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Sabine LNG tanks filling up

Mon. June 29, 2009; Posted: 05:34 AM
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Jun 29, 2009 (The Beaumont Enterprise - McClatchy-Tribune Information Services via COMTEX) -- COP | Quote | Chart | News | PowerRating -- The colossal tanks straddling Sabine Pass offer evidence that at least one industry is forging ahead while others flounder in uncertainty.

Like giant pedestals, the tanks on the Texas side belong to the Golden Pass liquefied natural gas terminal, owned jointly by ExxonMobil, ConocoPhillips and the Qatar petroleum company in the Persian Gulf, whose rich fields will provide the supply to be shipped in.

On the Louisiana side stands Cheniere Energy Co.'s LNG terminal.

After a year of inactivity because natural gas prices were too high, the terminal now has contracts in place for Total and Chevron to take a billion cubic feet per day of gas.

Cheniere began taking in shipments for Total in April. Chevron's shipments begin in July, said Diane Haggard, Cheniere spokeswoman.

Cheniere opened its terminal in April 2008, but its chief executive officer then had said he'd wait until the price moderated.

In June 2008, natural gas was priced at $12.76 per million British thermal units, a standard measure for gas.

A Btu is the amount of heat needed to raise the temperature of a pound of water by 1 degree Fahrenheit.

Natural gas prices last week were trading in the $3.80 range, about 70 percent cheaper than a year ago.

At Golden Pass, between 400 and 500 workers continue building the terminal, which was delayed by Hurricane Ike, said ExxonMobil spokeswoman Kathleen Jackson.

Construction on the $1 billion terminal began in 2006 with commercial operations set to begin in mid-2010.

The project is 70 percent complete. Each tank is 250 feet in diameter and stands 175 feet high, dominating the landscape of Sabine Pass.

Once completed, the terminal could receive as many as three ships a week from the Persian Gulf country of Qatar, which has one of the richest gas fields in the world and one of the largest liquefaction capabilities as well.

Golden Pass will have a daily capacity of 2 billion cubic feet.

Haggard declined to say how many ships were offloading at the Cheniere terminal, citing customer confidentiality.

Cheniere has three storage tanks built and another two under construction.

Its project will have cost $1.5 billion when completed. A separate pipeline project to connect it to the network that can deliver to markets in three-fourths of the United States, cost another $500 million to build.

Haggard said Chevron and Total each can take 1 billion cubic per day of natural gas.

Sempra Energy, which still is considering construction of an LNG terminal along the Sabine-Neches Ship Channel near the Intracoastal Waterway bridge on Texas 87, has a terminal in Hackberry, La., that began taking in shipments a week ago.

Sempra spokesman Art Larson called that first delivery the "commissioning cargo" that is used to chill the tanks to keep the natural gas in its liquefied state.

To see more of The Beaumont Enterprise, or to subscribe to the newspaper, go to
http://www.www.beaumontenterprise.com/. Copyright (c) 2009, The Beaumont
Enterprise, Texas Distributed by McClatchy-Tribune Information Services. For
reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or
847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group
Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
For full details on ConocoPhillips (COP) click here. ConocoPhillips (COP) has Short Term PowerRatings of 5. Details on ConocoPhillips (COP) Short Term PowerRatings is available at This Link.

    


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