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State Land Eyed for LNG Terminal
October 21, 2004
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
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