Form for Offshore Gas Plant Is Filed

A Houston-based energy company has filed an application with state and federal agencies to operate a $300-million liquefied natural gas plant off the coast of Oxnard, officials said Thursday.

Crystal Energy filed its application with the U.S. Coast Guard and the California Lands Commission, which are responsible for overseeing the environmental review process.

Crystal wants to use the Venoco Inc.-owned Grace platform, a decommissioned oil platform about 11 miles offshore, to import liquefied natural gas, convert it to vapor form and send it by pipeline to onshore facilities.

The project would provide a significant source of natural gas for the growing western U.S., particularly California, where a 20% increase in demand is projected over the next decade, company officials said.

The California Energy Commission recently called for the construction of liquefied natural gas plants on the West Coast to meet the growing demand. Currently, the state imports 90% of its supplies.

“We have worked for nearly three years to create a project that has the least environmental impact while providing a needed and stable supply of natural gas to the region,” said William O. Perkins III, president of Crystal Energy.

Cooled natural gas would be delivered by ship to the platform, where it would be converted back into vapor form. The natural gas would then be delivered from the platform to shore in a pipeline to be built along an existing pipeline corridor. On shore, it would be connected to a Southern California Gas Co. pipeline.

Using the existing oil platform would protect coastal land and lessen the effect on whale migration routes, the Channel Islands Marine Sanctuary and military operations, said Lisa Palmer, a spokeswoman for Crystal Energy.

Residents have been critical of the proposal, citing safety, environmental and security concerns.

Another liquefied natural gas plant is being proposed off the Ventura County coast by Australian company BHP Billiton, which would construct a $500-million floating terminal 20 miles off Oxnard. That project is under environmental review. It would be the first such floating terminal on the West Coast.

Both companies hope to have their projects under construction in 2005.