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W OODFIBRE L IQUEFIED N ATURAL G AS S TAFF A DVISORY C OMMITTEE R EPORT September 16, 2014.

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Presentation on theme: "W OODFIBRE L IQUEFIED N ATURAL G AS S TAFF A DVISORY C OMMITTEE R EPORT September 16, 2014."— Presentation transcript:

1 W OODFIBRE L IQUEFIED N ATURAL G AS S TAFF A DVISORY C OMMITTEE R EPORT September 16, 2014

2 I NTERIM C OMMITTEE R EPORT 2013 WLNG initiated a project to export LNG from Woodfibre pulp mill site. Project would export 2.1 million tonnes of LNG annually Natural gas transported to the facility via existing and expanded FortisBC pipeline Pipeline from Coquitlam to a new Compressor Station in Squamish DoS has the opportunity to provide direction to the Province through the Environmental Assessment (EA) process. Staff formed an advisory committee of community representatives to review technical information This INTERIM report summarizes information to date.

3 I NTERIM C OMMITTEE R EPORT Committee created to objectively assess the project Provide input to proponent and District. Committee’s mandate twofold Provide input to inform the District’s response to the EA review phase Feedback to proponent on technical matters to mitigate impacts or enhance the project Information gathered guide the review of the EA report so Council can provide informed comment and effectively influence the Provincial decision on the EA process at the time of the review.

4 C OMMITTEE M EMBERS Antony Blaikie Member at Large Sean Carron Member at Large Linda Kelly-Smith Squamish CAN Karine Le Du Member at Large Rod MacLeod DOS Chris Pettingill Squamish Chamber of Commerce Doug Race, District of Squamish Councillor (ex officio representative) Jen Reilly Member at Large Glenn Stainton Member at Large Donna Wall Tourism Squamish Sara Van Mulligen Member at Large

5 TECHNICAL PRESENTATIONS CLEAN ENERGY CANADA How does electric LNG in Squamish compare with alternative power supplies? Electric drives powered by renewable electricity reduce GHG from wellhead to waterline by 30%

6 TECHNICAL PRESENTATIONS WFLNG Estimated annual emissions in tonnes: Electric Drive Gas Drive GHG 80, ,000 NOx SOx Advantages: Cleaner with less air emissions Amongst LNG facilities with lowest GHG in the world Requires less down time for planned maintenance Reduces need for flaring

7 TECHNICAL PRESENTATIONS KEY FINDINGS CLEAN ENERGY CANADA The Cleanest Scenario is Snohvit Facility in Norway & Gorgon in Australia Projects use natural gas for power & use carbon capture and storage Both close to where gas is produced Don’t have to pipe gas far & share equipment to process gas. WFLNG BC Hydro has a plan for electricity in terms of demand. Will not require new dams to be built. BC Hydro have 340 megawatts capacity for LNG projects in integrated resource plan. Flare is designed for emergency purposes only [alleviate pressure] and will not be continuously lit. Seawater cooling the maximum change in water temperature is 1 degree.

8 TECHNICAL PRESENTATIONS FUTURE CONSIDERATIONS CLEAN ENERGY CANADA Clean Air references summarized in the World Energy Outlook published by the International Energy Agency. Organization models future energy use under different greenhouse gas emission policies WFLNG BC water quality guidelines are being updated Federal air quality objectives are being updated to be one of the most stringent in the world Federal government moving towards the World Health Standards for air. WFLNG to use World Health Standards

9 TECHNICAL PRESENTATIONS HOWARD CANDELET, MARINE SAFETY CONSULTANT 40 years + never been a major shipping incident involving loss of LNG Special tugs designed for this type of operation Local Pilots trained on Simulators for this specific operation Passage plan discussed with the Master and the Pilot at the start of each transit Every LNG ship is checked for correct mooring configuration to match the jetty design All loading operations have duplicated automatic safety shut down control systems The Society of International Gas Tanker and Terminal Operators (SIGTTO) issues out recommendations of accepted best practice guidelines Oil Companies International Marine Forum (OCIMF) Mission foremost authority on the safe and environmentally responsible operation of oil tankers, terminals and offshore support vessels The SIRE Program is a unique tanker risk assessment tool of value to charterers, ship operators, terminal operators and government bodies concerned with ship safety.SIRE Provides for the independent inspection of all LNG ships The detailed inspections take place at least every 12 months in many cases every 6 months The results of the inspections are posted on a members webpage

