McMoRan Exploration undeterred by Gov. Blanco veto threat.

Byline: CityBusiness Staff Report

McMoRan Exploration Co. today said it will continue to push for approval of its Deepwater Port license application for its Main Pass Energy Hub proposed offshore liquefied natural gas project. Louisiana Gov. Kathleen Babineaux Blanco said Louisiana will require the use of a "closed loop" regasification system, which uses natural gas rather than seawater to warm the LNG. As a result, McMoRan will try to obtain approval of its project using the more expensive closed loop technology while it continues to lobby for what it calls "the more efficient ORV technology." "The ORV technology is an established technology used in 80 percent of the world's LNG regasification facilities," McMoRan said in a press release signed by James Moffett and Richard Adkerson, co-chairmen. "It is essential that our industry continue to pursue the use of this technology to ensure conservation of scarce energy resources. Requiring the use of more costly Closed Loop systems, which would consume an incremental 3.5 bill cubic feet per annum for (McMoRan's project) alone, will only exacerbate the growing energy crisis in our country. "The environmental impacts of using ORV technology at our ... facility would be negligible and would avoid burning a large volume of natural gas, which our country and our region so desperately need. This is an important project for the state of Louisiana and our region and we look forward to continuing our work with the federal government and coastal states to support ORV as the best available technology." McMoRan applied for a license under the U.S. Deepwater Port Act in February 2004 from the U.S. Coast Guard and the ...