m3 capacity and the sendout system capable of a daily rate of 1.5 BCF. The Project is being managed through the Technip USA office in Houston.
"We are pleased that Gulf LNG Energy, LLC has awarded Technip this first phase work," said Larry Pope, Technip USA President and CEO. "This terminal, along with another LNG terminal under full EPC phase at Freeport, Texas by a Technip-led joint venture for Freeport LNG, are a testament of our customers' confidence in our experience and ability to engineer and deliver these critical projects in the US."
Technip is one of the world's leading EPC companies, specializing in lumpsum turnkey projects for customers in the hydrocarbon processing, petrochemicals, chemicals, and manufacturing industries both onshore and offshore. With revenues in excess of $6 billion and more than 18,000 employees throughout the world at over 60 offices, Technip capitalizes on its global expertise and local knowledge to safely and reliably deliver projects anywhere. Information about Technip is available at www.technip.com.
November 8, 2004
$450M LNG Onshore Terminal Set to Boost Coast Economy
Section: Vol. 26, No. 45; Pg. 1; ISSN: 0195-0002
Mississippi Business Journal
By Jeter, Lynne
PASCAGOULA - When asked how safe the new liquefied natural gas (LNG)
receiving terminal being proposed along the populous Gulf Coast would
be, the man behind the project had only two words to say.
"Trent Lott," said Dee S. Osborne, president of the Gulf LNG Energy,
LLC, of Pascagoula. "The senator's residence is probably the nearest
one to the LNG terminal, less than three miles away. There's not going
to be a deal done without his support." Last month, the Houston-based
investment firm acknowledged that it is seeking a permit from the
Federal Energy Regulatory Commission (FERC) to construct a $450-million
liquefied natural gas terminal - Gulf LNG's "LNG Clean Energy Project"
- at the Port of Pascagoula. The permitting process is expected to take
18 to 24 months, followed by a threeyear construction phase, which will
employ approximately 1,500 construction workers. The terminal, which
will create 50 highpaying jobs, is expected to open in 2009. "If gas
prices had not declined in the late 1970s, Pascagoula would have been
the site of the next LNG terminal built in the US., making it only the
fifth in the nation," said Osborne.
The four existing LNG import terminals are located in Cove Point, Md.;
Elba Island, Ga.; Everett, Mass.; and Lake Charles, La. "Tenneco had an
LNG terminal in Trinidad and was looking for a place to bring LNG into
the U.S.," he said. "They literally searched every potential site on
the East Coast and Gulf Coast and selected the Bayou Casotte site at
the Port of Pascagoula. Tenneco did all the necessary studies on this
exact site to get a permit. They were ready to start construction when
gas prices collapsed. One of the Tenneco executives in charge of that
project now lives in Austin and is a consultant for us."
Of the two applications for LNG onshore facilities that FERC approved
earlier this year, Osborne's group originally owned 100% of the one in
Freeport, Texas, a $400 million-plus project that is entering the
construction phase. "I started looking at LNG projects five years ago,
before prices started getting attractive again," said Osborne.
Mark McAndrews, executive director of the Jackson County Port Authority
in Pascagoula, said Osborne contacted him in August 2003 about the
40-acre site surrounded by open water and more than 200 acres of
unoccupied land. "The company will pay for all infrastructure
improvements, including dredging the channel," he said. "They haven't
asked for any financial help from the state." Gulf LNG will pay the
state $1 million a year to rent the land. Another $2 million annually
is anticipated from dockage and other fees associated with cargo and
ship activity. When open, a ship is expected to dock at the terminal
every three days; the terminal is expected to store a daily average
volume of one billion cubic feet of LNG.
"Pascagoula will initially have one loading terminal, but we're
designing the berth to accommodate two loading terminals by making some
minor improvements," said Osborne, who said the Houston engineering
firm Technip, which handled the Freeport project, has been employed to
handle front-end engineering and environmental work.
"Right now, our daily operations consist of doing a lot of technical
and engineering work, coordinating a lot of different pieces of the
puzzle with engineers and consulting firms and so forth," he said.
"Also, we don't have sources committed at this point, but we're talking
to two or three producers with gas. That's the key to the next step
because these projects don't get built on speculation. You've got to
have a gas source. That's why all these porting applications are dead
in the water until they do." In the last two years, nearly 40 LNG
terminals have been proposed or planned along the U.S. coastline.
"Fortunately, we have the best site for an LNG receiving terminal,"
said Osborne. "Pascagoula has all the characteristics you could
possibly ask for: lots of pipeline access, good access to the channel,
a remote location. That puts us in good stead."
The company has commissioned an economic impact study of the project,
which should be completed by year-end, said Osborne. "We want to get a
handle on the kind of ancillary activity this terminal could foster,"
he said. "We are committed to giving as much work to Mississippi
businesses as possible. Any long-term gas user feels very secure about
having an import terminal there with a long-term supply of gas, so it
would potentially attract long-term gas users and help keep those you
have."
