Crystal to receive LNG from Alaska

Crystal Energy LLC signed a memorandum of understanding (MOU) with the Alaska Gasline Port Authority. The MOU precedes a detailed letter of intent to supply domestic LNG for its Clearwater Port importation terminal from an LNG plant to be built in Alaska.

Crystal Energy LLC signed a memorandum of understanding (MOU) with the Alaska Gasline Port Authority. The MOU precedes a detailed letter of intent to supply domestic LNG for its Clearwater Port importation terminal from an LNG plant to be built in Alaska.

Under the arrangement, the Port Authority's Alaska LNG Project would supply up to 800 MMcf/d of natural gas for a 20-year period through the Crystal Clearwater Port facility, which lies 11 miles offshore Ventura County, California. This amount of gas amounts to nearly half of California's projected residential demand.

To fulfill this obligation, Crystal's existing Platform Grace would import LNG transported by vessels from the proposed plant in Valdez, Alaska to the platform, where it will be converted back into vapor form. A new offshore pipeline would travel through an existing pipeline right-of-way and connect with onshore infrastructure that delivers natural gas to Southern California.

"We are pleased to have initiated discussions with the Alaska Gasline Port Authority," said William O. Perkins III, Crystal's president.

California imports about 90% of the natural gas it consumes, and demand projections call for a 20% increase over the next 10 years.

01/29/04

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