Shell US Gas & Power LLC Planning to Construct a New LNG Terminal in the Gulf of Mexico

---

Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Shell Gas & Power LLC (Houston Texas), a subsidiary of Shell Oil Products US, which is a business unit of Shell Oil Company, the U.S. operating arm of Royal Dutch Shell (NYSE:RD) (The Hague Netherlands) is planning to construct a new $700 million LNG receiving and re-gasification terminal in the Gulf of Mexico called Gulf Landing. The bottom of the concrete gravity-based facility will rest on the seabed in 55 feet of water 38-miles offshore of the Louisiana coast in West Cameron Block 213 (PEC 02005280).

The proposed facility will have a re-gasification and send out capacity of one Bcf/d of natural gas through five export pipeline laterals to interconnect with five major interstate pipelines. Gulf Landing will have docking facilities to receive LNG tankers, vaporization capacity and will be able to store LNG as well in either two or three 160,000 cubic meter cryogenic LNG storage tanks. Shell expects to file with the Coast Guard and other government authorities in March or April of 2004. Construction on the planned LNG terminal could begin as early as the second quarter of 2006 with completion scheduled for mid-2009.

Shell is the world's largest private producer of LNG and another subsidiary Shell NA LNG LLC currently owns rights to one-third of the capacity at the Dominion Cove Point LNG terminal in Maryland and also holds the entire capacity of the expansion underway at Southern LNG Company's (Birmingham Alabama) LNG terminal in Elba Island, Georgia. The expansion is scheduled for completion in early 2006 with the capability to deliver 360 mmscf/d of natural gas.