Environmental Regulation and Liquefied Natural Gas Commissioner
Suedeen G. Kelly, FERC Duke Environmental Law & Policy Forum
November 19, 2004 Slide 2 FERC 2 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. Slide 3 FERC 3 * Approximately 29 TCF Of The
Rockies Gas Resources Are Closed To Development and 108 Tcf Are
Available With Restrictions. Source: NPC Some Production Areas Are
Not Accessible Slide 4 FERC 4 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. Slide 5 FERC 5 How Much Natural
Gas Is Out There? Source: EIA, World Oil Total World Gas Reserves
as of 1/1/03: 6,127 Trillion Cubic Feet Slide 6 FERC 6 LNG Imports
by Country Slide 7 Economic Oversight Access to LNG Terminal A Open
Access At Delivery of Liquid to Terminal LNG Suppliers LNG Buyers A
B B Open Access At Delivery of Vapor into Interstate Pipeline
System Liquid to Vapor Flow FERC 7 Slide 8 8 37 32 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 (Ingleside Energy 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: 1.0 Bcfd (Compass Port -
ConocoPhillips) 25. Gulf of Mexico : 2.8 Bcfd (Pearl Crossing -
ExxonMobil) Planned Terminals and Expansions 26. Coos Bay, OR: 0.13
Bcfd, (Energy Projects Development) 27. Somerset, MA : 0.65 Bcfd
(Somerset LNG) 28. California - Offshore : 0.75 Bcfd, (Chevron
Texaco) 29. Pleasant Point, ME : 0.5 Bcf/d (Quoddy Bay, LLC) 30.
St. Helens, OR: 0.7 Bcfd (Port Westward LNG LLC) 31. Offshore
Boston, MA: 0.8 Bcfd (Northeast Gateway Excelerate Energy) 32.
Galveston, TX: 1.2 Bcfd (Pelican Island BP) 33. Pascagoula, MS: 1.0
Bcfd (Gulf LNG Energy LLC) 34. Port Lavaca, TX: 1.0 Bcfd (Calhoun
LNG Gulf Coast LNG Partners) 35. LI Sound, NY: 1.0 Bcfd (Broadwater
Energy TransCanada/Shell) 36. Philadelphia, PA: 0.6 Bcfd (Freedom
Energy Center PGW) 37. Pascagoula, MS: 1.3 Bcfd (ChevronTexaco))
Canadian Approved and Planned Terminals 38. St. John, NB : 1.0
Bcfd, (Canaport Irving Oil)** 39. Point Tupper, NS 1.0 Bcf/d (Bear
Head LNG - Anadarko)** 40. Quebec City, QC : 0.5 Bcfd (Project
Rabaska Enbridge/Gaz Met/Gaz de France) 41. Rivire-du- Loup, QC:
0.5 Bcfd (Cacouna Energy TransCanada/PetroCanada) 42. Kitimat, BC:
0.34 Bcfd (Galveston LNG) 43. Prince Rupert, BC: 0.30 Bcfd (WestPac
Terminals) 44. Goldboro, NS 1.0 Bcfd (Keltic Petrochemicals)
Mexican Approved and Planned Terminals 45. Altamira, Tamulipas :
1.12 Bcfd, (Shell)** 46. Baja California, MX : 1.0 Bcfd, (Sempra
& Shell)** 47. Baja California - Offshore : 1.4 Bcfd, (Chevron
Texaco) 48. Lzaro Crdenas, MX : 0.5 Bcfd (Tractebel/Repsol) 49.
