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Chevron Halts Development of Mississippi LNG Project

October 19, 2009
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Citing changing market conditions since it proposed the project, Chevron Corp. has decided to put the brakes on development of its Casotte Landing liquefied natural gas (LNG) terminal in Mississippi.

"We have been successful in obtaining the necessary state and federal permits to construct and operate a liquefied natural gas facility in Jackson County, and Chevron has considered Casotte Landing an option to match the growth of LNG imports. However, the landscape of the global LNG trade has changed and Chevron has decided to halt further development of Casotte Landing," said Richard Lammons, vice president of Bayou Casotte Energy LLC, a subsidiary of Chevron.

"As a result we respectfully relinquish" the Natural Gas Act Section 3 authorization that the Federal Energy Regulatory Commission granted to Bayou Casotte in February 2007," he said (see NGI, Feb. 19, 2007).

The energy company did not give any further explanation.

The Casotte Landing LNG terminal was designed for a baseload capacity of 1.3 Bcf/d and peak load capacity of 1.6 Bcf/d. The facility, which was to be sited adjacent to Chevron's Pascagoula oil refinery, would have sent regasified LNG into the interstate pipeline grid through five interconnections. The project also would have included three storage tanks with 480,000 cubic meters of capacity [CP05-420].

Chevron initially had planned to build a ship unloading facility with a single berth capable of receiving LNG ships with cargo capacities of up to 200,000 cubic meters; three 160,000-cubic meter LNG storage tanks; and a closed-loop intermediate fluid vaporizer system utilizing cooling water from the adjacent Chevron refinery as a heat source.

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