Exxon Mobil Corporation (NYSE:XOM) today announced plans to seek
regulatory approval for BlueOcean Energy, a floating liquefied natural
gas (LNG) receiving terminal that will create a gateway to global
supplies of clean-burning natural gas to help meet the growing energy
needs of New Jersey and New York.
The project will have the capacity to supply about 1.2 billion
cubic feet of clean-burning natural gas per day, enough to meet the
needs of more than five million residential consumers.
Anchored approximately 20 miles off the coast of New Jersey, the
more than $1 billion terminal will be far from shore and away from
shipping lanes, ports and recreational areas.
"We believe that BlueOcean Energy is a unique and innovative
solution to meeting the region´s energy challenges," said Ron P.
Billings, vice president, Global LNG, ExxonMobil Gas & Power Marketing
Company. "BlueOcean Energy will provide significant economic benefits
to New Jersey and New York and will help the region achieve its
environmental objectives."
The project will generate sizeable direct and indirect economic
benefits through project spending, new jobs, taxes and additional
natural gas. Access to global supplies of natural gas can improve
reliability, help reduce swings in natural gas prices and fuel future
growth. The Rutgers University Bloustein School of Planning and Public
Policy studied the economic effects of these benefits to the State of
New Jersey. Rutgers´ detailed report, to be issued shortly, concludes
that "the proposed LNG terminal could have significant positive
benefits for the New Jersey economy."
The project will help the region in obtaining secure, safe and
competitively priced energy, economic growth and development and
environmental protection -- in alignment with goals of the New Jersey
Energy Master Plan. New supplies of clean-burning natural gas can help
reduce air emissions and improve air quality, including a reduction in
the need for new, coal-fired power generation. Also, natural gas has a
growing role to play in helping New Jersey and New York meet clean
energy objectives and it is an ideal complement to renewables and
efficiency initiatives.
Safety and security will be paramount. BlueOcean Energy
commissioned former New Jersey Attorney General John Farmer, a noted
security expert and senior counsel to the 911 Commission, to conduct a
safety and security assessment of the facility.
"BlueOcean Energy is developing a sound plan for a safe and secure
facility," Farmer said.
The BlueOcean Energy floating terminal is designed to receive LNG
supplies from double-hulled LNG ships about twice a week, and store
the LNG in insulated tanks inside the terminal´s double hull. The
stored LNG will then be warmed to turn it back into natural gas for
delivery to New Jersey and New York markets through a new subsea
pipeline that will connect to new and existing onshore pipelines.
BlueOcean Energy is at the start of a lengthy and rigorous
permitting process involving state and federal agencies, as well as
the general public.
"Public consultation is a cornerstone of the permitting process,
and we are committed to discussing the project with communities and
other stakeholders," Billings said. "We look forward to working
closely with state and federal officials, as well as with the U.S.
Maritime Administration and the U.S. Coast Guard, the agencies
responsible for the review of the terminal plans under the Deepwater
Port Act."
In addition to BlueOcean Energy, ExxonMobil is involved in three
other terminal projects. Receiving terminals are under construction
near Sabine Pass, Texas; in Wales in the United Kingdom; and offshore
Italy in the Adriatic Sea. With several years required for permitting,
engineering and construction, BlueOcean Energy is expected to begin
service around the middle of the next decade.
More information is available at www.blueoceanenergy.com.
CAUTIONARY STATEMENT: Estimates, expectations, and business plans
in this release are forward-looking statements. Actual future results,
including project plans, schedules, costs, and capacities as well as
commercial arrangements could differ materially due to changes in
long-term oil and gas price levels or other market conditions
affecting the oil and gas industry; political or regulatory
developments; technical or operating factors; the outcome of
commercial negotiations; and other factors discussed under the heading
"Factors Affecting Future Results" included in Item 1A of ExxonMobil´s
most recent Form 10-K and posted on our website (www.exxonmobil.com).
NOTES TO EDITORS:
-- The BlueOcean Energy terminal will not be visible from the New
Jersey shoreline. It will be moored in about 150 feet of water
and be positioned outside of shipping lanes and away from port
traffic.
-- The terminal will be located about 30 miles off the coast of
Long Island.
-- The project will involve the construction of a subsea pipeline
to connect the ocean terminal to natural gas distribution
pipelines onshore.
-- No route has been selected, though our initial focus for a
shore crossing is in New Jersey´s Raritan Bay.
-- Onshore distribution may involve the building of a pipeline to
connect the incoming natural gas to existing sales and
transmission pipelines operated by local distribution
companies or interstate pipelines.
-- John Farmer, Jr. has been responsible for issues of security
and emergency management as chief counsel to the Governor of
New Jersey and as Attorney General of New Jersey (1999-2002).
He was the first chairperson of New Jersey´s Homeland Security
Task Force and was named senior counsel to the 9/11 Commission
in 2002. His areas of responsibility included investigating
the national response to the attacks, the emergency response
in New York and at the Pentagon, and the state of national
preparedness.
-- The Edward J. Bloustein School of Planning and Public Policy
at Rutgers, The State University of New Jersey, serves as one
of the nation´s key centers for the theory and practice of
planning and public policy scholarship and analysis.
