Parliament

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PRESENTATION FOR THE PUBLIC HEARING OF THE
PORTFOLIO COMMITTEE ON WATER AND ENVIRONMENTAL
AFFAIRS re GREEN PAPER ON NATIONAL MANAGEMENT OF
THE OCEANS 23 July 2013
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Introduction

• REVAG was formed in 2008 by concerned residents
  in the bay of Vleesbaai (near Mossel Bay) to
  oppose a plan by PetroSA to erect an offshore
  liquefied natural gas (LNG) offloading facility
  in the bay
• Thanks for opportunity
• Congratulations with the Green Paper
• Best of luck with its path through parliament!

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Green Paper (1)

• There are two very positive policy statements in
  the Green Paper which we applaud
• The DEA will assume responsibility as the
  environmental regulatory authority for all
  unregulated and new human activity in the ocean
  environment
• The DEA will establish best practice guidelines
  governing the transport of harmful and noxious
  substances in the marine environment

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Green Paper (2)

• The Green Papers observations are vital
• domestic legislation with respect to the marine
  space was largely piecemeal
• failed to consider the cumulative effects of
  human activities in the marine environment
• there was a multiplicity of role-players and no
  central authority in the maritime environment
• the ocean was not adequately included in the
  National Environmental Management Acts

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Green Paper (3)

• There is a long process ahead
• Green Paper ? White Paper,
• Oceans Bill ? Oceans Act
• Only then will the Department of Environmental
  Affairs commence with drafting best practice
  guidelines and other specific legislation

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Green Paper REVAGs conclusions (4)

• There is currently a policy and control vacuum
  for the evaluation of all LNG maritime projects
  in respect of siting, safety and security
• The current statutes are inadequate
• Ill conceived proposals could cause irreparable
  damage to this invaluable resource
• Until the laws are in place, all authorities
  should suspend the consideration of all
  applications in respect of maritime LNG projects
  - Moratorium

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PetroSAs new proposal

• PetroSAs revised proposal involves the
  importation of LNG into Mossel Bay through a
  Floating LNG facility comprising a breakwater and
  berth structure allowing a permanently moored
  Floating, Storage and Re-gasification Unit (FSRU)
  to discharge vaporized LNG into a sub-sea and
  over-land pipeline leading to the Mossel Bay
  Gas-to-Liquids Refinery.

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Detail of PetroSAs LNG import terminal

• On 26 February 2013 PetroSA unveiled detail.
• What?
• - FSRU permanently anchored
• - mooring berth with pipeline
• - LNG carriers
• In water 15 20 m deep
• 2 km from shore

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FSRU 300 m x 50 m x 30 m high
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LNG storage and regasification terminal
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LNG Tanker 300m x 50 m x 30 m high
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Two locations to be investigated
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(No Transcript)
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Environmental risks (1)

• Loss of tranquility and sense of place of a
  pristine bay
• Devastating marine and ecological impacts caused
  by cables and anchors to the seabed
• Oil, diesel, wastewater and air pollution
• Noise (diesel engines of the vessels) and light
  pollution impact on large mammals such as whales
  and dolphins
• Change of ocean temperature by LNG vessels
  abstracting seawater for cooling purposes and
  releasing it at higher temperatures

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Environmental risks (2)

• Detrimental effect on heritage globally
  significant archaeological finds at Pinnacle
  Point, which was declared a Provincial Heritage
  Site in January 2013
• Negative impacts on recreational and other
  fishing activities
• Domestic and international tourism, will be
  compromised
• Sustainable development priorities of the Garden
  Route will be jeopardised

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No legal protection

• Communities in the vicinity of offloading
  facilities are not aware of the risks and dangers
  
• Only have environmental laws to protect them
  which are deficient
• South Africa does not have a legal framework to
  regulate
• the imports of LNG/CNG/LPG by sea
• the location of the offloading facility
• the offloading and regasification of LNG/CNG
• gas carriers and regasification vessels.

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USA (1)

• The USA has various laws and regulations, which
  regulate
• - the siting (location) of LNG terminals and
  
• - operational activities at a terminal
• Focus on safety , security and environment
• The USA Coast Guard plays an important role from
  the moment that the LNG carrier enters USA waters
  until it leaves
• No such laws exist in South Africa

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USA (2)

• There are 3 regulatory agencies
• Federal Energy Regulatory Commission
• Pipeline and Hazardous Materials Safety
  Administration
• United States Coast Guard
• Each has a specific role and responsibility
  during siting applications for LNG terminals

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Food for thought

• Book just published
• Energy for the 21st Century Opportunities and
  challenges for LNG
• Prof. Susan Sakmar, University of Houston Law
  Center and University of San Francisco Law School

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Quote 1 from Prof Sakmars book

• Despite regulatory changes and encouragement by
  many US energy experts and politicians, the
  proposed construction of new LNG import terminals
  in the US generated considerable public
  oppositionThose proposals struggled for approval
  due to community concerns about the safety and
  environmental impact of LNG facilities. (p.178)

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Quote 2 from prof Sakmars book

• In 2003, leading energy expert Daniel Yergin
  predicted that due to environmental concerns in
  the US, import terminals would probably need to
  be built in neighboring countries such as Mexico
  and Canada. Mr Yergins predictions were correct.
  To date the only West Coast import terminal to
  have been built is in .. Mexico. (p.179)
• In short, no LNG project was successfully
  executed in the US in the face of staunch state
  and local opposition. (p. 180)

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Plea for Moratorium

• REVAG repeats its plea to all authorities, and in
  particular the Departments of Energy and
  Environmental Affairs, for an immediate
  moratorium on all maritime LNG activities until
  the necessary
• research has been done locally in respect of the
  safety and environmental impact and
• laws, policies, norms and standards are in place
  in respect of the siting, safety and security of
  LNG import terminals.

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Thank you Any questions?
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• For more info visit
• www.revag.co.za