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Gold/Mining/Energy : LNG -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (66)	2/3/2004 9:06:41 AM
From: Dennis Roth	Read Replies (1) \| Respond to of 919

BP eyes LNG terminal in New Jersey petroleumworld.com By Curtis Williams Trinidad Express Port Spain Petroleumworld.com 02 01 04 In the midst of continued strong LNG prices and the need for additional regasification capacity in the United States, BP has announced that it has applied to the US government for permission to construct an LNG terminal in New Jersey. According to the announcement, which was made here in the United States, it is expected that the LNG for the new terminal will come principally from Trinidad and Tobago. According to a release from the company; "BP announced that it will begin the pre-filing process with the US Federal Energy Regulatory Commission (FERC) to construct and operate a Liquefied Natural Gas (LNG) terminal located on the Delaware River in the state of New Jersey with first gas targeted for 2008. The proposed Crown Landing LNG facility will be owned and operated by BP with LNG sourced principally from Trinidad & Tobago where BP is the largest natural gas producer." But all bpTT's LNG is already destined for specific terminals in the United States and if the company intends to supply its current market and add the proposed Crown Landing facility it will have to invest in further LNG capacity in Trinidad and Tobago. In addition, the Crown Landing facility is due to come on stream in 2008 well after the first LNG will flow from Train IV, suggesting that BP is looking to a possible fifth or sixth Train to supply the Crown Landing facility. Its communication officer Paul Charles told Express Business while bpTT is optimistic that further LNG expansion was an attractive option the company was not necessary tying the Crown Landing facility to further LNG expansion. He said; "It is too early in the planning stage of this project to definitively say where the LNG supply will come from, Trinidad will certainly be considered as a principle source. "Further expansion of LNG production depends on market demand, reserve availability, the interest of investors and government's policy. BP is of the view that LNG is likely to remain an attractive option for continued growth in Trinidad and Tobago's energy portfolio." Charles said LNG could also come from supply sources within the BP's globalLNG portfolio. It is proposed that the Crown Landing LNG facility will have a daily send-out capacity of 1.2 billion cubic feet and a short-term peaking capability of up to 1.4bcf/d. Facilities will include three 150,000 cubic meter (3.5bcf) storage tanks with nitrogen injection for blending and flexibility; and a pier designed to dock ships with capacities of up to 200,000m3. The terminal will be able to connect to major pipeline systems serving the north-east. Anne Quinn, BP Group Vice-President, Gas, Power & Renewables said: "Crown Landing is an important project for both the United States and for BP. It offers US energy consumers a strategic new source of clean burning natural gas supply delivered directly to north-east markets. The project will bring local jobs, taxes and improve the region's overall economic competitiveness." She added; "For BP it will enable us to build on our position as a leading provider of natural gas for US consumers and help meet the country's growing demand." Demand for natural gas in the north-eastern United States region is expected to grow by more than ten per cent over the next five years. The region currently relies on other areas for its supplies of natural gas. US domestic production is not keeping up with demand growth across the country, which is the world's largest natural gas market, currently consuming 22 trillion cubic feet (Tcf) per year. In 2010 it is anticipated that demand will outstrip supply by three tcf. BP is one of the world's largest energy companies and is the second largest non-state owned supplier of gas into liquefaction plants. The company participates in LNG projects in Trinidad and Tobago, Abu Dhabi, Indonesia and Australia, and in addition sources LNG from Qatar and Oman. Last year, BP provided the first LNG cargo to the re-opened Cove Point LNG terminal in Maryland where BP has one third of the import capacity. The cargo came from Atlantic's Point Fortin plant. Wednesday, January 28th 2004 Copyright©Trinidad Express 2004, All rights reserve