Download - LNG Testimony
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Liquefied Natural Gas(LNG) InformationAnswering questions about a proposed
LNG facility at Sparrows Point, MD
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What is Liquefied NaturalGas? LNG is natural gas that has been super
cooled to minus 260 degrees F becoming
liquid for easier storage and shipping
LNG is a clear, odorless, colorless, non-
corrosive and non-toxic liquid
LNG takes up 1/600th of the spacesimplifying storage and transportation
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Where is LNG Produced andExported?The U.S. receives most of its LNG from
Trinidad and Tobago Currently 12 countries export LNG
The largest LNG exporters are in the Middle
East and Asia
Russia and Norway will begin exporting LNG
in 2007
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Do Other Countries ImportLNG? Fourteen countries currently import LNG
Japan is the largest importer of LNG with 29 LNGterminals
China and Britain* have plans to import LNG
*Great Britain imported LNG briefly in the early 1960s and now plans to re-establish thatmarket
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Location Company
Lake Charles, LA Southern Union
Elba Island, GA El Paso
Everett, MA Tractabel
Cove Point, MD Dominion
U.S. Marine Mainland LNG
Import Terminals
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What Does an LNG TerminalLook Like?
LNG tanks
Docks
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How is LNG Transported bySea? Specially-designed double-hulled tankers
The double-hull provides increased
structural safety
The liquefying process allows for efficient
transport in bulk about 3.0 billion cubic feet
of gas per tankerInsulation allows the ships to act like
thermos bottles to keep the LNG cold
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Typical LNG TankerHolding tanks
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How is LNG Stored atMarine Terminals? LNG is transferred from arriving tankers tosecure storage tanks on land
Storage tanks are double-walled a tankwithin a tank for safety
Outer walls of tanks are made of carbonsteel and prestressed concrete
Safety walls are built around the tanks tocontain full content spill
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Cove Point LNG TerminalLNG tanks
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Cross-section of a Modern LNGTank
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Off-Loading at Cove Point
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Is LNG Stored at OtherLocations? LNG storage has become commonplaceacross the U.S.
Today, 96 LNG liquefaction, storage, andregasification plants operate in 29 states
LNG tanker trucks, governed by U.S.Department of Transportation regulations, usemany highways
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LNG Storage in the U.S.
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Where Are U.S. Natural Gas ProcessingPlants Located?
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Why is my Natural Gas Bill SoHigh? Natural gas is now used to produce a greatdeal of electricity, in addition to traditionaluses in home heating and industrial
Many natural gas production fields in the U.S.and Canada produce less and less gas eachyear
Less domestic natural gas supply and greaterdemand mean higher prices unless newsources, such as LNG, can be delivered
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Natural Gas Consumption isProjected to Increase OutstrippingDomestic Production
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Why do Importers Say There isa Benefit in Importing LNG? It is becoming more difficult for producers to
find natural gas in the U.S. or obtain it from
Canada and MexicoOther countries have substantial natural gas
but are located too far away to construct
pipelines to the U.S.
Natural gas is a relatively clean fuel for home
heating, industrial processing and electricity
production
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Canadian and Mexican NaturalGas Exports to U.S. are Slowing
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What are the Chief EconomicReasons for Increasing LNGImports? More LNG increases natural gas supplies to
meet U.S. demand New import facilities increases delivery
capacity
Expanded delivery capacity should helplower (and stabilize) heating and electricity
costs
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Does Maryland & the Mid-AtlanticArea Need Additional Natural GasCapacity?
