By the OGJ Online Staff
HOUSTON, May 15 -- Texaco Inc., White Plains, NY, Tuesday announced a 6-month study for the development of a liquefied natural gas receiving and regasification terminal in the US Gulf of Mexico.
The study will examine and evaluate infrastructure requirements and costs of the proposed terminal, which would be designed to process 1 bcfd initially. The proposed terminal would connect with Texaco's offshore infrastructure, which has excess capacity.
Texaco's offshore natural gas infrastructure is connected onshore to several interstate pipeline systems and the Henry Hub, which is operated by a Texaco subsidiary.
Robert Solberg, president of Texaco Commercial Development, said, "The traditional supply basins can be developed to meet this growing demand, and LNG creates an outstanding opportunity to construct new facilities that can deliver this much needed gas supply to US markets."
The terminal could be operational in 4-5 years, and then could be expanded up to 2 bcfd. The LNG would be produced from one or more potential projects in the Atlantic Basin in which Texaco holds an equity interest.
"This regasification effort is part of Texaco's larger natural gas strategy. Natural gas discovered in areas where there are no local markets is being considered for use as feedstock for projects such as this," Solberg said.
The four existing LNG receiving terminals in the US are almost fully contracted, Texaco said.