LNG tankers through the Islands?
Patrick Brown
Island Tides
Two companies are competing to be the first to establish a Liquefied Natural Gas (LNG) terminal on the BC coast. They are Kitimat LNG and Westpac Terminals, both based in Calgary. Over the past two weeks, both have announced plans to build combined-cycle, gas-fired, electricity generating plants in conjunction with the proposed terminals.
The Kitimat terminal proposal has received environmental approvals from both the provincial and federal governments. The Westpac proposal, originally planned for Ridley Island near Prince Rupert, has been moved to Kiddie Point, at the north tip of Texada Island in the Strait of Georgia. WestPac has announced that they have now leased 46.5 hectares of land there, and that they plan to construct a marine jetty and LNG handling facility for deepsea LNG tankers, LNG storage facilities, a 600MW gas-fired generating plant, and connections to both the BC Transmission 500kv electrical line to Vancouver Island, and the Terasen natural gas pipeline to Vancouver Island. Both of these lines run across Texada Island.
WestPac is ‘in the early stages’ of applying for government approvals, and does not appear to have reached any agreements with either BC Hydro (to purchase the electrical power produced), BC Transmission Corp (to transport the power), or Terasen (to buy and transport natural gas from Texada).
WestPac claims that the importing of LNG by tanker provides a new way for BC to become energy self-sufficient, and that the provision of large on-demand ‘firm’ power supports BC Hydro’s green power strategy by making it possible to utilize wind and run-of-river power sources, which may not generate power when it is most needed. (However, BC’s extensive hydroelectric generating capacity is already employed as a ‘balancing’ resource, since its generators can be turned on and off as required.)
Said WestPac Director and former Attorney- General Geoff Plant: ‘We hope the BC Government will agree that we will offer new and flexible energy options for the province by allowing power generation using natural gas that can be imported economically.’
WestPac also claims that the use of a natural gas-powered generating plant on Texada Island would enable BC Hydro to decommission the Burrard Thermal generating plant, thus improving air quality in the Fraser Valley airshed. Government policy requires that all new generating plants produce zero net greenhouse gas emissions, and that existing plants reach this target by 2016. It is not clear how WestPac would reach this ‘zero net’ standard, but the purchase of ‘carbon credits’ might be the answer. At $15 per tonne, the cost of such credits has been estimated at some $23 million per year, a small price for the possible electricity sales of $300 million.
WestPac also claims that the company could make LNG available for vehicles in neighbouring communities. But there is, at the moment, no LNG fuelling infrastructure or vehicles in BC, and LNG has not been successfully marketed as an alternative fuel anywhere in North America; it has only been used by a few utility companies for their own service vehicles.
Importing LNG to North America
Both Kitimat and Westpac are looking ahead with their proposals, and the power generation idea may be a means of ensuring some early cash flow to attract investors. (Much the same strategy has been used by ‘run-of-river’ power generation companies in BC, whose initial investments in water licenses, environmental approvals, and proposals have resulted in contracts with BC Hydro that they can then ‘take to the bank’ to finance construction.)
Both companies have previously indicated that they are looking at the US market as a destination for the imported gas, and either BC facility would be major trans-shipment point for the continent.
Background
There is a gradual decline in gas production from the Western Canada Sedimentary Basin, the major historical source of natural gas for both Canada and the US. Gas prices, over the past few years have been volatile but generally rising, often responding unpredictably to supplies, gas in storage, and winter weather. Gas is also being used for electricity generation across the continent. Market prices are affected by active speculation in gas futures.
In addition, future North American gas sources may well be completely spoken for by the energy needs associated with Alberta’s tar sands oil extraction processes. This may lead to future shortages in North America, and higher prices. As a result, there are over fifty new LNG unloading/gasification facilities proposed around North America. These new facilities have met with significant opposition from environmental groups and those concerned that they may become terrorist targets.
Safety
It should be pointed out that LNG shipping around the world has an excellent fifty-year safety record. There are currently in operation more than 150 deep-sea LNG tankers. LNG is a liquid at -162ºC, and is carried in insulated double-hulled vessels. Natural gas, being lighter than air, does not accumulate if it escapes, but the gas (not the liquid) is flammable at a critical gas/air ratio, and potentially explosive in a confined space. This leads to a situation with a very low probability of accident and a long-term tradition of safe handling, but severe consequences if something goes wrong: a difficult danger to judge.
