US EPA issues permits for Port Pelican LNG receiving terminal

May 27, 2004
The US Environmental Protection Agency May 20 issued air and water permits for ChevronTexaco Corp.'s 1.6 bscfd Port Pelican project, an offshore deepwater LNG receiving, storage, and regasification facility 37 miles off Louisiana in the Gulf of Mexico.

By OGJ editors
WASHINGTON, DC, May 27 -- The US Environmental Protection Agency May 20 issued air and water permits for ChevronTexaco Corp.'s 1.6 bscfd Port Pelican project, an offshore deepwater LNG receiving, storage, and regasification facility 37 miles off Louisiana in the Gulf of Mexico. The terminal is slated to start up in 2007.

EPA said the permits set limits for air emissions and water discharges. "The Port Pelican terminal will help address the nation's demand for clean sources of energy," EPA Regional Administrator Richard E. Greene said. "Working with the other federal and state regulatory agencies involved, we have crafted permits that ensure this facility will operate with little impact on the environment."

ChevronTexaco officials say the project will use existing gas supply and gathering systems in the gulf and Southern Louisiana; product will then be delivered to shippers via interstate pipelines. The company last November received approval for a deepwater port license from the Maritime Administration of the US Department of Transportation.

Company officials expect Port Pelican to be the first offshore deepwater LNG plant of its kind in the US, and unlike many other proposed US terminals, the facility is far enough offshore to dampen, although not completely avoid local fears about safety.

Even with community opposition a source of concern, most multinational companies are busy planning their own big LNG investments in the next 5 years. US government and industry analysts say over 2 dozen proposed projects are under consideration in or near US waters; currently there are only four active LNG terminals within the US.