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Straight Talk: Frequently
Asked Questions – and Answers
Clearwater Port is committed to openness and
honesty about the project – from the most basic elements of the
terminal's design and operations, to the rigorous safety and environmental
standards that the terminal will meet. The following are some of the
most frequently asked questions – and answers to them.
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FAQ: Liquefied
Natural Gas Defined
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What is liquefied
natural gas?
Non-toxic liquefied natural gas is just another form of the same natural
gas that heats our homes, fuels the new generation of cleaner power plants,
and fuels our cleanest buses and other vehicles. The only difference
is that it has been liquefied – turned from a gaseous state to
a liquid state, just as water vapor turns into water – by chilling
it, so that it can be safely and efficiently transported across the seas
in double-hulled carriers.
Why
do we need liquefied natural gas?
Demand for clean-burning natural gas is increasing, while supplies are
becoming more limited, and independent experts from Alan Greenspan to
the California Energy Commission agree that we need more terminals to
receive liquefied natural gas. Today, Ventura County and California are
at the end of the natural gas supply pipelines, which come into our state
from the east. This looming natural gas crisis could threaten California
with another energy crisis. Currently, only 15% of our natural gas needs
are produced in California, and demand for natural gas is rising – because
it's still heavily used by power plants for electricity generation, by
homes and businesses for heating, cooking and other everyday tasks. At
the same time, our traditional out-of-state supplies are becoming more
limited as other Western states use more of it for their own needs.
How
does liquefied natural gas compare to other methods
of transporting natural gas?
Transporting natural gas to market – i.e.,
to customers – happens in one of two ways:
- As
compressed natural gas, it can come to California through
pipelines running thousands and thousands of miles
from the east (from places like Canada, Texas and Oklahoma)
- Or,
in a liquid state, it can be transported across the
seas in strong, double-hulled carriers.
How
is natural gas converted to liquid form? How is it
converted to gaseous state?
Natural gas is turned into its liquid form by processing it in a plant
that operates like a giant "refrigerator," cooling it to 260 degrees
below zero Fahrenheit. In its liquid form, the gas becomes takes up 1/600th
the space, making it safer and more affordable to transport over long
distances, which helps reduce prices for consumers. Liquid natural gas
is converted back to gas by passing the liquid through vaporizers that
warm it. Both processes are performed using advanced technologies with
a proven safety record. Liquid natural gas has safely and widely transported
around the globe for more than 40 years.
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| FAQ:
Safety & Natural Gas |
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How
safe is liquefied natural gas?
The safety speaks for itself: For more than 40 years, natural gas has
been safely delivered around the world in liquid form. That's over 40,000
ocean voyages covering more than 60 million miles around the globe – to
places like Boston, Belgium and Tokyo - without a single maritime incident
resulting in a major release or injury.
Where
is liquefied natural gas used in the U.S. and around
the world?
Today there are 38 liquefaction plants and 47 receiving terminals in
operation worldwide, including five facilities in the United States.
Around
the world, natural gas receiving terminals have been
in operation for more than thirty years. In fact, Japan,
Korea and Taiwan depend almost entirely on liquefied
natural gas for their natural gas needs. Europe, which
is connected by pipelines to Siberia's vast natural gas
reserves, nevertheless has 11 operating liquefied natural
gas terminals, with another 13 planned or under construction.
Currently,
there are five operating natural gas receiving terminals
in the U.S. (Boston Harbor; Cove Point, Md.; Elba Island,
Ga.; Lake Charles, La.; and Excelerate Energy's Gulf
Gateway Terminal in the Gulf of Mexico). In addition,
there is one export terminal associated with a liquefaction
plant (Kenai, Alaska) and there are 57 land-based storage
terminals with liquefaction capacity primarily used for
peak shaving and load management.
What if there is
a spill?
A spill or leak would cause minimal land or water damage. It is nontoxic,
and as it evaporates (i.e., warmed up into its gaseous state, like water
becoming water vapor), the resulting vapor would become lighter than
air and disperse into the atmosphere. Although it is colorless, should
it be released into the air, the cold vapor would appear as a white cloud
of water vapor. The lighter-than-air property actually makes it less
hazardous than some other fuels, such as propane, butane or gasoline,
whose vapors are heavier than air and can travel considerable distances
close to the ground. In its gaseous form, natural gas can burn only if
it is released into the air, mixed with the correct proportion of air
(5 to 15 percent of natural gas) and then finds a source of ignition.
