EVALUATION OF LIQUEFIED NATURAL GAS RECEIVING TERMINALS FOR SOUTHERN CALIFORNIA

1. EVALUATION OF LIQUEFIED NATURAL GAS RECEIVING TERMINALS FOR SOUTHERN CALIFORNIA April Chan • Jana Hartline • Rob Hurley • Leanna Struzziery Faculty Advisors: Arturo Keller & Jim Frew Donald Bren School of Environmental Science & Management University of California, Santa Barbara 2003-2004 Group Project Thesis

2. California gas demand California produces less than 2%, yet consumes almost 12% of the US natural gas supply Graphics courtesy of American Gas Association

3. Over 40% of the natural gas demand in California is due to gas fired power generation California gas demand Graphics courtesy of American Gas Association

4. What is LNG? • Liquefied Natural Gas • Super-cooled to (-260 °F) Liquid • 1/600th the volume of natural gas • LNG is not stored under pressure • Used today as vehicle fuel and for peak-shaving facilities • Natural gas is the cleanest burning fossil fuel

5. Graphics courtesy of CEC Properties of LNG • Ranges from 83-99 percent methane • Cryogenic Liquid, -260°F (-162°C) • Density of 3.9 pounds /gallon (water is 8.3lbs) • Flammable within 5-15% concentration • Clear, colorless, and odorless • LNG is not explosive in unconfined spaces

6. LNG Facilities in the United States There are 113 active LNG facilities in the US which includes: 4 receiving terminals and 1 export terminal Source: California Energy Commission

7. Households Power Plants Processing and Liquefaction at a distribution terminal Exploration and Production at the field source Transport of LNG by Carrier Regasification and Distribution at a receiving terminal Industry Commercial Graphics courtesy of South Hook LNG LNG Process ProductionLiqueficationShippingRegasificationCustomer

8. Processing and Liquefaction at a distribution terminal Exploration and Production at the field source Transport of LNG by Carrier Regasification and Distribution at a receiving terminal Graphics courtesy of South Hook LNG LNG Process ProductionLiqueficationShippingRegasificationCustomer

9. Why an LNG terminal? • California imports approximately 85% of the gas it consumes • U.S. demand expected to increase 50% over the next 25 years Imported gas comes from interstate pipelines and must pass through several states before reaching California Graphics courtesy of CEC

10. Why an LNG terminal? • We are at the end of the pipeline grid. As the demand for natural gas increases in other states less gas will be available for California. Graphics courtesy of CEC

11. Why an LNG terminal? • Puts California at front of pipeline An LNG import terminal could create a one-way market for California. Graphics courtesy of CEC

12. Onshore Terminal Floating Storage & Regasification Unit Platform Terminal Receiving Terminals Types Our Project involves a comparative analysis of the terminal types. Images courtesy of Spec Engineering, Merlin Production, and MMS

13. Onshore Terminal • Proposed by Sound Energy Solutions a subsidiary of Mitsubishi Corporation • Port of Long Beach at Pier T • Storage Capacity 320,000 m3 • 700 Mcfd, max output of 1Bcfd • Estimated cost $400 million dollars Source: Port of Long Beach Source: Sound Energy Solutions

14. FSRU Terminal • Proposed by BHP Billiton • 13.9 miles off the coast of California (22 miles from Oxnard) • Storage Capacity 273,000 m3 • 600 – 900 Mcfd, max output of 1Bcfd • Estimated cost $400-800 million dollars Source: Cabrillo Port EA

15. Source: Minerals Management Service Source: Crystal Energy Platform Conversion • Proposed by Crystal Energy, LLC • Platform Grace, 11 miles off the coast of Ventura • No Storage Capacity • 800 Mcfd, maximum output of 1.2 Bcfd • Estimated cost $200 million dollars

16. Key Issues • Community and Safety • Environmental Impacts • Socioeconomic Issues

17. Approach • Evaluation of key areas throughout life cycle of project, i.e. (construction, operations and maintenance, and decommissioning) • Minor, moderate, and major accident scenarios are evaluated • The results of this analysis are summarized within a matrix to compare the terminal types

18. Status of Project • In process of writing concluding remarks • Final Report to be Released, April 21st 2004 Please visit our website for further information www.bren.ucsb.edu/~lng

19. Thank You!!! Please visit our website for further information www.bren.ucsb.edu/~lng Image courtesy of Freeport LNG