LNG Imports in your area your questions answered

Transcription

1 LNG Imports in your area your questions answered

2 LNG Imports in your area your questions answered Contents 1 Liquefied Natural Gas (LNG): the basics What is Liquefied Natural Gas (LNG)? How is LNG produced? Where does LNG come from? Why do we need to import LNG? How much LNG do we import currently? Why can t we just pipe our gas from overseas? How is LNG transported? How is LNG regasified? What is natural gas used for? How dependent are we on natural gas? 3 Mitigating environmental impacts Is there an obligation on a developer to consider the environmental impact of their project? What environmental regulations cover this type of development? What if the area proposed for development contains endangered species, is a Site of Special Scientific Interest or an Area of Outstanding Natural Beauty? What kind of emissions will be produced from the facility? Will there be an increase in transport levels to the site, and will this continue post construction? 4 Location Where is LNG currently imported to? How is a location selected? What size are such developments? Will they have a visual or other impact? 2 Safety first What safety regulations cover onshore LNG storage sites and terminals in Great Britain? Who assesses safety before a proposal is agreed to, and then monitors safety during construction and operation of a site? Who is responsible for the safety of LNG tankers arriving in UK waters? Can LNG import facilities be sited near populated areas? Can stored LNG be explosive? What is the safety record of LNG import facilities in the UK? What emergency arrangements cover such sites? How are these sites protected from terrorist attacks? 5 Applications, consultation and decision making. What permissions need to be obtained to build an LNG import facility? How will I first hear about proposals for a new facility? Will I be able to obtain more details about plans? What is the process for decision making? How can I make my views heard? Can I challenge any decision made? Are any changes likely to the current planning system? 6 Further information 7 Glossary Footnotes 2

3 1 Liquefied Natural Gas (LNG): the basics What is Liquefied Natural Gas (LNG)? LNG is natural gas which has been liquefied by reducing its temperature to minus 160 C at atmospheric pressure, usually to allow for transportation by ship. Liquefying natural gas means it can be moved over long distances when pipeline transport is not feasible. By cooling the gas, its volume is reduced by about 600 times. How is LNG produced? LNG is simply cooled natural gas. Natural gas is formed mostly of methane (CH4), but includes minor amounts of other gases (e.g. ethane, propane, butane and pentane). It is found most commonly in deep underground sandstone reservoirs (porous and permeable rock). It is extremely flammable, in its natural gaseous state if, in a confined space, at concentrations in air of around 5-15%, it encounters a source of ignition. It is derived almost entirely from decayed plants, tiny sea animals and bacteria deposited in layers, known as the source rocks. The rocks are slowly buried under layers of mud, sand, silt and further organic material. Over millions of years, heat and increased pressure from the overlying sediments cook the remains of the material, producing natural gas and petroleum. In the UK, the main gas producing rocks are formed from vast mangrove swamp-like forests, where leaves and stems were first turned into peat and then coals during burial. Where does LNG come from? In 2006 LNG producers included Algeria, Australia, Brunei, Egypt, Indonesia, Libya, Malaysia, Nigeria, Oman, Qatar, Trinidad & Tobago, UAE and the US. Other countries with natural gas resources including Iran, Yemen, Equatorial Guinea, Angola, Venezuela, Bolivia (via Peru or Chile), and Peru are considering the potential of exporting LNG. The UK has been supplied largely by Algeria to date, followed by Egypt and Trinidad & Tobago, but as we expand our LNG import facilities, our LNG is likely to come from a greater number of countries. It can take around 5 days for a tanker to reach UK shores from Algeria and roughly 10 days from Trinidad & Tobago. Why do we need to import LNG? Since the 1960s, the UK s main supplies of gas have come from the North Sea. But these reserves are rapidly declining: by 2005 UK production had fallen by around 19% between 2000, when it peaked (and the UK became a net importer of gas again in 2004). By importing more gas and storing some of this in large scale underground caverns and oil fields, we are better able to meet peaks in demand and have gas available when we need it. 3

