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    News

    Mitsubishi Subsidiary SES to File With Feds & Port To Build LB LNG Facility; Sierra Club Harbor Vision Task Force To Hold LB Public Meetings on Plan


    (January 13, 2004) -- Sound Energy Solutions (SES), a wholly-owned subsidiary of Mitsubishi Corp., has indicated it plans to file an application on or about Jan. 23 with the Federal Energy Regulatory Commission, with simultaneous paperwork to be filed with the Port of LB, to build CA's first liquefied natural gas (LNG) terminal on land in the Port of Long Beach.

    Tom Giles of SES told LBReport.com that January 23 is the target date for the filings. With that caveat in mind, to view the Reuters story, click Reuters: Mitsubishi Subsidiary to File with Feds to build LB LNG Facility.

    Meanwhile, the Sierra Club's Harbor Vision Task Force has scheduled two public meetings on the plan to take place in LB later this week...at which speakers are expected to question the wisdom of locating an LNG operation on land near LB populated areas.

    "It boils down to location, location, location," opined veteran environmentalist Don May, founder of CA Earth Corps, adding he believes "liquefied natural gas doesn't belong anywhere near our neighborhoods."

    The proposed LNG terminal would be located on approximately 27 acres of land in the Port of LB at the southern tip of Pier Echo, Pier 126. By LBReport.com's unofficial rough calculation, the site is approximately two miles from LB City Hall.

    The SES filings have been in process for roughly six months, Mr. Giles told LBReport.com, and said they are unrelated to the two LB public meetings being scheduled by the Sierra Club's Harbor Vision Task Force.

    The Sound Energy Solutions web site indicates its planned terminal facility will be capable of unloading LNG ships ranging in capacity from 90,000 cubic meters (m3) to 145,000 m3, and provide a sendout capacity of 700 million standard cubic feet per day (MMscfd) of natural gas, with a peak capacity of 1,000 MMscfd. It says LNG would be shipped to CA on specially designed ocean-going LNG carriers (approximately 70 vessels per year or 1 ship every 5 days) from gas-producing regions abroad, primarily the Pacific Rim. The company says its LNG facility is planned to consist of an offloading dock, two LNG storage tanks, regasification facilities, equipment for recovery of NGLs and an LNG vehicle fuel truck-loading facility.

    The Sierra Club's Harbor Vision Task Force public meetings are scheduled for Wednesday January 14 (5-7 p.m.) at Cohiba (upstairs from Mum's), 110 E. Broadway...and Friday January 16 (7-9 p.m.) at the Unitarian Universalist Church of LB, 5450 Atherton St. in ELB.

    Mr. Giles noted for LBReport.com that LNG is a cleaner burning fuel and the planned facility will also service local vehicles. Mr. Giles indicated that from his downtown office it looked like the air in his vicinity could use some cleaning.

    The SES web site concerning its planned LB LNG facility is at SES home page. It includes a FAQ page at: SES FAQ page.

    As previously reported by LBReporty.com, in May 2003 SES signed a Memorandum of Understanding (MOU) with the Port of LB (authorized by voted action of LB's non-elected Board of Harbor Commissioners) giving SES the exclusive right to pursue development of a liquefied natural gas (LNG) terminal at the Pier Echo, Pier 126 of POLB. The SES release indicates MOU between the firm and the Port of LB "includes general economic terms for a 40-year land lease."

    As also reported by LBReport.com, the LB's elected City Council separately voted (motion made after 1.8 seconds, 9-0 vote in 1 minute, 27 seconds) to authorize LB's publicly owned, City Hall-operated Energy Dept. to enter into an MOU with SES for the purpose of discussions about a future long-term gas contract and the feasibility and development, financing, construction, operation and maintenance of gas pipelines to the proposed LNG facility, and to assist SES in marketing the potential of an LNG terminal in Southern California to potential customers and to regulatory agencies.


    Related coverage:

    May 2003: Further Info Re Proposed LNG Facility @ Port of LB

    May 2003: News/Perspective: Sounds of Silence: Read Transcript of Council Action On Proposed Liquefied Natural Gas Terminal (MOU for discussions of future long-term gas contract and feasibility of gas pipelines to proposed LNG facility & to facilitate marketing potential of LNG facility @ LB)

    May 2003: Proposed Liquefied Natural Gas Terminal Advances at Port...And City Mgt. Seeks First Council Vote

    March 2003: LB Port Begins Talks To Develop Liquefied Natural Gas (LNG) Terminal on Terminal Island


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