By OGJ editors
HOUSTON, Jan. 5 -- McMoRan Exploration Co. reported it has received approval from the US Maritime Administration for its Main Pass Energy Hub project on Main Pass Block 299 in 210 ft of water off Louisiana in the Gulf of Mexico.
Marad concluded that construction and operation of the MPEH deepwater port would be consistent with national objectives such as energy sufficiency and environmental quality. It also said the project will fill a vital role in meeting national energy requirements for many years and that the port's offshore deepwater location will help reduce congestion and enhance safety in receiving LNG cargoes to the US.
As approved, the MPEH facility will be able to regasify LNG at a peak rate of 1.6 bcfd, store 28 bcf of gas in salt caverns, and deliver 3.1 bcfd of gas, including gas from storage, to the US.
Unique advantages of the project include use of existing offshore structures, onsite gas cavern storage capabilities, logistical savings associated with the offshore location, and premium markets available from its eastern gulf location.
Meanwhile, McMoRan is continuing discussions with potential LNG suppliers as well as gas marketers and consumers in the US to develop commercial arrangements for the facilities. Prior to starting construction of the facility, McMoRan expects to enter into commercial arrangements that would enable it to finance the project's construction costs, for which preliminary estimates are placed at $1 billion—about half of which is for pipelines and cavern storage.