As a result of these concerns, virtually all proposals for LNG facilities on the west coast of the US have been delayed; the only one that appears to be going ahead is in Mexico. The only other proposal on the west coast with the necessary approvals is the Kitimat LNG scheme.
Thus the WestPac proposal for Texada Island, besides being well located to connect to Terasen’s existing gas line, is seen as suitable as a processing and trans-shipment point to the US, particularly to Cherry Point, Washington. This would mean that, in addition to deep-sea LNG tankers entering the Strait of Georgia, there could also be smaller CNG tankers or barges exiting BC’s inside waters. These would not pose any particular danger, but would require careful routing and scheduling.
Shipping From Around The World
The LNG could come from many locations around the Pacific Ocean: Australia, Indonesia, Malaysia, South America; also the middle east. WestPac expects that some 36 deep-sea LNG tankers per year would visit the Texada Island facility. These ships, which have a capacity of up to 165,000 cubic metres of LNG (multiply by 600 to determine for the amount of natural gas) would be an estimated 1,000ft long, 150ft wide, and would draw 37ft of water when loaded; a loaded tonnage of 120,000. Ships would need pilots and accompanying tugs.
Shipping Route
Tankers are capable of traveling at 19 knots, but would travel much more slowly once in inside waters. The tankers’ route would be through the Strait of Juan de Fuca, around Victoria, up Haro Strait and through the Gulf Islands, through Boundary Pass, past Saturna, Mayne, Galiano, Valdes, and Gabriola Islands (crossing a number of busy ferry routes), past the navy torpedo range off Nanoose, Hornby Island, Lasqueti Island, and on to dock at Kiddie Point, within sight of Savary Island. As an example of the impact on shipping, current US Coast Guard regulations require that LNG tankers be surrounded by a ‘safety and security zone’ where no other vessels are allowed. This zone is two miles ahead of the vessel, one mile behind, and 500–1000 yards on either side.
The Victoria Times-Colonist has called for public hearings. Says WestPac president Mark Butler: ‘We will actively consult the community and are committed to treat any concerns with thoughtful regard and consideration.’
Island Tides
Two companies are competing to be the first to establish a Liquefied Natural Gas (LNG) terminal on the BC coast. They are Kitimat LNG and Westpac Terminals, both based in Calgary. Over the past two weeks, both have announced plans to build combined-cycle, gas-fired, electricity generating plants in conjunction with the proposed terminals.
The Kitimat terminal proposal has received environmental approvals from both the provincial and federal governments. The Westpac proposal, originally planned for Ridley Island near Prince Rupert, has been moved to Kiddie Point, at the north tip of Texada Island in the Strait of Georgia. WestPac has announced that they have now leased 46.5 hectares of land there, and that they plan to construct a marine jetty and LNG handling facility for deepsea LNG tankers, LNG storage facilities, a 600MW gas-fired generating plant, and connections to both the BC Transmission 500kv electrical line to Vancouver Island, and the Terasen natural gas pipeline to Vancouver Island. Both of these lines run across Texada Island.
WestPac is ‘in the early stages’ of applying for government approvals, and does not appear to have reached any agreements with either BC Hydro (to purchase the electrical power produced), BC Transmission Corp (to transport the power), or Terasen (to buy and transport natural gas from Texada).
WestPac claims that the importing of LNG by tanker provides a new way for BC to become energy self-sufficient, and that the provision of large on-demand ‘firm’ power supports BC Hydro’s green power strategy by making it possible to utilize wind and run-of-river power sources, which may not generate power when it is most needed. (However, BC’s extensive hydroelectric generating capacity is already employed as a ‘balancing’ resource, since its generators can be turned on and off as required.)
Said WestPac Director and former Attorney- General Geoff Plant: ‘We hope the BC Government will agree that we will offer new and flexible energy options for the province by allowing power generation using natural gas that can be imported economically.’
WestPac also claims that the use of a natural gas-powered generating plant on Texada Island would enable BC Hydro to decommission the Burrard Thermal generating plant, thus improving air quality in the Fraser Valley airshed. Government policy requires that all new generating plants produce zero net greenhouse gas emissions, and that existing plants reach this target by 2016. It is not clear how WestPac would reach this ‘zero net’ standard, but the purchase of ‘carbon credits’ might be the answer. At $15 per tonne, the cost of such credits has been estimated at some $23 million per year, a small price for the possible electricity sales of $300 million.