10 TECHNICAL PRESENTATIONS HOWARD CANDELET, MARINE SAFETY CONSULTANT Sandia Study ngre.pdf Commissioned by the US government about public concerns about the location of proposed new LNG terminals One of the tests was to confirm how LNG behaves when spilt onto water. Spadeadam vapor cloud testing logy_qualification/spadeadam_test_site/ To undertake vapor cloud experiments to determine if it is possible to get Natural Gas to explode in a vapor cloud. The results were as expected. It is not possible for natural gas in an unconfined space to explode

11 TECHNICAL PRESENTATIONS Woodfibre LNG International regulations for LNG carriers International Maritime Organization (IMO) specialized agency with responsibility for: Safety and security of shipping: SOLAS Prevention of marine pollution: MARPOL International Gas Code (IGC) for Ships Carrying Liquefied Gases in Bulk Classification Society rules and requirements cover Design, Construction, and Operation against SOLAS and MARPOL Port State control through Transport Canada Canadian shipping regulations Canada Shipping Act regulates domestic and international vessels operating in Canadian waters – The regulator for shipping in Canada is Transport Canada – All vessels transiting will meet the Canada Shipping Act requirements Transport Canada - TERMPOL Process Woodfibre LNG will complete a voluntary Transport Canada Technical Review Process of Marine Terminal Systems and Transshipment Sites (TERMPOL) for the project Program managed by Transport Canada and a committee of select government agencies and interested bodies e.g., BC Coast Pilots Process takes approximately 6 – 12 months to complete Recommendations to improve safety and minimize risk are adopted into the project Detailed safety procedures and emergency response plans are developed

12 TECHNICAL PRESENTATIONS Woodfibre LNG LNG carrier design – features Capacity is about 160,000m3 - highly sophisticated cost excess of $200M High levels of redundancy : Propulsion, Electrical, Cargo handling systems Transfer of cargo - highly specialized loading arms - completed in about 20 hrs. Ship to shore link – three (3) independent systems integrate safety systems - Quick shutoff Quick disconnect to enable the vessel to depart the berth in an emergency Integrated Automation System ensures extensive alarm & monitoring systems Firefighting capability onboard the vessel and on the terminal Natural gas will be the primary fuel of LNG carriers in Howe Sound Using natural gas instead of diesel to fuel LNG carriers reduces GHG emissions by about 25%

13 TECHNICAL PRESENTATIONS KEY FINDINGS No such thing as a 3 km exclusion zone. Tethered means tug has a line on the ship for safety if loss of power # tugs analysis done on wind, conditions, vessel size, how they maneuver and tugs available. Procedure is vessels come into unload or load, the connect cables have shutdown systems and on every occasion the valves are checked electronically. Isolated shutdown valves operate on either side of a hydraulic coupling in case of emergency - valve can separate in about two seconds.

14 TECHNICAL PRESENTATIONS KEY FINDINGS Characteristic of LNG spill is that it freezes and creates an ice layer in the area that it spills on. On water it would create an ice layer that would isolate LNG from the water below. Sandia Report found that the size of fireball would be limited by the amount of gas that can be vaporized and the amount of oxygen it can draw in. Sandia confirmed there is a natural limit to vaporization fireball would be 4x the size of the fire diameter. This means that a 100 feet flame diameter would have a 400-foot fireball.

15 TECHNICAL PRESENTATIONS FUTURE CONSIDERATIONS Cold ironing technology not currently part of LNG shipping at this time would need to be tested before implementation. TERMPOL is voluntary process some of these voluntary processes could be built into the environmental assessment conditions via EAO or Transport Canada. International regulations do not cover local wildlife and acoustics local standards look at these issues and internationally they vary from country to country. These are looked at in the environmental assessment process and the Transport Canada TERMPOL process. Questions from other processes are: How much noise will the plant make? Will I hear this plant at night? What is lighting level going to be at night? How long will the ships remain in station? How many people are going to be employed ? How many people are going to be imported in and take the jobs?

