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Natsios Young Architects


9 October 2005


Thanks to J who is preparing an overview of the US natural gas pipeline system. See related "world's largest underground natural gas storage system."


Related:

A Guide to LNG: What All Citizens Should Know, Federal Energy Regulatory Commission, Office of Energy Projects, Washington, DC, August 2, 2005

http://www.ferc.gov/for-citizens/lng.asp

Terrorism: Ready to blow?, Bulletin of Atomic Scientists, July/August 2003

http://www.wildcalifornia.org/pages/page-109

Liquified Natural Gas (LNG) Infrastructure Security: Background and Issues for Congress, September 9, 2003

http://www.wildcalifornia.org/cgi-files/0/pdfs/1076793699_Humboldt_Bay_LNG_Security_Rpt_Congress.pdf

Liquefied Natural Gas (LNG) Import Terminals: Siting, Safety and Regulation, January 28, 2004

http://www.wildcalifornia.org/cgi-files/0/pdfs/1078177225_LNG_Ignites_Controversy_CRS_Report_to_Congress_LNG_Jan_04.pdf

Guidance on Risk Analysis and Safety Implications of a Large Liquefied Natural Gas (LNG) Spill Over Water, Sandia National Laboratory, December 2004

http://www.fossil.energy.gov/programs/oilgas/storage/lng/sandia_lng_1204.pdf


Eyeballing

Liquified Natural Gas Facilities


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Source: http://www.ferc.gov/industries/lng/indus-act/exist-prop-lng.pdf

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Source: http://www.ferc.gov/industries/lng/indus-act/horizon-lng.pdf

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Source: INTRODUCTION TO LNG An overview on liquefied natural gas (LNG), Its properties, the LNG industry, safety Considerations January 2003

http://www.beg.utexas.edu/energyecon/lng/documents/IELE_introduction_to_LNG.pdf

Existing US LNG Terminals

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Source: http://www.ferc.gov/images/maps/lng_ex_map.gif

Lake Charles, LA, LNG Terminal

Source: NOAA images of Hurricane Rita damage, September 28, 2005

http://ngs.woc.noaa.gov/storms/rita/27914935.jpg


Guidance on Risk Analysis and Safety Implications of a Large Liquefied Natural Gas (LNG) Spill Over Water, Sandia National Laboratory, December 2004.

http://www.fossil.energy.gov/programs/oilgas/storage/lng/sandia_lng_1204.pdf

The Energy Information Administration (EIA) estimates that domestic natural gas production is expected to increase more slowly than consumption, rising to 20.5 trillion cubic feet (Tcf) in 2010 and 21.9 Tcf in 2025. Domestic gas production is relatively flat, while the marginal costs of domestic production are increasing, which has caused a fundamental shift in long-term gas prices. At the same time, gas demand is rising sharply, particularly for electric power generation. The National Petroleum Council (NPC) states in its recent report, “Balancing Natural Gas Policy – Fueling the Demands of a Growing Economy,” that “traditional North American producing areas will provide 75% of long-term U.S. gas needs, but will be unable to meet projected demand,” and that … “New, large-scale resources such as LNG and Arctic gas are available and could meet 20%-25% of demand, but are higher-cost and have long lead times.”

The combination of higher natural gas prices, rising natural gas demand, and lower liquefied natural gas (LNG) production costs, is setting the stage for increased LNG trade in the years ahead. Estimates are that worldwide LNG trade will increase 35 percent by 2020. In the United States, EIA projects that natural gas imports will more than double over the next 20 years. Nearly all the projected increase is expected to come from LNG, requiring an almost 28-fold increase in LNG imports over 2002 levels.

The United States currently has four marine LNG import terminals: Lake Charles, Louisiana; Everett, Massachusetts; Elba Island, Georgia; and Cove Point, Maryland. EIA projects that three new LNG terminals could be constructed in the U.S. in the next 4 to 5 years, and others have estimated that as many as eight could be constructed within this time frame. More than 40 new marine LNG terminal sites are under consideration and investigation. A major factor in the siting of LNG import terminals is their proximity to a market, enabling natural gas to be easily supplied to areas where there is a high demand, but limited domestic supplies. For this reason, marine LNG import terminals are being proposed or considered near major population centers on all three U.S. coasts.

LNG Transportation by Ship

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Specially designed ships are used to transport LNG to U.S. import terminals [Harper 2002] [OTA 1977]. Many LNG tankers currently in service use Moss spherical tanks, as illustrated in Figure 1. Moss tankers sometimes use nitrogen to purge some below-decks spaces to aid in preventing fires. Moss ship holds are designed to collect spilled LNG and the vessels contain equipment required to recover it [Glasfeld 1980]. In addition to Moss tankers, other LNG ships are designed with prismatic, membrane-lined cargo tanks.

Prismatic tanks are designed to conform to the shape of the ship’s hull, thus occupying much of the internal area of the ship, which minimizes areas into which LNG from a tank rupture or spill can be diverted.

Some of the special features of LNG ships include:

  • Construction of specialized materials and equipped with systems designed to safely store LNG at temperatures of -260 °F (-162.2°C).
  • All LNG ships are constructed with double hulls. This construction method not only increases the integrity of the hull system but also provides additional protection for the cargo tanks in the event of an accidental collision.
  • Coast Guard regulations and the "International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk" (International Gas Carrier Code) require that LNG ships meet a Type IIG standard, which is an intermediate-level safety design standard for hazardous cargoes that includes direction on double-hull designs and materials, subdivision, damage stability, and cargo tank location.

