“It means that there will be more jobs for Californians,” Woodside Natural Gas president Steve Larson was quoted by media as saying at a LA press conference.

The commitment was welcomed by American labour unions and the US Department of Transportation’s Maritime Administration which, alongside California Governor Arnold Schwarzenegger, would be called on to approve or reject the LNG project.

Head of the US Maritime Administration Sean Connaughton told the Los Angeles Times newspaper the Woodside proposal “will become the primary focus of our agency.”

Under United States legislation, LNG facilities using American ships and crews are given priority consideration by federal regulators.

LNG is a controversial issue in California.

Earlier this year, BHP Billiton’s proposed $800 million Cabrillo Port LNG project was subject to a high-profile environmental campaign led by Hollywood celebrities.

Then in May, Schwarzenegger rejected the proposal to build a large floating LNG terminal, 22.5km off the Malibu coast.

The project would have created one of Australia’s most lucrative export deals.

Instead of using a large receiving terminal like BHP Billiton had proposed, Woodside is planning a buoy system that it says would be less of an eyesore.

The company plans to use delivery buoys more than 32km offshore from Los Angeles International Airport with dual undersea pipelines to deliver natural gas to shore.

Two similar developments were recently approved in Massachusetts.

As part of its pledge to use US-only crews, Woodside has agreed to work with the US Merchant Marine Academy to train Americans to work on natural gas cargo ships.

Public hearings on the Woodside proposal are expected to begin in LA in the middle of next month.