1. What is a liquefied natural gas (LNG) import terminal?
An LNG import terminal is a facility that will be used to receive, temporarily store and regasify LNG. The terminal consists of low temperature storage tanks, an unloading dock for LNG carrier vessels, regasification equipment (known as vaporizers), and other related equipment. LNG is offloaded from LNG carriers and pumped into low temperature, unpressurized storage tanks. On demand, the vaporizers warm the LNG to transform it back into its gaseous state – the same natural gas used by millions of Americans in their homes for heating, cooling and cooking. The regasified LNG is subsequently delivered to customers via a pipeline.
2. Where will the pipeline be constructed?
There are various opportunities for pipeline interconnects within close proximity to the proposed facility. A connecting pipeline will be constructed from the facility to an existing pipeline.
3. What is the timeline/schedule for the project?
We anticipate that construction of the facilities would begin in 2006 and the terminal would begin operation in 2009.
4. How large will the site be?
The site will occupy approximately 40 acres and be surrounded by open water and more than 200 acres of unoccupied land controlled by the Port of Pascagoula.
5. How many LNG vessels per year will berth at the facility and how long will they remain at the terminal?
Approximately one to two LNG vessels per week will unload at the terminal. Each vessel generally will be docked at the facility for less than 24 hours.
6. Will LNG vessels negatively impact channel traffic?
The channel is more than adequate for the travel of LNG vessels. LNG ships meet all Coast Guard regulations and comply with all additional government constraints. LNG vessels passing into port or out to sea on an average of one every other day or less frequently will not adversely affect the ability of the channel to handle existing and projected traffic.
7. Why does it seem that in the past few years there has been a push of proposed LNG import terminals?
The demand for natural gas in the United States has been steadily increasing, while production of natural gas from reserves in North America has flattened. The increasing demand for natural gas is partially attributable to it being the cleanest burning of petroleum hydrocarbons, which makes it an environmentally preferred fuel for new power plants. Marine terminals are an essential part of the supply chain for the importation of LNG from overseas locations to markets in the U.S. and other countries where demand is outstripping supplies.
8. Is the Port of Pascagoula a good site for LNG terminal input?
The proposed site was identified as an ideal location to place an LNG receiving terminal in the late 1970s. Due to the increasing demand for clean, natural gas it is now economically feasible to develop the site for this use.
Economic Impact
9. How will the Port of Pascagoula benefit from an LNG terminal?
The Board of Supervisors and the Port Commission have stated a goal of reducing the Port of Pascagoula’s dependence on tax revenues. The Port will benefit from rent payments paid by the LNG facility. Those payments, along with other fees and charges associated with LNG ships, are expected to generate millions of dollars of revenue for the Port.
10. How many jobs will this LNG project create?
The LNG terminal development phases will provide jobs to about 1,500 workers in a variety of construction trades. Upon entering the operating phase, the facility will create more than 50 long-term career positions with average salaries higher than the norm for the area.
11. What would an LNG terminal mean to the State of Mississippi?
This project would make Mississippi an important part of the U.S. energy market. Mississippi would benefit directly from a share of the lease payments paid by the facility to the Port of Pascagoula. Indirect benefits would be derived as a result of the increased employment and commercial activity in the State. Mississippi will also benefit from improved access to a proven, clean source of energy.
12. Would this project facilitate the development of additional industry along the Gulf Coast?
The most positive impact this LNG project will have is the assurance of a steady supply of a clean, efficient energy source for both future and existing consumers. Local governments and economic development authorities will have one more advantage in attracting a desirable level of the types of businesses most beneficial to coastal communities.
Approval/Application Process
13. What agencies are involved in the regulatory process to license an LNG terminal and a natural gas pipeline?
The Federal Energy Regulatory Commission (FERC) is the lead agency that reviews, and approves or denies, onshore LNG import terminals and related pipeline facilities. FERC requires that an Environmental Impact Statement (EIS) be completed in compliance with the National Environmental Policy Act (NEPA). Some of the Federal and State agencies involved in the review process include:
14. What issues are considered in the permit application process?
The FERC will obtain information from many Federal, State and local government agencies to conduct a rigorous analysis of the permit applications for the terminal and a new connecting pipeline. The overriding factor that the FERC considers is whether a proposed project is in the public interest. In order to make that determination, the FERC will consider many matters including:
15. How can I become involved in the regulatory process?
FERC – the government agency that leads the regulatory process – requires that local communities have a significant opportunity to participate in the application approval process. FERC strongly encourages the public to make its views known throughout the process by attending public meetings, commenting on the draft environmental assessment and environmental impact statements, and examining all publicly filed documents.
Properties and Use of LNG
16. What is LNG?
LNG is natural gas cooled to -260&Mac176;F, at which temperature the gas becomes a liquid at normal atmospheric pressure. This transformation from gas to liquid reduces the volume of the natural gas by a factor of 600, allowing for more economical transportation to distant markets.
17. How is natural gas cooled to produce LNG and how is it maintained as a liquid?
Natural gas is cooled at exporting facilities by a refrigeration process and kept at that temperature in tanks onboard ships until vaporization at an import facility. LNG is not formed by or stored under pressure.
18. Why does natural gas have to be shipped as a liquid and not in its natural atmospheric state?
Natural gas is liquefied most importantly to save space. LNG has a volume of 1/600th that of natural gas in a gaseous state, thus allowing 600 times more product to fit within a finite space without requiring pressurization, making it more economical and safer to transport. As a side benefit, natural gas in its liquefied state is neither flammable nor explosive.
