GE Energy Financial Services plans to invest $150 million to acquire a one-third interest in the Gulf LNG Clean Energy Project, a liquefied natural gas (LNG) receiving terminal under construction by El Paso Corp. in Mississippi.

Gulf LNG, which is adjacent to the Pascagoula Bayou Casotte Ship Channel, is scheduled for completion in 2011 at a cost of around $1.1 billion (see Daily GPI, Nov. 5, 2009). The facility, which is fully contracted, is to have 6.6 Bcf of storage and be capable of 1.3 Bcf/d sendout.

“Our investment in an asset that will form part of the nation’s energy backbone reflects our strategy of supporting growing businesses, helping to meet energy demand and drawing on the pillar of GE’s strength and expertise in energy,” said Dan Castagnola, a managing director of GE Energy Financial Services in Houston. “Representing our expansion into LNG, this transaction complements our investment in U.S. natural gas pipelines — 30,000 miles of pipelines in North America — that help ensure a steady supply of clean, efficient energy.”

El Paso owns a half stake in the facility, and a subsidiary is managing construction and would be the operator (see Daily GPI, Feb. 8, 2008). The GE business unit would acquire Houston-based Crest Group’s 30% interest. Sonangol, Angola’s national oil company, also has a 20% interest in the project.

Under construction at the Pascagoula facility are two 160,000-cubic meter gas storage tanks, 10 vaporizers and connections to the Gulfstream, Destin, Florida Gas Transmission and Transcontinental Gas pipelines. The project has secured 20-year service agreements with producers to supply LNG for all of the terminal’s capacity.

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