Maritime Law Allows Shell to Build Gas Terminal

Press Release, Mar 03, 2005

The U.S. Maritime Administration (MARAD) has approved an application filed by Shell U.S. Gas & Power to build a liquefied natural gas (LNG) terminal offshore Cameron, Louisiana. The LNG Terminal will have the capacity to deliver one billion cubic feet per day of natural gas to mid-west, mid-Atlantic and southeast U.S. markets.

A comprehensive assessment of the Gulf Landing project, including the purpose and need, safety, security and environmental impacts, has been completed by the U.S. Coast Guard. Additionally, MARAD has included in its decision on the approval of this application strict, enforceable monitoring and mitigation conditions for the purpose of protecting the environment. These conditions include reducing the volume of seawater used and a monitoring plan reviewed by the National Academy of Sciences. The conditions also require that Shell report to MARAD on a quarterly basis.

Based on the results of environmental monitoring, additional mitigation may be required at the direction of MARAD in consultation with the National Oceanic and Atmospheric Administration. Everyone is in agreement that the benefits of this new facility include stabilizing current and future energy prices, enhancing the competitiveness of the U.S. economy, creating over 1,000 local construction jobs and hundreds of permanent jobs, reducing congestion, and enhancing the safety and mobility functions of ports throughout the Gulf of Mexico. MARAD and the U.S. Coast Guard are responsible for processing applications submitted by private industry parties to construct, own and operate deepwater ports. MARAD is authorized to issue Deepwater Port licenses.

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