LNGSAFETYAND

SECURITYFACTS

NG is a fuel that has been handled safely and securely for decades and does not pose greater risks than other fuels that are transported every day around every state in the country.

LNG is simply natural gas in liquid form. LNG is not stored under pressure and it is not explosive or flammable in its liquid state. Although a large amount of energy is stored in LNG, it cannot be released rapidly enough to cause the overpressures associated with an explosion. LNG vapors (methane) mixed with air are not explosive in an unconfined environment.

LNG is odorless, non-toxic and non-corrosive. When exposed to the environment, LNG rapidly evaporates, leaving no residue on water or soil. If spilled, LNG would not result in a slick because it evaporates quickly and disperses. An incident resulting in a release of LNG could result in a fire, but only if there is the right concentration of LNG vapor in the air (5% - 15%) and a source of ignition.L

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LNG SHIP SAFETYA Proven Safety Record

LNG has been safely handled over the last 45 years and the industry has maintained an enviable safety record. LNG vessels have traveled more than 128 million miles during the past 45+ years and have made more than 105,000 LNG carrier voyages without major accidents or safety problems, either in port or at sea.

• LNG ships are double-hulled, with more than six feet of space between the outer and inner hulls and the cargo tanks to prevent leakage or rupture in the event of accident.

• LNG ships are equipped with sophisticated leak detection technology, emergency shutdown systems, advanced radar and positioning systems, and numer-ous other technologies designed to ensure the safe transport of LNG.

• The Coast Guard determines the suitability of awaterway to transport LNG safely, creates safety and security rules for each specific port, works with terminal and ship operators and host port authorities to ensure that policies and procedures conform to required standards, and works with operators to conduct emergency response drills.

• Crews of LNG ships are highly trained, specialized and experienced personnel. International experts test the robustness of plans, procedures, people and training. The U.S. Immigration Service validates crew identities 96 hours in advance of arrival into U.S. waters. As an added layer of safety, the Coast Guard also has the authority to receive background checks of crews, undertake ship searches, and require the use of Sea Marshals (specially trained and armed Coast Guard personnel).

• Companies involved in LNG shipping work withthe local Pilotage Authority and the U.S. Coast Guardto develop optimum plans for safe transit in and outof port. This coordination helps manage port shippingtraffic, similar to air traffic controllers, with the aimof protecting against collisions while not hindering movement of other vessel traffic.

• The LNG industry carefully follows requirementsset forth by the Federal Energy Regulatory Commis-sion, Department of Transportation, and the U.S. Coast Guard and works closely with the Department of Homeland Security to ensure that its operations aresafe and secure.

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LNG TERMINAL SAFETYA Robust Safety Design

LNG terminals are designed with multiple layers of protection and must meet rigorous safety regulations set forth by the Federal Energy Regulatory Commission (FERC) and the U.S. Department of Transportation, which regularly monitor safety at the facilities. Terminals are equipped with spill containment systems, fire protection systems, multiple gas, flame, smoke and low-and-high temperature detectors and alarms, and automatic and manual shut-down systems.

Offloading LNG at the Terminal LNG marine terminals must prepare and implement security plans for deterring transportation security incidents to the maximum extent practicable. The U.S. Coast Guard designates the area around marine terminals as a security zone, with highly restricted access. Prior to offloading LNG at the terminal, the ship and terminal staff meet to assure all aspects

of safety. Regulations require facility and vessel security officers to be present with U.S. Coast Guard personnel to monitor waterway, ship and facility operations.

Onshore LNG Storage Tanks

LNG is stored in special, low temperature, cryogenic, non-pressurized tanks at -260 degrees Fahrenheit. LNG tanks must have a primary, secondary and in some cases a tertiary containment system. All storage tanks are designed with a steel inner wall that must include 9% nickel steel alloy in order to withstand LNG’s cryogenic properties. Some tanks also have a concrete reinforced outerwall or a carbon steel outerwall with a dike or impoundment for secondary containment.

LNG tanker

LNG Site Security

Under the Marine Transportation Security Act (MTSA), facilities at U.S. ports, including LNG terminals, are required to submit Facility Security Plans to the Coast Guard Captain of the Port for review and approval. The facility must designate a Facil-ity Security Officer, conduct a facil-ity security assessment, implement security measures to provide in-creasing Maritime Security (MAR-SEC) levels, and conduct security exercises and drills on a regular basis. In addition, the plan must include procedures for preventing unauthorized access, coordinat-ing with local, state and federal authorities, responding to security incidents and training personnel.

LNG regasification facility at Cove Point, Md.

The Center for Liquefied Natural Gas (CLNG) is an association of Liquefied Natural Gas (LNG) producers, shipping companies, terminal operators, terminal developers, energy trade associations, and natural gas consumers. CLNG serves as a clearinghouse for educational and technical information about LNG and as an advocate for the LNGindustry. It is committed to facilitating rational discussions and developing public policies that support LNG’s increasing contribution toward meeting the nation’s energy needs and supporting economic growth.