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LNG USA Houston, Texas. J. Mark Robinson, Director Office of Energy Projects Federal Energy Regulatory Commission September 23, 2004. Gas Facts. Natural gas is the economic/ environmental fuel of choice. 96% of natural gas reserves are outside North America.
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LNG USAHouston, Texas J. Mark Robinson, Director Office of Energy Projects Federal Energy Regulatory Commission September 23, 2004
Gas Facts • Natural gas is the economic/ environmental fuel of choice. • 96% of natural gas reserves are outside North America. • 25% of World natural gas consumption occurs in the US.
Gas Supply • Projected domestic production will not keep pace with projected demand • Pipeline imports from Canada are declining • LNG is the supply source that will fill the demand-supply gap.
Project Status… Cameron LNG – Started construction of LNG facility in June 2004 Freeport LNG – Proposes start of construction of LNG facility in September 2004 Lake Charles LNG – Expansion of deliverability approved at the September 15 Commission meeting Weaver’s Cove – Draft EIS issued August 2004 Sabine Pass – Draft EIS issued August 2004 (Cheniere)
Project Status… • Pre-Filing: • Occidental Energy, Ingleside (PF04-09-000) • Sempra, Port Arthur (PF04-11-000) • Cove Point, Dominion (PF04-15-000) Applications Filed: • Weaver’s Cove (CP04-36-000) • Cheniere, Corpus Christi (CP04-37-000) • Cheniere, Sabine Pass (CP04-47-000) • Sound Energy Solutions (CP04-58-000) • Keyspan (CP04-223-000) • ExxonMobil, Golden Pass (CP04-386-000) • ExxonMobil, Vista del Sol (CP04-395-000) • BP, Crown Landing (CP04-411-000)
LNG Project Status -Associated Pipelines Approved: • AES Ocean Express (CP02-90) • Calypso Tractebel (CP01-409) Pre-Filing: • El Paso, Seafarer (PF04-08) Applications Filed: • Working on DEIS with USCG • Freeport-McMoran, Main Pass (CP04-68) • Conoco Phillips, Compass Pass (CP04-114) • Exxon Mobil, Pearl Crossing (CP04-374)
Existing Terminals with Approved Expansions A. Everett, MA : 1.035 Bcfd (Tractebel – DOMAC) B. Cove Point, MD : 1.0 Bcfd (Dominion – Cove Point LNG) C. Elba Island, GA : 1.2 Bcfd (El Paso – Southern LNG) D. Lake Charles, LA : 1.2 Bcfd (Southern Union – Trunkline LNG) Approved Terminals 1. Hackberry, LA : 1.5 Bcfd, (Sempra Energy) 2. Port Pelican: 1.6 Bcfd, (Chevron Texaco) 3. Bahamas : 0.84 Bcfd, (AES Ocean Express)* 4. Gulf of Mexico: 0.5 Bcfd, (El Paso Energy Bridge GOM, LLC) 5. Bahamas : 0.83 Bcfd, (Calypso Tractebel)* 6. Freeport, TX : 1.5 Bcfd, (Cheniere/Freeport LNG Dev.) 7. Lake Charles, LA: 0.6 Bcfd (Southern Union – Trunkline LNG) Proposed Terminals and Expansions – FERC 8. Fall River, MA : 0.8 Bcfd, (Weaver's Cove Energy/Hess LNG) 9. Long Beach, CA : 0.7 Bcfd, (Mitsubishi/ConocoPhillips – Sound Energy Solutions) 10. Corpus Christi, TX : 2.6 Bcfd, (Cheniere LNG Partners) 11. Sabine, LA : 2.6 Bcfd (Cheniere LNG) 12. Corpus Christi, TX : 1.0 Bcfd (Vista Del Sol - ExxonMobil) 13. Sabine, TX : 1.0 Bcfd (Golden Pass - ExxonMobil) 14. Logan Township, NJ : 1.2 Bcfd (Crown Landing LNG – BP) 15. Bahamas : 0.5 Bcfd, (Seafarer - El Paso/FPL ) 16. Corpus Christi, TX: 1.0 Bcfd (Occidental Energy Ventures) 17.Providence, RI : 0.5 Bcfd (Keyspan & BG LNG) 18. Port Arthur, TX: 1.5 Bcfd (Sempra) 19. Cove Point, MD : 0.8 Bcfd (Dominion) Proposed Terminals – Coast Guard 20. California Offshore: 1.5 Bcfd (Cabrillo Port – BHP Billiton) 21. Louisiana Offshore : 1.0 Bcfd (Gulf Landing – Shell) 22. So. California Offshore : 0.5 Bcfd, (Crystal Energy) 23. Louisiana Offshore : 1.0 Bcfd (Main Pass McMoRan Exp.) 24. Gulf of Mexico: n/a (Compass Port - ConocoPhillips) 25. Gulf of Mexico : 2.8 Bcfd (Pearl Crossing - ExxonMobil) Planned Terminals and Expansions 26. Brownsville, TX : n/a, (Cheniere LNG Partners) 27. Coos Bay, OR: 0.13 Bcfd, (Energy Projects Development) 28. Somerset, MA : 0.65 Bcfd (Somerset LNG) 29. Belmar, NJ Offshore : n/a (El Paso Global) 30. Altamira, Tamulipas : 1.12 Bcfd, (Shell) 31. Baja California, MX : 1.0 Bcfd, (Sempra & Shell) 32. Baja California - Offshore : 1.4 Bcfd, (Chevron Texaco) 33. California - Offshore : 0.75 Bcfd, (Chevron Texaco) 34. St. John, NB : 1.0 Bcfd, (Canaport – Irving Oil) 35. Point Tupper, NS 1.0 Bcf/d (Bear Head LNG - Access Northeast Energy) 36. Pleasant Point, ME : 0.5 Bcf/d (Quoddy Bay, LLC) 37. Quebec City, QC : 0.5 Bcfd (Project Rabaska - Enbridge/Gaz Met/Gaz de France) 38. Lázaro Cárdenas, MX : 0.5 Bcfd (Tractebel/Repsol) 39. Rivière-du- Loup, QC: 0.5 Bcfd (Cacouna Energy – TransCanada/PetroCanada) 40. St. Helens, OR: 0.7 Bcfd (Port Westward LNG LLC) 41. Puerto Libertad, MX: 1.3 Bcfd (Sonora Pacific LNG) 42. Offshore Boston, MA: 0.8 Bcfd (Northeast Gateway – Excelerate Energy) 43. Kitimat, BC: 0.34 Bcfd (Galveston LNG) 44. Prince Rupert, BC: 0.30 Bcfd (WestPac Terminals) 45. Goldboro, NS 1.0 Bcfd (Keltic Petrochemicals) FERC Existing and Proposed North American LNG Terminals 44 43 39 35 37 34 45 36 40 A 42 17 27 28 8 29 14 B 19 20 9 22 C 33 31 15 18 32 D 1 11 3 5 41 7 6 13 24 10 25 16 23 12 4 26 2 21 US Jurisdiction FERC US Coast Guard 30 38 September 2004 *US pipeline approved; LNG terminal pending in Bahamas Office of Energy Projects
