BP Holds off on Pelican Island Plant

By  | 

BP has shelved plans to built a liquefied natural gas facility in Pelican Island.

The U.K.-based energy giant said it chose to hold off for now on the $650 million project because of economics -- not the resistance its encountered.

BP officials said Tuesday they still plan to renew a lease option with the Galveston Wharves board for the 185-acre site.

In the meantime, BP will study the economic viability of the project.

Galveston officials had supported the project, but residents and environmentalists opposed it.

Members of Stop Terminal On Pelican, a group leading opposition to the plant, had safety concerns about having a liquefied natural gas ship explosion.

The Sierra Club also opposed the plant's location, pointing out that the Pelican Island site is a nesting spot for brown pelicans and other birds.

Port officials hope that BP will eventually build the plant. It's projected to provide about 80 jobs and provide 2-point-5 (m) million dollars a year in rent to the port.