May 20, 2008
$550 million plan for LNG facility offshore New Jersey
Excalibur Energy (USA) Inc., a 50/50 joint venture company between Canadian Superior Energy Inc. (TSX: SNG) (Amex: SNG) and Global LNG Inc., a New York based privately held company, have launched the Liberty Natural Gas Transmission Project. The $550 million project involves a deepwater pipeline system that will receives gas fifteen miles offshore New Jersey. Subject to regulatory approvals, it is expected to begin to deliver up to 2.4 billion cubic feet per day of natural gas by late 2011.
The project consists of a fully-submerged, offshore gas importation turret anchored to the seafloor 15 miles off the coast of New Jersey, fifty miles of 36 inch offshore pipeline, a directionally drilled underground shoreline approach near South Amboy, and eleven miles of onshore pipeline in an existing industrial corridor to Linden, New Jersey, where the pipeline interconnects with existing gas pipelines.
Gas transmission in the Linden, New Jersey, area totals more than 4 billion cubic feet per day.
The project, expected to cost $550 million, will have the capacity to provide up to 2.4 billion cubic feet per day of natural gas and be ready by late 2011, will not include any permanent floating vessels or artificial land masses or rotating structures or storage facilities.
Excalibur will submit the necessary government and regulatory applications in early 2009.
In 100 feet of water 15 miles offshore New Jersey, Liberty Natural Gas will receive its supply of imported gas through LNG ships that will temporarily connect to permanently anchored turrets. The LNG will be re-gasified to ambient temperatures onboard the ships and pumped through the turrets into the pipeline. There will be no visible structures from the shoreline, including the LNG ships that are temporarily connected.
The natural gas offloading is accomplished using a closed loop regasification system and marine life will not be subjected to any temperature variances associated with the process. Also, the seabed will only be disturbed during the installation of the pipeline. Environmental impact surveys and route selection studies to minimize this temporary impact are ongoing.
Speaking in Jersey City today from Excalibur's head office, Roger Whelan, President and Chief Executive Officer of Excalibur, said, "We are launching our Liberty Natural Gas Project to meet the growing energy needs of the Northeast U.S. by delivering clean, safe and efficient natural gas to New Jersey without compromising safety or the clean waters off the Jersey shore. We will not create any unsightly infrastructure visible from the shore."
Whelan further commented, "This project is essentially an offshore pipeline which will provide approximately $550 million of new investment and needed jobs in the New Jersey area to provide the area with clean, safe and efficient energy. There are about 190,000 miles of onshore and offshore interstate gas pipelines in the US; so, our approach is not groundbreaking in the use of natural gas."