LNG Infrastructure Projects Grow as ExxonMobil Nears the Construction Phase of Texas LNG Terminal and Pipeline Project

---

Researched by Industrial Info Resources (Sugar Land, Texas). ExxonMobil Corporation (NYSE:XOM) (Irving, Texas) has begun site preparation activities at its planned Golden Pass LNG receiving terminal located near Sabine Pass, Texas. The site preparation work is being handled by Chicago Bridge & Iron Company (NYSE:CBI) (The Woodlands, Texas). This marks the eighth new LNG terminal in North America to enter into the construction phase. The Golden Pass LNG terminal will be constructed in two phases, with a total LNG regasification capacity of two billion cubic feet per day (mmcfd) when completed. ExxonMobil expects to select a main E+P+C contractor in the third quarter of 2006 and have the LNG terminal in-service by 2009.

The first phase of the project will include a marine unloading facility, a vaporization area and three 160,000 cubic meter cryogenic LNG storage tanks. This will bring the total number of new LNG storage tanks to be constructed for these eight projects to twenty-one. The average capacity of these new tanks will be 160,000 cubic meters, which equals roughly 1,008,000 barrels per tank. The new LNG storage tanks will total approximately 3.36 million cubic meters and each tank will carry an average price tag of $60 to $70 million. If the figure is rated in gaseous form then the total storage volume of these new tanks will approximate 72.66 billion cubic feet of new storage, which is approximately 10 billion more cubic feet of natural gas that the U.S. consumes on an average daily basis.

In addition to the new tanks being constructed, there will be approximately 290 miles of large diameter natural gas transmission pipelines will be constructed to connect these new LNG terminals to the market. The pipelines will range in length from 15 miles to 108 miles. The high majority of the new pipelines will make multiple pipeline interconnections with existing pipeline systems. Some of the pipelines will make between nine and twelve pipeline interconnections and with each connection made there will be a need for metering and custody transfer points. Most of the pipelines will not have a need for compressor stations, since it is more economic to use electric motor driven pump sets to pump the LNG at a greater pressure into the vaporization system than it is to construct compressor stations and their related emissions issues.

Industrial Info is currently tracking a total of 37 LNG terminal related pipeline projects either in the construction phase or in some planning & engineering phase in North America. The total capital spending that these projects represent is approximately $3.368 billion. In addition to the pipelines there is an additional $297 million in proposed power projects associated with the LNG terminals ranging in size from 38 megawatts to 130 megawatts. Most of these power generation facilities will take the form of onsite cogeneration plants to supply the terminal with in-house power and waste heat that can be used in the vaporization process as well as water discharge temperature.

Click on the image at right to view a Map of North American LNG Terminal Projects.

When combining the new LNG terminals under construction, LNG terminal expansions and new LNG terminals still on the drawing board the total terminal projects being tracked by industrialinfo.com in North America reached 61 with a total capital value of $32.682 billion. These facilities represent 64.37 billion cubic feet per day in natural gas send out capacity. Not all of these facilities will be constructed but the shear numbers of what is being planed shows the magnitude of the LNG importation industry being considered today in North America when compared to only three LNG terminal projects being considered in late 2000. A lot has changed in five and a half years.

Related News Articles:

Six LNG Import Terminals Under Construction in North America
Cheniere Energy Advances Corpus Christi LNG Receiving Terminal Toward Construction

Click on the image at right for details on Industial Info's North American LNG Terminals Map

View Project Report - 01009513 01010181 01010496

Industrial Info Resources (IIR) is a Marketing Information Service company that has been doing business for over 23 years. IIR is respected as the leader in providing comprehensive market intelligence pertaining to the industrial processing, heavy manufacturing, and energy-related industries throughout the world.