Crystal Energy, AGPA sign MOU for Alaska LNG supply

By OGJ editors

HOUSTON, Feb. 3 -- Crystal Energy LLC, Houston, and the Alaska Gasline Port Authority (AGPA) have signed a memorandum of understanding to negotiate the delivery of Alaska LNG to a planned terminal off California.

Under the arrangement, AGPA would supply as much as 800 MMscfd of natural gas for 20 years to the Crystal Clearwater Port facility off Ventura County, Calif. The LNG would come from an LNG plant to be built at Valdez, Alas.

Both the Crystal Clearwater and AGPA projects are still in the development stage. The Clearwater Port project calls for converting the existing Platform Grace 11 mi. offshore into a regasification terminal to import LNG (OGJ Online, Nov. 5, 2003). Crystal Energy said it plans to submit by Feb. 12 applications for review by federal, state, and local agencies.

AGPA was formed as a municipal port authority for the City of Valdez, the North Slope Borough, and the Fairbanks North Star Borough to develop and deliver gas from Alaska's North Slope to energy markets in the Pacific Rim area.

A gas pipeline parallel to the existing trans-Alaska oil pipeline corridor would bring North Slope natural gas to the Port of Valdez where it would be converted to LNG for export. An Environmental Impact Statement for the pipeline has been approved, Crystal Energy said, and many of the required permits already issued for this project's route.

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