ExxonMobil Launches BlueOcean Energy Offshore New Jersey

ExxonMobil is seeking regulatory approval for BlueOcean Energy, a floating LNG receiving terminal that will create a gateway to global supplies of clean-burning natural gas to help meet the growing energy needs of New Jersey and New York.

The project will have the capacity to supply about 1.2 billion cubic feet of clean-burning natural gas per day, enough to meet the needs of more than five-million residential consumers.

Anchored approximately 20 miles off the coast of New Jersey, the more than $1 billion terminal will be far from shore and away from shipping lanes, ports and recreational areas.

"BlueOcean Energy will provide significant economic benefits to New Jersey and New York, and it will help the region achieve its environmental objectives," said Ron P. Billings, vice president, Global LNG, ExxonMobil Gas & Power Marketing Company.

The project will generate sizeable direct and indirect economic benefits through project spending, new jobs, taxes and additional natural gas. Access to global supplies of natural gas can improve reliability, help reduce swings in natural gas prices and fuel future growth.

The Rutgers University Bloustein School of Planning and Public Policy studied the economic effects such a project will have on the State of New Jersey. Rutgers' detailed report concludes that "the proposed LNG terminal could have significant positive benefits for the New Jersey economy."

The project will help the region in obtaining secure, safe and competitively priced energy, economic growth and development and environmental protection, which are all in alignment with the goals of the New Jersey Energy Master Plan.

Safety and security will be paramount. "BlueOcean Energy is developing a sound plan for a safe and secure facility," Farmer said.

The BlueOcean Energy floating terminal is designed to receive LNG supplies from double-hulled LNG ships about twice a week, and store the LNG in insulated tanks inside the terminal's double hull. The stored LNG will then be warmed to turn it back into natural gas for delivery to New Jersey and New York markets through a new subsea pipeline that will connect to new and existing onshore pipelines.

BlueOcean Energy is at the start of a lengthy and rigorous permitting process involving state and federal agencies, as well as the general public.

In addition to BlueOcean Energy, ExxonMobil is involved in three other terminal projects. Receiving terminals are under construction near Sabine Pass, Texas; in Wales in the United Kingdom; and offshore Italy in the Adriatic Sea. With several years required for permitting, engineering and construction, BlueOcean Energy is expected to begin service around the middle of the next decade.