Company proposes LNG terminal near Malibu


Thursday, March 16, 2006 | No comments posted.

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LOS ANGELES (AP) - In the latest proposal to import liquefied natural gas to California, an Australian company has unveiled plans to place a terminal about 22 miles off the coast of Malibu.

The plan announced today by Woodside Energy attempts to sidestep fears from environmentalists and some residents that importing natural gas is too dangerous because it is volatile and potentially explosive in its gaseous state.

Unlike other proposed terminals off the West Coast, the plan doesn't require a large, permanent structure.

Instead of feeding vaporized natural gas into a pipeline at a terminal, the delivery tanker would take in an underwater buoy attached to a flexible pipe leading to a larger pipe along the ocean floor.

The larger pipe would come ashore in an industrial area near Los Angeles International Airport, said Jane Cutter, president of Woodside Natural Gas.

The location of the buoy would not interfere with coastal views, shipping lines, or natural habitat, Cutter said.

Another company using different technology has developed a similar delivery method in the Gulf of Mexico, according to Woodside.

Woodside hopes to begin shipping between 2010 and 2014 and to meet up to 15 percent of the state's natural gas needs.

Environmentalists who have challenged other proposed LNG terminals said Woodside's proposal sounds safer than the others. But they stressed that the state may not need to import LNG at all.

Linda Krop, an attorney representing the Santa Barbara-based California Coastal Protection Network, said the state could gain more energy through conservation, improved efficiency, and focusing on renewable resources like wind, solar, and geothermal energy.

“We can achieve at least three times as much energy through a cleaner, safer approach,” said Krop, who is representing the group as chief counsel of the Environmental Defense Center in Santa Barbara.

Environmentalists are pushing for state legislation that would require a review of proposed LNG projects.

Energy companies say shipping LNG from other countries could keep U.S. natural gas prices low as domestic supplies dwindle.

U.S. regulators have approved several coastal LNG terminals in Texas, Louisiana and Massachusetts, but companies have had trouble finding a home on the U.S. Pacific coast.

Mexico has approved two LNG terminals on its Pacific coast, one under construction by Sempra Energy and another by Chevron Corp., though Chevron hasn't begun construction.

Other proposed terminals in California include BHP Billiton's Cabrillo Port project off Malibu; Crystal Energy's proposal off Oxnard; and a Long Beach plan by Mitsubishi Corp. and ConocoPhillips.

In Oregon, there are proposals by Calpine at the Port of Astoria, Northern Star Natural Gas at Bradwood Landing, the Jordan Cove Energy Project at Coos Bay, and Port Westward LNG at Clatskanie.
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