Article: Port Pelican terminal on hold; shelving could well be permanent.(Regional Market Roundup)

ChevronTexaco's Port Pelican liquefied natural gas receiving terminal in the Gulf of Mexico appears to be on hold, perhaps indefinitely, industry sources tell Natural Gas Week.

Costs for the project, to be located offshore Louisiana, have reportedly soared to more than $1 billion for the initial, 800 MMcf/d phase from the original budget of $700 million. The main causes seemed to be related to the design and fabrication of the LNG storage tanks.

A Chevron spokeswoman said the project has reached a "natural holding point," but that it would resume once supply agreements are in place. Meanwhile, the timing of the LNG production facilities that would have ...

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