Too little air, and there is not enough oxygen to sustain a flame. Too
much air, and the natural gas is diluted too much to ignite. (In its
liquid state, it is non-flammable.)
Nevertheless,
Clearwater Port will have a comprehensive safety system.
Did
any accidents happen in the past, and are they applicable
to modern liquefied natural gas receiving terminals?
The safety record for liquefied natural gas is clear and well documented:
And for more than 40 years, natural gas has been safely delivered around
the world in liquid form without any maritime incidents resulting in
a major release or injury Indeed, the accidents that have occurred at
U.S. facilities have been attributed either to inadequately designed
materials, or to circumstances that did not involve liquefied natural
gas. (In many cases, they occurred so long ago that they cannot be compared
to today's modern natural gas receiving terminals. It would be like someone
pointing to a 1944 car accident to claim that your new car is unsafe – ignoring
the past 60 years of dramatic improvements in safety design and equipment,
from seat belts to anti-lock steering to anti-rollover technology.)
Nonetheless,
the lessons learned from each accident resulted in additional
safety measures that are applied across the industry
to ensure that similar accidents are not repeated. Here
is a look at some of the accidents, their causes, and
the safety improvements that resulted from them.
- 1944 – Cleveland,
Ohio: Resulted in Safety Regulations that Have Prevented
Similar Incidents for Over 60 years. At
the Cleveland peak-shaving plant, an improperly designed
tank cracked and spilled its contents into the street
and sewer system. The tank was built with a steel
alloy that had a low-nickel content, which made the
alloy brittle when exposed to the extreme cold of
liquefied natural gas. Safety regulations imposed
after the 1944 accident ensure that metallurgy and
designs meet safety standards that would prevent
such a tank failure. There have been no similar tank
failures in the past 60 years.
- 1973 – Staten Island,
New York: A Construction Accident – Caused
by Materials that are Prohibited Today. The
Mylar lining of an empty liquefied natural gas storage
tank ignited while being repaired. The fire and increase
in pressure inside the tank caused its concrete dome
to lift, dislodge and collapse, killing 37 construction
workers inside. After a full investigation, the New
York City Fire Department concluded it was a construction
accident, not a liquefied natural gas incident. While
re-evaluating this incident in 1998, the New York
State Planning Board concluded that current government
regulations and industry operating practices would
prevent this type of accident from happening again
because the combustible construction materials are
now prohibited.
- 1979 – Cove Point,
Maryland: Resulted in Code Changes that are In Use
Today. Liquefied natural gas leaked through
an inadequately tightened liquefied natural gas pump
electrical penetration seal, vaporized, passed through
200 feet of underground electrical conduit and entered
a substation. A circuit breaker in the substation
ignited the mixture of gas and air, causing an explosion
that killed one plant employee and seriously injured
another. As a result of the incident, three code
changes were made – all of which are applicable
industry-wide today.
- 2004 Skikda, Algeria:
A Fundamentally Different Facility. This
accident occurred in Algeria at a liquefied natural
gas liquefaction plant – where natural gas
is chilled into liquid form so it can be exported – which
is a fundamentally different facility from the receiving
terminals proposed for bringing natural gas into
the U.S. In fact, receiving terminals do not even
require a steam boiler – which is what was
found to have ignited the fire at the Algerian liquefaction
plant. In Algeria, a gas leak occurred in a confined
space and was ignited by a nearby boiler, causing
an explosion and fire, which caused 27 deaths at
the facility.
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FAQ: Oxnard
and Ventura County
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Why
was this location chosen for Clearwater Port?
After in-depth research and analysis, Clearwater Port decided on Platform
Grace, 12.6 miles off-shore from Oxnard, as the best location. It allows
us to use existing infrastructure to preserve the ocean horizon, minimize
environmental impacts and provide consumers with affordable natural gas
sooner than other proposals. It provides safe access for moving natural
gas directly into the existing SoCalGas distribution system, so that
it can reach consumers in Ventura County and Southern California. Additionally,
it's in the same area that the California Coastal Commission concluded – in
its exhaustive 1978 study of potential locations – is the "most
appropriate siting area for a liquefied natural gas (LNG) terminal off
the shoreline of California."
