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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.

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.

FAQ: Safety & Natural Gas  open  close

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.

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.

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.