A subsidiary of El Paso Corp. has closed the previously announced acquisition of a 50% interest in the Gulf LNG Clean Energy Project, a planned liquefied natural gas (LNG) terminal in Pascagoula, MS. An El Paso subsidiary also is managing the facility’s construction and will operate the terminal upon completion.
The terminal is expected to be placed in service in late 2011 at an estimated cost of $1.1 billion.
The Crest Group, consisting of Houston-based investors, will own 30% of the project; and Sonangol USA will own 20%. Sonangol is the state-owned national oil company of Angola. The agreement for El Paso to acquire an interest in the project from the Crest Group and Sonangol is subject to certain terms.
The project, which received its Federal Energy Regulatory Commission certificate one year ago, includes the construction of two 160,000-cubic-meter storage tanks with a combined capacity of 6.6 Bcf; 10 vaporizers, providing a base sendout capacity of 1.3 Bcf/d; and five miles of 36-inch diameter pipeline, connecting the terminal to the Gulfstream, Destin, Florida Gas Transmission and Transco pipelines.
El Paso agreed to to acquire the interest in the Gulf LNG Clean Energy Project in November (see Daily GPI, Nov. 29, 2007).
Gulf LNG has negotiated 20-year firm service agreements for all of the capacity of the terminal with a group of LNG producers, including several major oil and gas companies.
El Paso owns an LNG regasification terminal at Elba Island near Savannah, GA, one of four such facilities currently operating in the U.S.
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