ChevronTexaco to Evaluate Refinery Expansion and Liquefied Natural Gas Import Terminal in Pascagoula
Proposals would increase gasoline production and natural gas supply in U.S.
PASCAGOULA, Miss., Nov. 17, 2004 -- Joined by Mississippi Gov. Haley Barbour at the Pascagoula Refinery, ChevronTexaco today announced plans to submit federal and state permit applications for two major projects under consideration at its Pascagoula Refinery. The first project would increase the refinery's gasoline production, while the second project under evaluation would consider siting a regasification terminal to import liquefied natural gas, or LNG, on refinery property. Both projects are subject to economic evaluation and management approval by ChevronTexaco.
"The location of the refinery and the availability of largely unused land near the refinery complex, also provide us with an opportunity to bring much-needed natural gas into North America. We also plan to take a hard look at increasing our production of low-sulfur fuels," said Roland Kell, refinery general manager. "We have the expertise, existing infrastructure and resources necessary to plan, build and safely operate projects of this magnitude."
"ChevronTexaco has a history of continued investment in Mississippi and is a recognized leader in the production of cleaner diesel and gasoline fuels," said Gov. Barbour. "These projects address a growing demand for energy in the U.S. and would position Mississippi as a leader in the supply of clean and reliable energy to the region."
Increased Gasoline Production
The company is evaluating modifications to increase the capacity of its Fluid Catalytic Cracking Unit (FCCU) by about 25 percent, from a current capacity of 63,000 barrels per day. The Pascagoula Refinery currently produces more than 5.5 million gallons of gasoline each day, as well as diesel, jet fuel and liquefied petroleum gas (propane or LPG).
Importing Natural Gas
A second project to site an LNG import terminal on refinery property is being evaluated by ChevronTexaco Global Gas and the refinery. "This announcement is consistent with our strategy to advance multiple terminal opportunities to import natural gas into the North American market," said Audie Setters, vice president for ChevronTexaco Global Gas.
"We currently are pursuing a number of options for receiving LNG for distribution into the U.S. Gulf Coast including securing capacity at the Sabine Pass LNG receiving terminal, our permitted Port Pelican offshore project and now at a facility to be located at our refinery in Pascagoula.
"As demand for energy continues to grow, ChevronTexaco is committed to working in collaboration with communities, governments and industry so we can all benefit from importing plentiful, clean and reliable supplies of natural gas," said Setters.
"The natural gas facility would integrate with the refinery in a way that is mutually beneficial to both operations," Kell added. "We see many inherent synergies with co-locating a refinery and a natural gas import terminal, including marine operations and utility use. We will design both projects giving particular attention to protecting people, property and the environment."
ChevronTexaco has submitted its environmental permit application for the FCCU project to the Mississippi Department of Environmental Quality. With the necessary approvals, construction of this project could begin by 2006. The company plans to submit permit applications to various agencies, including adhering to the Federal Energy Regulatory Commission pre-filing protocol, for its proposed natural gas project. Meetings to discuss both projects already have begun with federal and state regulators, U.S. Coast Guard and marine officials, and community groups.
Currently celebrating its 125th anniversary, ChevronTexaco is one of the world's leading energy companies. With more than 47,000 employees, ChevronTexaco conducts business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and marketing and distributing fuels and other energy products. ChevronTexaco is one of the world's largest producers and marketers of natural gas, producing approximately 4 billion cubic feet of natural gas a day. ChevronTexaco is based in San Ramon, Calif. More information on ChevronTexaco is available at chevrontexaco.com
CAUTIONARY STATEMENT RELEVANT TO FORWARD-LOOKING INFORMATION FOR THE PURPOSE OF "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.
This news release contains forward-looking statements about ChevronTexaco's plans for siting a regasification terminal and increasing low-sulfur fuels production at the Pascagoula Refinery in Mississippi. The statements are based on 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 are the success in acquiring the necessary regulatory approvals and permits; timing of the construction and commencement of the operation of the planned facilities; future demand for and supply of low-sulfur fuels; actual future demand for natural gas in North America and sources of natural gas supply to satisfy the demand; and local and general economic 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, ChevronTexaco undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Updated: November 2004