During the past 40 years, more than 80,000 LNG carrier voyages have taken place, covering more than 100 million miles, without major accidents or safety problems, either in port or on the high seas [Pitblado 2004]. Over the life of the industry, eight marine incidents worldwide have resulted in LNG spills, with some damage; but no cargo fires have occurred. Seven incidents have been reported with ship structural damage, two from groundings; but no spills were recorded. No LNG shipboard fatalities from spills have occurred [Beard 1982] [SIGTTO 2003].

Source:

Guidance on Risk Analysis and Safety Implications of a Large Liquefied Natural Gas (LNG) Spill Over Water, Sandia National Laboratory, December 2004.

http://www.fossil.energy.gov/programs/oilgas/storage/lng/sandia_lng_1204.pdf

6.3 Risk Reduction Examples

Table 21 below presents selected scenarios that provide examples of potential events and several prevention and mitigation approaches that could be used to reduce risks to public safety and property. Following the table, examples are given for each category of how these prevention and mitigation strategies can be implemented individually or in combination to reduce risks and consequences for a given location.

Many of the strategies identified are already under consideration or being implemented by the Coast Guard. Other strategies identified might be considered in conjunction with existing strategies at many sites. While risks can seldom be reduced to zero, prevention of the higher consequence events can significantly reduce hazards to public safety and property and facilitate mitigation of the remaining lower consequence and lower risk events.

As discussed in Section 3, prevention and mitigation strategy implementation should key on effectiveness, costs, and operational impacts. The level of risk reduction required should be determined in conjunction with local public officials and public safety organizations such as police and fire departments, emergency response services, port authorities, the Coast Guard, and other appropriate stakeholders.

Risk reduction strategies that are effective at one site might not be effective at another site. Therefore, the examples provided in Table 21 below should be considered in the context of how a risk management approach might be customized to yield benefits to public safety and property while having limited operational impacts.

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Ramming

Ramming could occur between an LNG tanker and a fixed object or between a boat and an LNG tanker. As noted in Appendix B, unless the LNG tanker speed is above 5 – 7 knots or the object is very sharp, ramming of the LNG tanker into an object will not likely penetrate both hulls and the LNG cargo tank. Likewise, if the LNG tanker is rammed by a small boat, such as a pleasure craft, the kinetic energy is insufficient to penetrate the inner hull of a double-hulled LNG ship.

Therefore, while ramming does not appear to be a major concern or present significant hazards, changes in some safety and security operations could reduce the chances of a ramming event. For example, requiring tug escorts for LNG ships in high consequence areas would reduce the potential for an insider to ram intentionally an LNG vessel into a critical infrastructure element. Another option would be to ensure that crewmembers have been properly evaluated and the ship interdicted and searched sufficiently in advance of entry into the U.S. to thwart a hijacking attempt or insider sabotage. These efforts reduce the ability of an adversary to pick the time, place, and target for a ramming event and reduce the risk from a potential ramming scenario.

Triggered Explosion

Triggered explosion events assume pre-placed explosives, either on the ship or in a fixed location. At some sites, sweeping of the waterway, harbor bottom, and terminal areas for explosives or mines might be required. This is especially true for high hazard areas, shallow waterways, or terminals where explosives might be hidden. To prevent sabotage of an LNG cargo tank through a triggered explosive on board a ship, the same type of early interdiction, searches, and control of the ship discussed in the ramming prevention scenario could be applicable.

Insider Takeover or Hijacking

A number of security measures, including armed security control aboard the ship and early interdiction and inspection of the ship prior to its entry into the U.S., could prevent many of the large breaching scenarios identified in Sections 4 and 5. This could significantly reduce hazards levels and enable spill mitigation measures available to emergency response organizations to be used effectively.

A ship hijacking should be considered credible through coordinated efforts by insiders or others. The threat could proceed with the breach and spill of an LNG cargo tank through use of planted or smuggled explosives or by overriding offloading system safety interlocks to discharge LNG intentionally onto the ship, onto unloading terminal equipment, or onto the water. While a number of operational procedures have been implemented to help prevent this type of potential scenario, control and surveillance of an LNG ship must be appropriately maintained to ensure adequate time to respond to a potential hijacking event.

External Terrorist Actions

External terrorist attacks could come from a number of avenues, including attack of the LNG ship with a wide range of munitions or bulk explosives. A U.S.S Cole-type attack is often suggested as a potential attack scenario, as well as attacks with munitions such as rocketpropelled grenades, or missiles or attacks by planes. Depending on the size of the weapon or explosive charge and the location of the attack, the potential breach and LNG spill will vary. Common approaches to prevent or mitigate these events are to make structures more resistant to attacks or to increase the standoff distance between the initiation of explosives and the ship. While security zones are presently used effectively for safety considerations at most of the LNG import locations in the U.S., a security halo for an LNG ship would have to be much smaller and effectively maintained to develop the security zones needed to prevent some of these events. Such measures could prevent a potential attacker from approaching close enough to cause severe damage to an LNG vessel. This security zone might require different escort ships and escort procedures, improved overhead and subsurface surveillance, enhanced training, or enhanced security response procedures.

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4.2 Thermal Damage on Structures

The potential for damage to other vessels or structures from an LNG spill and fire needs to be considered to determine the overall risk. As noted in Appendix C, the potential for fire damage from spills can be relatively extensive. The six spills projected in Appendix B would take anywhere from 10 – 20 minutes to release up to 50% of the LNG in an individual tank for a large spill and up to one hour for a small spill, depending on the location.

