FAQS

What is OceanWay?

OceanWay is a clean, affordable, safe and reliable natural gas import project designed to bring much-needed natural gas to California consumers via ships, offshore buoys and dual pipelines that connect to the existing Southern California Gas Co. pipelines onshore.

What is natural gas?

Natural gas is one of the cleanest-burning and most useful energy sources available today. It is the same "blue flame" used in homes for cooking, heating and drying clothes. Within Southern California Gas Co.'s residential market, natural gas provides the fuel for 95 percent of water heaters, 92 percent of space heaters, 76 percent of cooking appliances and 72 percent of clothes dryers.

It is also the fuel of choice for low-pollution buses and other public vehicles because far fewer pollutants are released when natural gas is burned. Natural gas is a vital part of California's current and future energy infrastructure. It is responsible for generating more than 40 percent of the state's electricity. Ninety percent of power plants built in the U.S. in the next 20 years are expected to use natural gas.

To transport natural gas, it is cooled to a sub-zero temperature which causes it to condense and liquefy. In this form, natural gas is referred to as "liquefied natural gas" or "LNG."

How would OceanWay work?

Specially built ships would receive liquefied natural gas cargo from carriers far offshore. The "regasification" ships would then convert the liquefied natural gas back into a gaseous state.

The regasification ships would connect to one of two submerged buoys located 27 miles from Los Angeles' coastline and, through the buoys, deliver natural gas into dual pipelines that would run along the ocean floor. The gas would travel four miles through these pipelines to a point onshore where the natural gas would flow into the existing Southern California Gas Co. pipelines. When ships are not unloading their cargo, no offshore structure will be visible.

How would OceanWay convert liquefied natural gas back to its gaseous state?

It would use a forced air vaporization and waste heat recovery system that is one of the safest and most environmentally sensitive technologies available for this process. The emissions from this system would be significantly less than more conventional technologies because ocean air would be used to warm the gas. The ship itself uses 100 percent clean-burning natural gas to power the low-emission (low nitrous oxide) gas turbines.

Where would OceanWay be located?

The underwater buoys would be located 27 miles from Los Angeles' coastline and five miles beyond the existing shipping lanes. The buoys would be submerged 100 feet below the ocean's surface until the regasification ships connect to them. OceanWay would not have an offshore or onshore terminal, platform or rig, nor would it use tugboats. Pipelines would transport the gas from the buoys to an existing Southern California Gas Co. pipeline onshore.

How was OceanWay's location selected?

We examined several sites and listened to community and environmental groups, the U.S. Navy and other stakeholders to select a location for our buoy system that would provide the greatest safety and environmental protection. OceanWay would be located 27 miles southwest of the Los Angeles coastline and more than five miles beyond existing shipping lanes. Its distance from population centers and the shipping lanes would provide time to respond and protection to people onshore. Its location also ensures its onshore pipeline would travel the shortest possible distance to deliver its natural gas into the Southern California Gas Co. system.

Why does California need OceanWay?

California's growing population and booming trillion-dollar economy demand additional energy supplies. But the state's natural gas supplies are limited, and prices have doubled since 2001. More natural gas supplies will mean better natural gas prices for Californians.

The state's population is growing so rapidly that it's expected to add the equivalent of twice the population of Michigan by 2050. If it were a nation, California's economy would be the sixth largest. Yet California produces just 15 percent of the natural gas it needs to meet current demand and power our trillion-dollar economy.

The California Energy Commission (CEC), the state's primary energy policy and planning agency, said: "California no longer has the luxury to view natural gas from a 'California demand only' perspective but must examine how the demands from our competitors are changing - the western states, Canada as well as the eastern United States... Natural gas well productivity in the United States is declining and California is literally at the end of the interstate pipeline system, competing with a growing North American demand." Please see the full report at: http://www.energy.ca.gov/2007_energypolicy/index.html.

Why does Los Angeles need OceanWay?

The Los Angeles region is expected to grow by the equivalent of twice the population of Chicago over the next 20 years. If it were a nation, Southern California's economy would be the 15th largest in the world. It too faces limitations on the natural gas supply flowing into the region. These limited natural gas supplies are causing prices to rise so rapidly that Los Angeles Department of Water and Power (LADWP) officials said they have had to hike electrical rates by 1 percent every three months since September 2006. The department's leaders have said these increases will continue. By 2012, they expect Los Angeles electricity bills to increase by at least 23 percent.

Where does California currently get its natural gas?

California relies on pipelines from other states and Canada to deliver 85 percent (62 percent from the Rockies and Southwest, 23 percent from Canada) of its natural gas needs. California faces unprecedented competition for those gas supplies from the fast-growing states of Colorado, Arizona and New Mexico, as well as high-demand states in the northeast and Canada. California currently does not have an operating port which would allow for the importation of natural gas.

How does natural gas fit with California's commitment to renewable energy?

Increased energy efficiency and renewable energy sources are the priority building blocks of California's future energy, and natural gas helps support their development.

