Crystal Energy files for California LNG project

Crystal Energy, LLC has filed a project application for its Crystal Clearwater Port project, a plan to use platform Grace located 11 mi offshore Ventura County, California, to import liquid natural gas (LNG) into the United States. The application will be reviewed by the US Coast Guard and the California State Lands Commission, the two agencies responsible for environmental review of the project.

Under the plan, Crystal Energy will deliver LNG by special carriers to the platform, where it will be converted back to gas and delivered to shore from the platform in a new pipeline using an existing pipeline corridor. It will come onshore at an industrial facility before tying into a Southern California Gas Co. pipeline. According to the company, using the existing offshore platform will protect coastal land while avoiding impacts to marine mammal migratory routes, the Channel Islands Marine Sanctuary, and local military operations.

California currently imports about 90% of the natural gas it consumes, and demand projections call for a 20% increase over the next 10 years. The project's terminal capacity will be 1 bcf/d, meeting more than 25% of the state's projected residential demand.

If the project goes forward, Crystal Energy says it will supply up to 40 million gal of clean water annually that are a byproduct of the regasification process, assist local businesses and agencies in purchasing natural gas at a reduced cost, provide a fuel cell for city and county use, and establish a significant scholarship fund for local students.

Construction costs for the project are estimated at $300 million, with regasification operations beginning in 2007.

(02/12/04)