ExxonMobil Proposes LNG Terminal
January 16 2004 - 2:00AM
UK Regulatory
Exxon Mobil Corporation
An Exxon Mobil Corporation (NYSE:XOM) affiliate, Vista del Sol LNG Terminal LP,
has announced plans to develop a $600 million Liquefied Natural Gas (LNG)
receiving terminal along the Gulf Coast of Texas.
The proposed project, to be located in San Patricio County about two miles west
of Ingleside, Texas, was announced today at an event attended by Texas Governor
Rick Perry, Consul General of the State of Qatar Mohamed Al-Hayki, local
business and government officials, and representatives of ExxonMobil.
The terminal, which will process imported LNG for distribution throughout Texas
and the United States, should take about three years to build and involve
employment for some 600 workers during peak construction. The facility is
expected to be operational in the 2008/09 timeframe, with a processing capacity
of 1 billion cubic feet per day (bcfd) of LNG.
Late last year, ExxonMobil initiated the permitting process for the Vista del
Sol project with the Federal Energy Regulatory Commission (FERC), an undertaking
that involves numerous engineering design, safety, environmental and other
studies that typically lasts about 18 months. Prior to the initiation of the
permitting process, the Port of Corpus Christi Board of Commissioners voted
unanimously to support the project.
In November, the company via an affiliate, Golden Pass LNG Terminal LP, entered
the FERC permitting process at another Texas site, Sabine Pass, located 10 miles
south of Port Arthur.
"Texas and the United States need secure supplies of natural gas to attract
industries, assure development and to continue the strong economic growth we're
experiencing in our state and throughout the nation," said Governor Rick Perry
speaking at today's event. "This project will bring jobs and other economic
benefits to San Patricio County and the greater Corpus Christi area, and will
provide long-term supplies of natural gas for our industries, power plants and
homes. We support ExxonMobil's efforts to bring another important LNG project to
Texas."
Philip Dingle, president of ExxonMobil Gas and Power Marketing Company, said,
"This is another important step in our plans to develop LNG receiving terminals
on the U.S. Gulf Coast. There is strong growth in natural gas demand projected
in the future, and the import of LNG will be an important component of the
supply mix. We appreciate the continued commitment of Governor Perry, Texas
Railroad Commission Chairman Victor Carrillo, State Senator Judith Zaffrini,
State Representative Gene Seaman, San Patricio County Judge Simpson, the Port of
Corpus Christi Board of Commissioners and other state, local and civic leaders
who are working with us to bring this LNG project to San Patricio County. This
project will help support economic development in South Texas and the U.S."
In October, Exxon Mobil Corporation and Qatar Petroleum announced a Heads of
Agreement to supply 15.6 million tons a year of LNG (2 bcfd) from Qatar to the
United States for an expected period of 25 years.
CAUTIONARY STATEMENT: Estimates, expectations, and business plans in this
release are forward-looking statements. Actual future results, including project
plans, capacities, costs, and schedules, could differ materially due to changes
in market conditions affecting the oil and gas industry, political developments,
the outcome of commercial negotiations, technical or operating factors, and
other factors discussed under the heading "Factors Affecting Future Results"
included in Item 1 of ExxonMobil's most recent Form 10-K and posted on our
website (www.exxonmobil.com). Gas underlying quantities of LNG referenced in
this release include amounts not yet classified as proved reserves but that we
believe will be produced in the future.
CONTACT: ExxonMobil
Bob Davis, 713-656-4376