4 By 2020, we could be importing around 80% of our gas, although if measures outlined in the 2007 Energy White Paper for reducing gas demand are taken into account, this could be brought down to around 60%. How much LNG do we import currently? In winter 2005/06, 3% of our gas came from LNG imports. In winter 2006/07, 4% was from LNG imports 1. By 2020, under some scenarios, this could rise to around 25%. Chart 1 UK Gas Imports 2005 and 2020 Source: Wood Mackenzie, 2004 Why can t we just pipe our gas from overseas? Most gas that we need currently comes from the North Sea, but this is currently supplemented by gas piped from Norway, and from across Europe. In the future, it is predicted that piped gas imports from these sources will increase, but so too will LNG imports. All of these sources of gas will be required to help us meet the shortfall that is left by the decline of our North Sea gas. How is LNG transported? The LNG that reaches UK shores from some of the countries named above is brought to the UK in specially built tankers with double hulls. When it comes ashore it can be stored in insulated tanks. An LNG tanker can carry typically enough gas to supply over 46,000 homes for a year 2. How is LNG regasified? Upon reaching its final destination, LNG can be regasified: this is similar to boiling a kettle, and the water turning to steam. The LNG passes under pressure through a coil or heat exchanger where it is heated by the surrounding warm water within the vaporizer unit. This changes the LNG into its gaseous state. The gas is then injected into a country s gas pipeline system or into a storage facility until it is needed. New technology means that in some cases LNG can be regasified on board the tanker that has transported it, before being piped ashore in gaseous form. What is natural gas used for? Natural gas is used in our homes, for cooking and heating and also used to generate well over a third of the electricity used in the UK. It also has commercial significance, both to heat and power businesses, and in energy intensive industries where large quantities of gas are used (as fuel and/or as a raw material) in 4

5 processes such as the manufacture of steel, chemicals, glass, paper and construction materials. How dependent are we on natural gas? In the UK, natural gas accounts for around 40% of the fuel used to power and heat our homes and businesses. Some of that gas is used directly, and some is used to generate electricity to provide heat or power. 2 Safety first Full guidance on all safety related matters can be accessed via the Health and Safety Executive s website: supply/lngterminals.pdf What safety regulations cover onshore LNG storage sites and terminals in Great Britain? Safety is paramount, and there is a comprehensive regulatory framework. In summary, sites wishing to store certain quantities of particular potentially hazardous substances, including LNG, must have the permission of the Hazardous Substances Authority (usually the planning authority) for consent under the Planning (Hazardous Substances) Act 1990 and Planning (Hazardous Substances) Regulations The Health and Safety Executive (HSE) is a statutory consultee in this process. Safety matters during construction and operation of the site are dealt with under the Control of Major Accident Hazard Regulations 1999 (COMAH). In England and Wales this is jointly enforced by the HSE and Environment Agency, with HSE being the lead authority. Who assesses safety before a proposal is agreed to, and then monitors safety during construction and operation of a site? This is the role of HSE which has regulatory responsibilities for ensuring safety during the design, construction and operation of LNG terminals and ensuring appropriate emergency plans are developed. The HSE is also a consultee on applications for development consent. The HSE will assess the safety implications of each proposal on a case by case basis and will consider any risks to people living and working in the vicinity as well as any implications for future surrounding land use. The HSE will advise local planning authorities whether, on the basis of safety, a particular proposed LNG facility should be given consent. In its role as the statutory regulator of health and safety, the HSE has wide-ranging powers of inspection, enforcement and ultimately prosecution under the Health and Safety at Work etc Act The HSE will exercise these general responsibilities in ensuring the safety of a particular LNG facility during both its construction and operation. There are also specific requirements under the COMAH Regulations which require an operator to 5

6 provide information to the HSE prior to starting work. Who is responsible for the safety of LNG tankers arriving in UK waters? Starting with the construction and manning of the tankers themselves, the IMO (UN s International Maritime Organisation) has internationally agreed standards that must be adhered to. The navigational safety of a ship at sea is the responsibility of the Master of the vessel; the ship is regulated by the vessel s Flag State to internationally approved standards. When in harbour waters, safety is the responsibility of the Master of the vessel and the harbour authority. The tankers are assisted to and from the berths by a dedicated fleet of tugs. Once alongside the terminal, the ship s Master remains responsible for cargo safety, and the Health and Safety Executive regulate the safe offloading of the cargo. Can LNG import facilities be sited near populated areas? For new LNG import facilities, HSE assesses the risks taking into account the quantities of LNG present on land, the installation details and the local population. It provides advice to the relevant Hazardous Substances Authority which takes the final decision on whether to grant hazardous substance consent. Safety considerations will always be central to this process. Can stored LNG be explosive? Liquefied natural gas in its liquid state is not explosive. However, when vaporised into its gaseous state as natural gas, it is extremely flammable in concentrations in air of about 5-15%, if it encounters a source of ignition, and if in a confined space. What is the safety record of LNG import facilities in the UK? The safety record in the UK for LNG import facilities is extremely good. There have been no major accidents, and no incidents involving members of the public. What emergency arrangements cover such sites? Emergency planning is at the heart of the civil protection duty on the emergency services and local authorities under the Civil Contingencies Act The Act requires these organisations to maintain plans for preventing emergencies; reducing, controlling or mitigating the effects of emergencies; and taking other action in the event of emergencies. Emergency arrangements are covered by the provisions of the COMAH regulations. Operators of LNG terminals are required to produce an on-site emergency plan before the establishment starts to operate and must provide information to the local authority to assist them in their production of an off-site emergency plan. 6

