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Permits Issued for First-Ever Offshore LNG Facility

Release Date: 5/20/2004
Contact Information: For more information contact the Office of External Affairs at (214) 665-2200.

      The U.S. Environmental Protection Agency (EPA) has issued air and water permits for Port Pelican, the first offshore deep water liquefied natural gas (LNG) receiving, storage and regasification facility built in the United States, to be operated 37 nautical miles offshore of Louisiana.  EPA's permits set limits for air emissions and water discharges at the facility.  

      "The Port Pelican terminal will help address the nation's demand for clean sources of energy," EPA Regional Administrator Richard E. Greene said. "Working with the other federal and state regulatory agencies involved, we have crafted permits that ensure this facility will operate with little impact on the environment."

      LNG is natural gas that has been chilled to -260 degrees Fahrenheit.  LNG received at Port Pelican will be chilled at its point of origin overseas.  The project will allow offshore conversion of LNG from seagoing vessels into its gaseous state, so that it can enter the existing interstate natural gas pipeline network in southern Louisiana.  Seawater from the Gulf of Mexico will be used to warm and vaporize the LNG into its gaseous state prior to distribution.

      The facility will be owned and operated by Port Pelican LLC, an affiliate of ChevronTexaco Corporation.  At peak operation, it can deliver up to two billion standard cubic feet per day of natural gas - enough each day to meet an entire season's heating needs of 25,000 midwestern households.

      Issuance of the air and water permits is a condition of the Deepwater Port Act license issued by the Coast Guard/Maritime Administration on Jan. 20, 2004.