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Gulf LNG Affiliates Seek FERC Nod to Build Terminal, Pipe in Mississippi

Gulf LNG Energy LLC and Gulf LNG Pipeline LLC have filed an application seeking FERC authorization to build a liquefied natural gas (LNG) terminal and associated pipeline facilities in Jackson County, MS.

The $450 million project calls for Gulf LNG Energy to construct an LNG receiving terminal and storage and vaporization facilities with the capability to store a total of 320,000 cubic meters of LNG and send out on average 1.3 Bcf/d of gas supplies, reaching 1.5 Bcf/d during peak demand.

The terminal would be located in Jackson County at the Bayou Casotte portion of the Port of Pascagoula, which is operated by the Jackson County Port Authority. Gulf LNG Energy has executed an agreement with the Port of Pascagoula for the right to build the LNG terminal on lands in Bayou Casotte. The site would occupy approximately 40 acres and be surrounded by open water and more than 200 acres of unoccupied land controlled by the port.

The marine terminal would have the capability to unload approximately 150 ships a year.

Gulf LNG Pipeline proposes to construct a 5.02-mile, 36-inch diameter pipeline that either would transport regasified gas directly to Destin Pipeline and Gulfstream Natural Gas System facilities if processing is not required, or it would deliver the gas to third-party processing facilities if treatment is needed before entering the pipelines. The proposed pipeline would interconnect the terminal with over 2.3 Bcf/d of existing interstate infrastructure in southern Mississippi, the Pascagoula, MS-based companies said.

Gulf LNG Energy urged the Federal Energy Regulatory Commission to act on its application by June 2006 so that it can begin construction by the middle of next summer. It said it expects to have the terminal in operation by November 2009 in time for the 2009-2010 winter heating season.

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