cabrillo port supplying california with clean, reliable natural gas
TRANSCRIPT
Cabrillo Port
Supplying California with Clean, Reliable Natural Gas
Cabrillo Port
Who Is BHP Billiton?
BHP Billiton – Diversified With a Global Reach
Energy CoalDiamonds & Spec Prod
Aluminium
Stainless Steel MaterialsCarbon Steel Materials
Base Metals
Petroleum
BHP Billiton Snapshot
BHP Billiton LNG, Inc. is a Subsidiary of BHP Billiton, the World's Largest Diversified Resources Company• 35,000 employees working in more than 100 operations in approximately 20 countries• Market Cap: U.S. $95 Billion (October ‘05)• Industry or near industry leader
– Aluminum– Energy coal and metallurgical coal– Copper– Ferro-alloys– Iron Ore and titanium minerals
• Substantial Interest– Oil– Gas– Liquefied natural gas– Nickel– Diamonds– Silver
BHP BillitonHealth, Safety, Environment and Community Policy
“We commit to continual improvement in our performance, efficient use of natural resources and aspire to zero harm to people and the environment”
Cabrillo Port
Project Description
Project Overview
• Import LNG from Australia
• Operate a LNG Floating Storage and Re-gasification Unit (FSRU) Approximately 21 miles Offshore Oxnard
• Subsea Natural Gas Pipeline Linking into the Existing SoCalGas System
• Deliver about 800 Million Cubic Feet of Natural Gas Daily, About 13% of California’s Average Daily Natural Gas Consumption
Project Benefits
• Increases California’s Natural Gas Supply Diversity
• Reduces California’s Reliance upon Interstate Pipeline Systems
• Reduces California’s Reliance on Diminishing Domestic Resources
• Supply Diversity and Capacity Should Moderate Prices
• Safe & Proven Technology
• Smallest Environmental Footprint Possible
• Creates California-Based, Permanent Jobs
• Long-term Investment and Involvement in Local Communities
Cabrillo Port Site
Closest land fall 14.04 miles
from Cabrillo Port
Over 21 miles from the cityof Oxnard and will not bevisible to city residents
Cabrillo PortCabrillo Port
Marine Sanctuary Boundary12.43 miles from Cabrillo Port
Almost 17 miles from Cabrillo Port
to Pt. Dume
Why Choose This Site?
• Access to SoCalGas Company’s Existing Transmission & Distribution Networks
• SoCalGas Pipeline Routed Predominantly Through Farmland• The Remote Offshore Site
– Provides an additional layer of security and safety– Ability to locate facility out of critical view shed– Minimal environmental footprint – Minimal societal impact
Natural Gas Pipeline Landfall
SoCalGas Pipeline
Twin 24” gas pipelines connecting Cabrillo Port and the SoCal system will be installed underground using Horizontal Directional Drilling (HDD) avoiding any impact on the beach
HDD pipelines (avoiding beach)
FSRU located 20.94 miles offshore
Visual Simulation – Typical Conditions
Photo taken from Hwy 1 FSRU is 14.04 miles offshore
Photo taken from Hwy 1 FSRU is 14.04 miles offshore
Visual Simulation – Clear Conditions
Visual Simulation – Marine Layer Conditions
Photo taken from Hwy 1 FSRU is 14.04 miles offshoreVisibility in photo is less than 1 mile
Visual Simulation – Night
Photo taken from Hwy 1 FSRU is 14.04 miles offshore
Overview of Why California Needs LNG Demand for Natural Gas is Growing in CA, Yet Domestic Supplies are
Decreasing California already imports 85% of the natural gas it currently needs
Control LNG delivered directly into the existing SoCalGas Company’s system will
serve CA market Less opportunity for market manipulation
Economics A long-term dedicated gas supply will moderate gas prices and help prevent
price spikes or outages Supply Diversification
All current basins that supply CA can supply multiple markets Environmental Benefits
Does not negatively impact CA’s commitment to renewable sources Cleaner burning natural gas is the fossil fuel of choice
U.S. Projected Natural Gas Demand/Supply Balance
Source: U.S. Energy Information Administration
