Crystal gains a partner for California LNG project

Crystal Energy LLC has entered into an in-principle agreement with Woodside Energy Inc. to develop the proposed Clearwater Port liquefied natural gas import terminal offshore California.

Oct 28th, 2004

Crystal Energy LLC has entered into an in-principle agreement with Woodside Energy Inc. to develop the proposed Clearwater Port liquefied natural gas import terminal offshore California.

Under a heads of agreement, Woodside will provide its technical expertise to the project's facility design, and has agreed in principle to operate Clearwater Port. It will also provide funding to Crystal to obtain required project approvals through federal, state, and local agencies. In exchange, Woodside will have preferential access rights to Clearwater Port's terminal capacity for its supply.

"This is a significant step in implementing our long-term strategic plan for Clearwater Port," Crystal Energy Chairman William O. Perkins III, says.

"Woodside's participation in the project brings more than 15 years of liquefied natural gas operational experience and technical expertise, as well as an unblemished safety and environmental track record worthy of coastal California. This agreement fulfills our vision for creating an environmentally superior project with a world-class operator that will provide a secure, long-term natural gas supply to California."

The Clearwater Port project calls for using the remotely located Platform Grace, 12.6 mi offshore Ventura County, as a liquefied natural gas import and regasification facility to bring much-needed natural gas to the California market. Once converted back to gas at the platform, the natural gas will be sent by pipeline to shore and connect to the existing natural gas pipeline distribution network. The terminal is being designed to produce about 800 MMcf/d, a substantial portion of California's demand.

The Clearwater Port project application was submitted to federal and state agencies in February 2004 and is currently under review. The project is on track to start operations in late 2007.

10/28/04

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