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ChevronTexaco Stocks Up on LNG Carriers

With markets becoming more and more hungry for imported liquefied natural gas (LNG), ChevronTexaco Corp. decided now is a good time to stock up on tankers. The company said last week that it has ordered two new LNG carriers from Samsung Heavy Industries of South Korea to support its growing worldwide LNG business.

The two carriers are planned for delivery in 2009. Each will have a capacity of 154,800 cubic meters. Both carriers will have a membrane-type design and will be equipped with dual fuel diesel-electric propulsion.

"ChevronTexaco has large holdings of natural gas resources in the Pacific and Atlantic Basins. The new LNG carriers will enable ChevronTexaco to safely deliver reliable and competitive energy services to our customers," said John Gass, ChevronTexaco global gas president.

"It is important that our company invest now to meet the growing demand for energy in the future," he added. "ChevronTexaco is making good progress at securing market access for its LNG supply projects. This latest commitment provides ChevronTexaco with a flexible and competitive means of transportation to underpin the company's LNG growth strategies."

ChevronTexaco Shipping President Mike Carthew also noted that the new tankers support the company's growing portfolio of LNG regasification and liquefaction projects. The company currently operates a fleet of 30 oil and gas tankers, including a one-sixth interest in nine LNG carriers.

The company's natural gas liquefaction business currently includes a one-sixth interest in a plant with four liquefaction trains on the North West Shelf offshore western Australia. ChevronTexaco also is planning five other liquefaction plants, including one that would serve the Gorgon field also offshore western Australia, a project in Angola (one train with 5 million metric tons of capacity), two in Nigeria (Brass LNG, 5 million metric tons; and Olokola LNG, 5 million metric tons), and possibly one onshore in Venezuela (Platforma Deltana with ConocoPhillips, 5 million metric tons).

ChevronTexaco was the first company to receive a deepwater port permit from the Maritime Administration in the United States for an offshore LNG terminal. Its 1.6 Bcf/d Port Pelican deepwater port is expected to begin commercial operation offshore Louisiana in January 2009. The company also is planning to begin operations in January 2009 at its 750 MMcf/d LNG port in Mexico, Terminal GNL Mar Adentro, located offshore Baja California Norte.

Meanwhile, ChevronTexaco has signed a 20-year agreement for 700 MMcf/d of the capacity at Cheniere Energy's Sabine Pass LNG terminal, which is under development in Cameron Parish, LA. The agreement includes an option to reduce or expand the capacity under the agreement to 500 MMcf/d or 1 Bcf/d, respectively. In addition it has informal plans to develop an LNG terminal offshore Long Beach, CA, and it has signed an agreement to market all of the LNG from the recently commissioned Gulf Gateways Energy Bridge.

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