Investment Entity: Gulf Coast LNG, LP
Geography: Texas
Sector: LNG Re-gasification
Investment Fund: Fund II
Initial Investment: September 2004
In the U.S., the decline in natural gas production together with a growing demand to satisfy increasing numbers of gas-fired power plants has resulted in a dramatically expanding gap between domestic supply and demand. As domestic natural gas fields continue to mature, the importation of natural gas from foreign sources of supply is expected to increase. The Department of Energy predicts that the importation of liquefied natural gas (LNG) will increase from 5% of total natural gas imports in 2002 to 39% by 2010.
In mid 2002, Haddington began to look for potential investments in U.S. based LNG re-gasification terminals. Over the past several years, Haddington has reviewed numerous LNG re-gasification projects, including projects on the west coast, the east coast and the Gulf Coast. Of all the projects reviewed, the Calhoun project stood out as having the best site with many superior characteristics, including: local and port authority support, coastal traffic, elevation (to mitigate hurricane issues), interconnectivity to the natural gas grid, and proximity to local industrial markets. Another plus was Gulf Coast LNG’s existing strong core team of energy project development professionals, with previous LNG development expertise.
In September 2004, Haddington made its initial investment in Gulf Coast LNG, LP to develop the Calhoun LNG re-gasification terminal at the Port of Port Lavaca – Point Comfort on the Texas Gulf Coast.
Additional information can be found on the company's website at www.calhounlng.com.
