New Twist LNG Receiving Terminal Project Proposed for the Western U.S.

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Crystal Energy LLC (Houston Texas) has joined the growing list of U.S. LNG projects (See related archived article*: North American LNG Project Planning Exceeds $11 Billion as ExxonMobil Gas & Power Joins the Foray) by proposing to construct a new LNG terminal (Plant 1061448; PEC 06004105) on the West Coast. The twist for this project is that Crystal Energy is proposing to convert an existing offshore oil rig into an LNG tanker unloading and regasification facility, and construct 25 miles of 24"-36" diameter natural gas transmission pipeline from the rig to an interconnect with SoCalGas (San Diego California) in Oxnard after retracing SoCalGas's existing right-of-way from the Manadalay Generating Station owned by Reliant Energy (Houston Texas).

Crystal Energy plans on having the new project operational in late 2006 or early 2007. Later phases of this project will include LNG storage tanks but the initial phase will operate as a peaking facility.

Crystal Energy has acquired the services of CH-IV International (Millersville Maryland) to coordinate the project and Padre Associates (Goleta California) for the environmental permitting issues.

Crystal Energy's project is the latest LNG project planned to serve the California market directly, since the failure of the Mare Island Project. Both Shell Gas & Power and El Paso Energy have shelved their proposed LNG terminal projects located in California. As it stands, California only produces 10 percent of the natural gas it uses. The Crystal Energy Project could supply 200 Bcf/yr directly to California, which would equate supplying 25 percent of the domestic demand in California.

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