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$700M LNG Terminal Put on Hold

LOGAN TWP., NJ-BP officials say market conditions aren't right to proceed with a project in the works for six years.

By Eric Peterson | Updated on October 09, 2008

LOGAN TWP., NJ-Officials of petroleum giant BP say they will stop work on a $700-million liquefied natural gas terminal slated to rise on 40 acres of Delaware River shoreline in this Gloucester County township. The project has been put on hold for reasons relating to market conditions, officials say.

“We have been looking at the global market conditions surrounding LNG, and the timing just isn’t right,” says BP external affairs director Tom Mueller, in a statement. “So we have put the project on hold for at least two years. We will hold onto the property and look at conditions down the road. The company believes New Jersey will need LNG infrastructure in the future, and we will position ourselves to provide that.

“The decision…is really based on the likelihood of LNG cargos actually coming to the US,” Mueller says. “With higher prices in Asia and elsewhere for natural gas, it is very unlikely enough LNG cargoes are going to be coming to the US to justify a new terminal in New Jersey for the foreseeable future.”

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