Remora to Complete Gulf LNG Terminal Study in 1Q05

Texas-based company Remora Technology expects to wrap up the operational and commercial design study for a proposed liquefied natural gas (LNG) regasification terminal in the Gulf of Mexico by the first quarter of 2005, the company's president Lars Odeskaug told BNamericas.

Texas oil company Tidelands Oil and Gas (OTC BB: TIDE) is financing the study but the exact location of the terminal cannot be released at this stage, Odeskaug said.

The terminal, which would use Remora's HiLoad technology, would have throughput capacity of 1,450 million BTU, Tidelands said in a statement in November, without giving a time unit.

The gas would be sent via a submarine pipeline system to the US and Mexico. A maximum of 500 million BTU a day would go to Mexico, 500 million BTU to the US market and 450 million BTU to Tideland's proposed underground gas storage facility in northern Mexico, the statement said.

"In the event the Mexico markets become saturated, gas can be sent to the US markets as well," Tidelands Oil & Gas Corporation's president and CEO Michael Ward said in the statement.

"Our plans are to make this terminal off the coast of Mexico an integral part of the proposed storage hub in the Burgos Basin," Ward said. The terminal "will enable Tidelands to provide a more comprehensive service to the Mexico energy markets and allow Mexico to better manage both swing demands and price fluctuations within their energy markets," he added.

In August, Tidelands announced that it was in the final stages of negotiations with Mexico's state oil company Pemex for a proposed 750 billion cubic feet capacity underground gas storage facility in the Burgos basin. Among the alternatives for LNG supplies to the terminal are Trinidad, Nigeria, Algeria and Egypt, Odeskaug said.

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