LNG terminals could be built and operated safely

admin 2015-02-04 10:47

Since 2004, the large number of orders increased demand for shipyard slots, raising their price and increasing ship costs. The per-ton construction cost of an LNG liquefaction plant fell steadily from the 1970s through the 1990s. The cost reduced by approximately 35 percent. However, recently the cost of building liquefaction and regasification terminals doubled due to increased cost of materials and a shortage of skilled labor, professional engineers, designers, managers and other white-collar professionals.

Due to energy shortage concerns, many new LNG terminals are being contemplated in the United States. Concerns about the safety of such facilities created controversy in some regions where they were proposed. One such location is in the Long Island Sound between Connecticut and Long Island. Broadwater Energy, an effort of TransCanada Corp. and Shell, wishes to build an LNG terminal in the sound on the New York side. Local politicians including the Suffolk County Executive raised questions about the terminal. In 2005, New York Senators Chuck Schumer and Hillary Clinton also announced their opposition to the project. Several terminal proposals along the coast of Maine were also met with high levels of resistance and questions. On Sep. 13, the U.S. Department of Energy approved Dominion Cove Point's application to export up to 770 million cubic feet per day of LNG to countries that do not have a free trade agreement with the U.S. In May 2014, the FERC concluded its environmental assessment of the Cove Point LNG project, which found that the proposed natural gas export project could be built and operated safely. Another LNG terminal is currently proposed for Elba Island, Ga. Plans for three LNG export terminals in the U.S. Gulf Coast region have also received conditional Federal approval.In Canada, an LNG export terminal is under construction near Guysborough, Nova Scotia.

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LNG terminals could be built and operated safely