The thermal radiation that will damage structures is approximately 37 kW/m2 for durations of more than 10 minutes. Damage can be expected to the vessel and nearby steel structures, because steel strengths are reduced to 60 – 75% of their room temperature values at 800º K. Further reduction in strength will result for temperatures above 800º K. Steel will melt at approximately 1800º K and is generally considered to have no strength at half the melt temperature, or 900º K. The calculations suggest that these temperatures could exist at a spill from an LNG cargo tank from 30 minutes to an hour and, therefore, potentially damage nearby steel and other structures.

Of even greater importance is the possibility that a large spill could cause a cascading set of LNG cargo tank failures. In this instance, significant long-term fire damage could result to a nearby steel structure, unloading terminal, or unloading platform. Positive operational and risk management measures can be taken to try to prevent these types of issues. This could include redundant or multiple offloading capabilities or moorings, fire protection systems, etc., as identified in Section 6.


http://www.ferc.gov/industries/lng/indus-act/exist-term/lake-charles.asp

LNG - Existing LNG Terminals

Lake Charles, Louisiana

Lake Charles

Docket No.: CP02-60-004, CP04-64-000

Company Name: Trunkline LNG Company, LLC

Lake Charles is an existing LNG terminal located in Lake Charles, Calcasieu Parrish, Louisiana. The LNG facilities were originally authorized in 1977. Deliveries began in 1982, but were suspended in 1983 due to the high cost of LNG. Deliveries were resumed in 1989 and have increased in recent years.

On December 18, 2002, the Commission authorized expansion facilities that included a fourth storage tank, additional pumps and vaporizers to increase sendout capacity, a second marine unloading dock, and various supporting facilities. On September 17, 2004, the Commission authorized additional unloading facilities, vaporizers, and pumps to provide additional firm vaporization service and increase sendout capacity.

__________

http://www.panhandleenergy.com/serv_lng.asp

Flexible LNG Services

Trunkline LNG Company, a unit of Panhandle Energy, provides innovative and flexible receipt, bulk storage and regasification services for the world's LNG producers. These services helped leverage Trunkline LNG to become the nation's largest import point for LNG in 2002. The Lake Charles, La., complex offers great flexibility to suppliers and buyers with a natural gas peak sendout capability of up to 1 billion cubic feet (bcf) per day and firm sustained sendout capability of 630 million cubic feet (MMcf) per day. The terminal has storage facilities that can store the equivalent of 6.3 Bcf of natural gas or 285,000 cubic meters (m3).

With its connection to Trunkline Gas Company, LLC's south Louisiana pipeline, the Lake Charles terminal has access to 15 natural gas pipelines and the Henry Hub.

Shippers from around the globe have access to the terminal. LNG is a reliable, competitively priced source of natural gas that promises to be a long-term part of the North American supply portfolio.

Our top-notch staff has the expertise to efficiently manage and accommodate a wide range of gas compositions from virtually any production area in the world. Our flexible docking facilities handle a variety of tanker designs and sizes.

Terminal Services

The Trunkline LNG terminal offers the following services:

* Firm terminal service;

* Interruptible terminal service; and

* LNG lending service.

______

http://www.panhandleenergy.com/term_lng.asp

Trunkline LNG Lake Charles Terminal

The terminal, completed in July 1981, is the United States' most modern LNG importation terminal. It is located on a 382-acre site in the Lake Charles Harbor and Terminal District, about nine miles southwest of Lake Charles, La.

Three LNG storage tanks, each 196 feet (60 m) in diameter and 163 feet (50 m) tall, are the most prominent physical features of the facility. They were specially designed and constructed to store LNG at cryogenic temperatures for sustained periods.

The tanks have a combined capacity of approximately 1.8 million barrels (285,000 cubic meters) of LNG, or approximately 6.3 billion cubic feet (bcf) of gas.

When operating at peak capacity, the terminal can regasify LNG and send out natural gas at a maximum rate of 1.2 bcf per day and has a firm sustained capability of 630 million cubic feet (MMcf) per day or 4.8 million metric tons per annum (mmtpa).

The terminal is designed to be expanded at a minimal cost with a redelivery capacity of 1.2 Bcf per day (9.1 mmtpa).

The Lake Charles terminal is designed to stringent standards:

* Tanks can withstand wind speeds up to 150 mph (67 meters per second).

* In addition, tanks are rated for earthquake Zone 1.

* Terminal elevation is above the 100-year flood plain and hurricane tidal surge.

Facility Summary

No. of Storage Tanks

3

Capacity per Tank

600,000 bbl (95,000 m3)

No. of Vaporizers

7

Sustained Sendout Capacity

630 MMcf/d (4.8 mmtpa)

Peak Sendout Capacity

1.2 Bcf/d

Sendout Pressure

700-1,200 psig (48-103 barg)

LNG Storage

Each of the three storage tanks has a nominal capacity of 600,000 barrels or 95,000 cubic meters (m3). The tanks are double-walled and double-bottomed with a suspended internal aluminum roof plate covered by a carbon steel dome.

The inner tanks are 9 percent nickel steel and of welded construction.

The outer tanks are welded carbon steel, 196 feet in diameter and 163 feet high.

Each tank is supported by 974 pre-stressed, 14 inch x 14 inch x 75 foot piles which were driven 72 feet below grade to support the 21 inch thick concrete pile cap on which each tank rests.

Highly efficient insulation fills the void between the inner and outer tanks and covers the inner roof plate.

