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Hurricanes' Lesson for Gulf LNG? Onsite Electricity, Sempra Exec Says

The experience of existing U.S. liquefied natural gas (LNG) facilities during the recent Gulf of Mexico hurricanes has supported the designs for new terminals and demonstrated that onsite power generation is probably the single most important added consideration for the new projects, according to Sempra Energy COO Donald Felsinger.

During on a conference call with analysts Wednesday, Felsinger was asked if added capital would be needed now to reinforce the company's planned LNG facilities at Cameron, LA, and Port Arthur, TX. He indicated that the projects didn't need more capital, but providing onsite electricity at the plant sites is a new consideration.

"The structures are very well designed, if you take a look at the CMS facility [in the Gulf]," Felsinger said. "That facility withstood all of the brunt of the force of the hurricane, but where the weakness was in the system was in the area of electrical power.

"I think you will now see all LNG development going back and reassessing the need to have power generation onsite to keep their operations under way."

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