ChevronTexaco to Build First Offshore LNG Terminal in U.S.

ChevronTexaco reports 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 offshore liquefied natural gas (LNG) receiving and regasification terminal, to be located approximately 40 miles off the Louisiana coastline in the Gulf of Mexico.

The development, also known as Port Pelican, will consist of an LNG ship receiving terminal, LNG storage and regasification facilities, and pipeline interconnection to existing offshore infrastructure to deliver natural gas into the United States interstate gas pipeline network via the Henry Hub.

John Gass, president of ChevronTexaco Global Gas, said, "Port Pelican is a key element of our LNG strategy and provides a viable solution to commercialize our large natural gas resources. The achievement of this milestone, in conjunction with our recent announcement of a proposed offshore LNG terminal in Baja California, Mexico, is yet another demonstration of ChevronTexaco's commitment to building an integrated, global natural gas business."

The proposed offshore LNG terminal will be constructed using a freestanding concrete Gravity Based Structure (GBS), along with mechanical regasification facilities capable of handling 1.6 billion standard cubic feet of gas per day. The company anticipates beginning construction of the GBS in 2004. Commissioning is projected for 2007, followed by start-up operations.

Richard Lammons, vice president of Port Pelican LLC, said, "This is a positive example of industry and government working together to ensure the energy infrastructure is in place to meet the growing demand for natural gas in North America. Just as we successfully worked through the regulatory process, led by the U.S. Coast Guard and Maritime Administration, we look forward to continuing to build strong relationships with government agencies, the community and contractors to ensure a successful, safe and environmentally sound project."

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

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

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