Capitol Hill Ocean Week

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Capitol Hill Ocean Week

• Managing Emerging Demands for LNG

Richard R. Hoffmann, Director Division of Gas
Environment and Engineering Office of Energy
Projects Federal Energy Regulatory Commission
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LNG Two Points

• Its Natural Gas and is the environmental fuel of
  choice

• 96 of natural gas reserves are outside North
  America

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LNG Terminals 2 Primary Issues

• Safety

• Environment

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The LNG Map Has Changed2002 vs. 2006Existing
and Proposed LNG Terminals
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Why? U.S. Needs All Sourcesto Meet Gas Demand
ALASKAN GAS
5
1
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LNG IMPORTS
1
14
NET PIPELINE IMPORTS
7
14
64
85
LOWER 48 PRODUCTION
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The Energy Policy Act of 2005 LNG Highlights

• Mandatory PF Rulemaking
• Lead agency for NEPA, Federal Authorizations, and
  establish an expeditious schedule
• FERCs exclusive siting authority does not impact
  States authority under CZMA, CWA, and CAA
• Consultation with designated State Safety agency
• Consultation with DoD
• Emergency response plan prior to construction

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Mandatory Pre-filing Process for New LNG Import
Facilities October 2005

• Promotes early identification and resolution of
  issues
• Facilitates State agency and community involvement

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FERC LNG Program

• LNG program ensures safe operation and
  reliability
• Work closely with the US Coast Guard, Department
  of Transportation, the States and local
  governments
• Process ensures terminals and associated LNG
  vessel traffic meet safety and environmental
  requirements during construction and operation

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OEP Structure
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Interagency Agreement on LNGImport/Export
Facilities

• Address safety and security issues in a
  comprehensive manner
• Maximize coordination, avoid duplication of
  effort
• FERC- Siting approval, lead Federal agency for
  NEPA
• USDOT Safety regulations for onshore facility
• Coast Guard Safety and security of LNG vessels
  and waterfront facility, site security

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Safety is the First Priority
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Assessing Impacts to the Environment
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Commercial Vessel Traffic to U.S. Ports

• In 2004, a total of 7,241 individual vessels,
  greater than or equal to 500 Gross Ton made
  72,178 port calls1
• Overall, vessels came from 81 different flag
  States
• In 2005 LNG tankers made 275 arrivals in US ports
  from 7 countries

1Source The 2004 Annual Report on Port State
Control for the United States
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New Vessel Traffic from LNG Facilities Under
Construction
LNG Terminals Currently Under Construction Number of LNG Ships per Year
Corpus Christi 300
Elba Island Expansion 68
Freeport, TX 200
Hackberry, LA 210
Lake Charles, LA Expansion 123
Sabine, LA 500
Total 1,401
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LNG Vessel Safety
Examples of Potential Risks Examples of Potential Mitigations
Collision with LNG carrier Moving safety zone around LNG carrier Vessel escort Vessel traffic management
LNG carrier grounding Testing of navigation, propulsion, steering State pilots WSR
Consequence Management Avoidance/ Security Develop / test emergency response plan
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• Contact Information
• Richard R. Hoffmann, Director
• Division of Gas Environment and Engineering
• Office of Energy Projects
• Federal Energy Regulatory Commission
• 202-502- 8066
• richard.hoffmann_at_ferc.gov

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North East LNG Terminals
Calais, ME
Legend Existing Terminal Approved
Terminal Proposed Terminal Pre-Filing Proposed
Terminal Filed Working on DEIS Working on
FEIS Potential Terminal
Robbinston, ME
Pleasant Point, ME
Offshore Boston Excelerate
Everett, MA (A)
Offshore Boston Neptune
Providence, RI Rejected
Boston, MA Battery Rock
Fall River, MA
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Mid-Atlantic LNG Terminals
Long Island Sound, NY
Offshore New York Safe Harbor
Philadelphia, PA
Logan Township, NJ
Baltimore, MD
Legend Existing Terminal Approved
Terminal Proposed Terminal Pre-Filing Proposed
Terminal Filed Working on DEIS Working on
FEIS Potential Terminal
Cove Point, MD
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South East LNG Terminals
Elba Island, GA
Legend Existing Terminal Approved
Terminal Proposed Terminal Pre-Filing Proposed
Terminal Filed Working on DEIS Working on
FEIS Potential Terminal
Bahamas
(Pipelines only)
Offshore Florida
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Gulf Coast LNG Terminals
Legend Existing Terminal Approved
Terminal Proposed Terminal Pre-Filing Proposed
Terminal Filed Working on DEIS Working on
FEIS Potential Terminal
Pascagoula, MS
Lake Charles, LA
Port Arthur
Sabine Pass, LA
Cameron
Golden Pass
EA
Galveston, TX
Hackberry
Freeport McMoran
Freeport, TX
EA
Port Lavaca, TX
Compass Port
Gulf Landing
Corpus Christi, TX
Beacon Port
Vista Del Sol
Gulf Gateway
Ingleside LNG
Bienville
Port Pelican
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Southwest LNG Terminals
Legend Existing Terminal Approved
Terminal Proposed Terminal Pre-Filing Proposed
Terminal Filed Working on DEIS Working on
FEIS Potential Terminal
Pacific Gateway
California Offshore
Long Beach, CA
BHP Billiton
Crystal Energy
Chevron Texaco
Ocean Way
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North West LNG Terminals
Bradwood, OR
Astoria, OR
St. Helens, OR
Legend Existing Terminal Approved
Terminal Proposed Terminal Pre-Filing Proposed
Terminal Filed Working on DEIS Working on
FEIS Potential Terminal
Coos Bay, OR