The proposed project, to be located in Jefferson County, Texas, about 10 miles south of Port Arthur, was announced today at an event attended by Texas Governor Rick Perry, Consul General of the State of Qatar Mohamed Al-Hayki, local business and government officials and representatives of ExxonMobil.
The terminal, which will process imported LNG for distribution throughout Texas and the United States, should take about three years to build and involve employment for some 600 workers during peak construction. The facility is expected to be operational in the 2008/09 timeframe, with an initial processing capacity of 1 billion cubic feet per day (bcfd) of LNG. The plant will be designed for an expansion to 2 bcfd throughput in the future.
ExxonMobil initiated the permitting process this week with the Federal Energy Regulatory Commission, an undertaking involving numerous engineering design, safety, environmental and other studies that typically lasts about 18 months.
"Secure supplies of natural gas are critical to the continued strong economic growth of Texas and the United States," said
Governor Rick Perry speaking at today's event. "This project will provide jobs and other economic benefits to Sabine Pass and Southeast Texas, and bring long-term supplies of natural gas for our industries, power plants and homes. We support ExxonMobil's efforts to bring this important project to Texas."
Stuart McGill, president of ExxonMobil Production Company, said, "We are taking another important step in our plans to develop LNG receiving terminals on the U.S. Gulf Coast. There is strong growth in natural gas demand projected in the future and the import of LNG will be an important component of the supply mix. We appreciate the commitment of Governor Perry, Jefferson County Judge Carl Griffith, Port Arthur Mayor Ortiz and other state, local and civic leaders who are working with us to bring this LNG project to Sabine Pass. This project will help support economic development in Southeast Texas and the U.S."
In October, Exxon Mobil Corporation and Qatar Petroleum announced a Heads of Agreement to supply 15.6 million tons a year of LNG (2 bcfd) from Qatar to the United States for an expected period of 25 years. ExxonMobil holds purchase options for potential LNG import sites in Corpus Christi, Texas, and Mobile Bay, Alabama. The company is also evaluating possible sites for an offshore terminal in the Gulf of Mexico.
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