Public Symposium on LNG Bowdoin College Brunswick, Maine Robert J. Cupina, Deputy Director Office of...
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Public Symposium on LNG Bowdoin College Brunswick, Maine Robert J. Cupina, Deputy Director Office of Energy Projects Federal Energy Regulatory Commission July 29, 2004
Public Symposium on LNG Bowdoin College Brunswick, Maine Robert J. Cupina, Deputy Director Office of Energy Projects Federal Energy Regulatory Commission
Public Symposium on LNG Bowdoin College Brunswick, Maine Robert
J. Cupina, Deputy Director Office of Energy Projects Federal Energy
Regulatory Commission July 29, 2004
Slide 2
FERC Office of Energy Projects 2 Office of Energy Projects -
Functions OEP has the engineering and environmental expertise to:
certificate new gas pipeline projects Authorize LNG terminals
license and monitor hydroelectric projects, and analyze energy
infrastructure needs and policies. OEP focuses on: project siting
and development, balancing environmental and other concerns,
ensuring compliance, safeguarding the public, and providing
infrastructure capacity information.
Slide 3
FERC Office of Energy Projects 3 NPC Study Align the
conflicting policies Policies that encourage consumption Policies
that inhibit gas supply
Slide 4
FERC Office of Energy Projects 4 Gas Facts Natural gas is the
economic/ environmental fuel of choice. 96% of natural gas reserves
are outside North America. 25% of World natural gas consumption
occurs in the US.
Slide 5
FERC Office of Energy Projects 5 Historic and Projected US Gas
Production and Consumption Source: EIA AEO 2004
Slide 6
FERC Office of Energy Projects 6 Some Production Areas Are Not
Accessible * Approximately 29 TCF Of The Rockies Gas Resources Are
Closed To Development and 108 Tcf Are Available With Restrictions.
Source: NPC
Slide 7
FERC Office of Energy Projects 7 What is the answer? Imports
Imports must make up the difference between domestic production and
consumption Delivered in two ways: Gaseous form by pipeline Liquid
form by tanker (LNG)
Slide 8
FERC Office of Energy Projects 8 How Much Natural Gas Is Out
There? Office of Energy Projects 8 LNG supply growing Multiple LNG
supply proposals announced Long term LNG supply outlook robust
Global LNG Supply WORLD PROVED RESERVES 2002: 6,270 TCF NORTH
AMERICA RESERVES 4% Source: Cedigaz, NPC Existing Under
Construction Proposed Global LNG Supply Facilities
Slide 9
FERC Office of Energy Projects 9 LNG Imports by Country Source:
EIA
Slide 10
Economic Oversight Access to LNG Terminal A Open Access At
Delivery of Liquid to Terminal LNG Suppliers LNG Buyers A B B Open
Access At Delivery of Vapor into Interstate Pipeline System Liquid
to Vapor Flow FERC Office of Energy Projects 10
Slide 11
FERC Office of Energy Projects 11 Benefits of the New LNG
Policy Stimulates development of new LNG terminals Accommodates
various business models Increases gas supplies to the U.S.
Maintains FERCs responsibility for environmental and safety
reviews.
Slide 12
Existing Terminals with Approved Expansions A. 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 Terminals 1. 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.) Proposed
Terminals and Expansions FERC 7. Fall River, MA : 0.8 Bcfd,
(Weaver's Cove Energy/Hess LNG) 8. Long Beach, CA : 0.7 Bcfd,
(Mitsubishi/ConocoPhillips Sound Energy Solutions) 9. Corpus
Christi, TX : 2.6 Bcfd, (Cheniere LNG Partners) 10. Sabine, LA :
2.6 Bcfd (Cheniere LNG) 11. Corpus Christi, TX : 1.0 Bcfd (Vista
Del Sol - ExxonMobil) 12. Sabine, TX : 1.0 Bcfd (Golden Pass -
ExxonMobil) 13. Logan Township, NJ : 1.2 Bcfd (Crown Landing LNG
BP) 14. Lake Charles, LA: 0.6 Bcfd (Southern Union Trunkline LNG)
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) Proposed Terminals Coast Guard 19. California Offshore:
1.5 Bcfd (Cabrillo Port BHP Billiton) 20. Louisiana Offshore : 1.0
Bcfd (Gulf Landing Shell) 21. So. California Offshore : 0.5 Bcfd,
(Crystal Energy) 22. Louisiana Offshore : 1.0 Bcfd (Main Pass
McMoRan Exp.) 23. Gulf of Mexico: n/a (Compass Port -
ConocoPhillips) 24. Gulf of Mexico : 2.8 Bcfd (Pearl Crossing -
ExxonMobil) Planned Terminals and Expansions 25. Brownsville, TX :
n/a, (Cheniere LNG Partners) 26. Mobile Bay, AL: 1.0 Bcfd,
(ExxonMobil) 27. Somerset, MA : 0.65 Bcfd (Somerset LNG) 28.
Belmar, NJ Offshore : n/a (El Paso Global) 29. Altamira, Tamulipas
: 1.12 Bcfd, (Shell) 30. Baja California, MX : 1.0 Bcfd, (Sempra
& Shell) 31. Baja California - Offshore : 1.4 Bcfd, (Chevron
Texaco) 32. California - Offshore : 0.75 Bcfd, (Chevron Texaco) 33.
