ExxonMobil Proposes $600 Million Texas LNG Project.Energy Editors/Business Editors IRVING, Texas--(BUSINESS WIRE)--Nov. 20, 2003 An Exxon Mobil Corporation Exxon Mobil Corporation U.S.-based oil and gas company formed in 1999 through the merger of Exxon Corp. and Mobil Corp. It has investments and operations in petroleum and natural gas, coal, nuclear fuels, chemicals, and ores. (NYSE NYSE See: New York Stock Exchange :XOM XOM Exxon Mobil Corporation (stock symbol) XOM X/Open Object Management XOM OSI-Abstract-Data Manipulation API XOM Xml Object Model XOM X/Open Osi Abstract Data Manipulation ) affiliate, Golden Pass LNG Terminal LP, has announced plans to develop a $600 million Liquefied Natural Gas liquefied natural gas: see under natural gas. Liquefied natural gas (LNG) A product of natural gas which consists primarily of methane. Its properties are those of liquid methane, slightly modified by minor constituents. (LNG) receiving terminal near Sabine Pass, Texas Sabine Pass, Texas is a city located in Jefferson County, Texas, 15 miles south of Port Arthur, Texas, on the west bank of Sabine Pass, near the Louisiana border. Originally known as Sabine City, the original date of settlement of Sabine Pass is unknown, but is estimated at . The proposed project, to be located in Jefferson County, Texas Jefferson County is a county located in the state of Texas, United States. As of 2000, the population was 252,051. Its county seat is Beaumont6, and it is named for the former U.S. president, Thomas Jefferson. , about 10 miles south of Port Arthur, was announced today at an event attended by Texas Governor Rick Perry, Consul General of the State of Qatar Mohamed Al-Hayki, local business and government officials and representatives of ExxonMobil. The terminal, which will process imported LNG for distribution throughout Texas and the United States, should take about three years to build and involve employment for some 600 workers during peak construction. The facility is expected to be operational in the 2008/09 timeframe, with an initial processing capacity of 1 billion cubic feet per day (bcfd) of LNG. The plant will be designed for an expansion to 2 bcfd throughput in the future. ExxonMobil initiated the permitting process this week with the Federal Energy Regulatory Commission The Federal Energy Regulatory Commission (FERC) is the United States federal agency with jurisdiction over electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates. , an undertaking involving numerous engineering design, safety, environmental and other studies that typically lasts about 18 months. "Secure supplies of natural gas are critical to the continued strong economic growth of Texas and the United States," said Governor Rick Perry speaking at today's event. "This project will provide jobs and other economic benefits to Sabine Pass and Southeast Texas, and bring long-term supplies of natural gas for our industries, power plants and homes. We support ExxonMobil's efforts to bring this important project to Texas." Stuart McGill, president of ExxonMobil Production Company, said, "We are taking another important step in our plans to develop LNG receiving terminals on the U.S. Gulf Coast. There is strong growth in natural gas demand projected in the future and the import of LNG will be an important component of the supply mix. We appreciate the commitment of Governor Perry, Jefferson County Judge Carl Griffith, Port Arthur Mayor Ortiz and other state, local and civic leaders who are working with us to bring this LNG project to Sabine Pass. This project will help support economic development in Southeast Texas and the U.S." In October, Exxon Mobil Corporation and Qatar Petroleum announced a Heads of Agreement Heads of Agreement A non-binding document outlining the main issues relevant to a tentative partnership agreement. Notes: It is the draft used by lawyers when drawing up the contract. It serves as a guideline for both parties before any documents are legalized. to supply 15.6 million tons a year of LNG (2 bcfd) from Qatar to the United States for an expected period of 25 years. ExxonMobil holds purchase options for potential LNG import sites in Corpus Christi, Texas Corpus Christi is a coastal city and the county seat of Nueces CountyGR6 in the U.S. state of Texas. It is part of the region known as South Texas. , and Mobile Bay, Alabama. The company is also evaluating possible sites for an offshore terminal in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east . CAUTIONARY STATEMENT: Estimates, expectations, and business plans in this release are forward-looking statements. Actual future results, including project plans, capacities, costs, and schedules, as well as future energy demand, could differ materially due to changes in market conditions affecting the oil and gas industry, political developments, the outcome of commercial negotiations, technical or operating factors, and other factors discussed under the heading "Factors Affecting Future Results" included in Item 1 of ExxonMobil's most recent Form 10-K and posted on our website (www.exxonmobil.com). References to gas quantities include amounts that are not yet classified as proved reserves but that we believe will be produced in the future. |
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