13-03-09 Downward national and international market forces are taking their toll on local liquefied natural gas projects. Art Larson with Sempra Energy said the company's Port Arthur LNG project will begin once the supplier capacity contract is completed.
"We have to get that in place before proceeding. We'll build on the ship canal along with our proposed marine terminal. We've owned a 3,000 acre parcel since 1989," Larson said. Market conditions must improve before they move forward.
"The situation hasn't changed," Larson said.

The LNG facility will produce 1.5 bn cfpd to 3 bn cfpd send-out capacity when completed. The marine facility will be built in cooperation with Valero.
Sempra's Cameron LNG is located in Hackberry, Louisiana, and is 91 % completed. It is 42 miles away from the Port Arthur site. That project began in August 2005 and will be finished the first half of 2009.

Cheniere LNG in Cameron Parish, Louisiana, completed phase one in April 2008 and was planning to begin phase two, the Texas side of the project, the second quarter of this year, according to Diane Haggard, media relations specialist.
"We're not stopping the project, but we are waiting for market conditions to improve," Haggard said.

The phase one regasification facility produces 2.6 bn cf of natural gas per day. The phase two facility, with the fourth and fifth storage tanks completed, will produce 4 bn cfpd regasification. The total cost of the project runs between $ 1 bn to $ 2 bn.
Beginning last year, three cargo ships were loaded with LNG and the fourth cargo ship is scheduled at the end of the first quarter.

Cheniere also built the Freeport, Texas LNG terminal in June 2008 on Quintana Island. Cheniere sold the majority of its interest to other companies, but continues to own a 30 % non-operating limited partner interest. The first tanker load of liquefied natural gas arrived April 15, 2008, at the new terminal in Freeport. The commercial start-up date was June 1, 2008.
Kathleen Jackson, a spokeswoman with Golden Pass LNG near Sabine Pass, said they are assessing damage from Hurricane Ike. Once that is completed, they may move forward with the project and gain a better idea of the timeline.