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U.S. Department of Energy What is LNG Properties, Safety and Performance History of LNG NARUC LNG Session July 29, 2003 -----Denver, CO Donald Juckett Office of Fossil Ene US Dept. of Energy

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Page 1: Lng Presentation

U.S. Department of Energy

What is LNGProperties, Safety and

Performance History of LNG

NARUC LNG SessionJuly 29, 2003 -----Denver, CO

Donald JuckettOffice of Fossil EnergyUS Dept. of Energy

Page 2: Lng Presentation

U.S. Department of Energy

LNG and Natural Gas

• Physical properties and behavior

• Hazards - Risks

• Myth and Legend - Knowledge and Common Sense

“It’s all about the chemistry and physics”

Page 3: Lng Presentation

U.S. Department of Energy

LNG Properties

• Liquefied Natural gas is a Cryogenic Liquid

– LNG Density - 26.5 LB./Cu. Ft.

• Lighter than water (65 LB/Cu. Ft.)

• Other Cryogenic Liquids in our daily environment

– LNG Boiling point - (-259o F)

• Liquid Nitrogen - (-320o F)

• Liquid Oxygen - (-297o F)

Page 4: Lng Presentation

U.S. Department of Energy

Natural Gas Properties

• Natural gas is lighter than air– Natural Gas Density - 0.47 [above (–)1400F]

– (Air - 1.0)

• Natural gas is buoyant under normal atmospheric conditions

Page 5: Lng Presentation

U.S. Department of Energy

How is LNG manufactured?

• All existing commercial processes involve gas compression and refrigeration - – SMR – Single Mixed Refrigerant– PPMR – Propane Pre-cooled Mixed Refrigerant– Cascade Process – Discrete Cooling Circuits(3)

• Liquefy natural gas > 86% CH4, N2, C2, C3, C4

Page 6: Lng Presentation

U.S. Department of Energy

LNG Storage Tanks

• DOT – OPS - RSPA

• Title 49--Transportation CHAPTER I--RESEARCH AND SPECIAL PROGRAMS ADMINISTRATION, DEPARTMENT OF TRANSPORTATION

• PART 193--LIQUEFIED NATURAL GAS FACILITIES: FEDERAL SAFETY STANDARDS

There are more than 100 storage facilities in the U.S.

Page 7: Lng Presentation

U.S. Department of Energy

LNG Transportation

• LNG is transported very near atmospheric pressure (typically 5 psi back pressure)

• At sea - in tankers of 100, 000 cubic meters or larger

• On land in specially constructed trucks

Page 8: Lng Presentation

U.S. Department of Energy

LNG Tanker at Loading Berth

Photo: Courtesy of Phillips Petroleum

Page 9: Lng Presentation

U.S. Department of Energy

Cross Section of LNG Tanker

Page 10: Lng Presentation

U.S. Department of Energy

Myth and Legend

• “Catastrophic release of LNG creates a BLEVE -- boiling liquid expanding vapor explosion”

NOT TRUENOT TRUE

– In laboratory and open ocean combustion tests, there have been no documented cases of LNG BLEVEs

Page 11: Lng Presentation

U.S. Department of Energy

Assessing The Hazard30 Years of LNG Experience

• LNG history in the US dates back to 1940’s• LNG tanker trade initiated with exports in 1969 • Eight marine incidents have resulted in spillage of

LNG - some hull damage due to cold fracture and no cargo fires

• Eight incidents not involving spillage - two from grounding - no significant cargo loss

• “LNG carriers are inherently much more robust than typical crude, fuel, and chemical tankers”

Page 12: Lng Presentation

U.S. Department of Energy

Assessing The Hazard

• The opinion of experts indicate that a catastrophic failure caused by collision or terrorist act would result in numerous ignition sources close to the vessel and ignition and burn down would occur

Page 13: Lng Presentation

U.S. Department of Energy

What Has Changed Since Sept. 11, 2001?

• Everyone is looking at their environment differently

• Potential threat to infrastructure has increased - Responsible parties are reacting

• Assumptions about what constitutes threats are being reassessed

Page 14: Lng Presentation

U.S. Department of Energy

Assessing the risk

• Models

• Analogs

• Other related hydrocarbons/chemicals

Page 15: Lng Presentation

U.S. Department of Energy

Assessing the risk

• Following suspension of LNG tanker dockings at the Distrigas (Tractebel) facility in Boston Harbor DOE, working with FERC, DOT (OPS), USCG, local and state public safety officials, commissioned a series of model runs intended to mimic a serious and catastrophic breaching of a single tank of an LNG carrier.

Page 16: Lng Presentation

U.S. Department of Energy

Summary

• Fundamental properties and behavior of LNG and natural gas remain the same

• Risk scenarios do not produce results outside of those contemplated in previous EIS documentation for siting facilities and transportation of LNG

Page 17: Lng Presentation

U.S. Department of Energy

Summary

• The US market for natural gas is growing - • Part of that market demand will be met by LNG• The experience of the LNG industry suggests that

hazards are manageable • 30+ years of experience with marine transport of

LNG - no major failures carriers and cargo inherently safer than other hydrocarbon fuels transported by ship

• Post September 11, 2001- new risk not new hazard

Page 18: Lng Presentation

U.S. Department of Energy

1970’s and 2000’sWhat is different about this Market?

• US Gas market largely deregulated– Buyers and sellers dominate market

• Power market deregulation – new participants– Power utilities are entering the gas market

• Cast of players in US LNG market– Majors/Large non-integrated– Pipeline companies– Construction/shipbuilders

• More competitive LNG value chain– Value chain costs reduced

Page 19: Lng Presentation

U.S. Department of Energy

1970’s and 2000’sWhat is different about this Market?

• Difficulty siting pipe to demand areas

• Projected increases in power needs with greater environmental sensitivities

• Worldwide LNG market

• Recent gas trading issues

• Technology, innovation – cost reduction

Page 20: Lng Presentation

U.S. Department of Energy

Looking Forward – Issues and Opportunities

• New and diverse supply– Competition for capital – not every opportunity will materialize– Corporate portfolios – investment priorities compete internally

• Demand - Supply proximity– Is there a new paradigm for LNG use? - Boston example

• Market development– Base load demand?– Commodity trade development?

Page 21: Lng Presentation

U.S. Department of Energy

Looking Forward – Issues and Opportunities

• Regulatory environment– Open access – Managed Access

– New technology options

– CZM

• Public perceptions– Siting

– Safety and Security

• National Petroleum Council Study

Page 22: Lng Presentation

U.S. Department of Energy

Information Sources

• FERC documents• DOT documents• DOE National Laboratories• US Coast Guard• Energy Information Administration• SIGTTO Society of International Gas Tanker and

Terminal Operators• Various consultant reports• Industry sources• Other literature