NEWS
Texan group endorses Shell Pelican project
Galveston , Texas , July 23 (LNG journal)
- The Galveston Economic Development Partnership has endorsed BP's plans to build a liquefied natural gas terminal on Pelican Island .
It has taken the GEDP more than a year to offer its endorsement of the terminal, which has generated controversy.
"The GEDP recognizes the importance of, and encourages, continued dialogue between the port, the city, BP and the citizens of Galveston ," it said in a statement.
BP wants to build an LNG plant on 185 acres on port-owned land on Pelican Island . BP plans to invest $650 million to build the terminal which would be sent via a pipeline to industrial customers along the Houston Ship Channel. BP has said it plans to spend $500m on the regasification terminal and $150 million for the pipeline.
BP released a study in June, which it commissioned from Robert Hodgin, an economics professor at the University of Houston . Hodgin concluded that at the peak of construction, the LNG terminal would create 2,000 jobs. Once completed, the terminal would pay around $3 million in annual taxes.
The Port of Galveston , which controls the land on which BP wants to build, would receive about $2 million in revenues from lease payments, the report said.
Earlier in July, testimony began in a hearing that could decide the fate of the terminal. A Pelican Island resident has filed a lawsuit asserting that the island port and the city of Galveston violated various state laws during real estate negotiations with BP. The hearing will resume in September.
P plans to file for federal permits from the Federal Energy Regulatory Commission
