By Marilyn Tennissen
 
The Port Arthur News
 
PORT ARTHUR— Although he has worked in the Europe, Asia and the California coast, John Plugge is still an Aggie at heart and happy to be back in Texas.
 
Plugge is the new president of Golden Pass LNG Terminal LLC, the liquefied natural gas facility under construction near Sabine Pass. The project is a joint venture of Qatar Petroleum and affiliates of ExxonMobil and ConocoPhillips.
 
“I’ve been in oil and gas with Exxon and ExxonMobil for 25 years,” Plugge said during an interview in Port Arthur, “I’ve done work in the Gulf, offshore California, in the North Sea in the United Kingdome and in Russia. I’m experienced in domestic and world markets, but I’m happy to be back home.”
 
Born and raised in Texas, Plugge graduated from Texas A&M University in 1981 with a degree in civil engineering.
 
He was named project manager for the LNG plans in October 2005, and president of the limited liability company in August.
 
The $1 billion construction project will include a berth for two LNG ships, five tanks to store the liquefied gas and a regassification facility.
 
“This is going to be a big project,” Plugge said. “We plan to have gas flowing by 2009. It will be a challenge because its such a large project, but technically it is not that challenging. It has been done successfully for more than 40 years.”
 
The supply chain to the Golden Pass terminal begins in the natural gas wells in the nation of Qatar. The small Middle Eastern kingdom, which is bordered by Saudi Arabia and the Persian Gulf, sits on the largest natural gas reserve in the world.
 
In Qatar, the natural gas is converted to its liquid form by cooling it to minus 260 degrees Fahrenheit. As a liquid, the gas occupies 600 times less space and is less volatile.
 
From there, large thermos-like ships keep the gas chilled for transport to the United States.
 
Plugge said at least 15 LNG ships for Golden Pass are being constructed by several companies, the largest of which is located in Korea.
 
The ships will come into the Sabine Pass channel and dock at two berths at the Golden Pass terminal.
 
“There is a tremendous amount of dredging that will be going on at the site for about the next year,” Plugge said.
 
Currently at the site crews are working on stabilizing the soil to allow for the heavy equipment that will be required to drive 3,000 piles that will hold the five LNG storage tanks.
 
There are about 200 workers already at the site, and during the peak of construction the project will need about 1,000 laborers.
 
“So far, about 60 percent of the workers on site are from the neighboring nine county region,” Plugge said. “The contractor, CB&I, is very familiar with the area and has a lot of local connections. We have held several workshops that have been attended by more than 450 local subcontractors and suppliers. We think it is a win/win to utilize the local workforce.”
 
After Hurricane Rita destroyed much of the area’s hotels and apartments, where to house any workers that may come from outside the local communities could be an issue.
 
“Some labor is going to need housing, but its really to early to tell if that is going to be a serious problem,” Plugge said. “But we are looking at it carefully and working with the Chamber of Commerce and other housing proposals in the community.”
 
When constructed, the terminal facility will have the capacity to process 2 billion cubic feet of natural gas per day, which Plugge said is about 20 percent of the consumption of Texas.
 
“It’s a significant new volume,” Plugge said.
 
The local petroleum refineries rely on natural gas as a fuel source and chemical plants use the gas as a feedstock. But the additional gas will also be distributed through the Golden Pass pipeline not only to local sources but into the existing pipeline system to markets in other parts of the nation.
 
“Studies show that the current U.S. supply is not going to keep up with demand. It is important to have a secure source of gas and Qatar is a strong ally of the United States and an important partner with American industry,” Plugge said. “Through the terminal and the pipeline, a huge volume of gas will supply the markets that need it.”