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Exxon Plans Ocean LNG Terminal

The project would be located off the coast of New Jersey.

Exxon Mobil

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says it wants to build a floating liquefied natural gas receiving terminal off the coast of New Jersey that would ease the supply of natural gas to that state and neighboring New York.

The Irving, Texas, oil and gas giant plans to seek regulatory approval for the project, called BlueOcean Energy, which will have the capacity to supply about 1.2 billion cubic feet of natural gas a day. That's enough to meet the needs of more than 5 million residential consumers, Exxon said in a press release.

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Exxon said the terminal will cost more than $1 billion and will be anchored about 20 miles off the coast of New Jersey, away from shipping lanes, ports and recreational areas. The terminal, set to be moored in about 150 feet of water,won't be visible from the shoreline.

"We believe that BlueOcean Energy is a unique and innovative solution to meeting the region's energy challenges," said Ron Billings, vice president, Global LNG, at Exxon. "BlueOcean Energy will provide significant economic benefits to New Jersey and New York and will help the region achieve its environmental objectives."

The floating terminal will be designed to receive LNG supplies from double-hulled ships about twice a week. The LNG will be stored in insulated tanks inside the terminal, then warmed to turn it back into natural gas for delivery to New Jersey and New York through a new subsea pipeline that will connect to new and existing onshore pipes.

In addition to BlueOcean Energy, Exxon Mobil is involved in three other terminal projects. Receiving terminals are under construction near Sabine Pass, Texas, in Wales and offshore Italy in the Adriatic Sea.

Because several years are needed for the permitting, engineering and construction process, the BlueOcean Energy project is scheduled to begin service around the middle of the next decade, Exxon said.