|
|
| |
 |
Latest News
Check back often for news on the Gulf LNG Clean Energy project and related liquefied natural gas information. |
|
$450M LNG Onshore Terminal Set to Boost Coast Economy
November 8, 2004
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
News Home
More News Stories
Search News
More News
|
|
|
|
