lng usa houston, texas j. mark robinson, director office of energy projects federal energy...

LNG USAHouston, Texas

J. Mark Robinson, DirectorOffice of Energy Projects

Federal Energy Regulatory CommissionSeptember 23, 2004

FERC

Office of Energy Projects

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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.

FERC


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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.

FERC


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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)

FERC


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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)

Project Status…

Pre-Filing: • Occidental Energy, Ingleside (PF04-09-000)• Sempra, Port Arthur (PF04-11-000)• Cove Point, Dominion (PF04-15-000)

FERC


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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)

LNG Project Status -Associated Pipelines

Existing Terminals with Approved ExpansionsA. 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 Terminals1. 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 – FERC8. 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 Guard20. 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 Expansions26. 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)

Existing and Proposed North AmericanLNG Terminals

September 2004

FERC


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C

1 3 5

2 4

34

829

15

6

26

30

10

209

28

23

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3537

36

38

21

31

32

1225

1113

17

14

B

33

27

7

40

19

16

39

24

18D41

US Jurisdiction

FERC

US Coast Guard

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4443

*US pipeline approved; LNG terminal pending in Bahamas

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FERC


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0

5

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15

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25

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35

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In-Serviceand

Approved

Pending -FERC

Pending -CoastGuard

Planned

Bcf per

Day

Planned

Pending - Coast Guard

Pending - FERC

In-Service and Approved

Maximum LNGDeliverability Growth

FERC


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US Natural Gas Balance

-10

0

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00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20

Years (beginning in 2000)

Vo

lum

e (

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f p

er d

ay

)

Total Production Canada

Existing Terminals Approved Terminals (FERC & Coast Guard)

Proposed and Planned Terminals (FERC & Coast Guard) Net Exports to Mexico

Alaska (to Lower 48) Demand - US

FERC


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LNG Siting Processes

There are two FERC processes for siting LNG terminals:• FERC Traditional Review Process• Pre-Filing Process

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

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FERC


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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!

FERC


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There Are Opportunitiesfor Public Involvement

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

FERC


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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

FERC


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LNG Siting Issues

•Safety•Takeaway Capacity•Local acceptance•Federal and State approvals

FERC


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Recent Events

• ABS Study• Skikda Accident• Reorganization for Safety• Fire Marshal Interaction• Three “Faces” of LNG• Regional Planning

FERC


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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

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• 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 EventsThe FERC Model

FERC


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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.

FERC


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• 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 EventsReorganization for Safety

FERC


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• 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 EventsFire Marshal Interaction

FERC


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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.

FERC


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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

lng usa houston, texas j. mark robinson, director office of energy projects federal energy...

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