Environmentalist camps are divided over opposition to LNG expansion
projects, because natural gas is much needed and is a cleaner fuel
source.
"During the permitting process, the company will be working with all
interested local parties, with open meetings conducted by FERC," said
Osborne. "Everyone will be fully apprised of what's happening. We're
very conscious of the feelings of people in the area and want to
address issues that concern them every time we can."
Copyright 2004 ProQuest Information and Learning Company Business Dateline
Copyright 2004 Mississippi Business Journal
October 21, 2004
State Land Eyed for LNG Terminal
October 21, 2004 Thursday
SECTION: A; Pg. 1
Biloxi Sun Herald
By: KAREN NELSON
DATELINE: PASCAGOULA
INDUSTRY: The Port of Pascagoula grants an option on land for an LNG terminal.
The Port of Pascagoula announced Wednesday that a group of investors from Houston has an option on land southwest of the Chevron Pascagoula Refinery to build a liquefied natural gas terminal. The group is Gulf LNG Energy LLC. The option is on 40 acres of state land, leased to the port. The land is almost surrounded by more than 200 acres of dredge spoils and wetlands.
"It's probably the best site on the Coast," said Dee Osborne, president of Gulf LNG, speaking from Houston. "We're a long way from that refinery, more than a mile, and the closest resident is two miles away." However, the company faces a long, rigorous permitting process before it would be able to exercise that option and build. Similar proposals for the Gulf and the Coast have stalled. But announcing the intent is the first step.
Osborne said the site would be perfect for the $450 million terminal the company is proposing to build. It is near several existing pipelines, and it is on a channel that is deep and wide enough for the 1,000-foot vessels that would bring liquefied natural gas to land.
LNG is natural gas that has been cooled to minus-260 degrees Fahrenheit, the point at which the gas condenses to a liquid. That process allows it to be shipped and stored in bulk economically, brought in by ship from countries whose natural gas reserves exceed their demand.
The terminal would receive and store the liquefied gas, warm it and turn it back into a vapor before piping it regionally. It's a hot issue because demand for natural gas in the United States has been steadily increasing, according to information the port issued Wednesday.
Port Director Mark McAndrews said the terminal would look like two domes with a docking area. It would take about 21/2 years and 1,500 workers to construct, and it would bring in $1 million each year in rent, split between the port and the state Tidelands Trust. He said it would also bring in $3 million in fees and charges to the port and 50 permanent jobs. McAndrews said it would be a good first step in reducing the port's dependence on tax money. He sees the benefits for the people of Jackson County. The permitting process is an 18-monthlong process overseen by the Federal Energy Regulatory Commission. It's during that process that any opposition to the location of the LNG on land in Pascagoula would be expressed.
On Wednesday, Steve Renfroe, spokesman for Chevron/Texaco in Mississippi, said, "We're certainly interested in any industrial development in Pascagoula. I guess at this point, there's not enough information available about the details of the project, and it's too early to comment at this time."
George Freeland, head of the county Economic Development Foundation, said, "This project has the potential to generate a significant investment to this community. However, it must demonstrate a balance between economic development, the environmental sustainability and public safety if it's going to be successful. " Frank Leach, a member of the Jackson County Board o fSupervisors, which works with the port, said, "I don't have a tremendous amount of personal knowledge. I have some general knowledge. I look forward to gaining knowledge during the regulatory process."
Karen Nelson can be reached at 769-5480 or at klnelson@sunherald.com
Copyright 2004 Biloxi Sun Herald (Biloxi, MS)
All Rights Reserved
LNG Boom Needs Terminal Sites
October 21, 2004 Thursday
SECTION: A; Pg. 4
Biloxi Sun Herald
By: GREG HARMAN
DATELINE: PASCAGOULA
In a rush to take advantage of high gas prices and low importing costs
for liquefied natural gas, U.S. energy companies have been working to
open LNG facilities on the nation's East, West and Gulf coasts.
But public concerns in California, Maine and Alabama over the explosive
nature of the super-cooled hydrocarbon inspired some companies to start
applying for terminals based offshore and away from population centers.
Two offshore terminals south of Louisiana and one onshore in Hackberry,
La., already have been approved by the U.S. Coast Guard and U.S.
Federal Energy Regulatory Commission, respectively. Last month the U.S.
Coast Guard put all offshore applications on hold pending an
investigation into environmental concerns about the impact offshore
terminals could pose to the nation's fisheries.
Now, at least in Mississippi, LNG interest is creeping back onto land.
