The Port Pelican project would consist of an LNG ship receiving terminal, LNG storage and regasification facilities, and pipeline interconnection to existing infrastructure to deliver natural gas into the United States interstate gas pipeline network, according to the company.

ChevronTexaco has submitted the application to the Department of Transportation and the United States Coast Guard for the first phase of the facility to be operational by 2006.

"We are excited about the prospects for growth of the natural gas business and this LNG receiving and regasification terminal is integral to the company's larger natural gas strategy," said a company spokesperson.

Phase one of Port Pelican consists of an offshore facility, initially designed to process approximately 800 million standard cubic feet of gas per day (MMSCFD).

The facility would connect to ChevronTexaco's extensive offshore infrastructure to deliver natural gas to the United States Gulf Coast. Using existing gas supply and gathering systems in the Gulf of Mexico and Southern Louisiana, gas would then be delivered to shippers using the national pipeline grid.

Phase two would expand the terminal to accommodate a total of 1600 MMSCFD. A significant volume of natural gas would be provided for power generation, industrial and residential markets in the U.S., as a result of Port Pelican.

ChevronTexaco said the design codes and standards applicable to Port Pelican construction and operation will meet or exceed the accepted industry practice for offshore facilities, concrete construction, and LNG regasification processing, including U.S. and European standards.

ChevronTexaco's application was filed as a result of completing a sixteen month technical and commercial evaluation of a LNG receiving and regasification terminal in the GOM.