Gulf LNG Energy Nears Permitting Completion and E+P+C Selection for Pascagoula LNG Terminal

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Researched by Industrial Info Resources (Sugar Land, Texas). Gulf Energy LNG, LLC (Houston, Texas) already has its final Environmental Impact Statement from the FERC and expects to receive full approval in February 2007 with regards to permitting issues for its planned LNG receiving and regasification terminal in Pascagoula, Mississippi. Gulf Energy LNG is also in the process of negotiating an E+P+C (engineering, procurement and construction) contract for the $750 million terminal with two separate companies. One of the companies currently involved in the E+P+C negotiations is the Houston, Texas office of Technip, Incorporated, which had previously completed the front-end engineering and design work for the Pascagoula terminal. The second company involved in the negotiation process remains unnamed at this time. Gulf Energy LNG plans to finalize the selection of an E+P+C contractor sometime in February of 2007.

The Pascagoula LNG terminal will have a regasification capacity of approximately 1.5 billion cubic feet per day (Bcf/d) when complete and fully operational in mid-2010. The company has already executed an agreement with the Jackson County Port Authority and Jackson County, Mississippi, regarding the use of land in Bayou Casotte. The terminal facilities will include marine ship receiving area, vaporization facilities, and two 160,000 cubic meter LNG storage tanks with three boil off gas compressors. In the case of a power failure, the terminal facilities will include two 11-megawatt turbine-driven power generation units.

The regasified natural gas will be exported from the LNG terminal through a planned 5.02-mile, 36” diameter natural gas pipeline that is currently pending FERC approvals. A 4,000-foot section of the pipeline will have to be directionally drilled to avoid disturbing existing refining facilities in the path of the pipeline. The pipeline will make interconnections at two new ultrasonic metering stations with the existing Destin Pipeline system and the Gulfstream pipeline. Gulf Energy LNG expects to begin civil construction on the Pascagoula LNG terminal in March or April of 2007.

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