By Marilyn Tennissen
The Port Arthur News

PORT ARTHUR— In November 2003, the governor of Texas came to Sabine Pass to announce that ExxonMobil was looking at the location for a liquefied natural gas facility.
While many in the crowd that day did not know exactly what an LNG facility was, the news was heralded as an economic opportunity for Southeast Texas and a benefit for the nation’s natural gas needs.
Tuesday, after almost three years of planning, public meetings, environmental impact studies and federal permitting, the news has finally come — Golden Pass LNG will become a reality.
Tom Burger, vice president of development and operations for Golden Pass LNG LLC, made the announcement that the final step in the process has been completed with the award of the construction contract to Chicago Bridge & Iron Company.
“We are very happy and excited to continue the economic development and vitality of Southeast Texas,” Burger said in an interview.
Golden Pass LNG LLC will be 70 percent owned by an affiliate of Qatar Petroleum, with affiliates of ExxonMobil and ConocoPhillips each owning a share in the project.
CB&I will handle engineering, procurement and construction of the facility that will provide 2 billion cubic feet per day of natural gas to Southeast Texas and other markets.
The contract with CB&I brings the investment in the project up to $1 billion, and during the peak of the three-year construction period is expected to provide job opportunities for locally-based subcontractors and suppliers and more than a thousand local laborers.
The project is scheduled for completion in 2009.
“We are proud to be instrumental in helping to meet the growing natural gas demand in the U.S., and to help provide economic opportunities for the workers and businesses in Southeast Texas,” John Plugge, Golden Pass LNG LLC president, said in a press release.
“We appreciate the help and support of local community leaders, business and economic development representatives and the media, they have all been an important part of the process,” Burger said.
Verna Rutherford, president of the Greater Port Arthur Chamber of Commerce, has been an advocate of the project from the beginning.
“Today’s (Tuesday’s) news is the culmination of more than three years of coordinated efforts by a large group of partners who focused on a common goal to bring a new industry to Southeast Texas. This has been a journey that the Port Arthur Chamber has been privileged to take with Golden Pass LNG and ExxonMobil officials, bringing community partners together to take strategic steps that were necessary to reach this point,” Rutherford said. “Bringing companies of the caliber of Golden Pass LNG -- and their partners Qatar Petroleum and Conoco Philips, into a community is progress that will result in huge benefits to our community and its businesses, and it will have global impact.”
Golden Pass LNG terminal will be designed to accept LNG cargoes, temporarily store and then vaporize LNG. The terminal includes two ship unloading berths, five full-containment LNG storage tanks, each with a capacity of 155,000 cubic meters; a regasification and sendout system and related buildings.
The liquefied natural gas will be supplied from projects from Qatar’s offshsore North Field.
“The progression of the Golden Pass LNG terminal is a major achievement that is designed to provide the United States an important additional source of natural gas from Qatar,” Saad Sherida Al Kaabi, a Qatar Petroleum representative, said. “A project of this size and complexity, involving multi-billion-dollar investments ranging from the gas fields and liquefication facilities in Qatar to the LNG receiving terminal in Texas, is only possible through the excellent working relationship that exists between Qatar Petroleum, ExxonMobil and ConocoPhillips.”
Kathleen Jackson, public affairs representative for ExxonMobil in Beaumont, said several factors led to the selection of Sabine Pass for the project’s location.
“We already have deep water access and an existing pipeline system here. There is also ready market for the product and an experienced workforce,” Jackson said.
Burger said that CB&I will start working later this month, doing dredging and berth work, foundations for the tanks and site work. Construction on the tanks will begin next year.
“We are pleased with CB&I, they are excellent contractors and have a lot of experience,” Burger said.
In addition to around 1,000 jobs during the three-year construction phase, Golden Pass LNG will also provide 60 to 75 permanent jobs at all levels including operators, maintenance, managers and administrative personnel.
“In addition to the employment benefit to the Port Arthur area, the main benefit of the project is that it will be a source clean burning natural gas for Texas and the nation,” Burger said. “And it will keep the local petrochemical industry viable with a supply of fuel as well as provide a source of feedstock to many of the area chemical plants.”
Contact this reporter at mtennissen@panews.com or (409) 721-2426

Copyright © 1999-2006 cnhi, inc. Reprinted with permission.