ChevronTexaco given nod to construct offshore Port Pelican LNG terminal

By OGJ editors

HOUSTON, Nov. 18 -- ChevronTexaco Corp. Tuesday reported that its subsidiary, Port Pelican LLC, has received approval for a Deepwater Port License from the Maritime Administration of the Department of Transportation to construct, own, and operate an LNG receiving and regasification terminal, about 40 miles off Louisiana in the Gulf of Mexico.

The development, also known as Port Pelican, will comprise an LNG ship receiving terminal, LNG storage and regasification facilities, and pipeline interconnection to existing offshore infrastructure. Natural gas will be delivered into the US's interstate gas pipeline network via Henry Hub.

ChevronTexaco said that approval for the project works in conjunction with its recently announced proposal for an offshore LNG terminal in Baja California, Mexico.

Port Pelican will be the first Deepwater Port in the US since the 1976 Louisiana Offshore Oil Port, and will be the first natural gas deepwater port in the world, ChevronTexaco reported.

The proposed terminal will be built using a freestanding concrete gravity-based structure (GBS) along with mechanical regasification facilities capable of handling 1.6 bscfd of gas. GBS construction is expected to start next year; commissioning is projected for 2007, followed by start-up operations.

ChevronTexaco said it recently awarded major contracts for front-end engineering design and is currently securing LNG supplies through Port Pelican.

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