Further Info Re Proposed LNG Facility @ Port of LB
(May 28, 2003) -- Sound Energy Solutions, the CA business entity which is a wholly owned subsidiary of Mitsubishi Corp., has issued a written release providing additional information about its proposed liquefied natural gas (LNG) facility in the Port of LB.
The proposed facility would have a throughput of 700 Million Cubic Feet per day of natural gas, the equivalent of 5 Million Metric Tons or 68.3 million barrels of LNG per year. The Terminal would have two LNG receiving tanks, each with an anticipated capacity of 160,000 cubic meters, an offloading berth and regasification unit. The facility will also provide an LNG fuel terminal for distribution of LNG for use in the conversion of diesel-powered vehicles to cleaner burning fuels. The imported natural gas would be stored for a brief time at the terminal and distributed mainly in Southern California. The estimated cost for the construction is USD $350 to 400 Million.
California’s recent energy crisis demonstrates the need for a stable gas supply and power generating capacity that will cover growing electricity demand. SES also acknowledges LNG as a major tool to reduce diesel emissions in Southern California. Mitsubishi Corporation and SES believe that this terminal will be a focal point for regional LNG imports and will provide a cost-competitive alternative source of natural gas. The fuel will also create cleaner air. The first west coast terminal in the U.S. is also expected to extend flexibility of the Pacific LNG market. The source of Gas has not been determined and some liquifaction plants including upcoming projects around Pacific Rim are considered to be gas sources.
SES recently signed a Memorandum of Understanding (MOU) with the Port of LB (authorized by voted action of LB's 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 previously reported by LBReport.com, the City Council separately authorized (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.
The SES release, which refers to the proposed facility as the "West Coast LNG Receiving Terminal Project," says the firm and the Port of LB "have begun the application process for the federal and California permits necessary for construction of the terminal." It adds that SES is also "in regular contact with Federal Energy Regulatory Commission (FERC) and other agencies in connection with the permitting process."
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 our unofficial, rough calculation, the site is approximately two miles from LB City Hall.