Wednesday, December 12, 2007

AAEA Supports Proposed ExxonMobil LNG Project

Exxon Mobil is proposing to build a $1 billion floating liquefied natural gas plant 20 miles off the coast of New Jersey.The project would begin operating in 2015 and would provide 1.2 billion cubic feet of natural gas per day enough for 5 million homes. The facility will be known as Blue Ocean Energy. Hopefully ExxonMobil will not make the same mistakes other projects have made in seeking state and local approval.

AAEA has either supported or sought to negotiate partial minority ownership (See LNG) at such projects on the East and West coasts with little success. We have suggested partial minority ownership for these projects but the developers have not been receptive. Maybe this is part of the reason the projects are failing. Moreover, these proposed LNG facilities or their pipelines have a funny way of finding minority communities. We believe safe, environmentally friendly and mutually beneficial economic partnerships can be established between these types of projects, the local communities and minority entrepreneurs. So far, the big boys just do not seem to get it. Or get it and would rather not get approval for the projects than include minorities.

The BHP Billiton project (Cabrillo Deepwater Port) near Malibu was rejected by the State of California, the AES proposal for Baltimore, Maryland is in limbo and the Broadwater Project proposal for the Long Island Sound does not appear to be moving forward. The Mitsubishi proposal in Long Beach failed due to its proxity to a minority community and a highly developed area. AAEA took no position on the Long Beach and Baltimore projects because of local community opposition. (AAEA Malibu Press Conference, More, Video of Malibu Press Conference)

No comments: