Liquid Natural Gas Has an Outstanding Safety Record

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*Two Views: This commentary is one of two written for the Business Journal on the question of building liquid natural gas facilities in the L.A. area.


Last one out of California turn off the gas.


That little twist on an old joke won’t get a laugh out of California businesses this year.


During the year 2005 natural gas rates for some firms rose 40 percent to 70 percent and electricity rates headed in the same direction.


Business owners and managers are scrambling to make cuts, delay expenditures or otherwise offset those energy price increases.


At a news conference earlier this year, Dale Watkins, third generation president of a Southland metal plating business, told the news media that he can’t just pass rising energy costs on to his customers for fear it will drive them into the arms of his competitors out of state.


Watkins was speaking on behalf of a statewide coalition, Californians for Clean Affordable Safe Energy (Cal-CASE), which is working to educate the business community and the general public about the potential benefits of liquefied natural gas (LNG).


We’ve been lucky that warm weather has kept natural gas prices from going even higher, but the underlying causes of the problem still exist.


It helps to understand that California is the 10th largest consumer of natural gas in the world, yet we produce only 13 percent of what we use. A large portion of that natural gas is used to fire electric generating plants.


That means any hiccup in our supply system can raise prices and threaten electric system reliability. Part of the answer is increasing supply through LNG. By taking advantage of a large global supply of LNG, California can avoid gyrating prices and give businesses a more stable energy market.


LNG is natural gas that has been supercooled so it can be transported efficiently in specially equipped tankers. The LNG is delivered to terminals where it is offloaded and transformed back into a gaseous state for delivery through our existing pipeline system.


Like any public issue, there are some people who are opposed to importing LNG.


Unfortunately, unlike other issues, those opposed to LNG seem dedicated to hyperbole, scare tactics and untruths to make their case.


Truth is, LNG has been safely transported around the world for more than four decades with an outstanding safety record.


Terrorism experts have testified that LNG makes a lousy terrorist target because operations are heavily secured and offer few human casualties and little disruption to daily life.


Environmental impact reports find almost no damage from proposed terminals, but there are tremendous potential benefits from LNG because it is a clean burning fuel that will seriously cut pollutants as public vehicle fleets are encouraged to switch to natural gas.


Other advantages to LNG are numerous, including the fact that it is the same source of energy that currently heats our homes and cooks our food in many instances. We don’t need to make any changes or retrofits or other modifications at home to take full advantage of the plentiful supply available.


Cal-CASE has 80 member organizations representing taxpayers, education, consumers, seniors and local government as well as businesses.


Each one is concerned that rising natural gas prices threaten our economy and limit other more productive ways to use our money.


Importing LNG allows us to expand the supply side of the equation and bring a downward pressure on natural gas prices. That in turn will help keep down the cost of generating electricity.


Proposals to build terminals are in various stages of review around the country with several proposed for California.


With California’s current sources of natural gas dwindling, California decision makers need to hear from the business community that we support LNG and encourage importing it directly to our state.


Led by the California Manufacturers & Technology Association, Cal-CASE is making that case daily.


Please join us in supporting LNG so we can keep the gas on.



*Dorothy Rothrock is vice president of the California Manufacturers & Technology Association and chairwoman of Californians for Clean Affordable Safe Energy.

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