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FERC gives initial ok to first US LNG plant in 25 yrs |
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| USA: December 19, 2002 | ||
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WASHINGTON - The Federal Energy Regulatory Commission gave preliminary approval on Wednesday to Dynegy Inc.'s (DYN.N) plan to build a liquefied natural gas (LNG) terminal in Louisiana, which would be the first new LNG terminal in the United States in almost 25 years.
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The LNG terminal planned for Hackberry, Louisiana would be able to receive and process 1.5 billion cubic feet of natural gas per day from oceangoing tankers, and would transport vaporized LNG to the U.S. natural gas pipeline grid. Natural gas is widely used to fuel electricity plants. FERC must still review the environmental impact of the terminal before deciding whether to give final approval for the project. Dynegy wants the terminal operational by the fourth quarter of 2006. Concerns have been raised that LNG terminals could be more susceptible to sabotage and terror groups may target the facilities. Unloading a typical LNG tanker takes about 12 hours. LNG is kept at ultra-cold temperatures and compressed for transport aboard special tankers. It begins as natural gas in a vapor form. The manufacturing process cools the gas to minus-259 degrees Fahrenheit, changing the gas into a liquid and shrinking it to less than 1/600th of its original size.
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REUTERS NEWS SERVICE
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