BHP Reports Interest in Cabrillo Port's Natural Gas
BHP Billiton has received letters of interest from 18 large natural gas consumers and gas consumer groups, expressing their desire to consider and possibly purchase natural gas when it becomes available from Cabrillo Port. These prospective customers represent a wide range of natural gas purchasers including utilities, electricity generators, co-generators, and manufacturers. BHP Billiton will be working with each interested party to meet customer specific requirements once the project has final regulatory approval to ensure that commitments do not exceed Cabrillo Port's capacity.
The letters all express support for the development in the region of additional natural gas supply sources such as Cabrillo Port. While the letters are non-binding, they express a desire by large consumers of natural gas to negotiate, consider the purchase, or meet and confer with BHP Billiton for the supply of natural gas from Cabrillo Port when the resource becomes available. In many cases, these are confidential; however, signatories include one of the largest municipal utilities in California, as well as Southwest Gas Corporation (the fastest growing gas utility in the desert Southwest), and members of the California Independent Petroleum Association (a trade group).
For California, now is the right time for the right natural gas project in the right place.
BHP Billiton's Cabrillo Port project will supply California with a reliable source of clean energy to replace polluting coal and oil, helping to reduce carbon emissions while serving a growing population. Cabrillo Port will protect the marine and air environments consistent with California's world leading environmental protection programs, and is safely located 14 miles off shore, where it will not be visible on most days, and on those few clear days when it could be seen, it will have the visual impact of a grain of rice on the horizon.
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