The project consists of an FSRU (a floating, storage and re-gasification unit) that will be located approximately 14 miles from the nearest point to shore, and about 21 miles from Port Hueneme and Oxnard, the nearest population and commercial centers. The Cabrillo Port project also includes a pipeline connecting the FSRU with existing pipelines on land.

Offshore solution
"Being an oil and gas company with a tradition for offshore development, it was natural for us to think of an offshore solution," says Stephen F. Billiot, the Houston-based vice-president and person responsible for the Cabrillo Port project with BHP Billiton LNG International Inc.

"The California coast is a unique operating environment, and we knew that building a land-based LNG import terminal would be virtually impossible to advance, given the safety and environmental concerns of local and regional stakeholders," emphasises Billiot. "That's why we focused on an offshore facility, where we safely convert the liquefied gas into natural gas and pipe it ashore. We then feed it into the existing gas pipeline network - a network that Americans are more familiar with - and infrastructure that already exists. Cabrillo Port will have minimal impacts onshore."

55 percent natural gas
Natural gas is used by about 55 percent of American homes and in numerous commercial, institutional and industrial concerns. It comprises one-fourth of all the energy used in the United States, and Californians are the largest consumers of natural gas in the nation after Texas. One third of all the electricity used in the state is generated by natural gas, a figure that is projected to rise to nearly 40 percent by 2009, according to the California Energy Commission.

"One of our challenges is that most Americans don't know what LNG is. In that sense, we've a major information job to do," says Patrick Cassidy, director of public affairs, BHP Petroleum (Americas) Inc.

In a pamphlet produced for the project, LNG is described as follows: "Liquefied Natural Gas is simply the liquid form of natural gas. A process called liquefaction makes it possible to alter natural gas so that it can be transported as a liquid via ocean-going LNG carriers. As a liquid, LNG has substantially less volume than natural gas. One carrier load of LNG is equivalent to 600 times the volume of natural gas shipped via pipeline."

On stream in 2008?
The proposed Cabrillo Deepwater Port will be approved only after a lengthy process involving environmental reviews, public hearings and the deliberations of local jurisdictions. "We've submitted thousands of pages of extensive information in the licensing application for Cabrillo Port," says Billiot. "The studies and safety analysis from DNV, which reviewed the whole project and found it to meet both operational and safety standards, form an important part of this application." LNG is a safer and cleaner burning alternative to many other fuel sources. DNV found that releases from offshore facilities in highly unlikely worst case scenarios would dissolve and become harmless before reaching onshore areas.

Both the United States Coast Guard (USCG), which is responsible for the safety of LNG facilities and carriers in US coastal waters, and other local and federal authorities will be part of this process, leading to a final approval probably in late 2004 or early 2005.

"We expect it to take three and a half years from the time the project is approved until the facility is in operation," says Billiot. "Although the approval process may seem long, we know that this is a procedure that neither can nor should be hurried. All those involved must be allowed to present their views. Many stakeholders, including numerous elected officials and respresentatives from both government and non-government organizations, are definitely positive to LNG, but the average person in the street is unfamiliar with it. Some point to earlier accidents, such as an incident during World War II, which took place when the technology and understanding were completely different. We now have an important task to inform all those affected by this project. Everyone understands that as a company, we cannot make these huge investments without at the same time making conditions safe for people, the environment and the physical facilities both onshore and offshore."