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HomeMy WebLinkAbout025685 RES - 03/30/2004RESOLUTION SUPPORTING THE CONSTRUCTION AND PERMITTING OF A SAN PATRICIO LNG FACILITY BY VISTA DEL SOL LNG TERMINAL, L.P., AN AFFILIATE OF EXXON-MOBIL Whereas, Vista del Sol LNG Terminal L.P. and Vista del Sol Pipeline L.P. are proposing the development of a Liquefied Natural Gas ("LNG") receiving terminal along the La Quinta Channel in San Patricio County, Texas, and an associated pipeline connecting to the existing U.S. pipeline infrastructure Whereas, the La Quinta Channel, a maintained channel in Corpus Christi Bay, is within the City of Corpus Christi; Whereas, the LNG receiving terminal will be with the City's extraterritorial jurisdiction; Whereas, natural gas is a clean fossil fuel that is relied upon by the residents of the City and the local industries; Whereas, natural gas customers have been experiencing sustained higher prices and increased market volatility; Whereas, the United States needs new gas supplies to sustain its economy; Whereas, there are ample LNG supplies available from overseas; Whereas, the LNG by has been safely transported by special LNG carriers around the world for many years; Whereas, LNG can be safely vaporized and compressed for transport by pipeline at the receiving terminal; Whereas, Vista del Sol LNG Terminal LP and Vista del Sol Pipeline LP, both affiliates of Exxon Mobil Corporation, submitted a National Environmental Policy Act ("NEPA") pre- filing request on December 19, 2003, to the Federal Energy Regulatory Commission's Office of Energy Projects, which began the first step of the permitting process for the Vista del Sol LNG project; Whereas, Vista del Sol's San Patricio LNG project will help meet the growing demand for natural gas in the United States and to provide a safe, reliable, long-term, competitive source of energy; Whereas, Vista del Sol's San Patricio LNG project will benefit Corpus Christi by making Corpus Christi Bay an North American gateway for global energy; Whereas, Corpus Christi Bay is one of a few deepwater ports along the Gulf Coast suitable for importing LNG; R43005C1.doc 2 Whereas, the existing pipeline infrastructure in the region provides access to Texas and U.S. LNG markets; Whereas, the existing pipeline infrastructure is capable of handling the quantity of natural gas that this proposed project will bring to the area; Whereas, Vista del Sol's San Patricio LNG project will benefit the City of Corpus Christi and the region by ensuring competitive natural gas prices; Whereas, Vista del Sol's San Patricio LNG project will benefit the City of Corpus Christi and the region by ensuring a stable source of long-term gas supply; Whereas, representatives of the City of Corpus Christi have met with the representatives of Vista del Sol to evaluate the proposed facilities; Whereas, Vista del Sol's investment of more than $600 million will provide a safe, reliable, long-term, competitive source of energy for area residents and industries; Whereas, Vista del Sol's investment will help the Coastal Bend region attract new business and retain existing jobs in the face of declining natural gas supplies; Whereas, Vista del Sol's investment will provide additional economic benefits, such as highly skilled permanent jobs, as well as numerous construction and support jobs; Whereas, Vista del Sol's Corpus Christi LNG project will benefit Corpus Christi region by the employment of up to 600 construction jobs per month and 50 direct jobs involved in the facilities operation; Whereas, Vista del Sol's project will provide local contractors opportunities to participate in the project; Whereas, the City fully understands the potential safety and environmental impacts associated with the construction and operation of an LNG terminal; Whereas, the City appreciates that the construction and operation of facilities such as these provide a secure job base for those who live and work in our community; Whereas, Vista del Sol's proposed San Patricio LNG facility is good for the City of Corpus Christi, good for the state of Texas, and crucial for the nation; Whereas, the Corpus Christi region and the State of Texas will be well-served by the addition of LNG terminal and regasification facility on Corpus Christi Bay; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City of Corpus Christi strongly supports Vista del Sol's proposed San Patricio LNG receiving terminal and associated pipeline. R43005C1.doc 3 SECTION 2. The City pledges to cooperate fully with the permitting of this facility, and urges the Federal Energy Regulatory Commission to expedite the process so that construction of the Vista del Sol's proposed San Patricio LNG facility. ATTEST:/~ Armando Chapa City Secretary APPROVED: 25th day of March, 2004. ?...J~y ~.e, ining // /~c[ing uky Attorney THE CITY OF CORPUS CHRISTI Mayor R43005C1.doc 4 Corpus Christi, Texas The above resolution was passed by the following vote: Samuel L. Neal, Jr. Brent Chesney Javier D. Colmenero Melody Cooper Henry Garrett Bill Kelly Rex A. Kinnison Jesse Noyola Mark Scott R43005C1.doc