McMoRan Exploration Co. Provides Update on Main Pass Energy Hub(TM) Offshore LNG Project
July 24 2006 - 9:08AM
Business Wire
McMoRan Exploration Co. (NYSE: MMR) announced today that it has
received correspondence from the U.S. Coast Guard regarding the
remaining steps to be completed to obtain a Deepwater Port License
for its Main Pass Energy Hub(TM) (MPEHTM) project. This information
confirms McMoRan's expectation that the work completed to date will
enable an expeditious processing of our license application. As
previously reported, McMoRan submitted an amendment to its license
application with the U.S. Coast Guard (Coast Guard) and the
Maritime Administration (MARAD) on May 31, 2006 to obtain approval
of its Main Pass Energy Hub(TM) project using Closed Loop
technology. On July 21, 2006, the Coast Guard advised McMoRan that
the information provided in the amendment along with information
previously provided contain sufficient information to continue
processing of the license application to incorporate Closed Loop
technology. The Coast Guard also advised that they will prepare an
Environmental Assessment (EA) to evaluate the application
amendment. The EA will focus on the changes associated with the
vaporization technology which was fully evaluated as a reasonable
alternative in the Final Environmental Impact Statement published
in March 2006. Following publication of the EA, the Coast Guard
will conduct final public hearings in the adjacent coastal states,
followed by a 45-day period to allow public comment and response by
the Governors in the adjacent coastal states (Louisiana,
Mississippi and Alabama). After the 45-day comment period, MARAD
has up to 45 days to issue a Record of Decision. A copy of the
Coast Guard letter outlining the process is being filed with this
press release on Form 8-K with the Securities and Exchange
Commission. McMoRan expects the EA would be published in late
September 2006 with a record of decision by the end of 2006. The
MPEH(TM) terminal would be capable of regasifying LNG at a rate of
1 billion cubic feet of natural gas (Bcf) per day. The use of
existing facilities provides significant cost advantages, and the
proposed project benefits from its offshore location near
established shipping lanes. McMoRan is continuing discussions with
potential LNG suppliers as well as gas marketers and consumers in
the United States to develop commercial arrangements for the
facilities. McMoRan is also considering investments to develop
substantial cavern storage for a pipeline header system that would
allow deliveries into U.S. gas markets. Current plans for the
MPEH(TM) include 28 Bcf of initial cavern storage capacity and
aggregate peak deliverability from the proposed terminal, including
deliveries from storage of up to 2.5 Bcf per day. As previously
announced, McMoRan received approval from the Federal Energy
Regulatory Commission to bring gas onshore using its proposed
36-inch pipeline into Coden, Alabama. McMoRan Exploration Co. is an
independent public company engaged in the exploration, development
and production of oil and natural gas offshore in the Gulf of
Mexico and onshore in the Gulf Coast area. McMoRan is also pursuing
plans for the development of the MPEH(TM) which will be used for
the receipt and processing of liquefied natural gas and the storage
and distribution of natural gas. Additional information about
McMoRan and the MPEH(TM) project is available on its internet
website "www.mcmoran.com" and at "www.mpeh.com". CAUTIONARY
STATEMENT: This press release contains certain forward-looking
statements regarding the potential Main Pass Energy Hub(TM)
Project, the expected near-term funding of the related permitting
process and the estimated capital costs for developing the project.
Accuracy of the projections depends on assumptions about events
that change over time and is thus susceptible to periodic change
based on actual experience and new developments. McMoRan cautions
readers that it assumes no obligation to update or publicly release
any revisions to the projections in this press release and, except
to the extent required by applicable law, does not intend to update
or otherwise revise the projections more frequently than quarterly.
Important factors that might cause future results to differ from
these the ability to obtain regulatory approvals and significant
project financing for the potential Main Pass Energy Hub(TM)
project. Such factors and others are more fully described in more
detail in McMoRan's 2005 Annual Report on Form 10-K on file with
the Securities and Exchange Commission.
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