Exxon Mobil, the largest US oil and gas major, intends to build a floating LNG receiving terminal off the New Jersey coast.
The $1 billion (700 million) BlueOcean Energy terminal will have the capacity to supply about 1.2 billion cubic feet a day to New Jersey and New York.
'It's a growing market, particularly in New Jersey, which is looking for additional supplies of energy,' Ron Billings, VP in charge of Exxon's global LNG operations, says. 'The new source of natural gas for that region could readily replace coal in existing applications as well as future power plants.'
Exxon expects to spend between 18 months and two years receiving the necessary permits from various federal and state agencies, including the Coast Guard and Federal Energy Regulatory Commission. The company expects the terminal to begin service around the middle of next decade.
Exxon expects LNG to grow to around 20% of total gas demand by 2030. It now makes up less than 5% of the natural gas used in the US.
Exxon is also building an LNG terminal near Sabine Pass, Texas. The company has further terminals under construction in Wales and offshore Italy.