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

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

4. What is LNG? Liquefied Natural Gas Super-cooled to (-260 °F) Liquid 1/600 th 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. 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 Graphics courtesy of CEC

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

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

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

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 Graphics courtesy of CEC Imported gas comes from interstate pipelines and must pass through several states before reaching California

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

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

12. Receiving Terminals Types Onshore Terminal Platform Terminal Floating Storage & Regasification Unit 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 m 3 700 Mcfd, max output of 1Bcfd 700 Mcfd, max output of 1Bcfd Estimated cost $400 million dollars Source: Sound Energy SolutionsSource: Port of Long Beach

14. FSRU Terminal Proposed by BHP Billiton 13.9 miles off the coast of California (22 miles from Oxnard) Storage Capacity 273,000 m 3 600 – 900 Mcfd, max output of 1Bcfd 600 – 900 Mcfd, max output of 1Bcfd Estimated cost $400-800 million dollars Source: Cabrillo Port EA

15. 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 Source: Minerals Management ServiceSource: Crystal Energy

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 21 st 2004 Please visit our website for further information www.bren.ucsb.edu/~lng

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