The tanks maintain LNG in a liquid state by auto-refrigeration of the boil-off. Boil-off gas can be used for plant fuel, recombined with LNG before it is vaporized or sent directly to sendout.

Each tank has three submerged pumps of which two are required to meet maximum LNG sendout capacity.

Sendout System

Prior to vaporization, secondary pumps increase the pressure of the LNG to meet pipeline requirements.

Each of the seven gas-fired, water-bath vaporizers can regasify LNG at a rate of 150 MMcf/d (1.14 mmtpa).

Simplified flow diagram of the Lake Charles terminal.

The facility is connected to the mainline transmission system of Trunkline Gas Company, LLC by 45 miles (72 km) of 30 inch diameter pipeline with a capacity of 1.2 bcf per day (9.1 mmtpa).

The facility has a header system installed that allows access for additional pipelines.

Waterway and Dockage

The Lake Charles terminal is connected to the Gulf of Mexico by a 48-mile (80 km) ship channel. The channel is dredged to a depth of 40 feet (12 m) and is 400 feet (120 m) wide with no overhead navigational obstructions.

An LNG vessel in the turning basin at the Lake Charles terminal

The turning basin at the terminal is 1,400 feet (425 m) wide and 1,600 feet (490 m) long.

Our flexible docking facilities handle a variety of tanker designs and sizes ranging from 30,000 m3 up to 160,000 m3.

A typical vessel unloading is accomplished in 12 hours.

The terminal also has the ability to provide nitrogen.

The terminal berth is extremely well-protected. There is no current in the waterway, and the terminal is seldom affected by high winds.

Trunkline LNG Company, LLC
8100 Big Lake Rd.
Lake Charles, LA 70605-0300
Phone: 337-478-9936

Panhandle Energy
5444 Westheimer Rd.
Houston, TX 77056-5306
Phone: 800-275-7375
www.PanhandleEnergy.com


http://www.ferc.gov/industries/lng/indus-act/exist-term/everett.asp

LNG - Existing LNG Terminals

Everett, Massachusetts

Everett LNG Expansion

Docket No.: CP00-447-000

Company Name: Distrigas of Massachusetts LLC

Everett is an existing LNG import terminal located in Everett, Massachusetts. The terminal received its first shipment of LNG in November 1971. The 35-acre site includes a marine terminal for cargo unloading, two double-walled above-ground LNG storage tanks, and associated equipment. On January 10, 2001, the Commission issued a certificate authorizing the construction of four new submerged vaporization units to increase the capacity of the vaporization equipment.


http://www.ferc.gov/industries/lng/indus-act/exist-term/elba-island.asp

LNG - Existing LNG Terminals

Elba Island, Georgia

Project Name Description Information State

Elba Island LNG Expansion

Docket Nos.: CP02-379-000, CP02-379-001, CP02-380-000, CP02-380-001

Company Name: El Paso Energy

Elba Island is an existing LNG import terminal located on Elba Island, in Chatham County, Georgia, five miles downstream from Savannah, Georgia. The initial authorization for the Elba Island facility was issued in 1972. LNG shipments ceased during the first half of 1980. On March 16, 2000, the project received Commission authorization to re-commission and renovate the LNG facilities.

On April 10, 2003, the Commission issued an order authorizing the expansion of the facility, which included adding a second and third docking berth, a fourth cryogenic storage tank, and associated facilities. The expansion enabled an increase of working gas capacity and an increase of the firm sendout rate.


http://www.ferc.gov/industries/lng/indus-act/exist-term/penuelas.asp

LNG - Existing LNG Terminals

Peñuelas, Puerto Rico

Project Name Description Information State

Guayanilla Bay LNG

Docket No.: CP95-35-000

Company Name: EcoElectrica, L.P.

Peñuelas is an existing LNG import facility located at Guayanilla Bay, Peñuelas, about nine miles west of Ponce, Puerto Rico. The gas is used to power a 461 megawatt cogeneration plant which sells electricity to the Puerto Rico Electric Power Authority and uses steam to power a desalination facility on the site.

The order granting authority to construct and operate the LNG facility was issued on May 15, 1996. Approval to begin importing LNG was issued on June 20, 2000. The LNG facilities consist of: (1) a marine terminal with an 1800-foot pier for unloading LNG tankers; (2) two 1,000,000-barrel LNG storage tanks; (3) a vaporization system; (4) various control systems; and (5) piping and other ancillary equipment.


http://www.ferc.gov/industries/lng/indus-act/exist-term/kenai.asp

LNG - Existing LNG Terminals

Kenai, Alaska

Project Name Description Information State

Kenai LNG Export Terminal

Docket No.: FE 96-99-LNG

Company Name: Phillips Alaska Natural Gas Corp./Marathon Oil Co. Kenai is an existing LNG export terminal that was constructed in the Cook Inlet Basin area, Alaska, for the liquefaction and storage of LNG and the loading of such onto ships for export and delivery to Japan. The order authorizing exportation of LNG was issued on April 19, 1967. The original export authorization has been amended and extended numerous times by the Department of Energy. The current amendment continues through March 31, 2009. Order Extending Authorization to Export LNG from Alaska [PDF] AK

Kenai LNG Export Terminal

Docket No.: CI67-1226-000; CI67-1227-000

Company Name: Phillips Petroleum Company/ Marathon Oil Company Kenai is an existing LNG export terminal that was constructed in the Cook Inlet Basin area, Alaska, for the liquefaction and storage of LNG and the loading of such onto ships for export and delivery to Japan. The order authorizing exportation of LNG was issued on April 19, 1967.


http://www.ferc.gov/industries/lng/indus-act/exist-term/cove-point.asp

LNG - Existing LNG Terminals

Cove Point, Maryland

Project Name Description Information State

Cove Point LNG Expansion

Docket Nos.: CP05-130-000, CP05-132-000

Company Name: Dominion CP LNG

Cove Point is an existing LNG import terminal located in Calvert County, Maryland, which was constructed in the mid 1970s. Deliveries were suspended in 1980 due to the high price of LNG imports. The Commission approved the resumption of LNG imports in October 2001, and Cove Point received its first commercial delivery in 23 years in August 2003.

