From: Karen Nelson, The Sun Herald, Biloxi, Miss.
Published January 27, 2005 12:00 AM

ChevronTexaco Officials Outline 2 Projects that May Affect Coastal Environment

Jan. 27—OCEAN SPRINGS — ChevronTexaco officials outlined to Sierra Club members Wednesday night two projects at or near the Pascagoula Refinery that would effect the Coastal environment — a terminal to warm and disburse liquified natural gas and a refinery expansion.

The question-and-answer period was brief, but most concerns centered on safety and emissions.

Paula Vassey of Gautier asked spokesman Richard Lammons if ChevronTexaco had any experience running a LNG terminal for converting the liquid gas.

Lammons said only through joint ventures.

Though this would be a new area for the energy giant, Lammons stressed that ChevronTexaco has the Pascagoula Refinery and its technology and shipping experience nearby as a plus to operating an LNG terminal.

He also said the location, south of the Pascagoula Refinery, is prime because of existing natural gas lines running through the area and up the East Coast, as well as to other places in the U.S.

Lammons, a global gas venture manager, said the project would have to be profitable for the company. That's why they want to locate the terminal on land rather than at an offshore terminal — it would cost less to operate on land, he said.

He said ChevronTexaco is looking at pre-filing for a permit from the Federal Energy Regulatory Commission soon.

He responded to one man's concern about possible explosions in such a potentially volatile process, saying safety technology has improved a great deal over the last 60 years.

Steve Renfroe, spokesman for ChevronTexaco in Mississippi, explained the refinery expansion, which Sierra Club member Becky Gillette said was more likely to occur than the LNG terminal.

He said it would increase capacity at one unit of the refinery by 25 percent. It is a unit that handles the production of gasoline from some of the components of crude oil.

One part of the unit will be replaced and other key parts will be refurbished or upgraded, he said. The result, according to the refinery's manager of safety, environment and health, will be a reduction by 81 tons a year in the release of carbon monoxide into the air over Pascagoula.

There would be a reduction by 1,602 tons a year of sulfur dioxide, but an increase of 25 tons a year of nitrous oxide and 10 tons a year of particulates.

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© 2005, The Sun Herald, Biloxi, Miss. Distributed by Knight Ridder/Tribune Business News.

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