19. Once the LNG is vaporized, how is it transported to its desired destination?
After LNG is vaporized, it is treated like domestically produced natural gas and introduced into a pipeline for further transportation and distribution. In the case of this facility, an interconnecting pipeline will be constructed to allow the gas to be transported and distributed to customers via the existing natural gas pipeline network.
History of LNG and The LNG Industry
20. Where does LNG originate?
LNG is exported by countries with an excess supply of natural gas, including Trinidad, Indonesia, Malaysia, Nigeria, Algeria, Egypt, Qatar, United Arab Emirates, and Oman. Russia and Venezuela have some of the largest natural gas reserves in the world and are expected to become major exporters in the near future.
21. How many LNG facilities are located in the U.S.?
There are over 100 LNG facilities within the U.S., more than any other country. The majority of these facilities are operated by pipeline companies that receive LNG through pipeline systems.
22. What other countries import LNG?
There are more than 30 LNG import facilities located outside the U.S. in countries such as Japan, South Korea, Taiwan, Portugal, Spain, Turkey, Greece, Italy, France, and Belgium.
Public Safety Issues Related to LNG
23. Is LNG Safe?
Yes. LNG has been handled for decades and has an exemplary safety record. LNG is a clear, non-toxic, non-corrosive and odorless liquid that is less dense than water. If LNG were to be exposed to ambient temperatures, as in the rare event of a leak, it would vaporize quickly and warm to the temperature of the environment. At ambient temperature the vapor is 45% lighter than air, rises and quickly dissipates.
24. Will LNG explode?
No. The most popular misconception concerning LNG is that it will explode during a catastrophic release. This is untrue. Further, LNG is not stored under pressure so a ruptured LNG tank would not result in an immediate catastrophic release of LNG. In laboratory and open ocean tests, there are no documented cases of LNG explosions, according to the U.S. Department of Energy. Once revaporized, the resulting gas is the equivalent of natural gas and distributed by our domestic natural gas industry, which has an excellent safety record.
25. In the event of an LNG release, how far downwind can the vapor cloud be ignited or adversely affect human respiration?
Every LNG facility has its own unique characteristics. Before a facility is permitted, vapor dispersion models are run to determine the extent that potentially flammable vapors can migrate from a release. Within the area, safety zones are created. In the case of this facility, the site will be bordered by open water and an unoccupied U.S. Army Corps of Engineers dredged material disposal area.
26. If LNG were to spill onto water would it produce something similar to an oil slick?
No. LNG evaporates quickly and as the gas warms up it becomes lighter than air, rises and disperses into the atmosphere, leaving no residue. There is no environmental cleanup needed for LNG spills.
Safety Design Considerations in LNG Facility Operations
27. How will the LNG terminal be secured?
The perimeter of the site will be fenced and blockades will be present at the road entrance to the facility. Access to the unloading dock and LNG carriers will be tightly controlled. Several state-of-the-art systems, including fiber optic detection systems and security cameras, will be used to control access, monitor activities, and detect potential problems 24 hours a day. Security personnel will be available to respond to intrusions, and Gulf LNG Energy will coordinate its own security measures with governmental authorities with security responsibilities.
28. In the event of a spill from an LNG storage tank, how will LNG be contained and disposed of?
In the U.S., LNG facilities are designed in strict accordance with governmental regulations. The first line of containment is a double-walled tank (a tank inside a tank). If for some reason the inner wall of the storage tank fails, the outer wall can fully and safely contain all LNG. Also, a containment barrier/berm is constructed around all storage tanks. The barrier/berm is designed to contain at least one and one-half times the amount of LNG that can be stored in the tank it surrounds. Spilled LNG that is unrecoverable will simply evaporate and dissipate into the atmosphere.
Environmental Considerations in LNG Terminal Construction and Operations
29. How might dredging activities affect local fisheries?
Required dredging of nearby water bodies will temporarily affect turbidity of local waters. All mandated standards will be implemented during dredging in order to minimize silt and turbid waters from migrating into surrounding areas. The small area to be dredged to accommodate LNG vessels may also cause a negligible reduction in the amount of shallow areas where the bottom is marginally suitable for certain species of fish. However, this is not expected to affect local fisheries.
30. Will fish larvae and other marine organisms be sucked in or killed by use of seawater to vaporize the LNG?
No. Submerged combustion vaporizers will be used to vaporize LNG. This is a closed loop system, not requiring the circulation of seawater; therefore, no larvae or other marine organisms will be drawn into vaporizing equipment.
31. Will the terminal have large emission stacks?
Emission stacks associated with LNG facilities are not as visually noticeable as many other industrial facilities. Stacks are sized to effectively disperse emissions, therefore sizing will not be known until all facility design and operation plans are finalized. Gulf LNG Energy believes that the stack(s) required for this facility will not detract from the current esthetics of the area surrounding the facility, which has long been industrial in character.
32. In the event of an LNG spill, can groundwater be affected?
No. Upon the unlikely event of an LNG release on land, LNG exposed to even the coldest temperatures experienced in Pascagoula will quickly evaporate into a colorless and odorless vapor. The vaporized LNG will dissipate before it has a chance to penetrate groundwater supplies.
Additional Information
33. Where can additional information on LNG and LNG receiving terminals be obtained?
The FERC maintains an excellent web-site containing informative and balanced information relating to these topics. A good starting point is: http://www.ferc.gov/industries/gas/indus-act/lng-what.asp.
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