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Trb.lng challenges.graykowski Trb.lng challenges.graykowski Presentation Transcript

  • John E. Graykowski Maritime Industry Consultants July 18, 2013
  •  Cost advantages  Emissions Reductions  Abundant Domestic Supplies  Consistent with National Energy Policy Objectives LNG has the potential to transform the maritime and transportation industries! 2Maritime Industry Consultants
  •  Domestic supplies of natural gas will continue to increase.  LNG will remain less costly as transportation fuel compared with ultra-low sulfur diesel.  Environmental regulations of mobile source emissions will increase, particularly in the maritime industry.  Marine and domestic transportation industries will continue movement to LNG; creating high volume potential market for domestic gas.  International maritime operators will acquire LNG-fuel capabilities and expect U.S. supplies to be available. LNG/CNG will become common marine/transportation fuel in next five years. Maritime Industry Consultants 3
  •  Chicken and egg” problem; e.g. no available infrastructure to support/signal investment in LNG conversion or new equipment; and no certain demand to justify LNG infrastructure investment.  Lack of clear, uniform federal regulatory structures on siting, permitting, operations of small-scale LNG fuel terminals.  Local permitting required; opportunities for intervention by environmental community; NIMBY  Lack of familiarity, understanding, and relationships between marine/transportation industries and gas distribution industry; incompatible fuel pricing and purchasing models. A catalyst is needed to provide credible signal to marine and transportation industries and federal agencies that LNG infrastructure will be available to the marine and transportation industries. Maritime Industry Consultants 4
  •  Ports will be at center of LNG activity in marine industry and platform for expansion to expansion to ferries, trucks, port infrastructure, etc.  Ports control property, have role in siting, permitting, cost and operations of an LNG marine fuel terminal.  Ports have interest in working with regulatory agencies to ensure safe operations. Goal: uniform safety and operational procedures for all LNG marine fuel terminals in the United States.  Ports in best position to work with marine operators and gas suppliers to build broad public support for LNG in transportation industries and facilitate expansion of LNG/CNG use in and around port areas. Ports can serve as the “anchor” for broad deployment of LNG throughout United States! Maritime Industry Consultants 5
  •  Significant and near term emissions reductions in port areas.  Ports viewed as leaders in “Green” initiative and leading expansion of domestic use of domestic natural gas.  LNG infrastructure investment creates new market and employment opportunities.  “First mover” advantages created for ports that lead LNG effort; will be in position to compete for international liner vessels as global LNG conversion occurs. Maritime Industry Consultants 6
  • Federal, State, Local Regulatory Marine Operators Shipyards PORTS Marketing and public relations Gas Supply Interstate and local trucking, Transit Rail 7Maritime Industry Consultants
  •  USCG 33 CFR Part 127 “Waterfront facilities handling liquefied natural gas and liquefied hazardous gas”  PHMSA 49 CFR Part 193 “Liquefied Natural Gas Facilities: Federal Safety Standards”  NFPA 59A NFPA 59A: Standard for the Production, Storage, and Handling of Liquefied Natural Gas (LNG)  FERC Section 7 of the Natural Gas Act (15 USC § 717 et seq.). Maritime Industry Consultants 8
  •  Existing regulations aimed at large import/export facilities NOT small scale marine terminals  Regulations conflict or are silent on marine fuel terminals  Application of current regulations has potential of increasing cost and regulatory burdens to point of infeasibility  Terminal property limitations Maritime Industry Consultants 9
  • 10 Import/Export LNG Shoreside Plant Scale 2 – 3 mtpa 0.2 - 0.4 mtpa Siting 100’s of acres 10’s of acres Ship size 87,000 – 200,000 m3 2,000 – 10,000 m3 LNG Flow Rate 12,000 – 14,000 m3/hour 300 – 600 m3/hour Proposed Corpus Christi LNG Imp./Exp 600+ acres Notional LNG Bunker facility +/- 30 acres
  • 33 CFR 127.001 Subparts A and B of this part apply to the marine transfer area for LNG of each new waterfront facility handling LNG and to new construction in the marine transfer area for LNG of each existing waterfront facility handling LNG § 127.005 Waterfront facility handling LHG means any structure on, in, or under the navigable waters of the United States, or any structure on land or any area on shore immediately adjacent to such waters, used or capable of being used to transfer liquefied hazardous gas, in bulk, to or from a vessel. Part 127.009 The Coast Guard is authorized by law to establish water or waterfront safety zones, or other measures for limited, controlled or conditional access and activity, when necessary for the protection of any vessel, structure, waters or shore area.  Maritime Industry Consultants 11
  • 49 CFR 193.2001 This part does not apply to: In the case of a marine cargo transfer system and associated facilities, any matter other than siting pertaining to the system or facilities between the marine vessel and the last manifold (or in the absence of a manifold, the last valve) located immediately before a storage tank. § 193.2007 Definitions. Waterfront LNG plant means an LNG plant with docks, wharves, piers, or other structures in, on, or immediately adjacent to the navigable waters of the United States and any shore area immediately adjacent to those waters to which vessels may be secured and at which LNG cargo operations may be conducted. Maritime Industry Consultants 12
  •  Part 127, “LNG loading flanges must be located at least 300 meters from “each bridge crossing on a navigable waterway.”  NFPA 59A, “a pier or dock … shall be located so that any marine vessel being loaded or unloaded is at least 30 meters from any bridge crossing a navigable waterway. The loading or unloading manifold shall be at least 61 meters from such a bridge.  NFPA 59A, “General cargo, other than ships’ stores for the LNG tank vessel, shall not be handled over a pier or dock within 30 meters of the point of transfer connection while LNG or flammable fluids are being transferred through piping systems.” Maritime Industry Consultants 13
  •  LNG is new to transportation industries, government and country.  Opportunity to create public policies which: ◦ Provide uniform regulatory certainty ◦ Encourage development of LNG as a transportation fuel ◦ Provide incentives to industry for rapid expansion of LNG infrastructure and uses of LNG LNG is coming to the transportation industry for reasons of cost, abundant supplies and environmental compliance. The ports can and should play a central role in this development. Maritime Industry Consultants 14
  •  Need genuine public/private partnership among all stakeholders  Led by transportation industries, gas suppliers and ports  Need clear policy commitment and action from Administration and Congress to support LNG/CNG as preferred transportation fuel. Maritime Industry Consultants 15
  • John E. Graykowski Maritime Industry Consultants JohnG@maritimeconsults.com 321.394.5099 Maritime Industry Consultants 16