WestPac also claims that the company could make LNG available for vehicles in neighbouring communities. But there is, at the moment, no LNG fuelling infrastructure or vehicles in BC, and LNG has not been successfully marketed as an alternative fuel anywhere in North America; it has only been used by a few utility companies for their own service vehicles.
Importing LNG to North America
Both Kitimat and Westpac are looking ahead with their proposals, and the power generation idea may be a means of ensuring some early cash flow to attract investors. (Much the same strategy has been used by ‘run-of-river’ power generation companies in BC, whose initial investments in water licenses, environmental approvals, and proposals have resulted in contracts with BC Hydro that they can then ‘take to the bank’ to finance construction.)
Both companies have previously indicated that they are looking at the US market as a destination for the imported gas, and either BC facility would be major trans-shipment point for the continent.
Background
There is a gradual decline in gas production from the Western Canada Sedimentary Basin, the major historical source of natural gas for both Canada and the US. Gas prices, over the past few years have been volatile but generally rising, often responding unpredictably to supplies, gas in storage, and winter weather. Gas is also being used for electricity generation across the continent. Market prices are affected by active speculation in gas futures.
In addition, future North American gas sources may well be completely spoken for by the energy needs associated with Alberta’s tar sands oil extraction processes. This may lead to future shortages in North America, and higher prices. As a result, there are over fifty new LNG unloading/gasification facilities proposed around North America. These new facilities have met with significant opposition from environmental groups and those concerned that they may become terrorist targets.
Safety
It should be pointed out that LNG shipping around the world has an excellent fifty-year safety record. There are currently in operation more than 150 deep-sea LNG tankers. LNG is a liquid at -162ºC, and is carried in insulated double-hulled vessels. Natural gas, being lighter than air, does not accumulate if it escapes, but the gas (not the liquid) is flammable at a critical gas/air ratio, and potentially explosive in a confined space. This leads to a situation with a very low probability of accident and a long-term tradition of safe handling, but severe consequences if something goes wrong: a difficult danger to judge.
As a result of these concerns, virtually all proposals for LNG facilities on the west coast of the US have been delayed; the only one that appears to be going ahead is in Mexico. The only other proposal on the west coast with the necessary approvals is the Kitimat LNG scheme.
Thus the WestPac proposal for Texada Island, besides being well located to connect to Terasen’s existing gas line, is seen as suitable as a processing and trans-shipment point to the US, particularly to Cherry Point, Washington. This would mean that, in addition to deep-sea LNG tankers entering the Strait of Georgia, there could also be smaller CNG tankers or barges exiting BC’s inside waters. These would not pose any particular danger, but would require careful routing and scheduling.
Shipping From Around The World
The LNG could come from many locations around the Pacific Ocean: Australia, Indonesia, Malaysia, South America; also the middle east. WestPac expects that some 36 deep-sea LNG tankers per year would visit the Texada Island facility. These ships, which have a capacity of up to 165,000 cubic metres of LNG (multiply by 600 to determine for the amount of natural gas) would be an estimated 1,000ft long, 150ft wide, and would draw 37ft of water when loaded; a loaded tonnage of 120,000. Ships would need pilots and accompanying tugs.
Shipping Route
Tankers are capable of traveling at 19 knots, but would travel much more slowly once in inside waters. The tankers’ route would be through the Strait of Juan de Fuca, around Victoria, up Haro Strait and through the Gulf Islands, through Boundary Pass, past Saturna, Mayne, Galiano, Valdes, and Gabriola Islands (crossing a number of busy ferry routes), past the navy torpedo range off Nanoose, Hornby Island, Lasqueti Island, and on to dock at Kiddie Point, within sight of Savary Island. As an example of the impact on shipping, current US Coast Guard regulations require that LNG tankers be surrounded by a ‘safety and security zone’ where no other vessels are allowed. This zone is two miles ahead of the vessel, one mile behind, and 500–1000 yards on either side.
The Victoria Times-Colonist has called for public hearings. Says WestPac president Mark Butler: ‘We will actively consult the community and are committed to treat any concerns with thoughtful regard and consideration.’
posted by Friend of Texada at
10:21 AM
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