Crystal Energy Signs LNG Agreement with Woodside

Crystal Energy has entered into an in-principle agreement with Woodside (USA) Energy Inc to develop the proposed Clearwater Port liquefied natural gas import terminal offshore California.

Woodside (USA) is a wholly owned subsidiary of Woodside Energy Ltd., Australia's largest publicly traded independent oil and gas exploration and production company and operator of Australia's largest resource project, the US$10 billion North West Shelf Venture in Western Australia.

Under a heads of agreement, Woodside will provide its technical expertise to the project's facility design, and has agreed in principle to operate Clearwater Port. It will also provide funding to Crystal to obtain required project approvals through federal, state and local agencies. In exchange, Woodside will have preferential access rights to Clearwater Port's terminal capacity for its supply.

"This is a significant step in implementing our long-term strategic plan for Clearwater Port," said Crystal Energy Chairman William O. Perkins III. "Woodside's participation in the project brings more than 15 years of liquefied natural gas operational experience and technical expertise, as well as an unblemished safety and environmental track record worthy of coastal California. This agreement fulfills our vision for creating an environmentally superior project with a world-class operator that will provide a secure, long-term natural gas supply to California."

"We are pleased that Woodside believes, as we do, that Clearwater Port is the best alternative for California because of its remote offshore location, use of existing infrastructure, project design that uses established technologies, and ability to provide a low-cost supply of clean-burning natural gas to the region," continued Perkins.

The Clearwater Port project calls for using the remotely located Platform Grace, 12.6 miles offshore Ventura County, as a liquefied natural gas import and regasification facility to bring much-needed natural gas to the California market. Once converted back to gas at the platform, the natural gas will be sent by pipeline to shore and connect to the existing natural gas pipeline distribution network. The terminal is being designed to produce about eight hundred million cubic feet of gas per day (800 mmscfd), a substantial portion of California's demand.

Woodside has operated Australia's North West Shelf Venture for more than 15 years and has safely delivered more than 1,600 cargoes to markets in Asia, the United States and Europe. The company, which celebrates its 50th anniversary in 2004, has core areas of focus in Australia, the United States, and Africa.