Chevron Files FERC Application for Casotte Landing LNG Project
Governor of Mississippi Welcomes Chevron's Plans to Bring Additional Investment to the Region
SAN RAMON, Calif., Oct. 6, 2005 -- Chevron Corporation (NYSE: CVX) today announced that its Bayou Casotte Energy LLC subsidiary has filed an application with the Federal Energy Regulatory Commission (FERC) to own, construct and operate a natural gas import terminal (Casotte Landing) in Jackson County, Miss. When complete, the LNG terminal will increase the delivery of natural gas supplies to the United States.
The proposed Casotte Landing project, to be located adjacent to the Chevron-owned Pascagoula Refinery, will process imported liquefied natural gas (LNG) for distribution to industrial, commercial and residential customers in Mississippi and the Southeast region, including the growing Florida market. The terminal, with an initial processing capacity of 1.3 billion cubic feet of natural gas per day, will be designed and operated to rigorous safety standards.
John Gass, Chevron Global Gas president, said, "This project can help meet the projected increase in demand for energy in the United States. Recent events have underscored the critical need for reliable and diverse supplies of natural gas and the important role increased LNG imports can play in the energy future of this country."
Gass added, "As Chevron has demonstrated through its participation in the FERC pre-filing process, the company is committed to working with the community and government as we move forward with the project. We place the highest priority on the health and safety of our work force and protection of our assets, the environment and the surrounding community."
Mississippi Gov. Haley Barbour said, "I welcome and support Chevron's plans to invest in vital natural gas infrastructure that will help meet the future energy needs of Mississippi and the Southeast. This good news will be very important in helping the Mississippi Gulf Coast recover from the destruction of Hurricane Katrina.
"I applaud Chevron for demonstrating its commitment to Mississippi," said Barbour. "Adding LNG to the energy mix strengthens Mississippi's position as a key player in providing critical energy infrastructure and resources for the United States."
Roland Kell, Pascagoula Refinery general manager, said, "Chevron's decision to move ahead with the regulatory process demonstrates our continued commitment to Jackson County. Chevron has a long and proud history in Mississippi where it has safely owned and operated the Pascagoula Refinery for more than 40 years. We look forward to building on this legacy."
Chevron Corporation is one of the world's leading energy companies. With more than 53,000 employees, Chevron subsidiaries conduct business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing and distributing fuels and other energy products. Chevron is based in San Ramon, Calif. More information on Chevron is available at www.chevron.com. More information on the Casotte Landing LNG project is available at: http://naturalgasprojects.chevron.com/casottelanding/
Notes to Editors:
Chilled to minus 260 degrees Fahrenheit, natural gas shrinks to one six-hundredth of its volume and becomes a liquid transportable in special tankers by which it is delivered to import terminals and regasified. Natural gas is used in industrial facilities and power plants or fed into pipelines for use by businesses and in homes. LNG from Australia, Indonesia and other producing countries has been used in Japan and other countries for many years.
The United States currently has five import terminals, and experts say that new natural gas infrastructure is required to handle the much larger LNG imports needed to meet future demand in North America.
CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.
Some of the items discussed in this press release are forward-looking statements about Chevron Corporation's plans to own, construct and operate a natural gas import terminal in Jackson County, Mississippi and the effects on Chevron's global natural gas business. The statements are based upon management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially include changes in supply, demand and prices for crude oil and natural gas, the company's ability to obtain necessary regulatory approvals, potential delays in the development, construction and start-up of planned oil and gas development projects; technological changes; potential disruption or interruption of the company's development and operating activities due to war, accidents, political events, civil unrest or severe weather; and general domestic and international economic and political conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Updated: October 2005