How will Clearwater
Port help reduce air pollution by fueling the transition
to clean, alterative vehicles?
By supplying safe, clean natural gas locally,
Clearwater Port makes it easier and more affordable for
businesses and governments in Ventura County to shift
from higher-emitting fuels to cleaner-burning natural
gas alternative vehicles. And the more clean, alternative
vehicles on Ventura County roads, the more we reduce
pollution and increase air quality locally.
What
is the relationship between Clearwater Port and lower
energy bills for Oxnard & Ventura County?
Because Oxnard and Ventura County are at the
end of the pipelines that currently bring natural gas
from the east, residents and businesses are vulnerable
to price spikes as our traditional out-of-state supplies
become more limited. With Clearwater Port providing an
abundant supply locally, Oxnard and Ventura County can
avoid getting caught in that price crunch.
- Background:
- Natural gas prices have more
than doubled since 2001 – because our demand
is increasing and our supply is more limited. Only
15 percent of our natural gas needs are produced
in California. And while our demand is rising – primarily
because natural gas fuels most of our new, cleaner
power plants – the supply we need from other
states (like Texas and Oklahoma) is becoming more
limited.
- Price
Facts:
- Alan Greenspan, former U.S.
Federal Reserve Chairman, says importing natural
gas could reduce the risks of price spikes by helping
stabilize natural gas supplies.
- American families and businesses
will overpay more than $1 trillion for energy costs
unless aggressive action is taken to expand the use
of natural gas in the economy, according to a study
by the National Petroleum Council.
During
construction, what will Clearwater Port do to minimize
disruption in Oxnard?
Work on the offshore platform and the undersea pipeline should not affect
Oxnard or Ventura County. On land, SoCal Gas will lay a new underground
pipeline to connect Clearwater Port with the existing SoCal Gas system
that runs under Oxnard. Clearwater Port will do everything in its power
to advocate for a route and construction schedule that avoid populated
areas and minimize disruption.
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FAQ: More
Specific Information on Clearwater Port
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Who pays for Clearwater
Port?
Clearwater Port is privately funded. It receives no taxpayer money to
pay for its construction or operation.
Where
will it be located?
Clearwater Port will be located 12.6 miles offshore – at the existing
Platform Grace. So Clearwater Port will not build a new off-shore structure,
but will instead transform an existing oil-drilling platform into a safe,
state-of-the-art natural gas receiving terminal.
Will Clearwater
Port store liquefied natural gas?
No. Clearwater Port will not have storage at the platform. Instead, it
will be immediately converted to vaporous natural gas and moved directly
into the SoCalGas distribution system.
Where will the liquefied
natural gas come from?
Carriers will bring natural gas from fields throughout the Pacific Rim – including,
for instance, Alaska and Australia.
How many carriers
will come each day?
How long will it take to offload a carrier at this terminal? It is estimated
that Clearwater Port's natural gas receiving terminal will be able to
deliver up to 200 billion cubic feet annually to the State of California.
Based on this estimate, approximately four to eight carriers per month
will offload at the terminal. Each ship will carry approximately 2.75
billion cubic feet of liquefied natural gas, which will take approximately
two to three days to offload.
Will the terminal
operate 24 hours per day?
Operations at Clearwater Ports natural gas receiving terminal, which
is 12.6 miles offshore, may take place 24 hours per day, so long as the
weather is safe, as authorized by the U.S. Coast Guard. (In unsafe weather,
operations will be suspended, of course.)
How
long is construction expected to take?
Because it uses existing facilities, does not include any major items
of construction and has minimal impact on the environment, construction
of Clearwater Port will take significantly less time than any other proposals – 24
months. This means California consumers will sooner benefit from safe,
affordable clean-burning natural gas.
First,
though, Clearwater Port will complete an exhaustive,
independent regulatory process and receive permits from
an array of federal, state and local safety and environmental
protection government authorities.
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