US authorities approve license for Main Pass Energy Hub
Offshore staff
NEW ORLEANS -- McMoRan Exploration Co. has received license approval for its Main Pass Energy Hub (MPEH) project from the US Maritime Administration (MARAD).
MARAD has concluded that construction and operation of the deepwater port will be in the nation's best interest, and consistent with US security and other policy goals and objectives, including energy sufficiency and environmental quality.
The regulatory agency also suggests that the hub will fill a vital role in meeting national energy requirements for the future and that its location will help reduce congestion and improve safety in receiving LNG cargoes to the US.
"This is a significant development in our efforts to establish a new LNG gateway and natural gas delivery system for the US with substantial onsite natural gas storage," says James Moffett and Richard Adkerson, co-chairmen of McMoran.
The approved MPEH facility will be equipped with capacity to regasify LNG at a peak rate of 1.6 bcf/d, store 28 bcf of natural gas in salt caverns, and deliver 3.1 bcf/d of gas to market. The project will use existing offshore structures and onsite natural gas caverns for storage.
McMoRan continues discussions with potential LNG suppliers, gas marketers, and consumers in the US to develop commercial arrangements for the facilities. Construction of the hub is estimated at $1 billion (approximately half of which is for pipelines and cavern storage).
MARAD's approval and issuance of the deepwater port license for MPEH is subject to additional terms and conditions.
01/04/2007