Houston, TX, May 17, 2005 --(PR.com
[NYSE:COP] today announced that it has entered into a Joint Development Agreement with Mitsubishi Corporation's wholly owned subsidiary, Sound Energy Solutions (SES), to formally join in the development of a proposed liquefied natural gas (LNG) import terminal in the Port of Long Beach, California.
The proposed terminal would have the capacity to import approximately 5 million tons of LNG per year. The terminal would be capable of supplying clean-burning vehicle-grade LNG to the local transportation market, including terminal tractors in the Ports of Long Beach and Los Angeles to assist in improving the port area air quality.
"Combining the skills, assets, and long histories of both Mitsubishi and ConocoPhillips in the LNG business will allow us to provide the City of Long Beach and the state of California with a state-of-the-art facility that will help clean the air and provide stability in the natural gas market," said Tom Giles, President, SES Terminal LLC.
“The SES terminal would help strengthen the company’s portfolio of natural gas projects around the world,” said ConocoPhillips’ Rick Hernandez, Executive Vice President, SES Terminal LLC. “ConocoPhillips looks forward to building on our long-standing relationship with Mitsubishi through this collaboration on the SES terminal. We will work together to broaden our relationships within the local community and those built by our Los Angeles Refinery.”
ConocoPhillips and SES will establish an equally-owned joint venture company, SES Terminal LLC. The partners expect a final investment decision to construct the terminal in the first half of 2006 after obtaining all necessary state and federal approvals and permits. The terminal is expected to be completed in 2009.
Sound Energy Solutions is a wholly owned subsidiary of Mitsubishi Corporation established in 2002 in California. Since that time, Sound Energy Solutions has been in the process of completing applications for necessary permits and performing technical and commercial preparation in order to develop the LNG import terminal. For more information about SES, go to www.soundenergysolutions.com.
This terminal is part of a larger effort by ConocoPhillips to meet growing demand for natural gas around the world. The company is developing or has proposed U.S. regasification facilities in Freeport, Texas, offshore Alabama and Louisiana. ConocoPhillips has an active liquefaction facility in Kenai, Alaska, as well as others at various stages of development around the world, including Australia, Nigeria, Qatar, Russia and Venezuela.
ConocoPhillips is an integrated oil company with interests around the world. For more information, go to www.conocophillips.com.
Linsi Crain (media)
Clayton Reasor (investors)