ChevronTexaco Files Offshore LNG Application

Tuesday, December 03, 2002
ChevronTexaco has submitted a Deepwater Port license application to the Department of Transportation, United States Coast Guard to construct and operate a Liquefied Natural Gas (LNG) receiving and regasification terminal in the U.S. Gulf of Mexico (GOM). The development, also known as Port Pelican, would consist of an LNG ship receiving terminal, LNG storage and regasification facilities, and pipeline interconnection to existing infrastructure to deliver natural gas into the United States interstate gas pipeline network. Audie Setters, general manager of ChevronTexaco Overseas Petroleum's International Gas Group, said the Port Pelican project is evidence of ChevronTexaco's long-term commitment to supplying safer, cleaner and more efficient sources of energy to North America. "We are excited about the prospects for growth of the natural gas business and this LNG receiving and regasification terminal is integral to the company's larger natural gas strategy," he added. ChevronTexaco plans to construct phase one of Port Pelican as an offshore facility, initially designed to process approximately 800 million standard cubic feet of gas per day (MMSCFD). The facility would connect to ChevronTexaco's extensive offshore infrastructure to deliver natural gas to the United States Gulf Coast. Using existing gas supply and gathering systems in the Gulf of Mexico and Southern Louisiana, gas would then be delivered to shippers using the national pipeline grid. Phase two would expand the terminal to accommodate a total of 1600 MMSCFD. A significant volume of natural gas would be provided for power generation, industrial and residential markets in the U.S., as a result of Port Pelican. The design codes and standards applicable to Port Pelican construction and operation will meet or exceed the accepted industry practice for offshore facilities, concrete construction, and LNG regasification processing, including U.S. and European standards. ChevronTexaco's application was filed as a result of completing a sixteen-month technical and commercial evaluation of a LNG receiving and regasification terminal in the GOM. It is estimated the first phase of the facility would be operational by 2006.
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