Mid-Atlantic
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Who Regulates LNG Safety? The FERC (Federal Energy RegulatoryCommission) is responsible for permitting new
LNG onshore import and export terminals The U.S. DOT (Department of Transportation)
prescribes LNG and pipeline safety standards
The U.S. Coast Guard is responsible for the
safety of the LNG tankers
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Why is LNG Considered Safeto Import and Use? LNG has been safely delivered across theocean for over 40 years
33,000 LNG carrier voyages have occurred,
covering more than 60 million miles, withoutmajor accidents
For example, a LNG tanker enters TokyoBay every 20 hours with no spills
The LNG industry maintains extremely highstandards for safe and efficient operation
The LNG industry continuously improves itsoperational standards
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Why is LNG Considered to beSafe?In its liquid state, LNG is not explosive
When LNG is heated and becomes a gas,
the gas is not explosive if it is unconf ined
Natural gas is only flammable within a narrow
range of concentration in the air (5% to 15%)
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Which Studies Speak to theSafety of LNG?According to the December 2004 report issued bySandia National Laboratory:
Risks from accidental LNG spills, such as from
collisions and groundings, are small and manageablewithin current safety policies and practices
Risks from intentional events, such as terrorist acts,can be significantly reduced with modern engineering,
enhanced security, planning, accident prevention,and on-going training
Sandia National Laboratory primarily serves the U.S. Departmentof Energy
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LNG-related Accidents:Causes and Resulting SafetyUpgrades Cleveland, Ohio, 1944
Cause: Inadequate war-time material used
Upgrade: High quality stainless steel and modernconstruction techniques now used
Cove Point, Maryland, 1979 Cause: Human error and inadequate electronicmonitoring
Upgrade: Lessons learned led to changes inmonitoring and practices that are now usedindustry wide
Algeria, 2004 and 1977Cause: Human error and a bad valve (1977)
Cause: Improper boiler repair (2004)
Upgrade: improved operating procedures
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LNG-related Accidents:Lesson Learned LNG accidents are rare
In spite of an excellent record, the industryhas not ignored those rare incidents The result is better containment, materials, procedures,
monitoring and training
The extremely low accident rate is the resultof effective, industry-wide safety efforts
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Types of Potential LNG AccidentsExample 1: LNG Explosion Explosions could occur if a sufficient amount of
natural gas vapors release into a conf inedareaand encounter an ignition source ofsufficient strength
Just like motor gasoline, propane, or evenelectricity, human error can cause problems
Experience with LNG shows that this is highlyunl ikelybecause of on-going industry effortsto improve monitoring and training
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Types of Potential LNG AccidentsExample 2: LNG Pool FireAs a result of an accident at sea, LNG couldseep out of the breached tank and form a poolon the surface of the water
As the pool forms, some of the liquid will turninto LNG vapors
If an ignition source is present, vapors couldignite, resulting in the ignition of the LNG poolon the surface of the water
Experience shows that this scenario isunl ikelybecause where severe collisions haveoccurred, no vessel tanks leaked
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Possible Effects of a LNGPool-fire Within up to 4,220 feet of an LNG-relatedfirepeople and major commercial/industrialareas could be seriously affected
According to the Sandia Report, if the LNGis ignited, the impact of the fire shouldgenerally be low beyond 2,460 feet for smallaccidental spills and beyond 4,250 feet forlarge spills
The proposed Sparrows Point facility wouldbe approximately 7000 feet from thesurrounding public areas
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Effects and Types of InjuriesResulting from an LNG Pool-fire? Radiant heat is the main hazard
Up to 2,460 feet from the fire, the predominant
injuries would be third degree burns
Beyond approximately 2,460 feet victims wouldsuffer lesser degree burns
Beyond approximately 4,250 feet there would belittle or no injury or property damage
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Is a Terrorist Attack Likely? The U.S. will continue to face the risk of
domestic terrorist attacks The energy industry continues to take
extensive steps to protect criticalinfrastructure
LNG components are built to much higherstandards than many other energy facilitiesand are much harder to penetrate anddamage
Creating the events necessary to cause asignificant LNG incident is unlikely
No one can say a determined perpetratorwould not try
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Recapping the Benefits ofLNG The potential to slow the increase, or reduce,natural gas prices in the Mid-Atlantic regionand Baltimore
Added assurance that there will be adequate
natural gas for Maryland homes and industry
Meet the growing demand for the use ofnatural gas to generate electricity in Maryland
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Are There Other Benefits ofLNG? Safety relative to other forms of energysuch as stored motor gasoline
Safety relative to other chemicals regularly
shipped through the bay such as chlorine
Reduced asthma and other air quality
problems related to coal and oil fuels
High quality, technical jobs and expertise
in the local community
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Preventing and Managing Spills LNG tanks and tankers are built to extremely
high standards.
Storage tank are built with extensivemonitoring and alarm systems plus other safety
installations required by the state fire marshal Company safety procedures are promulgated,
checked continuously and personnel aretrained regularly
U.S. Coast Guard escorts minimize externalthreats
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Final Words on LNG Safety
The industrys operating history demonstratesthat incidents at an LNG facility are extremely
unlikely
The proposed facility would be constructed and
managed to minimize any harm to the public
The LNG industry has a strong economic
incentive to maintain and operate a safe
facilities The proposed facility would be located a safe
distance from neighborhoods and businesses