ConocoPhillips withdraws LNG application

June 15, 2006
ConocoPhillips has withdrawn its application for a deepwater port license for the proposed Compass Port LNG project 11 miles off Dauphin Island, Ala.

By OGJ editors
HOUSTON, June 15 -- ConocoPhillips has withdrawn its application for a deepwater port license for the proposed Compass Port LNG project 11 miles off Dauphin Island, Ala., citing Gov. Bob Riley's concerns about the project's open-loop vaporization technology.

"It is clear that Gov. Riley still has environmental concerns despite the independent scientific studies predicting minimal impact," said Sig Cornelius, president of ConocoPhillips Global Gas.

The company said it will begin evaluating the economics of a closed-loop warming system.

"The decision on whether or not to proceed with refiling an application will be made after consideration of all the economic factors," ConocoPhillips said.

ConocoPhillips will complete the current work program with the Dauphin Island Sea Lab and the Mississippi Gulf Coast Research Lab to establish a comprehensive environmental baseline at the project site.

The company's action follows a decision by McMoRan Exploration Co. to seek changes to its deepwater port license for its offshore LNG receiving terminal, which includes open-rack vaporization technology, at Main Pass Energy Hub off Venice, La., after state Gov. Kathleen Blanco voiced environmental concerns (OGJ Online, May 9, 2006).