$1B LNG hub closer to fruition
10/02/2006

McMoRan Exploration Co.’s nearly $1-billion plan to regasify natural gas at a new shallow-water hub in the Gulf of Mexico has “no significant impact” on the environment, the U.S. Coast Guard announced last Monday.
The ruling brings McMoRan closer to licensing its Main Pass Energy Hub project, which is expected to regasify 1 billion cubic feet of liquefied natural gas per day.
Approval is expected by Jan. 3, 2007. If approved, the hub located roughly 18 miles offshore in 210 feet of water would produce 1,000 new jobs. The three-year construction time is expected to create hundreds of construction jobs.
McMoRan is betting nearly $450 million in construction and startup costs, plus another $450 million for pipeline infrastructure. Collier said regasifying natural gas is crucial component of the industry.
When cooled, natural gas shrinks to 1/600th its normal rate for easier and more economical transfer. Before it can be distributed, however, it must be turned back into gas, or regasified.