Offshore Staff
(US, GoM) - Louisiana Governor Kathleen Blanco has vetoed construction of a proposed offshore liquefied natural gas port over concerns of potential long-term adverse economic and environmental impacts.
Blanco had until May 8 to file any objections to a Deepwater Port license application filed by McMoran Exploration for its Main Pass Energy Hub (MPEH) proposed offshore LNG project.
The Governor's primary objection stemmed from the lack of "persuasive scientific studies or data" to support McMoran and other industry sources positions that environmental impacts of using open rack vaporization (ORV) technology at the MPEH would be negligible.
"I hereby disapprove the application of Freeport McMoran LLC for the construction and operation of the MPEH," said Blanco in a letter to the Maritime Administration.
"I will oppose the licensing of offshore LNG terminals that will use the open rack vaporizer system. Until studies demonstrate that the operation of the open rack vaporizer will not have an unacceptable impact on the surrounding ecosystem, I will only support offshore LNG terminals using a closed loop system having negligible impacts to marine life."
In response to the Governor's decision, a McMoran statement said that "it will work to obtain approval of its MPEH project using closed loop technology while the company continues to address concerns about the more efficient ORV technology."
The proposed terminal would be capable of regasifying LNG at a rate of 1 bcf/d. McMoran says it is continuing discussions with potential LNG suppliers, gas marketers and consumers in the US to develop commercial arrangements for the facilities.
05/14/06
