Liquefied Natural Gas Is Safe, Reliable Energy

Regarding “Natural Gas From Overseas Sources Is Raising Concerns,” Sept. 21:

The California Public Utilities Commission voted unanimously to approve my order establishing natural-gas quality standards for investor-owned utilities, including Southern California Gas Co.

With liquefied natural gas expected to enter our state within the next two years, it is crucial that we act now to put in place more restrictive natural gas quality specifications to ensure continued safe, reliable gas service to consumers and businesses alike.

Unfortunately, The Times chose to mischaracterize my order. Let me set the record straight.

Your article alleged that we were “loosening existing gas quality specifications.” On the contrary, we narrowed the existing gas quality specifications to allow a maximum Wobbe index reading of 1385; the index is a measure of the heat content of the natural gas. The existing rules would have allowed a Wobbe number of as much as 1437.

The article goes on to allege that my order “would allow hotter gas than what is now used in the state.” This is simply incorrect.

In Southern California today, many areas receive natural gas with a Wobbe index of 1400 or more and have done so for many years. I’m not aware of any safety or performance issues with appliances in those areas, as the article implies.

As the natural gas basins serving our state decline, we need liquefied natural gas to increase supply and moderate prices. Our actions will ensure that California has the natural gas it needs to maintain a vibrant and growing economy.

Michael R. Peevey

President, California

Public Utilities Commission

San Francisco

*

Geologic reservoirs don’t recognize borders. Liquefied natural gas or gas that comes from a foreign country is not different from the domestic product.

As natural gas is extracted from underground, the gas stream contains varying components whether it comes from California or overseas.

If the gas stream contains liquids, it may be classified as “hot” or “wet” gas. The liquids in this gas are often removed in a manufacturing process that creates products such as propane and butane. The remaining dry gas is treated to meet transportation specifications set by regulatory agencies and sent to markets through pipelines.

Natural gas converted from a liquid is no different from any other natural gas and will not harm consumers’ ovens, dryers, hot tubs, water heaters or other appliances.

For nearly four decades natural gas imported from all over the world has been used safely and reliably in the Eastern United States -- from New England to the Gulf Coast. Demand for this cleaner-burning fuel is growing, especially in California.

To help meet this need, BHP Billiton’s proposed offshore project, Cabrillo Port, will import gas that already complies with California’s strict standards for natural gas quality and transportation. The result will be a new, safe and reliable source of energy that Californians need.

Patrick Cassidy

Director of public affairs

BHP Billiton LNG

International Inc.

Houston