Cabrillo Port
State & Federal Regulatory Review
Environmental Review Process
Primary Regulators 4 Primary Agencies Federal and State Regulators
U.S. Department of Homeland Security (U.S. Coast Guard)Deepwater Ports License
U.S. EPA Region 9 (California)Air Quality and Emissions Permit
California State Lands CommissionLand Lease
California Coastal CommissionCDP, Consistency Determination
Other Federal Regulators U.S. Department of Transportation U.S. Maritime Administration
Other State Regulators California Coastal Conservancy California Public Utilities Commission
Cabrillo Port
Technology & Safety
Safety, Security and Verification• All components are engineered to the highest safety standards and the gas operations
systems are designed to be “fail safe” without human intervention• LNG carriers’ and the LNG terminal’s security plans are approved and regularly
monitored by the U.S. Dept. of Homeland Security’s U.S. Coast Guard • The remoteness of Cabrillo Port provides an additional layer security and safety• Major classification societies which approve the design of ships and offshore structures
have established Classification Rules for Offshore LNG terminals– One of these societies will independently examine and verify the design and
construction of Cabrillo Port
Class Rules for Offshore LNG Terminals from the 3 largest Classification Societies
Development Components
FSRU in 2,850’WD
2 X 24” 20 Mile Subsea Pipeline
Directionally Drilled Section Under Beach
36” 15 Mile Onshore Pipeline
SoCal Tie-in
Oxnard
Malibu
Center Road Station Tie-in
Floating Storage & Regasification Unit
“ A combination of proven technology components”
Safety of Location
√ Cabrillo Port’s Remote Location Minimizes Perceived Safety Concerns
√ Cabrillo Port is Over 21 Miles from the Nearest Heavily Populated Area – Oxnard, CA
√ Cabrillo Port is Over 14 Miles from the Nearest Landfall√ Cabrillo Port is Situated in an Area Known for Relatively Mild
Weather, Tidal and Geologic Activity√ Cabrillo Port is Situated Miles Beyond the International Shipping
Lanes√ Cabrillo Port is Miles from the Channel Islands Marine
Sanctuary
Floating Storage & Regasification Unit Safety
• Storage Capacity = 273,000 m3• Length = 928ft • Displacement ~ 210,000 DWT
• Anticipated Normal Throughput = 800 MMSCFD• Design Throughput = 1,500 MMSCFD• Permanently Turret Moored in 2,850’ wd.
Single Point Mooring Side by side LNG transfer Moss spherical LNG storage tanks LNG regasification
Proven Technologies
BHP Billiton Offshore Floating Expertise• BHP Billiton has been a pioneer in floating technology with a total
of 9 floating units (6 FPSO, 1 FSU & 2 FSO) since 1985• BHP Billiton has 20 years experience of successfully & safely
marinizing far more complex hydrocarbon processing facilities on floating production units
1999 - Buffalo FPSO – Converted 90,000 t dwt tanker
1998 Modec Venture I – En route to ZOCA (Elang/K/KN)
1986 – JABIRU FPSO – Converted 150,000 t dwt tanker
1991- SKUA FPSO – Converted 150,000 t
dwt tanker
1994 – GRIFFIN FPSO Newbuild 100,000 t
Deepwater Pipeline Technology
• Deepwater pipeline systems are used throughout the Gulf of Mexico and other locations worldwide
• Two 24” pipelines provide redundancy which increases reliability
• The pipelines are designed for fail-safe shut-in and to withstand earthquakes
Cabrillo Port Pipeline Route & Bathymetry
Pipeline Safety
√ BHPB will Operate the Subsea Pipeline from the FSRU to SoCalGas Connection Point
√ Cabrillo Port will Utilize an Accurate, Proven, “Mass Balance” Leak Detection System
√ Cabrillo Port will Be Subject to Annual Pipeline Inspections by SoCalGas Using Intelligent Pigging Technology
√ SoCalGas Company Owns and Operates the Existing Pipelines Into Which FSRU Gas Supplies will Link
√ Cabrillo Port will Provide Natural Gas that Meets or Exceeds California Quality Standards which are Among the Most Exacting in the Nation