Natural gas prices have more than doubled since 2001 because only 15% of our needs are produced in California and U.S. supplies are not increasing fast enough. At the same time, demand for natural gas is increasing primarily because most of the state’s new electricity plants will be powered by natural gas. That’s why California is at an energy crossroads. To avoid dramatically higher natural gas and electricity prices in the future, we need to increase natural gas supplies. That’s how LNG can help. WHAT IS LNG?

• LNG stands for liquefied natural gas. It is odorless, non-toxic and non-corrosive. Essentially, it is the same natural gas more than 60 million Americans use to heat and cool their homes, only in a liquid state.
• Natural gas is converted into liquid form through a process called liquefaction, which significantly reduces the volume of the gas, making it more economical to transport, and therefore, cheaper for consumers. LNG is converted back to gas by passing the liquid through vaporizers that warm it. Both processes are performed using advanced technologies with a proven safety record.
• LNG has been in wide use throughout the world for some 45 years. China and Japan import nearly all of their natural gas. Vast natural gas fields and liquefaction facilities are under construction around the globe, and dozens of LNG facilities are in various stages of development around the United States.

WHY WE NEED LNG

• California’s demand in the natural gas market is expected to grow significantly within the next 10 years. To help meet the growing demand, LNG can play a larger role in the state’s energy supply mix and may assist with reducing the potential for price volatility.
• California faces a growing gap between the natural gas it uses, and the natural gas that can be produced domestically or imported economically from the Western United States and Canada. California generates only 15% of the total annual amount of natural gas it consumes, and US supplies are not increasing. LNG is the only viable option for increasing the supply of safe, clean natural gas in our state.

HOW LNG WILL HELP OUR ECONOMY

• Affordability & Reliability: LNG is essential to keeping electricity prices low and ensuring a reliable supply of power to California homes and businesses. This is especially true here in California where more than 40 percent of our electricity generating capacity is fueled by natural gas.
• Reduce Cost: According to a study by the National Petroleum Council, American families and businesses will overpay more than $1 trillion for energy costs unless aggressive action is taken to expand the use of natural gas in the economy.
• Help Stabilize Prices: U.S. Federal Reserve Chairman Alan Greenspan recently said LNG imports could help stabilize natural gas supplies, reducing the risks of price spikes

LNG IS GOOD FOR THE ENVIRONMENT

• Natural gas is a clean fuel, generating far fewer pollutants than other fossil fuels.
• Natural gas is the cleanest alternative transportation fuel available now. It safely and cleanly powers thousands of buses, garbage trucks and other vehicles every day that would otherwise use dirtier diesel fuel.
• It is predicted that LNG will supply up to 3 percent of total U.S. energy demand by the year 2020. This trend away from dirtier fossil fuels will significantly reduce pollution.
• When LNG is vaporized and used as fuel, it reduces particle emissions to near zero and carbon dioxide (CO2) emissions by 70 percent in comparison with heavier hydrocarbon fuels.
• When LNG is burned for power generation, the results are even more dramatic. Sulfur dioxide (SO2) emissions are virtually eliminated and CO2 emissions are reduced significantly. If spilled on water or land, LNG will not mix with the water or soil, but evaporates and dissipates into the air leaving no resdue.

HOW LNG WILL BE DELIVERED

• Through the pipelines – just how natural gas is currently delivered. The only difference with LNG is that it will transported by boat (instead of interstate pipelines) to an approved California facility and returned to its natural gaseous state.

LNG HAS AN EXCELLENT SAFETY RECORD

• LNG has an excellent safety record. During the past 45 years, more than 33,000 carrier voyages have occurred, covering 60 million miles around the globe, all without a major accident.
• Multiple federal and state safety and regulatory agencies are responsible for the ongoing oversight of LNG and their facilities. On the federal level the U.S. Dept. of Energy, U.S. Environmental Protection Agency, U.S. Coast Guard, Federal Energy Regulatory Commission and the U.S. Department of Transportation all have strict requirements that must be met. On the state level the California EPA and fire departments and police departments are involved on the local level. Additionally, the U.S. Coast Guard (along with U.S. Dept. of Transportation and the U.S. Dept. of Energy) require that LNG containers and transfer systems must be far enough away from residential areas to protect residents and property in the rare case of an accident.
• LNG suppliers work closely with U.S. agencies charged with national security, and many developers contract with international experts who test their plans, procedures, people and training to ensure they are sound. The U.S. Coast Guard boards all LNG ships before they enter U.S. waters if it deems the ship a security risk.

Please join the growing coalition – Californians for Clean Affordable Safe Energy -- in support of LNG. To join the Coalition please call Ethie Weaver at (650) 340-7365.