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Malibu votes no on LNG City council opposes two proposed offshore receiving terminals Larry Persily Petroleum News Government Affairs Editor
Although it has no jurisdiction over either project, the Malibu City Council has voted unanimously to oppose two liquefied natural gas receiving terminals proposed for waters north of the California coastal community.
One of the proposed projects is looking to become a main receiving terminal for Alaska LNG.
Fear of terrorist attacks and environmental damages from the offshore terminals and the tankers that would move through the area motivated the council vote, said Malibu City Manager Katie Lichtig. “There’s a possibility and a risk that our community could be impacted.”
She acknowledged that any worry of damage to marine resources primarily involves recreational opportunities for the town of 13,000 residents. Malibu is about 25 miles south of where the gas would come ashore in buried pipe near Oxnard. The terminals would be about 15 to 20 miles from Malibu. The city of Oxnard, which would have to approve the pipelines coming on shore, has questioned both projects in letters to state and federal officials but has not taken such a strong step as Malibu’s city council resolution.
“In a day and age when they can fly planes into the Twin Towers, I see no reason they couldn’t do the same thing with liquid gas and obliterate a couple of coastal communities,” Malibu Mayor Sharon Barovsky told the Los Angeles Times May 25, the day after the city council vote. Developers say risk is overstated The projects’ developers — and supporters of LNG terminals to meet the nation’s growing demand for natural gas — say the super-chilled gas is not nearly as volatile as critics allege, and that double-hull tankers, other safety features and port security would minimize the risk to residents.
Developers of the two proposed terminals are Crystal Energy LLC, a Houston company that wants to break into the LNG terminal business, and Australian mining and energy giant BHP Billiton. Both have started the application process for permits, and both hope to get online in three or four years. Crystal Energy has a memorandum of understanding with the Alaska Gasline Port Authority to work toward converting a 25-year-old former Chevron oil production platform in the Santa Barbara Channel into an LNG receiving terminal.
The port authority, a joint venture of the city of Valdez and Fairbanks North Star Borough, wants to build a municipally owned pipeline to move North Slope gas to Valdez for liquefaction and shipment to West Coast and Far East markets.
And in a bid to assist BHP to gain entry to the California natural gas market, Australian Prime Minister John Howard visited Los Angeles and met with California Gov. Arnold Schwarzenegger while on a U.S. tour the last week of May. The prime minister was looking to help build support for bringing LNG to West Coast consumers.
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