On April 29, 2005, the Commission issued a notice of application for authorization to expand the existing Cove Point LNG terminal by: (1) adding two new storage tanks to increase send-out capability and storage; and (2) constructing five new pipelines totaling about 161 miles in length, to be located in Calvert, Prince Georges, and Charles Counties, Maryland, and Juniata, Mifflin, Huntingdon, Centre, Clinton, Green and Potter Counties, Pennsylvania, to deliver additional capacity to pipeline connections in Virginia and Pennsylvania.

Cove Point, MD MD

Cove Point LNG Reactivation/ Expansion

Docket Nos.: CP01-76-000, CP01-76-001, CP01-77-000, CP01-77-001, RP01-217-000, RP01-217-001, CP01-156-000, CP01-156-001

Company Name: Cove Point LNG Limited Partnership Application to reactivate and expand the liquefied natural gas (LNG) terminal located at Cove Point, Maryland.

__________

http://www.dom.com/about/gas-transmission/covepoint/index.jsp

Welcome to Dominion Cove Point LNG, LP

Dominion Cove Point LNG, LP is located on the Chesapeake Bay in Cove Point, Maryland, south of Baltimore. It is the nation's largest liquefied natural gas (LNG) import facility. Dominion acquired Cove Point from Williams on Sept. 5, 2002, and began receiving ships in the summer of 2003. Explore the left-margin links to learn more about the facility and LNG.

Dominion Cove Point will play an increasingly critical role in coming years. Natural gas is the energy of choice for many Americans, and demand is expected to grow by at least 20 percent over the next decade. Although there are vast reserves of natural gas in the United States, many are not yet available.

Reserves in a number of other countries are available and for sale, but the gas has to be transported.

The most efficient way to transport natural gas across the ocean is to liquefy it and ship it in specially built tankers.

Dominion Cove Point is strategically located where it can receive LNG tankers, store the LNG onshore, then transform it back to gas when it is needed to meet demand.

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LNG is transported in large ships that are fitted with a special cargo containment system inside the inner hull to maintain the LNG at atmospheric pressure and minus 260 degrees Fahrenheit.


Facility Operation

Dominion Cove Point has a storage capacity of 7.8 billion cubic feet (BCF) and a daily send-out capacity of 1 BCF.

The terminal connects, via its own pipeline, to the major Mid-Atlantic gas transmission systems of Transcontinental Gas Pipeline, Columbia Gas Transmission and Dominion Transmission.

Receiving and Storing Gas

LNG is arriving at Dominion Cove Point on specially designed LNG ships. These vessels transport LNG from various locations in the world, including Trinidad, Nigeria, Norway, Venezuela and Algeria.

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At Dominion Cove Point, LNG is off-loaded at an offshore dock, stored for subsequent gasification and then delivered into the pipeline.

A single ship can bring about 34 million gallons of LNG — enough to meet the daily energy needs of more than 10 million homes.

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LNG is pumped from ships at Cove Point's offshore dock through a series of pipes to insulated storage tanks.

In addition to linking natural gas supplies from non-U.S. sources with the high-growth natural gas markets in the Mid-Atlantic, Dominion Cove Point is positioned to serve existing Dominion Energy gas-fired generation facilities.

These include Possum Point, Remington and Ladysmith, as well as Dominion's Fairless Works project now under development in Pennsylvania.

_______________

History of Cove Point

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In the 1970s, the former Consolidated Natural Gas Company, parent of what is now Dominion Transmission, partnered with the Columbia Gas System.

Together, they built Cove Point to receive, store and process supplies of LNG from such producing countries as Trinidad and Algeria.

Cove Point received ship-borne LNG imports between 1978 and 1980. At that time, increased natural gas production in the United States, spurred by wellhead price deregulation under the Natural Gas Policy Act of 1978, reduced the need for LNG imports, which were more expensive relative to the new domestic gas supplies.

Consolidated in 1988 sold its interest in the terminal and the Cove Point pipeline to Columbia. In 1995, Columbia Gas reopened the facility for storage and peak-shaving operations. The facility was used to liquefy, store and distribute domestic natural gas for use in the growing Mid-Atlantic region.

Williams purchased Cove Point from Columbia in 2000. Dominion subsequently purchased Cove Point from Williams in 2002 for $217 million. Growing national demand for natural gas, fueled in part by increasing use of natural gas-fired electrical generation stations, once again has required increased imports of LNG.

Dominion received its first shipment in the summer of 2003.


http://www.dom.com/about/gas-transmission/covepoint/lng_history.jsp

History of Liquefied Natural Gas

Natural gas liquefication dates back to the 19th century, when British chemist and physicist Michael Faraday experimented with liquefying different types of gases, including natural gas. German engineer Karl van Linde built the first practical compressor refrigerator machine in Munich in 1873.

