ConocoPhillips Enters LNG Foray with Plans to Construct New Gulf Coast Receiving Terminal

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). ConocoPhillips (NYSE:COP)(Houston, Texas), through its wholly-owned subsidiary, Compass Port LLC intends to construct, own, and operate the Compass Port Terminal in the Gulf of Mexico. The proposed LNG receiving terminal will be located eleven statute miles due south of Dauphin Island, Alabama, approximately thirty-three statute miles from the southern city limit of Mobile, Alabama in lease block MO 910. Compass Port will serve as an LNG receiving, storage, regasification, and natural gas transmission facility, with an average daily output capacity of one billion cubic feet.

Compass Port will take the form of two concrete gravity-based structures founded on the seabed that will contain the two 150,000 cubic meter LNG storage tanks and the regasification facilities. A 30-mile 36" diameter pipeline will transport the natural gas to the Coden, Alabama area. The pipeline will generally follow the existing corridor of the Gulfstream Natural Gas System Line 200. Other facilities will include docking and unloading infrastructure for LNG tankers and crew quarters. Also included in the scope are five Solar Taurus T-70 aeroderivative gas turbines rated at 5 megawatts each, six LNG pumps, six LNG vaporizers, two emergency flares, a boil off gas condenser, and several diesel engines rated at over 600 horsepower.

Compass Port has filed an air quality permit application for the facility prepared by ENSR Corporation (Birmingham, Alabama). Compass Port hopes to begin construction on the facility some time in 2005, with completion slated for September of 2008. Cost estimates for Compass Port range from $500-800 million dollars.