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THE WALL STREET JOURNAL: US Officials OK Proposed LNG Terminal Off Louisiana Coast: "The Shell U.S. Gas and Power LLC Gulf Landing terminal would handle more than 1 billion cubic feet of gas a day, transferring it from supercooled tankers to pipelines running to Louisiana and Texas. Shell spokesman Johan Zaayman said the project will help the U.S. meet a critical energy need.": “Scientists with the National Oceanic and Atmospheric Administration's fisheries division said the intense temperature changes will kill millions of fish eggs and other organisms” (ShellNews.net) Posted 18 Feb 05

 

DOW JONES NEWSWIRES

 

NEW ORLEANS (AP)--Louisiana will likely be getting another liquefied-natural-gas terminal off its coast, despite environmental concerns raised by federal fisheries scientists.

 

The U.S. Maritime Administration Wednesday licensed a proposed LNG terminal in the Gulf of Mexico, about 38 miles south of Cameron Parish.

 

The Shell U.S. Gas and Power LLC Gulf Landing terminal would handle more than 1 billion cubic feet of gas a day, transferring it from supercooled tankers to pipelines running to Louisiana and Texas. Shell spokesman Johan Zaayman said the project will help the U.S. meet a critical energy need.

 

Opponents, however, remain concerned about the effect the process used to warm the negative 260-degree liquefied chemical into gaseous form will have on the environment.

 

A radiator-like structure will suck in millions of gallons of Gulf water daily to warm the liquid, then discharge the chilled water. Scientists with the National Oceanic and Atmospheric Administration's fisheries division said the intense temperature changes will kill millions of fish eggs and other organisms. They want companies to use a closed loop system, in which water is retained in the re-circulating radiator and continuously warmed.

 

Shell U.S. Gas and Power, a unit of the Royal Dutch/Shell group (RD, SC), argued that option would be too expensive and would require up to 2% of the natural gas being imported for heat. In addition, the U.S. Coast Guard concluded the damage would be minimal to redfish, the Gulf's most overfished species.

 

Wednesday's decision came on the same day that ChevronTexaco Corp. (CVX) said it was suspending work on its proposed Port Pelican LNG terminal. Company officials said the decision was made because they haven't determined a supplier of imported gas or whether the location - 40 miles off the central Louisiana coast - is the best place.

 

Work is still underway for El Paso Energy Bridge to be located 116 miles south of the Cameron Parish shoreline. It is expected to be completed this year.


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