Excelerate Energy Plans a New Innovative Way of Delivering LNG to the U.S.

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). In December 2003, Excelerate Energy (The Woodlands, Texas) began the initial development phase of its innovative offshore LNG (Liquefied Natural Gas) regassification and delivery system. This system involves the use of modified LNG tankers with onboard LNG vaporization systems for the transportation and vaporization of LNG and off-loading to offshore pipelines.

The Gulf of Mexico Deepwater Port is based on Excelerate Energy's Energy Bridge system and will consist of a submerged turret loading (STL) system, comprised of a turret buoy, lines, chains, a sub-sea manifold, and a flexible riser. Approximately 1.93 miles of pipeline will connect the STL system to the meter platform. Almost four miles of pipeline will connect the meter platform to the existing Sea Robin Pipeline. Also, an additional 1.38 miles of pipeline will connect from the meter platform to the Blue Water Pipeline system. The Gulf of Mexico Deepwater Port will be located approximately 116 miles off the coast of Louisiana.

The two Energy Bridge regassification vessels that have been specifically designed for the project are currently under construction at the Daewoo Shipbuilding & Marine Engineering Company Limited shipyard in South Korea. A third vessel that is presently on order. These vessels are based on a standard 138,000 cubic meter design, with various modifications, which allow them to vaporize the LNG stored onboard, and deliver high gas to sub-sea pipelines. The tankers cost approximately $170 million, in addition to $25-30 million for the onboard regassification system.

The entire project is costing nearly $65 million and is scheduled to begin supplying U.S. markets at the beginning of 2005. Currently, the pipeline is still under construction, with installation expected to commence in mid-September. Installation of the turret buoy and the flexible riser will begin mid-to late September. Coinciding with increasing demands for LNG in the United States, The Gulf of Mexico Deepwater port is expected to deliver 500 million cubic feet of natural gas per day into the U.S. market.