McMoRan Exploration Co. said Monday that its subsidiary, Freeport-McMoRan Energy LLC, has filed a license application with the Coast Guard for a proposed offshore Louisiana liquefied natural gas (LNG) import terminal and gas storage project.

The $440 million receiving terminal will be located at McMoran’s Main Pass Energy Hub (MPEH), about 37 miles east of Venice, offshore in the Gulf of Mexico. The proposed terminal would be capable of receiving and conditioning 1 Bcf/d of LNG and is being designed to accommodate potential future expansions. McMoRan also is planning to develop 28 Bcf of working gas storage capacity in a salt formation at the site. Aggregate peak deliverability from the proposed terminal, including deliveries from storage would total 2.5 Bcf/d.

The application has been filed under the U.S. Deepwater Port Act, which was amended in 2002 to include deepwater gas ports and contains a 356-day review period for a decision on the issuance of a license. The license process is under the administration of the U.S. Coast Guard.

“The submission of this application is an important milestone for the development of our Main Pass Energy Hub project, which would provide a gateway for required LNG imports into the U.S. natural gas distribution system,” James R. Moffett and Richard C. Adkerson, co-chairmen of McMoRan said in a statement. “We are encouraged by the streamlined permitting process outlined in the Deepwater Port Act and recent approvals of other offshore projects.”

Sen. Mary Landrieu (D-LA) and Louisiana Governor Kathleen Babineaux Blanco also touted the project as providing needed supply for Louisiana end users and significant economic benefits for the state. “Over its life, McMoRan will invest hundreds of millions of dollars on this project, an investment that will result in 1,000 direct and secondary jobs for Louisiana workers,” Blanco said.

McMoRan said the project is expected to create up to 1,300 direct jobs during the construction phase. Once operational, the project is estimated to result in 1,000 direct and secondary jobs.

MPEH is located at Main Pass Block 299 in 210 feet of water which allows deepwater access for large LNG tankers and is in close proximity to shipping channels. Its distance from shore and from other shipping also makes the project a safe and secure location. McMoRan will utilize the existing platforms and infrastructure at the site to locate the LNG vaporization and surface storage facilities, providing significant construction timing advantages and cost savings, the company said. The facilities could be operational by late-2007.

McMoRan said it will pursue commercial arrangements simultaneously with the regulatory approval process. The company said it already is in discussions with potential LNG suppliers and natural gas consumers.

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