And despite the fact Gulf LNG Energy LLC's facility would be in
Pascagoula's industrial center, near Chevron's refinery complex,
company officials say there's nothing to fear. "There's a lot of stuff
written about (the risk). The people that are opposed to these projects
put out a lot of misinformation," said Texas resident Dee S. Osborne,
president of the private investor's group that is Gulf LNG. There is
"no way" the tankers could explode, he said.
But recent federal studies found that such explosions could happen,
possibly triggering a firestorm more than a half-mile wide and
resulting in burn damage as far as a mile away. Osborne's assessment of
LNG safety also ran contrary to the position of some experts in the
security field. In a phone interview Wednesday afternoon, Osborne said
LNG facilities represent "low, low, low level terrorist targets."
Others, including the U.S. General Accounting Office, see it
differently. Cyril Widdershoven, editor of Global Energy Security
Analysis, called the tankers "especially attractive targets" to
terrorists. Until Gulf LNG's proposal for Pascagoula was announced
Wednesday, the closest option being explored involved a ConocoPhillips
Corp. effort to gain approval for a facility 11 miles south of Dauphin
Island in Alabama. That project is now stalled, along with more than
six proposed offshore facilities around the country awaiting a verdict
on the technology's environmental safety.
Copyright 2004 Biloxi Sun Herald (Biloxi, MS)
All Rights Reserved
Permit sought for coast gas plant
Texas firm planning to build $450 million terminal at Port of Pascagoula
October 21, 2004 Thursday
The Clarion-Ledger
Section: MAIN; Pg. 1A
*By Andy Kanengiser
A Texas-based company is seeking a permit to construct a $450 million
liquefied natural gas terminal at the Port of Pascagoula. Leaders with
Gulf LNG Energy LLC of Houston announced Wednesday they will press for
the site on the Gulf Coast. The Pascagoula site is among nearly 40
proposals nationwide. Alabama, Texas and Louisiana are among the states
in the hunt. "Pascagoula is the best site on the Gulf Coast and we
looked at all of them," said Dee Osborne, president of the privately
owned company formed specifically to go after the Mississippi project,
in a telephone interview. "The site is very remote. There is nothing
(homes or businesses) near it."
The Pascagoula project would bring 1,500 construction jobs over 2 years
with work expected to begin in 2006. The terminal would begin
operations in 2009 and employ 50 people with salaries in excess of
$40,000 annually, said Osborne, an investor for more than 40 years. But
spinoff jobs, he said, "could be significant." Months ago, after
Alabama officials sought a similar LNG terminal, Mississippi officials,
including 3rd District U.S. Rep. Chip Pickering, said the state should
seek its own site. Texas-based firm ConocoPhillips is seeking an LNG
site in waters south of Mobile near Dauphin Island.
The Pascagoula project would be "a major plus for the state
economically," said state House Oil and Gas Committee Chairman John
Reeves, R-Jackson. "Mississippi is one of the 10 largest
energy-producing states in the country. It will add to Mississippi's
draw as an energy producer."
The Legislature may take up a resolution to show support for the
project, Reeves said, to show federal agencies that the state backs it.
"Public support is important to agencies." Mississippi's proposal has
been dubbed the "LNG Clean Energy Project" because it will regasify
liquefied natural gas in a facility that complies with the latest
environmental standards and provides clean-burning natural gas to
American consumers, company officials say.
"LNG is part of the solution to natural gas demands," said Joe Sims of
Jackson, president of the U.S. Oil & Gas Association. "Mississippi
is a logical place for prospective companies. In the Gulf Coast, by
having the port facilities, we are, quite naturally, the region to be
looked to."
A permitting process will take 18 months. The company hasn't asked for
any financial help from the state, said Scott Hamilton, communications
director with the Mississippi Development Authority. After the
permitting process, "they could come and ask," Hamilton said. "I can't
say (the answer) would be no, but it doesn't fit the typical project we
provide incentives for." John Arledge, deputy chief of staff for Gov.
Haley Barbour, said the project would not be part of bond proposals
being considered for this year. Barbour has said he he may call
lawmakers into special session later this year to consider an
unresolved bond package of up to $315 million for businesses, agencies,
and colleges. The 2005 Legislature convenes in early January.
Gulf LNG Entergy has reached an agreement with the Port of Pascagoula,
giving the company the right to build the terminal on lands in Bayou
Casotte that are owned or controlled by the Jackson County Port
Authority. The site will occupy 40 acres and be surrounded by open
water and more than 200 acres of unoccupied land. Osborne said the
proposal has the support of Mississippi leaders such as Barbour and
members of the state's congressional delegation. Concerns about the
environmental impact of the terminal on fish life have been raised at
the hearings for the ConocoPhillips' proposal in Alabama waters.
Copyright 2004 The Clarion-Ledger (Jackson, MS)
All Rights Reserved
BYLINE: Andy Kanengiser, akanengiser@clarionledger.com
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