The first liquefied natural gas plant was built in West Virginia in 1912, while the first commercial liquefication plant was built in Cleveland, Ohio, in 1941. The LNG was stored in insulated tanks at atmospheric pressure.

Today there are 113 active LNG facilities spread across the United States, with a higher concentration of them in the northeastern states.

Transportation on the High Seas

Liquefying natural gas made it possible to transport the fuel to distant destinations. In January 1959, the world's first LNG tanker, the Methane Pioneer (a converted World War II Liberty freighter) carried liquefied natural gas from Lake Charles, La., to Canvey Island, United Kingdom. This voyage demonstrated that large quantities of liquefied natural gas could be transported safely across the ocean. The Methane Pioneer subsequently carried seven additional LNG cargoes to Canvey Island.

In 1964, the British Gas Council began importing liquefied natural gas from Algeria, making the United Kingdom the world's first LNG importer and Algeria its first exporter. After the concept was shown to work in the United Kingdom, additional marine LNG liquefication plants and import terminals were built in both the Atlantic and Pacific regions.

Marine Terminals Built in the United States

U.S. Natural gas companies built four marine liquefied natural gas terminals between 1971 and 1980: Lake Charles (operated by CMS Energy), Everett, Mass. (operated by Tractebel), Elba Island, Ga., (operated by El Paso Energy) and Cove Point, Md. (operated by Dominion).

After receiving a peak receipt volume of 253 billion cubic feet (BCF) in 1979 (which represented 1.3 percent of U.S. gas demand), LNG imports declined for two reasons:

One was because deregulation led to increasing North American domestic natural gas production.

The second was because of price disputes with Algeria, then the sole LNG provider to the United States.

Elba Island and Cove Point were mothballed in 1980 and Lake Charles and Everett suffered from very low utilization.

The first exports of liquefied natural gas from the United States to Asia occurred in 1969, with Alaskan LNG being sent to Japan from the Kenai Peninsula LNG plant. The LNG market in Europe and Asia continued to grow rapidly from that point on.

Renewed Interest in LNG

In 1999, the first Atlantic Basin LNG liquefication plant came on line in Trinidad and Tobago. This event, combined with increasing U.S. natural gas demand, particularly for electric power generation and increasing natural gas prices, resulted in renewed interest in liquefied natural gas for the American market. As a result, the two mothballed U.S. liquefied natural gas receiving terminals were reactivated, Elba Island in 2001 and Dominion Cove Point in 2003.


http://www.dom.com/about/gas-transmission/covepoint/lng.jsp

Liquefied Natural Gas Technology

Liquefied natural gas (LNG) is the liquid form of the natural gas people use in their homes for heating and cooking. There are about 113 active LNG facilities in the united States. Most are used for storing natural gas for wintertime use.

Technology for chilling and liquefying natural gas emerged in the 1920s. Engineers could liquefy natural gas by cooling it to minus 260 degrees Fahrenheit. Liquefying natural gas allows for much more efficient storage. In its liquid state, six hundred cubic feet of natural gas only takes up one cubic foot of space, making it economical to transport between continents in specially designed ocean tanker ships.

This LNG is then stored in insulated tanks, such as those at Dominion Cove Point, where it can then be re-gasified and distributed to customers by pipeline.

LNG provides a safe and efficient way of transporting natural gas over long distances, particularly from gas producing nations with insufficient pipeline infrastructures.

Dominion Cove Point will store LNG at about minus 260 degrees Fahrenheit at near atmospheric pressure in reinforced insulated tanks.

The tanks consist of a stainless steel inner tank surrounded by about four feet of insulation, which is contained by an outer steel tank.

[Image]

The storage tanks at Dominion Cove Point
are built like huge thermos bottles to keep
the gas liquefied.

LNG Safety

LNG is non-toxic, odorless, non-explosive and non-flammable in its liquid state. In fact, it will only burn after it has been re-gasified and mixed in the proper proportion with air. Natural gas burns only within the narrow range of a 5 to 15 percent gas-to-air mixture. Liquefied natural gas has about 45 percent the density of water, so if spilled onto a waterway, it will stay on top of the water until it evaporates into the atmosphere.

Since commercial LNG transport began in 1959, LNG has been safely transported, stored and delivered to densely populated cities in the United States, Europe and Japan. During that time, more than 33,000 LNG carrier voyages, covering more than 60 million miles, have arrived safely without a significant accident or safety problem, either in port or on the high seas.

LNG ships are well-built, robust vessels with a double-hull designed built to withstand the low-energy impacts common during harbor and docking operations. They are a common sight throughout much of the world. Japan, for example, receives 96 percent of its natural gas via LNG carriers.


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Safety and Security Oversight

Maintaining LNG safety is a top priority for several federal and state agencies, including the U.S. Coast Guard. The Coast Guard's jurisdiction includes the ship as it is in transit in the Chesapeake Bay and docked at the offshore platform, the equipment and piping on the offshore platform, and the piping leading from the platform to the tanks onshore.

Even before the ship enters the Virginia capes, the Coast Guard closely supervises the ship's voyage up the Chesapeake Bay. During the trip to Dominion Cove Point, the Coast Guard continuously maintains a safety zone around the ship. The Coast Guard also continually enforces a safety zone around the offshore platform, even when a ship is not present. Ultimately, the Coast Guard conducts thorough inspections of everything under its jurisdiction.

The U.S. Department of Transportation's Office of Pipeline Safety is another key agency. Its jurisdiction begins where the Coast Guard jurisdiction ends and includes the tanks, the facility process equipment and the pipeline. The OPS routinely conducts safety inspections and audits.

