Transcript Document 7291750

Public Symposium on LNG
Bowdoin College
Brunswick, Maine
Robert J. Cupina, Deputy Director
Office of Energy Projects
Federal Energy Regulatory Commission
July 29, 2004
FERC
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:





2
project siting and development,
balancing environmental and other concerns,
ensuring compliance,
safeguarding the public, and
providing infrastructure capacity information.
Office of Energy Projects
FERC
NPC Study
• Align the conflicting policies
– Policies that encourage consumption
– Policies that inhibit gas supply
3
Office of Energy Projects
FERC
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.
4
Office of Energy Projects
FERC
Historic and Projected
US Gas Production
and Consumption
35
Trillion Cubic Feet
30
25
20
15
10
5
0
1990
1995
2000
2005
Total Production
5
Source: EIA AEO 2004
2010
2015
2020
2025
Total Consumption
Office of Energy Projects
FERC
Some Production Areas
Are Not Accessible
346
21
TCF
40%
31
TCF
TCF
100%
100%
43
56% TCF
Restricted
Percentage
* Approximately 29 TCF Of The Rockies Gas Resources Are Closed To
Development and 108 Tcf Are Available With Restrictions.
Source: NPC
6
Office of Energy Projects
FERC
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)
7
Office of Energy Projects
FERC
How Much Natural Gas
Is Out There?
Global LNG Supply Facilities
Existing
Under Construction
Proposed
Global LNG Supply
NORTH AMERICA
RESERVES
4%
WORLD PROVED
RESERVES 2002:
6,270 TCF
Source: Cedigaz, NPC
8
• LNG supply growing
• Multiple LNG supply proposals announced
• Long term LNG supply outlook robust
Office of Energy Projects
FERC
LNG Imports
by Country
600
500
Bcf per Year
400
300
200
100
0
73
78
Trinidad
Nigeria
9
Source: EIA
83
Algeria
Oman
88
Australia
Qatar
93
Brunei
UAE
98
Indonesia
03
Malaysia
Office of Energy Projects
FERC
Economic Oversight – Access to LNG Terminal
Liquid to Vapor Flow
LNG
Buyers
B
A
LNG
Suppliers
B
Open Access At
Delivery of Vapor into
Interstate Pipeline
System
10
A
Open Access At
Delivery of Liquid to
Terminal
Office of Energy Projects
FERC
Benefits of the
New LNG Policy
• Stimulates development of new LNG
terminals
• Accommodates various business
models
• Increases gas supplies to the U.S.
• Maintains FERC’s responsibility for
environmental and safety reviews.
11
Office of Energy Projects
FERC
Existing and Proposed
North American
LNG Terminals
44
43
36
34
33
35
39
17 A 42
7 27
13 28
B 40
19
8
21
3230
C
26
18
10 D 1 38
9 6 16122414 23
22
25 11 2 4 20
31
41
29
15
3 5
US Jurisdiction
FERC
37
US Coast Guard
July 2004
Office of Energy Projects
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. Lázaro Cárdenas, 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
FERC
Maximum LNG
Deliverability Growth
50
45
Bcf per Day
40
35
30
Planned
25
Pending - Coast Guard
Pending - FERC
20
In-Service and Approved
15
10
5
0
13
In-Service
and
Approved
Pending FERC
Pending Coast
Guard
Planned
Office of Energy Projects
FERC
US Natural Gas Balance
100
90
80
Volume (Bcf per day)
70
60
50
40
30
20
10
0
00
01
02
03
04
05
06
07
08
09
10
11
12
13
14
15
16
17
18
19
20
-10
Years (beginning in 2000)
14
Total Production
Canada
Existing Terminals
Approved Terminals (FERC & Coast Guard)
Proposed and Planned Terminals (FERC & Coast Guard)
Net Exports to Mexico
Alaska (to Lower 48)
Demand - US
Office of Energy Projects
FERC
LNG Terminal
Siting Issues
• Safety
• Take Away Capacity
• Local acceptance
• Federal and State approvals
15
Office of Energy Projects
FERC
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
16
Office of Energy Projects
FERC
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
17
Office of Energy Projects
FERC
Local Acceptance
• Has the project sponsor interacted
with the local population?
–Entertain concerns
–Make adjustments or
accommodations to the project.
18
Office of Energy Projects
FERC
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
19
Office of Energy Projects
FERC
Primary federal authorization
processes for LNG terminals
• FERC Review Process
• Pre-Filing Process
• Coast Guard Process
20
Office of Energy Projects
FERC
FERC Review Process
Public Notice
Data
Gathering/Analysis
DEIS
Public Meeting
Final EIS
Commission Order
21
Office of Energy Projects
FERC
Traditional vs. Pre-Filing
Process
Announce
Open
Season
Develop
File
Study Prepare Resource At
Corridor
FERC
Reports
Traditional - FERC
Announce
Open
Season
Develop
Study
Corridor
Conduct
Scoping
0 1 2 3 4 5 6 7
Traditional - Applicant
Conduct
Scoping
File
Prepare Resource At
FERC
Reports
Review Draft
Resource Reports
& Prepare DEIS
Issue
Draft
EIS
Pre-Filing - Applicant
Issue
Draft
EIS
Issue Issue
Final Order
EIS
Pre-Filing - FERC
8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
(months)
22
Issue Issue
Final Order
EIS
Office of Energy Projects
FERC
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!
23
Office of Energy Projects
FERC
Opportunities for
Public Involvement
24
The FERC Process:
Public Input:
• 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)
• Contact the project
sponsor w/questions,
concerns; contact
FERC
• Send letters expressing
concerns about
environmental impact
• Attend scoping
meetings
• File an Intervention
Office of Energy Projects
FERC
Opportunities for Public
Involvement
The FERC Process:
• Issue Notice of
Availability of the DEIS
• Public Meetings on
DEIS
• Issue a Commission
Order
25
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
Office of Energy Projects
FERC
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 Administration and Coast Guard
• Lowers Regulatory Hurdles
– No requirement for open access to terminal
– Decision required within 365 days
26
Office of Energy Projects
FERC
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
27
Office of Energy Projects
FERC
The FERC Staff Study
and Its Positive Impacts
• 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
28
Office of Energy Projects
FERC
Liquefaction
and Storage
Facility
Dock
Natural Gas Production
29
Storage and
Vaporization
Facility
Dock
Natural Gas Pipelines
LNG Supply Stream -- From
Production to Distribution
Office of Energy Projects
FERC
Outlook/Issues Associated
with LNG Development
• States attempting to assert
economic jurisdiction in the postHackberry environment
• Public safety information
• Interchangeability
• Importance of timing
30
Office of Energy Projects