7 How are these sites protected from terrorist attacks? The security services are involved in deciding on the appropriate measures which need to be taken to combat terrorism. 3 Mitigating environmental impacts Is there an obligation on a developer to consider the environmental impact of their project? Yes. Environmental considerations will be an important factor in the decision-making process. There will almost certainly be a requirement for an Environmental Impact Assessment (EIA) to be undertaken for a proposed LNG facility and, therefore, for an Environmental Statement to be submitted with the application. An EIA should ensure that the likely significant environmental effects of a proposed development are fully understood, and these effects must be taken into account before the development is allowed to go ahead. The preparation of an Environmental Statement in parallel with the project design provides an opportunity for environmental considerations to form part of the development of the project. What environmental regulations cover this type of development? The Town and Country Planning (Environmental Impact Assessment Regulations) (England and Wales) Regulations 1999, and in Scotland, the Environmental Impact Assessment (Scotland) Regulations 1999 are the relevant regulations. Links are provided at the end of this publication. Environmental Impact Assessment (EIA) describes a procedure that must be followed for certain types of project before they can be given development consent. Under the EIA Regulations there are formal requirements in terms of the content of Environmental Statements. Amongst other things, developers are required to provide a description of the aspects of the environment likely to be significantly affected, including people, fauna and flora, soil, water, air, climatic factors, material assets, including architectural and archaeological heritage, the landscape, and the interrelationship between these factors. Developers are also required to consider measures to prevent, reduce and where possible offset any significant adverse effects on the environment. What if the area proposed for development contains endangered species, is a Site of Special Scientific Interest or an Area of Outstanding Natural Beauty? Where LNG facilities are proposed in environmentally sensitive areas, applicants will be expected 7

8 to demonstrate that they have considered alternative sites. If the siting of these facilities within sensitive areas is unavoidable, developers will be required to consider how to mitigate the potential environmental impacts of exploration and development of the proposed facility, in terms of both the surface and subsurface works. Unacceptable impacts that cannot be mitigated will constitute a reason for refusal of planning permission. What kind of emissions will be produced from the facility? During the construction phase emissions may include noise, dust, and light and information relating to these would need to be covered in the Environmental Impact Assessment. During operation, there would not usually be routine releases of gas or other emissions. The EU Emissions Trading Scheme monitors the amount of CO 2 released into the environment. Will there be an increase in transport levels to the site, and will this continue post construction? Transport levels to the site are likely to increase in the short term, as equipment is brought to the site. Post construction, transport levels are likely to decrease as the gas is not taken off site by lorry, but is transported by underground pipeline. Developers would need to assess the traffic implications of a proposal including the site access, increase in traffic levels during construction and the highway network in the locality. The consequences of the increase in road traffic will need to be considered from a safety and capacity and environmental point of view. Increases in transport levels, as well as proposed routes to access the site should be set out as part of the Environmental Statement, if the development falls within the scope of the EIA Regulations. Acceptable access routes to construction sites are typically agreed between developers and the local highway authority in advance of the start of works. 4 Location Where is LNG currently imported to? As of summer 2007, there is only one onshore LNG import terminal in operation. This is the Isle of Grain LNG import facility situated in north Kent. Additionally there are two new facilities under construction, namely the Dragon LNG and South Hook LNG projects, located close to Milford Haven in Wales. These are likely to become operational in late 2007 and early 2008 respectively. In Winter 2006/07 a new LNG import project was commissioned in the UK, the Teesside Gasport facility in the North-East of England. Unlike other developments, LNG is regasified whilst in the dock, on board the tanker that delivers 8