Finally, the Federal Energy Regulatory Commission, which approved the reactivation of Dominion Cove Point, is monitoring the facility.

There were multiple conditions that FERC had to approve before the reactivated facility could begin service.

Dominion's Commitment to a Safe and Secure Cove Point

Dominion's overall outstanding corporate safety record provides reasons for public confidence in the company's ability to operate Dominion Cove Point in a safe and secure manner.

For example, Dominion oversees one of the nation's largest and safest nuclear energy programs, with reactors in Surry and North Anna, Virginia, and Millstone, Connecticut. The company safely operates more than 7,600 miles of natural gas transmission lines. In 2001, Dominion Exploration and Production, one of the industry's major offshore producers in the Gulf of Mexico, received the prestigious National Safety Award for Excellence from the U.S. Department of Interior's Minerals Management Service.

Before reactivating the Dominion Cove Point facility, a thorough inspection of all facility components was conducted by the company, including both visual inspection and pressure testing. Dominion upgraded equipment wherever such improvements were needed.

Dominion has conducted a thorough security review of the facility and has implemented a plan that will provide for more than adequate security. The plan includes appropriate measures in light of the post-September 11, 2001, environment.

As with all of its facilities, Dominion will work closely to coordinate its emergency response plans with local agencies.


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LNG Frequently Asked Questions

What is LNG?

LNG stands for liquefied natural gas. LNG is natural gas cooled and condensed into a liquid. It is mostly methane with small amounts of ethane, propane and other liquefied petroleum gases and is generally handled at slightly above atmospheric pressure, which requires a very low temperature.

Why liquefy natural gas?

Converting natural gas to a liquid reduces its volume by about 600 to 1, which means one LNG tanker can transport enough LNG to equal 600 tanker ships carrying natural gas. Liquefying natural gas makes it feasible to transport natural gas by tanker and to store it in preparation for re-gasification and delivery to markets.

How is natural gas liquefied?

A large refrigeration system is used to liquefy natural gas by cooling it to about minus 260 degrees Fahrenheit.

Where does LNG come from?

LNG supplies come primarily from locations where large gas discoveries have been made, such as Algeria, Trinidad, Venezuela, Nigeria, Norway, Qatar, Oman and Australia. Some LNG is produced in Alaska as well. Typically these locations are in remote areas that do not have high demand for natural gas, making LNG a very economically viable alternative.

How is LNG transported?

[Image]

LNG is transported in large, specially
designed ships. These ships are double-hulled
and have a capacity of 138,000 cubic meters
or more.

The vessels are fitted with a special cargo containment system inside the inner hull to maintain the LNG at atmospheric pressure and minus 260 degrees Fahrenheit.

There are about 130 ships currently in the LNG fleet and more than 50 additional ones are on order.

What safety features are designed into LNG ships?

The ship's safety systems are divided into ship handling and cargo system handling.

LNG is transported by special ships that moor at Cove Point's offshore dock. The LNG cargo is transferred through a series of pipes to insulated storage tanks. A portion of the pipes are underwater.

The ship-handling safety features include sophisticated radar and positioning systems that alert the crew to other traffic and hazards around the ship. Also, distress systems and beacons automatically send out signals if the ship is in difficulty. The cargo-system safety features include an extensive instrumentation package that safely shuts down the system if it starts to operate out of predetermined parameters. Ships are also equipped with gas- and fire-detection systems.

What facilities make up an LNG import terminal?

An LNG import terminal consists of docks for ships to bring LNG onshore, LNG storage tanks, vaporizers, and other equipment to turn LNG from a liquid back into natural gas. View a facility drawing.

What safety features are designed into LNG import terminals?

At onshore facilities, safety features include methane detectors, Ultraviolet or Infrared (UV/IR) fire detectors, and closed-circuit TV.

[Image]

A vaporization system transforms the liquid
into gas, and the send-out capacity is 1 billion
cubic feet per day.

Other safety features include offsite monitoring, training requirements for personnel, and restricted access to terminal property. In addition, the stringent design parameters for LNG import terminals require that proper measures are in place in the unlikely event of a spill or equipment failure.

How safe is LNG compared to other substances handled in ports and land-based facilities?

LNG is not explosive, toxic, or carcinogenic. Vaporized LNG is lighter than air. If a spill occurs, the vapor will rise and dissipate, leaving no trace in the environment. Although portions of an LNG vapor cloud may be flammable, the flame speed of an unconfined cloud is slow and it will not explode. In contrast, gasoline and fuel oil are extremely flammable and, in their liquid state, are toxic. If these hydrocarbons are spilled, the environmental impact is severe.

Will LNG burn?

LNG itself does not burn because it does not contain oxygen. Natural gas burns only within the narrow range of a 5 to 15 percent gas-to-air mixture. If the fuel concentration is lower than 5 percent, it cannot burn because of insufficient fuel. If the fuel concentration is higher than 15 percent, it cannot burn because there is insufficient oxygen. For LNG to burn, it must be released, vaporize, mix with air in the ignitable ratio, and find an ignition source.

Will LNG explode?

LNG will not explode because it contains no oxygen to react with the fuel. Even LNG vapors in an open environment cannot explode because there is not enough oxygen to react with the fuel. LNG spill studies have shown that high winds rapidly dissipate the LNG vapor and low winds (or no wind) keep the flammable vapor cloud very close to the source.

Is an LNG spill detectable?