Natural gas is a transitional and complementary energy supply. It will help us transition away from dirtier fuels, like coal, while the state builds the infrastructure needed to convert to renewables.

The California Energy Commission (CEC), the state's primary energy policy and planning agency, said: "Natural gas power plants are also the best complement to renewable resources since they have the ability to come on line quickly when wind or solar resources lose output due to lack of wind or sunshine."

It also said "natural gas use will remain a major fuel in California's supply portfolio over the next several decades, and if California adopts electricity as the 'fuel of choice strategy' for all sectors including transportation, natural gas use will likely increase until displaced by renewables, coal with carbon sequestration, or nuclear generation." The full report from the California Energy Commission may be found at: http://www.energy.ca.gov/2007_energypolicy/index.html.

Why is natural gas important to Los Angeles?

Secure natural gas supplies will be necessary to avoid even more increases in Angelenos' electricity bills and for Los Angeles to fulfill its goal for greener growth in transportation and power generation. Natural gas fuels already are helping Los Angeles clean up its air, and this clean-burning fuel will help LADWP make the transition away from its dirty coal-fired plants.

How do natural gas fuels help Los Angeles clean up its air?

With studies showing vehicle exhaust is responsible for 90 percent of the cancer risk from airborne pollutants, the South Coast Air Quality Management District has ordered all public agencies and certain private entities to make all future fleet purchases alternative-fuel vehicles.

Natural gas is the alternative fuel of choice for most of these fleets because it is a clean-burning fuel widely available for use today. Studies have found operating just one natural gas bus is the equivalent of eliminating the smog from 25 to 30 cars.

The Los Angeles Metropolitan Transportation Authority operates the largest compressed natural gas (CNG) fleet in the nation and will need secure natural gas supplies to fulfill its goal of having an all-CNG fleet in 2008. Airport vehicles increasingly rely on natural gas, and the Los Angeles County Sanitation Districts are replacing all of their fleets with natural gas vehicles.

Los Angeles and Long Beach port-related pollution is linked to 2,400 premature deaths a year, so the ports have agreed to replace 16,500 dirty diesel rigs with cleaner ones by 2012. Natural gas is the most viable fuel to power these new rigs. Secure natural gas supplies will be needed to help each of these fleets make the conversion to cleaner operations and to help reduce the risk from air pollution in Los Angeles.

How will natural gas help the Los Angeles Department of Water and Power (LADWP) transition away from coal-fired plants?

Coal-burning power plants produce so much pollution that the California Public Utilities Commission has forbidden utility companies from signing any more contracts with these plants. LADWP buys nearly half its power from two dirty coal-burning plants in Utah and Arizona and must find a new source of power when those contracts expire in 2017 and 2027. Natural gas will be the answer for LADWP and other utilities. This clean-burning fuel is already the backbone of our state's electricity system, and 90 percent of the new power plants built in the next 20 years are expected to be fueled by natural gas.

What does the governor think of liquefied natural gas?

On April 9, 2007 Governor Arnold Schwarzenegger issued a press statement, saying: "I do believe that liquefied natural gas should be a part of California's energy portfolio. Natural gas is the cleanest-burning fossil fuel and an LNG facility to serve our state would make California less vulnerable to variations in supply and price."

On May 18, 2007, the Governor reiterated his position in another press release, saying: "I have always said that California needs to diversify fuel sources for California consumers with cleaner alternatives such as LNG. We need a diverse, dependable and environmentally sound mix of energy supplies to meet the needs of our people and our economy. And as California continues to lead the nation in efforts to expand renewable energy resources, guaranteeing a steady source of clean-burning fuel takes on even greater significance. Liquefied natural gas can and must be an important addition to California's energy portfolio."

What do California's other leaders say about liquefied natural gas?

California's federal representatives agree with the Governor. "I'll just say one thing: LNG is clean energy," U.S. Sen. Dianne Feinstein said on April 12, 2007. "Out of harbor facilities make the best sense for LNG. California needs LNG."

State Resources Secretary Mike Chrisman as well as the California Energy Commission and California Public Utilities Commission all have said that at least one liquefied natural gas facility should be built in California.

Various groups have endorsed natural gas as a fuel important to California's future, including the California Chamber of Commerce, California Manufacturing and Technology Association, California State Association of Counties, California Restaurant Association, California Retailers Association, Western Growers Association and the California Alliance for Consumer Protection.

How would OceanWay protect the environment?

OceanWay would protect California's environmental resources by meeting all of the stringent federal and state air and water quality standards and by avoiding the construction of any permanent offshore processing structures. The ships delivering natural gas to the buoys would be completely powered by clean-burning natural gas, making them the world's cleanest ships in terms of air emissions. No tugboats are needed for this project, thereby avoiding additional air emissions from diesel-powered vessels.

OceanWay's regasification system, using sea air, is one of the safest and most environmentally sensitive technologies available for warming natural gas.

