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February 23, 2005

LNG Terminals Move Ahead in the Gulf of Mexico

Companies continue to make progress developing new terminals for importing liquefied natural gas (LNG) into the United States. Shell announced on February 17th that it has received regulatory approval to build an offshore LNG terminal in the Gulf of Mexico, 38 miles from Cameron, Louisiana. The Shell terminal will have the ability to gasify one billion cubic feet per day of natural gas for use in the United States. ConocoPhilips has also proposed building an LNG terminal in the Gulf, about 56 miles south of Louisiana, with a capacity of 1.5 billion cubic feet of natural gas per day. Another project in the Gulf, under design by Tidelands Oil and Gas Corporation, will be located off the coast of Mexico to supply natural gas to Mexico. See the press releases from Shell, ConocoPhilips, and Tidelands.

In terms of on-shore LNG terminals in the Gulf area, Cheniere Energy, Inc. is now spearheading four LNG projects. Its proposed LNG terminal in Freeport, Texas, won approval in early January and is now under construction. In late January, the company applied to build a second LNG terminal in Cameron Parish, Louisiana, called "Creole Trail"; the company has already earned approval to build the "Sabine Pass" LNG terminal there, and plans to start construction in late March. The company has also applied to build an LNG terminal in Corpus Christi, Texas. See the Cheniere Energy press releases from January 11th and January 26th.

Other plans for North American LNG terminals include a ChevronTexaco proposal for a terminal eight miles off the coast of Baja California, Mexico, which earned approval in early January; a planned expansion of the Dominion Cove Point LNG terminal in Maryland; and a proposed LNG terminal off the coast of Massachusetts. Tractebel LNG North American LLC is proposing to build the Massachusetts LNG terminal about 10 miles south of Gloucester. See the ChevronTexaco press release, the Dominion Cove Point Web site, and the Tractebel press release (PDF 33 KB). Download Acrobat Reader.

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