Within an LNG facility or onboard a ship, there are various types of hazard detectors used to alert personnel to a leak or spill. These could include detectors for the presence of gas, flame, smoke, high temperatures or low temperatures. While LNG vapors have no odor or color, if an LNG release occurred, LNG's low temperature will cause water vapor to condense in the air and form a visible white cloud that would be readily apparent.

LNG Vessels


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Underground Storage

Dominion operates the world's largest underground gas storage system totaling nearly 900 Bcf of capacity located in four northeastern states Ohio, West Virginia, Pennsylvania and New York.

Natural gas is usually stored in natural geological reservoirs such as depleted oil or gas fields or water-bearing sands sealed on top by an impermeable cap rock. Preparing an old gas well for storage purposes usually involves reworking the well to a point below the maximum depth of the porous storage sands. Workers then either plug it to the surface and abandon it, or they install new casing and prepare the well for gas injections and withdrawals.

First attempts by our former "CNG Transmission" at storing gas underground occurred in 1932 when predecessor Hope Natural Gas Company ran injection tests in a depleted gas production well completed in the Fifty Foot Sand near Bridgeport, WV. Additional tests were run on this well again in 1936. In 1937, the reservoir in that area was developed for storage. Other early storage developments included the following pools: Fink and Racket-Newberne in West Virginia and Tioga and Sharon in Pennsylvania. All of these pools were developed prior to 1950 and are still in operation today.

Fink Pool

Source: http://www.terraserver-usa.com/usgsentry.aspx?T=1&S=12&Z=17&X=663&Y=5410&W=3&qs=%7cfink%7cwv%7c

During the 1950's and 1960's, the company greatly expanded its Fink storage pool and developed a number of large, high deliverability reservoirs in Pennsylvania and New York. The Leidy pool, located in north central Pennsylvania, has a capacity of 102 Bcf and operates at a maximum pressure of 4200 pounds per square inch (Psig). Leidy is the second highest naturally pressured gas reservoir in North America. Located adjacent to the Leidy pool, our wholly-owned Greenlick pool is the highest naturally pressured reservoir in North America and operates at a maximum pressure of 4240 Psig.

Leidy Pool

Source:
http://www.terraserver-usa.com/usgsentry.aspx?T=1&S=12&Z=18&X=318&Y=5733&W=3&qs=%7cleidy%7cpa%7c

Storage Pool Statistics

Pool Name State Ownership Partner Start Date Total Wells Formations Capacity HP DTI
Dehy.
Cap.
MMcf/
day
Bridgeport WV 100% None 1937 54 Fifty Foot 8.221 2,200 82 
Fink-Kennedy WV 100% None 1941 408 Gantz 111.414 33,400 1,000
Lost-Creek WV 100% None 1971 179 Gantz 43.000 ^
Racket Newberne WV 100% None 1947 49 Gantz 7.911 0 80 
Ellisburg PA 39% TGP/NFG 1963 87 Oriskany 98.430 18,400 408
Greenlick PA 100% None 1961 56 Oriskany 55.860 13,600 912
Harrison PA 50% TGP 1953 46 Oriskany 34.100 11,100 228
Leidy PA 50% TCO/TET 1959 115 Oriskany 102.003 23,300 612
Tamarack PA 50% TCO/TET 1971 11 Oriskany 11.220 2,500
North Summit PA 100% None 1991 25 Oriskany/Chert 21.851 6,400 300
Oakford Murraysville PA 50% TET 1951 201 Murraysville 100.983 53,200 700 
Oakford Fifth Sand PA 50% TET 1951 70 Fifth 21.420 0
Sabinsville PA 100% None 1951 43 Oriskany 35.618 10,500 418  
Sharon PA 100% None 1948 14 Oriskany 4.500 1,000 20  
South Bend PA 100% None 1951 65 100 Foot 17.340 12,000 200  
Tioga PA 56% NP 1937 35 Oriskany 36.000 10,400 325  
Woodhull NY 100% None 1957 51 Oriskany 35.904 11,100 357  

Future Growth

Dominion Transmission currently controls all, or a significant portion of, several gas production reservoirs in its operating region. These reservoirs are capable of being developed to meet our customers' or the market's requirements. The Dominion Transmission Storage Engineering staff is actively searching for additional quality conventional gas reservoirs that may be acquired and developed. In addition, Dominion Transmission is evaluating the feasibility of developing unconventional gas storage facilities, such as salt caverns, adjacent to existing reservoirs where the value of the service currently provided could be enhanced.

Reliablity

Our company has historically been relied upon as a "backstop" by the major transmission pipelines that serve the East Coast markets when demands have exceeded their ability to move gas from the production areas and out of storage. Other pipeline companies trust and depend upon Dominion Transmission for reliable and continuous service during extreme swings in demand. Taking a long-term view on maintaining and reinvesting in storage assets, Dominion Transmission has continued a sound and reasonable well and reservoir integrity maintenance program and has made a substantial investment toward maintaining the deliverability of its storage pools. Mother Nature has blessed Dominion Transmission with premium reservoirs in a strategic market location. The Dominion Transmission staff capitalizes on this advantage by maintaining and enhancing the natural high deliverability characteristics of Dominion Transmission's storage pools.

Expertise

Dominion Transmission has an experienced staff of engineers, geologists, technicians, and field operations personnel who oversee various components of the system including: reservoir and compression design and maintenance, measurement design, and ongoing general field maintenance. The staff has specialties in gas reservoir engineering, underground storage design and operation, geology, and storage well drilling and completion.