St. John, NB : 0.5 Bcfd, (Canaport Irving Oil) 34. Point Tupper, NS
1.0 Bcf/d (Bear Head LNG - Access Northeast Energy) 35. Pleasant
Point, ME : 0.5 Bcf/d (Quoddy Bay, LLC) 36. Quebec City, QC : 0.5
Bcfd (Project Rabaska - Enbridge/Gaz Met/Gaz de France) 37. Lzaro
Crdenas, MX : 0.5 Bcfd (Tractebel/Repsol) 38. Mobile Bay, AL: 1.0
Bcfd (Cheniere LNG Partners) 39. St. Helens, OR: 0.7 Bcfd (Port
Westward LNG LLC) 40. Cove Point, MD : 0.8 Bcfd (Dominion) 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) *US pipeline approved; LNG terminal
pending in Bahamas Existing and Proposed North American LNG
Terminals July 2004 FERC Office of Energy Projects A C 1 3 5 2 4 33
7 28 15 6 25 29 9 19 8 27 22 21 34 36 35 37 20 30 31 11 24 10 12 17
13 B 32 26 14 39 40 16 38 23 18 D 41 US Jurisdiction FERC US Coast
Guard 42 44 43
Slide 13
FERC Office of Energy Projects 13 Maximum LNG Deliverability
Growth
Slide 14
FERC Office of Energy Projects 14 US Natural Gas Balance
Slide 15
FERC Office of Energy Projects 15 LNG Terminal Siting Issues
Safety Take Away Capacity Local acceptance Federal and State
approvals
Slide 16
FERC Office of Energy Projects 16 Safety Proximity to
residential and commercial areas raises public safety concerns
Exclusion zones DOT/OPS enforces security. FERC performs pre- and
post-certificate reviews of LNG terminals Biennial reviews continue
for life of terminal. Coast Guard enforces offshore ship
safety
Slide 17
FERC Office of Energy Projects 17 Takeaway Capacity Is there an
existing pipeline with takeaway capacity? Does the project require
new pipeline construction? NEPA requires an analysis of the
cumulative effects. Can not have an LNG terminal without takeaway
capacity
Slide 18
FERC Office of Energy Projects 18 Local Acceptance Has the
project sponsor interacted with the local population? Entertain
concerns Make adjustments or accommodations to the project.
Slide 19
FERC Office of Energy Projects 19 Federal and State Approvals
Must get approvals: FERC NGA Approval DOT/OPS Exclusion Zones Coast
Guard Vessel Operating Plan Corps of Engineers Dredging, Wetland
Filling, Alternative Sites NMFS, FWS Endangered Species Act Coastal
Zone Consistency Determination State Agency Requirements
Slide 20
FERC Office of Energy Projects 20 Primary federal authorization
processes for LNG terminals FERC Review Process Pre-Filing Process
Coast Guard Process
Slide 21
FERC Office of Energy Projects 21 FERC Review Process Public
Notice Data Gathering/Analysis DEIS Public Meeting Final EIS
Commission Order
Slide 22
FERC Office of Energy Projects 22 Traditional vs. Pre-Filing
Process Announce Open Season Announce Open Season Develop Study
Corridor Develop Study Corridor Conduct Scoping Conduct Scoping 0 1
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26
27 28 Review Draft Resource Reports & Prepare DEIS Issue Draft
EIS Issue Draft EIS File At FERC Issue Order Issue Order File At
FERC Prepare Resource Reports Prepare Resource Reports Issue Final
EIS Issue Final EIS (months) Traditional - Applicant Traditional -
FERC Pre-Filing - Applicant Pre-Filing - FERC
Slide 23
FERC Office of Energy Projects 23 Benefits of Pre-Filing More
interactive NEPA process, no shortcuts Earlier, more direct
involvement by FERC, other agencies, landowners Goal of no
surprises Time savings realized only if we are working together
with stakeholders FERC staff is an advocate of the Process, not the
Project!
Slide 24
FERC Office of Energy Projects 24 The FERC Process: We Issue
Notice of the Application Project Sponsor Sends Landowner
Notification Package SCOPING = We Issue Notice of Intent to Prepare
the NEPA Document Public Meeting(s) Public Input: File an
Intervention Contact the project sponsor w/questions, concerns;
contact FERC Send letters expressing concerns about environmental
impact Attend scoping meetings Opportunities for Public
Involvement
Slide 25
FERC Office of Energy Projects 25 The FERC Process: Issue
Notice of Availability of the DEIS Public Meetings on DEIS Issue a
Commission Order Public Input: File comments on the adequacy of
DEIS Attend public meetings to give comments on DEIS Interveners
can file a request for Rehearing of a Commission Order
Opportunities for Public Involvement
Slide 26
FERC Office of Energy Projects 26 Maritime Security Act of 2002
(November 2002) Amendment of the Deepwater Port Act of 1974
Transferred jurisdiction of offshore natural gas facilities from
FERC to Maritime Admin- istration and Coast Guard Lowers Regulatory
Hurdles No requirement for open access to terminal Decision
required within 365 days
Slide 27
FERC Office of Energy Projects 27 LNG Where the Action Is What
is FERC Doing? 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 Development
of FERC Model for LNG Tanker Release Consequences Participating in
Conferences/Seminars/Tours
Slide 28
FERC Office of Energy Projects 28 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 The FERC Staff Study and Its Positive Impacts
Slide 29
FERC Office of Energy Projects 29 Natural Gas Pipelines Storage
and Vaporization Facility Liquefaction and Storage Facility Natural
Gas Production Dock LNG Supply Stream -- From Production to
Distribution
Slide 30
FERC Office of Energy Projects 30 Outlook/Issues Associated
with LNG Development States attempting to assert economic
jurisdiction in the post- Hackberry environment Public safety
information Interchangeability Importance of timing