Puerto Libertad, MX: 1.3 Bcfd (Sonora Pacific LNG) Existing and
Proposed North American LNG Terminals November 2004 FERC Office of
Energy Projects A C 1 3 5 2 4 38 15 6 34 45 10 20 9 23 22 39 40 29
48 21 46 47 12 25 11 13 17 B 28 26 7 30 19 16 41 24 18 D 49 US
Jurisdiction FERC US Coast Guard 31 43 42 * US pipeline approved;
LNG terminal pending in Bahamas ** These projects have been
approved by the Mexican and Canadian authorities 44 33 8 27 35 36
14 Slide 9 Office of Energy Projects 9 Pleasant Point, ME Everett,
MA Providence, RI Offshore Boston, MA Fall River, MA Somerset, MA
Northeast LNG Terminals October 2004 Legend: Existing Terminal
Approved Terminal Proposed Terminal: Pre-Filing Proposed Terminal:
Filed Working on DEIS Working on FEIS Planned Terminal Long Island
Sound, NY Slide 10 Office of Energy Projects 10 Mid-Atlantic LNG
Terminals Cove Point, MD Logan Township, NJ Philadelphia, PA
Legend: Existing Terminal Approved Terminal Proposed Terminal:
Pre-Filing Proposed Terminal: Filed Working on DEIS Working on FEIS
Planned Terminal October 2004 Slide 11 Office of Energy Projects 11
Southeast LNG Terminals Elba Island, GA (C) Bahamas Legend:
Existing Terminal Approved Terminal Proposed Terminal: Pre-Filing
Proposed Terminal: Filed Working on DEIS Working on FEIS Planned
Terminal October 2004 Pipeline only Slide 12 Office of Energy
Projects 12 Corpus Christi LNG, TX Vista Del Sol Ingleside LNG Lake
Charles, LA Port Pelican Pearl Crossing Freeport, TX Golden Pass,
TX Brownsville, TX Port Arthur Sabine Pass, LA Energy Bridge Gulf
Coast LNG Terminals Main Pass Cameron Gulf Landing October 2004
Compass Port Legend: Existing Terminal Approved Terminal Proposed
Terminal: Pre-Filing Proposed Terminal: Filed Working on DEIS
Working on FEIS Planned Terminal Galveston, TX Pascagoula, MS Port
Lavaca, TX Slide 13 Office of Energy Projects 13 Long Beach, CA
California Offshore California LNG Terminals Chevron Texaco BHP
Billiton Crystal Energy Legend: Existing Terminal Approved Terminal
Proposed Terminal: Pre-Filing Proposed Terminal: Filed Working on
DEIS Working on FEIS Planned Terminal October 2004 Slide 14 FERC 14
Office of Energy Projects 14 Northwest LNG Terminals Coos Bay, OR
St. Helens, OR Legend: Existing Terminal Approved Terminal Proposed
Terminal: Pre-Filing Proposed Terminal: Filed Working on DEIS
Working on FEIS Planned Terminal October 2004 Slide 15 FERC 15
Maximum LNG Deliverability Growth Slide 16 FERC 16 US Natural Gas
Balance Slide 17 FERC 17 LNG Siting Processes There are two FERC
processes for siting LNG terminals: FERC Traditional Review Process
Pre-Filing Process Slide 18 LNG Review Process Cryogenic Design
& Safety Review Public Meeting & Public Comment Scoping
Meetings & Site Visit Interventions / Protests Notice of
Application Authorization / Denial Technical Conference DEIS FEIS
Notice of Intent Safety and Engineering Data Requests / Analysis
& Agency Coordination FERC 18 Slide 19 FERC 19 The FERC
Process: We Issue Notice of the Application Project Sponsor Sends
Landowner Notification Package SCOPING = We Issue Notice of Intent
to Prepare the NEPA Document Public Meeting(s) Public Input: File
an Intervention Contact the project sponsor w/questions, concerns;
contact FERC Send letters expressing concerns about environmental
impact Attend scoping meetings Public Involvement Slide 20 FERC 20
The FERC Process: Issue Notice of Availability of the DEIS 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 Public Involvement Slide 21 FERC 21 LNG Terminal
Siting Issues Safety Take Away Capacity Local acceptance Federal
and State approvals Slide 22 FERC 22 Safety Proximity to
residential and commercial areas raises public safety concerns
Exclusion zones DOT/OPS enforces security FERC performs pre- and
post-certificate reviews of LNG terminals Biennial reviews continue
for life of terminal. Coast Guard enforces offshore ship safety
Slide 23 FERC 23 Takeaway Capacity Is there an existing pipeline
with takeaway capacity? Does the project require new pipeline
construction? NEPA requires an analysis of the cumulative effects.
Can not have an LNG terminal without takeaway capacity Slide 24
FERC 24 Federal and State Approvals Must get approvals: FERC NGA
Approval DOT/OPS Exclusion Zones Coast Guard Vessel Operating Plan
Corps of Engineers Dredging, Wetland Filling, Alternative Sites
NMFS, FWS Endangered Species Act Coastal Zone Consistency
Determination State Agency Requirements Slide 25 FERC 25 FERCs
Recent Actions FERCs Modeling Study Skikda Accident Follow-up
Reorganization for Safety @ FERC Fire Marshal Interaction Three
Faces of LNG Slide 26 FERC 26 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 Events The FERC Model Slide 27 FERC 27 Recent
Events Skikda 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. Slide 28 FERC 28 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
Contract awarded for review of the LNG Program Recent Events
Reorganization for Safety Slide 29 FERC 29 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 Americas emergency
responders and the communities they serve to help prevent, safely
mitigate and investigate pipeline incidents LNG module being
developed www.safepipelines.org Recent Events Fire Marshal
Interaction Slide 30 FERC 30 Recent Events Three Faces of LNG How
you get your LNG news affects your perception Popular Press (e.g.,
Newspapers) Trade Press FERC Filings and Issuances Slide 31 FERC 31
LNG Supply Stream -- From Production to Distribution Natural Gas
Production Natural Gas Pipelines Storage and Vaporization Facility
Liquefaction and Storage Facility Natural Gas Production Dock
