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FERC concludes Long Beach LNG project safe Mitsubishi’s Sound Energy Solutions $450 million project would be first West Coast terminal for liquefied natural gas Gery Gentile The Associated Press
A proposed liquefied natural gas terminal at the Port of Long Beach cleared a major hurdle Oct. 7 as a federal panel concluded the project would not pose an environmental threat to the area.
The environmental staffs of the Federal Energy Regulatory Commission and the port, along with the U.S. Coast Guard and several other agencies, conducted the yearlong review.
The draft report said the terminal would be within acceptable noise and air pollution limits, and tanks holding the liquid natural gas and pipelines carrying it could withstand all but the most violent earthquake.
The report also concluded that while the project would be a tempting target for terrorists, an attack was unlikely and several layers of security would reduce vulnerability. Public hearings will be held The draft report is only one of several steps that must be taken before a facility is approved or rejected. Four public hearings on the draft will be held in November and December in Long Beach. A final report will be issued sometime next year.
FERC has the authority to approve a liquefied natural gas facility at the port. But the plan must also be approved by the Harbor Commission.
In May 2003, the Port of Long Beach gave Mitsubishi’s Sound Energy Solutions exclusive rights to develop the terminal. Also that year, the city’s energy department began holding nonbinding talks on a pipeline and supply deal.
The City Council voted 5-4 in June to continue talks with SES for what could become the first West Coast terminal for liquefied natural gas.
The $450 million project would create 1,000 construction jobs over the estimated four years it would take to build. Proponents say it would guarantee the Los Angeles area a steady and reliable source of natural gas for years.
Opponents are concerned about putting a facility so close to an urban area, where holding tanks could explode and pose an environmental threat. Earthquakes a low probability The draft environmental study said that SES had prepared an analysis showing it would take a magnitude 9 earthquake along the Palos Verde fault or a magnitude 7.5 temblor on another nearby fault to rupture the two storage tanks.
“These events have estimated return intervals of approximately 15,000 years and, therefore, are extremely unlikely to occur during the 50-year life of the project,” the study concluded.
The report also minimized the dangers posed by a terrorist attack.
“For a new LNG import terminal proposal that would store a large volume of flammable fluid near populated areas, the perceived threat of a terrorist attack is a primary concern of the local population,” the report states.
The likelihood of a successful terrorist attack, however, “would be less than seven chances in a million per year,” the report said, noting that a multi-tiered security system would help protect the facility.
Public comment on the draft must be received before Dec. 8. A final decision by FERC and the city on the proposed LNG facility is not expected until sometime next year.
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