16 TECHNICAL PRESENTATIONS TRANSPORT CANADA Regulating Marine Shipping International framework The International Maritime Organization establishes conventions for: Safety (SOLAS) – how a vessel is built & its equipment Pollution (MARPOL) – pollution equipment and limits on discharges Mariner qualifications (STCW) – how a vessel’s crew is trained Port State Control – Foreign vessel inspections and information-sharing conducted under international MOUs Domestic framework In Canada, marine shipping is the exclusive jurisdiction of the federal government. Canada Shipping Act, 2001 (CSA, 2001) legislation governing safety of marine transportation and protection of the marine environment applies to all vessels operating in Canadian waters and to Canadian vessels worldwide. No permits or approvals are required under the CSA, 2001 for ships to transit in Canadian waters, provided they comply with the Act.

17 TECHNICAL PRESENTATIONS TRANSPORT CANADA LNG Spills: Current and Future Emergency Management Act brings - Coast Guard, Environment Canada, Public Safety Canada & RCMP Measures include evacuation, fire response and air quality monitoring Transport Canada appointed panel making recommendations for a Hazardous and Noxious Substances (HNS) preparedness and response regime in Canada. HNS includes LNG. Report due Fall Under proposed legislation, polluters pay based on a two-tier model from the HNS Convention

18 TECHNICAL PRESENTATIONS TRANSPORT CANADA LIABILITY Tier 1 – Ship owners' Liability Ship-owner is first strictly liable for all costs, which is backed by compulsory insurance. Tier 2 – International Fund Pays compensation post-incident by cargo owners once ship owners' liability is exhausted - Contributions by industry

19 TECHNICAL PRESENTATIONS TRANSPORT CANADA Technical Review Process of Marine Terminal Systems and Transshipment Sites (TERMPOL) Established 1977 by Transport CND, Fisheries & Oceans CND, Environment CND and Public Works. Updated in 2001 currently being updated For bulk oil, chemical, LNG and others identified by Transport Canada. Purpose of TERMPOL Focuses on technical aspects of marine safety Vessel characteristics Routes in Canadian waters to the berth Cargo transfer operations Examines how marine transportation project proposals can be carried out safely Identifies opportunities for improvement of a project proposal enhance marine safety. Voluntary, initiated by proponent Proponent conducts studies for review by federal departments with regulatory responsibilities, typically TC, CCG, PPA, EC The final TERMPOL report provides feedback to a proponent and regulatory authorities No approvals or permits are issued; recommendations are not mandatory or binding Canada Shipping Act 2001 requirements continue to apply

20 TECHNICAL PRESENTATIONS KEY FINDINGS Exclusion zones are in very narrow channels or harbors. Exclusion zones are nota huge area rest of the world usually 50 meters either side of the vessel and 500 meters in front. TC use Collision regulations, if there is enough room for the tanker to maneuver safely then that is what the preference is. Howe Sound and Georgia Strait are open areas. Speed limits will be determined through TERMPOL. Best practice in terms of speed is that wash and wake must not cause damage anywhere. In the event of an LNG crash Coast Guard is the Federal On-Scene Commander

21 TECHNICAL PRESENTATIONS KEY FINDINGS Vessels must meet International Maritime Organization’s (IMO) International Ship and Port Facility Security Code (ISPS Code) Comprehensive measures to enhance the security of ships and port facilities Response to perceived threats in the wake of the 9/11 attacks in the United States TC targets all foreign vessels arriving in Canadian waters for a security inspection. All vessels over 350 gross tons by law must have a pilot and all vessels foreign flagged and foreign crews must have a pilot by law.

22 TECHNICAL PRESENTATIONS FUTURE CONSIDERATIONS No plans to conduct a Marine Aids Review in the Howe Sound Area Reviews triggered by request for services or volume of traffic or size of vessel transiting the area changes. Major projects subject to environmental reviews & studied through TERMPOL process have trigged reviews. TERMPOL only looks at the transfer of cargo, and how that can be done safely. Siting alternatives would be considered under the environmental assessment. There is not a preparedness and response regime yet for an LNG spill Three-member panel was appointed to make recommendations for establishing such a regime.

