Terminator 4

How Hollywood put a stop to BHP's LNG facility and how the unions will play a star role in getting the production back on track

Arnold Schwarzenegger has terminated the Big Australian's plan to build a LNG facility off the California coast. But Paddy Crumlin and David Heindell plan to set things right through an historic US/Australian union campaign.

The same week resources giant BHP Billiton got the knockback for the multi-billion-dollar LNG project due to an environmental outcry from Hollywood celebrity residents, the Maritime Union Australia and the Seafarers' International Union of America signed off on a crew pact pledging that any LNG trade between the two countries would be the reserve of US and Australian seafarers.

This, they assured the local media was not just about jobs for the boys. It was a matter of safeguarding the borders of both nations, and their coastal waters. And putting things right in Hollywood.

Australian and American seafarers are amongst the the most skilled, safe and professional in the world. Both have gone through rigorous police and security checks. LNG is a volatile cargo, a high risk, high cost cargo trading in waters renowned for security breaches and pirating.

Navigating these vessels through these waters takes vigilance, care and reliability. Crews of convenience are often recruited from these very danger zones without backgrounding, adding to the intrinsic risks.

California is one of the most environmentally sensitive communities in the States. From organic muesli and free-range hormone-free chicken to keen public awareness on green issues, Californians watch environmental issues closely. So when word first got out that BHP planned to anchor a floating LNG terminal off the celebrity residential area of Malibu Beach, Hollywood put on one of its most successful productions.

Film stars and other beach residents who came out against BHP Billiton's plan to ship Australian LNG to a nearby $800 million offshore terminal, got their way on May 20 when co-star Arnie Schwarzenegger vetoed the Cabrillo Port project.

His veto followed rulings against the development by two US regulatory bodies in April.

But, as Tradewinds reports, Pierce Brosnan and Halle Berry could be persuaded to drop their opposition to an LNG terminal by an agreement reached between the two seafarers' unions.

"We will be taking to the governor and letting him know his concerns were well founded," said Dave Heindel, secretary of the SIU. "But not when it comes to the SIU or the MUA."

The union solidarity pact is aimed at defusing concerns in the US over the security and safety of LNG carriers by having them crewed by Australians and Americans.

MUA national secretary Paddy Crumlin said it would be a "big step forward" for the community there if the plan's opponents knew the ships would be crewed by "quality, security-screened professionals".

He said the Malibu LNG plan was not "dead in the water" and that the union agreement was "mature globalisation with a conscience". The deal between two seafarers' union could help revive plans or pave the way for future projects.

While worldwide natural gas is in plentiful supply, the United States holds less than 4 per cent of world reserves.

By the year 2025, as demand increases, domestic production is only expected to account for 78 per cent of consumption, and LNG imports are projected to increase eight-fold to 4.4 trillion cubic feet per year.

This rapid growth in energy consumption has resulted in a dramatic increase in the size of the worldwide LNG tanker fleet.

It is estimated that as many as 3,700 to 5,000 additional mariners may be needed by next year.

Over the last five years the global LNG carrier fleet grew by 73 per cent, from 128 to 222 vessels. And, an additional 133 LNG vessels are scheduled for delivery to service the global LNG trades by 2010.

This expanded fleet will require as many as 10,000 additional seafarers, of whom almost 3,000 will be licensed officers. This offers tremendous employment opportunities for both US and Australian mariners.

The employment of highly trained and skilled licensed US and Australian mariners would help alleviate the world-wide shortage of professional mariners confronting the international LNG shipping industry and, assist in maintaining the LNG industry's exceptional safety record.

David Heindel commended the recent US Congress decision to amend the US Deepwater Port Act to give priority to the processing of licenses for LNG facilities and US flagged vessels: "This is key to strengthening US maritime security and provides a real opportunity for participation by US and Australian shipping and seafarers," he said. ????

The Act also directed that the nation of registry for, and the nationality citizenship of, officers and crew serving on board vessels transporting natural gas to a deepwater port be considered when granting a license.

The MUA-SIU solidarity agreement has the full backing of the ITF: "We are on standby to mobilise support from our powerful affiliates in the LNG producing and user nations across the globe," said David Cockroft, ITF general secretary. "The LNG trade requires the highest standards in seafaring and there is no place for ill-reputed Flag of Convenience shipping."

Meanwhile De-Anne Kelly MP, Parliamentary Secretary to the Minister for Transport and Regional Services, said it was all about the MUA attempting union dominance of the LNG trade.