LNG Siting Processes There are two FERC processes for siting LNG terminals: • FERC Traditional Review Process • Pre-Filing Process
FERC Public Meeting & Public Comment LNG Review Process Notice of Application Interventions / Protests Notice of Intent Safety and Engineering Cryogenic Design & Safety Review Scoping Meetings & Site Visit Data Requests / Analysis & Agency Coordination Technical Conference DEIS FEIS Authorization / Denial 11
Benefits of Pre-Filing • More interactive NEPA process, no shortcuts • Earlier, more direct involvement by FERC, other agencies, landowners • Goal of “no surprises” • Time savings realized only if we are working together with stakeholders • FERC staff is an advocate of the Process, not the Project!
The FERC Process: Issue Notice of the Application Project Sponsor Sends Landowner Notification Package Issue Notice of Intent to Prepare the NEPA Document (i.e., scoping) Hold Scoping Meetings Public Input: File an Intervention; register for e-subscription Contact the project sponsor w/questions, concerns; contact FERC Send letters expressing concerns about environmental impact Attend scoping meetings There Are Opportunitiesfor Public Involvement
The FERC Process: Issue Notice of Availability of the DEIS Hold Public Meetings on DEIS Issue a Commission Order Public Input: File comments on the adequacy of DEIS Attend public meetings to give comments on DEIS Interveners can file a request for Rehearing of a Commission Order There Are Opportunitiesfor Public Involvement
LNG Siting Issues • Safety • Takeaway Capacity • Local acceptance • Federal and State approvals
Recent Events • ABS Study • Skikda Accident • Reorganization for Safety • Fire Marshal Interaction • Three “Faces” of LNG • Regional Planning
Recent EventsThree “Faces” of LNG • How you get your LNG news affects your perception • Popular Press (e.g., Newspapers) • Trade Press • FERC Filings and Issuances
Recent EventsThe FERC Model • A number of studies gave rise to controversy • FERC contracted with ABSG to identify models • Gives FERC the ability to do more site specific modeling and reviews in EISs • Provides a solid theoretical foundation from which to build on as new information becomes available • Assumptions in the study are conservative
Recent EventsSkikda Accident • Preliminary findings: • Initial explosion of high-pressure steam boiler caused by hydrocarbon leakage into combustion air fan • Larger secondary explosion of the hydrocarbon vapors in the immediate vicinity. • Consequences: Loss of life and plant property • March 13 – 15, 2004 – FERC / DOE Team inspected accident site and interviewed Sonatrach. • FERC / DOE Report addresses team review.
Recent EventsReorganization for Safety • New LNG Branch at FERC to focus on and enhance LNG review, inspection programs • Provide for Seamless Review of LNG Facilities • Interagency Agreement on Safety and Security • Application of FERC Model for LNG Tanker Release Consequences • RFP out for review of the LNG Program
Recent EventsFire Marshal Interaction • National Association of State Fire Marshals (NASFM) • The Partnership for Excellence in Pipeline Safety is authorized under a Cooperative Agreement between the NASFM and the OPS • NASFM will mobilize America’s emergency responders and the communities they serve to help prevent, safely mitigate and investigate pipeline incidents • LNG module being developed • www.safepipelines.org
Recent EventsRegional Planning • FERC’s processing of LNG proposals eliminates the need for regional planning of LNG • Our review process addresses the public interest • We evaluate the proposals, giving regulatory certainty to all involved stakeholders. • Efficient and timely decisions, with proper consideration given to environmental concerns, including examinations of alternative sites, allows the market to pick the appropriate LNG facilities.
Outlook/Issues Associatedwith LNG Development • States attempting to assert economic jurisdiction in the post-Hackberry environment • Public safety information/Irrational Risk Standard • Interchangeability • Congressional Legislation