Proposed OceanWay LNG project includes pledge to use U.S.-flagged vessels

Proposed OceanWay LNG project includes pledge to use U.S.-flagged vessels

The Maritime Administration and Woodside Natural Gas announced July 30 that Woodside will use U.S.-flagged vessels in its proposed OceanWay liquefied natural gas project 28 miles off the California coast.

"Woodside Natural Gas worked closely with the Maritime Administration on this issue," Woodside President Steve Larson said at the company's office in Santa Monica. "We are dedicated to the highest level of safety and security for our project, and U.S. flagging is consistent with that commitment."

Maritime Administrator Sean Connaughton joined Larson for the announcement. "The commitment made by Woodside Natural Gas ... calls for Woodside to register two new LNG regasification vessels under the U.S. flag and to employ American officers and crews in the operation of the vessels utilized in the proposed OceanWay deepwater port facility," Connaughton explained. "Woodside will use their new vessels to facilitate the mid-ocean ship-to-ship transfer of LNG and the regasification of the LNG into natural gas for Southern California's existing natural gas pipeline system."

Connaughton added: "The employment of U.S. citizens aboard the LNG vessels serving our natural gas receiving facilities is clearly in the nation's best interest. Placing the transportation of LNG under the control of U.S. mariners, who are subject to strenuous background checks, will add an additional layer of safety and security to our energy supply chain. At present, there are no U.S.-flagged LNG vessels operating in the world, with the last U.S.-flag LNG vessels leaving the United States registry in 1999."

Under a 2006 amendment to the 1974 Deepwater Port Act, "top priority" is to be granted "to the processing of a license ... for liquefied natural gas facilities that will be supplied with liquefied natural gas by United States flag vessels."

Woodside Natural Gas has not yet determined whether the company will operate the U.S.-flagged LNG newbuilds directly or charter them to an established U.S.-flagged merchant vessel operator.

American Maritime Officers, which was represented at the Woodside Natural Gas announcement by AMO National Executive Board Member Daniel Shea, is the only U.S. merchant marine officers' union with current LNG tanker employment and a growing reserve of engine and deck officers with recent LNG experience.

In June 2007, AMO joined other seagoing unions, the U.S. Merchant Marine Academy at Kings Point, N.Y., six state-operated maritime academies and MARAD in signing an agreement setting a universal set of training standards for U.S. mariners to qualify for work aboard LNG carriers.

The AMO Safety and Education Plan's RTM STAR Center is the only U.S. training center certified to Society of International Gas Tanker and Terminal Operators standards. STAR Center's LNG Tankship Liquefied Gases Course also meets the requirements of 46 CFR Part 13 for all Tankerman endorsements, including Person-In-Charge (Liquefied Gases) and all STCW requirements.

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