9 it, and it is then piped into our National Transmission System for use, rather than being stored onshore. How is a location selected? The choice of location can be based on a number of factors. Suitability of harbour facilities; suitability of receiving site; proximity to shipping lanes; adjacent facilities; and location to the gas grid (either the National Transmission System (NTS) or the local pipeline network), to name a few. The suitability assessment of the location is then subject to the planning process. What size are such developments? There is no standard size for such a development, and it will depend on how many LNG storage tanks for example the developer wishes to include in the development. The plans for such a development would all need to be set out in the application for the development, and would be available for public inspection. Will they have a visual or other impact? It is not possible to talk in general terms about the extent of any visual impact of a project because this may vary considerably between projects. However, developers will need to consider how best the visual impact of their project may be mitigated, and there are various methods for achieving a lower impact, for example through planting, through the siting, shape and structure of LNG storage tanks, and by the extraction of soil and rock to lower the ground on which tanks may be sited in some cases. The visual impact of a site is understandably often a key concern of local people and is therefore typically a prime consideration in the drafting of any Environmental Statement. 5 Applications, consultation and decision making. 3 What permissions need to be obtained to build an LNG import facility? Proposed developments will need to be applied for under the Town and Country Planning Act (TCPA) Applications under the TCPA are usually decided by the local Planning Authority, although they may be called in for consideration by Ministers. Other consents will need to be obtained such as the consent to store hazardous substances. In addition, the developer will need to comply with regulations such as the Control of Major Accident Hazard Regulations 1999 (COMAH). How will I first hear about proposals for a new facility? Even before an application is submitted for such a facility, you may hear about the plans for the proposal informally. Some developers may hold road shows or initiate opportunities for 9

10 informal consultation with the local community. Under the TCPA 1990, after the planning application has been made, the planning authority will advertise the proposal in the local newspaper, post notices near the site and write letters to those closest to the proposed development, inviting comments. The planning authority would also notify the parish council and local resident and amenity societies of the application. Will I be able to obtain more details about plans? Yes. Details of applications made under the TCPA 1990 will be available for inspection at the local council offices. What is the process for decision making? Under the TCPA 1990, the Planning Authority will be guided by the provisions of the development plan and will also take into account other considerations such as any local concerns and likely environmental impact. It is possible that there may be a Public Inquiry, either because the applicant appeals against any refusal or non-determination of planning permission or because the application is calledin by the Secretary of State for Communities and Local Government 4 for decision. How can I make my views heard? With an application made under the TCPA 1990, you will have a set amount of time in which to send comments to the local Planning Authority. You can contact your local Councillor who will be able to take views on applications within his or her area to the Planning Committee. If making an objection, it is very important to meet any deadline or your submission may not be taken into account. The planning authority may grant planning permission with or without conditions, or refuse planning applications. The Case Officer considers all comments and representations made, and prepares a report summarising the application and the issues it raises. The application will be determined by the Planning Committee, made up of elected Councillors, which consider the officer s report and make the final decision. It is possible to attend committee meetings dealing with planning applications. In many cases members of the public can speak briefly to ensure that the committee is aware of their views. However, only elected members of the council can vote on the application decision itself. Can I challenge any decision made? If the planning authority grants planning permission, or grants it subject to conditions or there is a non-determination, only the applicant may appeal to the Secretary of State. A third party who wishes to challenge a decision to grant planning permission may seek to do so by 10

11 way of Judicial Review. Where the Secretary of State has determined an appeal or call-in, there is a challenge mechanism that may be available. Are any changes likely to the current planning system? The Government published a Planning White Paper in May 2007 that sets out proposals for major reform of the planning system, including the consenting processes for major energy infrastructure. The consultation on these proposals will last until August 2007, and changes are unlikely to be implemented before Spring Further information You may find the following resources helpful: Health and Safety legislation HSE gas links: information.htm HSE LNG import link: ingterminals.pdf Planning and consents: Planning Portal: Communities and Local Government (CLG) Environment CLG Environment links: index.asp?id= Environment Agency: Environmental Impact Assessment Regulations: htm Government policy and reports Energy White Paper 2007: page39534.html Planning White Paper 2007: PlanningforaSustainableFutureWhite Paper_id pdf Statement of Need for Additional Gas Supply Infrastructure (May 2006): Joint energy security of supply working group (JESS) report (December 2006): 11

12 7 Glossary BERR Department for Business, Enterprise and Regulatory Reform (formerly DTI) CLG Communities and Local Government COMAH Control of Major Accident Hazard Regulations 1999 EIA Environmental Impact Assessment HSE Health and Safety Executive LNG Liquefied Natural Gas NTS National Transmission System TCPA Town and Country Planning Act 1990 Footnotes 1 Figures obtained from National Grid, Winter 2007/08 Preliminary Consultation Report 2 Figures based on Table 3: Energy Trends - March Average domestic gas consumption per Meter Point Reference Number (MPRN) in 2005 for Great Britain was 19,020KWh (0.0018mcm). 3 Scotland, Wales and Northern Ireland each have fully devolved responsibility for town and country planning policy and decision making. URN 07/