(March 5, 2003) -- The Port of LB has opened exploratory talks with a subsidiary of Japan-based Mitsubishi Corp. to develop a liquefied natural gas (LNG) terminal on Terminal Island, the first such facility on the west coast.

In a written release, which includes supportive quotes from LB Mayor Beverly O'Neill and Acting City Manager Gerald Miller, the Port indicates Sound Energy Solutions, a Mitsubishi subsidiary, proposes to develop the LB terminal so it can import LNG from overseas.

The release notes that the Port has an undeveloped 22-acre site at the southeast end of Terminal Island that could be developed and leased to Sound Energy.

The Port of LB release states in part:

"As well as supplying local residents, the proposed terminal would provide substantial environmental benefits to the port complex and the entire region by facilitating the widespread conversion of vehicles and vessels to clean burning LNG fuel. LNG-powered equipment emits far less pollutants than comparably fueled equipment."

LB Mayor Beverly O'Neill is quoted as saying, "This proposed project could be a major benefit to the Long Beach environment and the economy, while giving us the potential for lower natural gas costs for our residents and business."

Noting that LB currently imports gas from Texas and New Mexico, the release quotes Acting City Manager Gerald Miller as saying, "As the port of entry, Long Beach could be assured of a reliable long-term source of natural gas. This would give us the opportunity to stabilize our prices."

The release quotes Harbor Commission President John Hancock as saying, "The LNG terminal would provide the state with a cost-competitive alternative source of natural gas, while creating additional jobs and revenues at the port."

The Port says the LNG terminal "would facilitate the 're-powering' of diesel-powered heavy-duty vehicles such as shipping terminal tractors and other vehicles."

Further to follow.