FERC Office of Energy Projects 1 Global LNG Outlook 2004 Regulatory Status & Challenges in the U.S....

FERC

Office of Energy Projects

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Global LNG Outlook2004

Regulatory Status& Challenges in the

U.S.

Richard R. Hoffmann, DirectorDivision of Gas – Environment and EngineeringOEP, FERC

FERC


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46

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)46. Galveston, TX: 1.2 Bcfd (Pelican Island – BP)

Existing and Proposed North AmericanLNG Terminals

October 2004

FERC


A

C

1 3 5

2 4

34

829

15

6

26

30

10

209

28

23

22

3537

36

38

21

31

32

1225

1113

17

14

B

33

27

7

40

19

16

39

24

18 D41

US Jurisdiction

FERC

US Coast Guard

42

4443

*US pipeline approved; LNG terminal pending in Bahamas

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FERC


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Applications Approved: Status of Construction

• Sempra, Cameron LNG (CP02-374) #1 Underway, Pending Amendment

• AES, Ocean Express Pipeline (CP02-90) #3 Pending

Amendment

• Tractebel, Calypso Pipeline (CP01-409) #5 Pending

• Freeport LNG (CP03-75) #6 Pending

• Trunkline, Lake Charles Expansion (CP02-60) #7 Underway, Service 4th Q

‘05

LNG Project Status -Approved Projects

FERC


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Onshore LNG Project Status

Pre-Filing:

• Occidental, Ingleside (PF04-09) #16

• Sempra, Port Arthur (PF04-11) #18

• Dominion, Cove Point (PF04-15) #19

FERC


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Applications Filed:

• Working on DEIS

– Sound Energy Solutions, Long Beach (PF03-6, CP04-58)

#9

– Cheniere, Corpus Christi (CP04-37) #10

– Exxon Mobil, Vista del Sol (PF04-3, CP04-409) #12

– Exxon Mobil, Golden Pass (PF04-1, CP04-386) #13

– BP, Crown Landing (PF04-2, CP04-411) #14

– Keyspan, Providence (CP04-223) #17


FERC


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Applications Filed:

• Working on FEIS

– Weaver’s Cove (PF03-4, CP04-36) #8

– Cheniere, Sabine Pass (CP04-47) #11


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Pre-Filing:

• El Paso, Seafarer (PF04-08) #15

Applications Filed:

• Working on DEIS with USCG

– Freeport-McMoran, Main Pass (CP04-68) #23

– Conoco Phillips, Compass Pass (CP04-114) #24

– Exxon Mobil, Pearl Crossing (CP04-374) #25

LNG Project Status -Associated Pipelines


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Pleasant Point, ME (36)

Everett, MA (A)

Providence, RI (17)

Offshore Boston, MA (42)

Fall River, MA (8)

Somerset, MA (28)

Legend:

Existing Terminal

Approved Terminal

Proposed Terminal: Pre-Filing

Proposed Terminal: Filed

Working on DEIS

Working on FEIS

Planned Terminal

North East LNG Terminals

October 2004


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Mid-Atlantic LNG Terminals

Cove Point, MD (B/19)

Logan Township, NJ (14)

Belmar Offshore, NJ (29)

Legend:

Existing Terminal

Approved Terminal



Working on DEIS

Working on FEIS

Planned TerminalOctober 2004


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South East LNG Terminals

Elba Island, GA (C)

Bahamas (3/5/15)

Legend:

Existing Terminal

Approved Terminal



Working on DEIS

Working on FEIS

Planned Terminal

October 2004

Pipeline only


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Corpus Christi LNG, TX (10) Vista Del Sol (12) Ingleside LNG (16)

Lake Charles, LA (D/7)

Port Pelican (2)

Pearl Crossing (25)

Freeport, TX (6)

Golden Pass, TX (13)

Brownsville, TX (26)

Port Arthur (18)

Sabine Pass, LA (11)

Energy Bridge (4)

Gulf Coast LNG Terminals

Main Pass (23)

Cameron (1)

Gulf Landing (21)

October 2004

Compass Port (24)

Legend:

Existing Terminal

Approved Terminal



Working on DEIS

Working on FEIS

Planned Terminal

Galveston, TX (46)


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Long Beach, CA (9)California Offshore (20/22/33)

Southwest LNG Terminals

Chevron Texaco (33)

BHP Billiton (20)

Crystal Energy (22)

Legend:

Existing Terminal

Approved Terminal



Working on DEIS

Working on FEIS

Planned Terminal

October 2004


13

North West LNG Terminals

Coos Bay, OR (27)

St. Helens, OR (40)Legend:

Existing Terminal

Approved Terminal



Working on DEIS

Working on FEIS

Planned Terminal

October 2004

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

FERC


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Beware the IRS???(Irrational Risk Standard)

• Education is the key to overcome the Irrational Risk Standard:– Educate the Public and Agencies– Education and preparation of “First

Responders”• National Association of State Fire Marshals• DOT

– Industry had a lead role/duty in this education.

FERC


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LegislationWhat Could It Do?

• Eliminate Jurisdictional Conflicts• Create a Lead Agency for Review

and Permitting• Require One Consistent Federal

Record• Set a Deadline for Processing• Require Consistent Judicial Appeal

FERC


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LNG Siting Issues

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

FERC


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FERC’s Recent Actions

• FERC’s Modeling Study• Skikda Accident Follow-up • Reorganization for Safety @

FERC• Fire Marshal Interaction• Three “Faces” of LNG• Regional Planning

FERC


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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

• Contract awarded 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 EventsThree “Faces” of LNG

• How you get your LNG news affects your perception– Popular Press (e.g., Newspapers)– Trade Press– FERC Filings and Issuances

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 Office of Energy Projects 1 Global LNG Outlook 2004 Regulatory Status & Challenges in the U.S....

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