23 TECHNICAL PRESENTATIONS PACIFIC PILOTAGE AUTHORITY Federal Crown Corporation established in 1972 Pursuant to the Pilotage Act Mandate Operate an efficient pilotage service in the interest of safety Mission The PP Authority dedicated to providing safe, efficient pilotage to protect the interests of CND Pilots provide captain, bridge with expert local knowledge responsible to the master for safe navigation of the vessel. Every ship over 350 gross tons that is not a pleasure craft & pleasure craft over 500 gross tons is subject to compulsory pilotage. This service is legislated and provides the following benefits: A country’s insurance against marine disaster Expert local knowledge + Enhances the bridge team + Adds another level of safety on the bridge Risk Managers + knowledgeable resource when the unexpected occurs Excellent safety record at 99.96% There has never been an oil spill from a tanker under pilotage on the West Coast Simulations, both fast time and real time Tethered tugs Standard Operational Procedures for energy vessels LNG vessels and VLCCs will require senior (unrestricted) pilots + Takes 6 to 7 years before a pilot is unrestricted

24 TECHNICAL PRESENTATIONS CANADIAN COAST GUARD The CCG’s legislated mandate is set out in the Oceans Act and the Canada Shipping Act. In addition, there are specific responsibilities for pollution response in the Arctic set out in the Arctic Waters Pollution Protection Act. Specific program activities include: Marine Navigation (Aids to Navigation Services, Icebreaking Services, and Waterways Management Services) Marine Communications and Traffic Services (MCTS) Search and Rescue (SAR) Environmental Response (ER) Provide vessels and helicopters to enable fisheries enforcement activities, and the on-water science research for Fisheries and Oceans and other science departments; and Support maritime security activities Support the mandate of other government departments: EC, CBSA, RCMP, NRCan, etc. Aids to Navigation

25 TECHNICAL PRESENTATIONS CANADIAN COAST GUARD Environmental Response: CCG lead federal agency to ensure response to ship sourced pollution in Canadian waters Objectives of the Environmental Response Program are to minimize the environmental, economic, and public safety impacts of marine pollution incidents, including ship- source oil and chemical spills. 15 trained responders with specialized training in spill management International agreements for mutual aid (US, Denmark, and Arctic Council states) Marine Communications and Traffic Services provides distress and safety communications, conducts vessel screenings, regulates vessel traffic movement and provides information systems and public correspondence on a 24/7 basis Delivered through a network of 5 centers and supporting remote sites (radio towers, radar sites, etc.) including the Cooperative Vessel Traffic Services (CVTS) providing efficient traffic management between Canada and the US

26 TECHNICAL PRESENTATIONS BC ENVIRONMENTAL ASSESSMENT Purpose of Environmental Assessment Identify & evaluate potential effects of a project, including cumulative effects Identify ways to avoid or mitigate adverse effects

27 TECHNICAL PRESENTATIONS BC ENVIRONMENTAL ASSESSMENT

28 Pre-Application Stage Understanding Project, Identifying & Collecting Information Project description and scope of the EA Working Group initiated Valued components identified Application Information Requirements developed Public consultation and First Nations consultation initiated

29 TECHNICAL PRESENTATIONS BC ENVIRONMENTAL ASSESSMENT

30 Application Review Stage Analyses, Conclusions & Recommendations Proponent submits Application, including: Baseline information Expected impacts of proposed project Commitments to avoid or minimize impacts Public comment period Technical review by government agencies and First Nations Assessment Report prepared by EAO Recommendations to provincial and federal Ministers Decision by Ministers Two Provincial Ministers make decisions: Minister of Environment Minister of Natural Gas Development Federal Minister of Environment makes decision Project requires approval from BOTH provincial and federal Ministers to proceed

31 TECHNICAL PRESENTATIONS KEY FINDINGS BCEAO 900 pages of public comments. EAO consider every comment. The proponent must consider each comment. EAO review’s the proponent’s responses. Disagreement between government agency in EA working group and an expert working on behalf of the public. A difference raises a flag the EAO follows up may bring in other experts to evaluate the information. EAO included cumulative effects in assessment methodology based on the Canadian Environmental Assessment guidelines The LNG Facility Regulation requires that applicant use the Canadian Standard (CSA Z276) for siting an LNG facility. If an applicant wishes to apply an alternative standard, regulations requires that a quantitative risk assessment demonstrate that the proposed design is as safe as or safer than one designed using CSA Z276.

