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Pelican Island LNG, Galveston, Texas

STATUS:  Killed

TYPE: Natural Gas

OPPOSITION:   Local residents

PROSPECT:  Dead

BACKGROUND:  In 2004, BP announced plans to build a $650 million liquefied natural gas (LNG) terminal on Pelican Island, near Galveston, Texas.  The project was expected to send out 1.6 billion cubic feet of natural gas per day and was expected to go into operation sometime between 2016 and 2021.

However, the project met stiff opposition from local citizens and environmentalists.  Opponents argued that the facility would be located where Texas A&M University studies marine biology, would threaten marine and estuary habitats and beaches, and would harm Galveston’s tourist industry.  Other residents opposed the project due to terrorism risks or general safety fears. 

In 2004 and 2005, island residents filed lawsuits against the project, alleging public entities violated open meetings laws when they negotiated in private with BP for a lease option agreement.  The litigation placed the project on hold and prevented BP from filing a permit application with the Federal Energy Regulatory Commission.

On August 22, 2006, BP announced that it was stopping the Pelican Island LNG project indefinitely.

SOURCES:  Houston Chronicle (http://www.chron.com/disp/story.mpl/front/4133963.html);
Galveston Daily News (http://galvestondailynews.com/story.lasso?tool=print&ewcd=09e3805cece9dfb1);
Houston Business Journal (http://www.bizjournals.com/houston/stories/2005/01/17/newscolumn1.html?page=1);
Energy Information Administration (http://www.eia.doe.gov/oiaf/aeo/conf/pdf/martin.pdf).   

Last Updated:  December 1, 2010