Another LNG Project in the Works; Baja Project Fizzles

ChevronTexaco has met with state and federal officials to iron out the kinks in a proposal for an offshore liquefied natural gas terminal south of Los Angeles similar to its deepwater LNG project in Baja California, Mexico. The floating terminal would be within the state?s jurisdiction?which runs three miles out to sea?and would process 700 MMcf/d of imported gas. It is the third proposed LNG coastal facility in the southern half of the state. Like ChevronTexaco?s Baja California project, the California site would be in water deep enough to allow LNG tankers to maneuver, but not exceed that depth by much to minimize the amount of concrete required for the terminal, said Jack Coffey, ChevronTexaco?s manager of state and local relations. The Baja California terminal is planned to be eight miles off the coast. The exact location of the Southern California plant has not yet been determined but is likely to be near Camp Pendleton. ChevronTexaco recently met with an interagency LNG group made up of state and federal officials and was told that the Federal Energy Regulatory Commission, not the U.S. Coast Guard, would be the lead federal permitting agency because the facility would be sited in state waters. Coffey said he expected the lead state agency to be the State Lands Commission, which has jurisdiction over California waters. ?We are still four to six months away from submitting a permit application,? he added. While ChevronTexaco is moving full-steam ahead, another LNG project, a regasification project floated by ConocoPhillips in Rosarito, Mexico, was squelched by strong local opposition. ?Although we wrote off our investment in the proposed Rosarito LNG terminal, we continue working with federal, state and local officials in Mexico to evaluate other alternatives, which includes offshore options,? according to the company?s March 2 10K Securities and Exchange Commission filing. Meanwhile, the joint Baja LNG project proposed by Sempra and Shell remains in limbo as litigation over the project continues.

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Another LNG Project in the Works; Baja Project Fizzles

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