OceanWay also would protect water quality by collecting and storing condensed water from its operations and avoiding the discharge of seawater at the mooring.

How would OceanWay protect marine mammals and seabirds?

OceanWay would avoid established whale migratory routes and would not use sodium vapor lighting, which has been known to attract seabirds and lead to avian deaths. The OceanWay project also would not use high-powered sonar, which might be harmful to sensitive marine life, such as whales and dolphins. OceanWay vessels would have trained personnel posted to spot whales and avoid them.

How would noise from OceanWay's construction and operation affect marine life?

With no fixed regasification structures either onshore or offshore, OceanWay would have the least impact on marine life and the environment. Marine life experts have determined OceanWay would have a minimal impact on marine life. OceanWay would not use high-powered sonar or major industrial jet plows typically associated with marine life disruption. OceanWay would have marine life monitors during construction and operation to ensure the safety of marine life and seabirds.

How would OceanWay ensure the community's safety?

OceanWay would be located 27 miles southwest of the Los Angeles coastline and more than five miles beyond existing shipping lanes, far removed from population centers. OceanWay's distance from the coastline and the shipping lanes would provide time to respond and protection to people on shore. The project would comply with all international and federal safety requirements, including those mandated by the U.S. Coast Guard.

OceanWay ships would be U.S. flagged, U.S. crewed and subject to U.S. safety and security standards - a safeguard not found elsewhere in the shipping industry. Those crewmembers also would be trained by maritime academies certified by the U.S. Maritime Administration.

Would the project block coastal views?

OceanWay would not be noticeable from shore. It would have no permanent structures atop the water, and its ships would be located 27 miles from Los Angeles' coast.

Who will work on the regasification ships once OceanWay is built?

On July 30, 2007, Woodside announced a commitment to U.S. staffing and flagging of its regasification ships. With the announcement, Woodside committed to both OceanWay regasification ships employing officers and crews of U.S. licensed mariners once the ships are U.S. flagged. The commitment, made to the U.S. Maritime Administration, will provide training opportunities for U.S. mariners. As part of the commitment, Woodside will work with the U.S. Merchant Marine Academy, state maritime academies and other certified training facilities as sources for cadets and unlicensed seafaring personnel, offering training opportunities on natural gas cargo ships.

Would the OceanWay project use proven technology to deliver natural gas?

Yes. OceanWay uses proven technology to bring natural gas to California. Natural gas has traveled by ship for nearly 50 years, delivering more than 50,000 natural gas cargos safely. Southern California, with more than 90,000 miles of natural gas pipelines, has long relied on pipelines to transport its natural gas.

The company's buoy technology has proven effective in even the most extreme conditions. During Hurricane Katrina, a ship performed reliably and safely while moored to a buoy similar to the type that OceanWay would use.

Using ambient air to warm liquefied natural gas and convert it back to a gaseous state has been used successfully elsewhere in the United States. Most recently, it was used in December 2007 to provide temporary power to a residential section of San Francisco.

Would OceanWay provide California with a reliable energy source?

Yes! OceanWay could provide up to 15 percent of California's annual natural gas demand by providing a critically needed new natural gas portal on the West Coast. Each of our specially equipped ships would deliver enough natural gas per cargo to power 43,000 homes for a year. Woodside Natural Gas would build and operate OceanWay, and Woodside's parent company has its own natural gas supply. So OceanWay would be a reliable energy source for California.

Who is Woodside Natural Gas?

Woodside Natural Gas is a company headquartered in Santa Monica, CA. It is a subsidiary of Woodside, a publicly traded company with market capitalization of more than $27 billion, worldwide offices and more than 3,000 employees. Woodside has a successful history of collaborating with local communities and is the right partner for solving California's energy demands.

What experience does Woodside have in delivering natural gas?

Woodside has a proven track record of safely and efficiently delivering natural gas. The company has safely delivered more than 2,400 liquefied natural gas cargos around the world.

Would OceanWay undergo a careful and public review process?

OceanWay is undergoing a comprehensive environmental and safety review process. That process began when Woodside Natural Gas submitted applications to the United States Coast Guard for a Deepwater Port license and to the City of Los Angeles for a pipeline franchise permit. The United States Coast Guard is the lead agency under the National Environmental Policy Act (NEPA) and the City of Los Angeles is the lead agency under the California Environmental Quality Act (CEQA).

Will OceanWay's environmental review process examine greenhouse gas emissions?

Yes. OceanWay was the first, and so far only, energy project to offer to conduct a thorough study of greenhouse gas emissions, from production through its delivery of natural gas to the Los Angeles region. The study is underway and is part of the comprehensive environmental and safety review process managed by the United States Coast Guard and the City of Los Angeles.

How can I get more information on the OceanWay project?

You can contact Woodside Natural Gas by phone at (310) 264-4400 or via e-mail at info@oceanwaysecureenergy.com. Woodside Natural Gas has also prepared an informative website at www.oceanway.com for you to explore and better understand this exciting addition to California's energy future.