32 TECHNICAL PRESENTATIONS FUTURE CONSIDERATIONS Ministers must consider the EAO Assessment Report. Key factor ministers consider is if Province has satisfied its legal duty to consult with and, to the extent appropriate, accommodate First Nations. When they make their decision they provide a rationale for that decision. The Oil and Gas Activities Act (OGAA) Section 41 specifies a permit holder of a well site, test hole, or production facility may apply for a Certificate of Restoration (CoR) upon cancellation or termination of the permit. In order for an operator to obtain a CoR, all equipment must be removed from the site and all land affected by any oil and gas activities must be restored. Section 7 of the Liquefied Natural Gas Facility Regulation specifies site restoration after construction. Section 21 Liquefied Natural Gas Facility Regulation specifies site restoration after operations cease at LNG Facility. Section 23 of the Liquefied Natural Gas Facility Regulation section 23 An LNG facility permit holder must maintain records of any spillage and any damage or malfunction likely to cause spillage that could be a risk to public safety or the environment.

33 TECHNICAL PRESENTATION BC OIL & GAS COMMISSION Pure regulator of oil and gas activities Primary authority through the Oil and Gas Activities Act Key Features Prohibits the carrying out of an oil and gas activity unless a permit issued Applies to Crown and private land does not deal with compensation Authorizes the OGC instead of the usual agency to issue authorizations under specified enactments for “related activities” Oil and Gas activities include all obligations through the life of the activity including final reclamation and remediation

34 TECHNICAL PRESENTATION BC OIL & GAS COMMISSION OIL & GAS COMMISSION ADMINISTERS OVER A DOZEN ACTS OR REGULATIONS 1.Oil and Gas Activities Act 2.Petroleum and Natural Gas Act 3.Environmental Management Act 4.Consultation and Notification Regulation 5.Oil and Gas Road Regulation 6.Drilling and Production Regulation 7.Geophysical Exploration Regulation 8.Fee, Levy and Security Regulation 9.Prescribed Roads Regulation 10.Oil and Gas Waste Regulation 11.Service Regulation 12.Pipeline Crossings Regulation 13.Environmental Protection and Management Regulation

35 TECHNICAL PRESENTATION BC OIL & GAS COMMISSION Liquefied Natural Gas Facility Regulation (LNGFR) enacted under the authority of Section 111(2) of the Oil and Gas Activities Act Technical regulation with requirements relating to: Permit application process Engineering design Hazard analysis Safety & loss management Risk assessment Emergency response Flaring & venting limits Noise & light control

36 TECHNICAL PRESENTATION BC OIL & GAS COMMISSION Regulating LNG Facility Safety BC Oil & Gas Commission Facility permitting Design, construction, operation, & decommissioning of LNG facilities to protect public safety and conserve the environment BC Safety Authority Design, construction and operation of certain individual components of the facility (e.g. pressure vessels, electrical installations) Defines certain worker qualifications (e.g. power steam engineers, electrical, pressure welders) WorkSafe BC Worker safety Transport Canada Transport of LNG, including LNG carriers

37 TECHNICAL PRESENTATION KEY FINDINGS OGC work with the BCEAO is reconciling the different responsibilities. BCEAO has the final say on compliance in proponents certificate and OGC have say on compliances to permits. Guidelines require flaring be minimized. Requirements for lighting focus on reduce impact of lighting while ensuring safety through the use of shielding and directed lighting. In terms of noise they apply at the receiving part of the noise. The decibel level requirements vary between day and night. OGC looks at DBA and Environmental Assessment looks at noise impacts for marine life etc. Any natural gas could create a vapor cloud. There are two pieces, there are risks associated with natural gas coming into the facility and LNG loading. There are mitigation and safety measures that deal with risk. In the case of a spill some will evaporate, but there is a risk of ignition, if LNG pools and there is an ignition source. It is relatively appropriate to say there is minimal risk.

38 TECHNICAL PRESENTATION FUTURE CONCIDERATIONS OGC Third party validation is during construction for components or facilities being constructed offshore. Many of the floating LNG facilities are built in shipyards in Korea. Understand standards but not CSA so there is a need for provisions to bring in alternative standards. Class standard organizations like Lloyds are used. Substitution is an objective process that is numbers based. The criteria they use to guide substitution are standard or better. We have an FN curve (frequency of fatality versus probability) that we use in the regulations. OGC authority does not extend to greenhouse gas emissions authority under the Act to deal with emissions that are pollution or waste discharges. WFLNG Set up noise receptors at Darrell Bay and Britannia as they are closest residences. Climate action secretariat requires anyone that produces more than 10,000 tons of greenhouse gas emissions a year to report.

39 Thank you!


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