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Canvey LNG Project Questions and Answers Does the UK need this facility? |
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In all our discussions with Government officials and industry experts this question created complete consensus; the answer is yes. The UK is already importing natural gas and in 2004 became a net importer. It is vital that there are a number of sources of natural gas available for UK natural gas customers to ensure security of supply. The reliance on just one type of natural gas supply is no longer an option as we have seen in recent weeks. A number of strategically sited LNG terminals will play a crucial role in creating a secure and diverse source of natural gas in the decades to come.
Technical
How much gas will be stored at Canvey? |
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We intend to seek permission to store 240,000m3 (108,000 tonnes of LNG and 12,000 tonnes of LPG) of LNG at Canvey in 2 full-containment purpose built tanks where the inner tank is made of 2 inch thick nickel steel plus 3 feet wide insulation to maintain the LNG at a temperature of -160°C, while the outer tank is made of 2 and a half feet thick pre-stressed concrete. This will enable us to distribute 5.4 billion cubic metres of gas to UK customers representing 5% of the UK's annual demand. In the past the site has been authorised to store 246,000m3 (128,000 tonnes) of LNG
How much will it cost? |
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The final costings will be arrived at as part of the full project plan the partners have now committed to undertake but we anticipate it at between £150 and £200m. In addition to the two LNG storage tanks, this will include additional loading arms on the jetty, improvements to the gas pipeline connection to the National Grid and a regasification plant on site.
When will it be built? |
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Current plans are for building to start in 2007-8 and completion in winter 2010-11 when predictions are that the supplies of gas from the North Sea will already be declining very rapidly. Experts predict that the UK will rely on 50% of its demand being met through imported gas in 2010, rising to 90% import dependency by 2020 (source Wood Mackenzie/Centrica).
What is at Canvey now? |
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There is an LPG importation/exportation and storage terminal at Canvey consisting of 8 storage tanks and associated infrastructure. The site is owned and operated by Calor and can store up to 35,000 tonnes of LPG. Pipeline connections exist for natural gas to the Local Distribution network but are not presently operative. LPG is currently piped to Coryton following the reinstatement of a pre-existing pipeline by Calor in 1998/9.
Safety
What do the HSE think of your plans? |
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We are currently in discussion with the HSE and their views on future design and construction options are being actively sought. The Canvey LNG Partners have an excellent safety record and always seek HSE guidance and opinion on all of its development programmes. The HSE is also a statutory consultee as part of the planning application process; they will evaluate the application in accordance with land use planning for hazardous installations policy..
Could an incident like the recent one at Hemel happen at the proposed Canvey LNG Terminal? |
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The proposed Canvey LNG development would be entirely different to the installation at Hemel. The two proposed LNG tanks will be constructed from 2 inch thick steel enclosed by 2 and a half feet of thick concrete. The fuel itself is very different to the domestic/commercial and fuel oils involved in the Hemel incident and are flammable only within a narrow range of conditions. There has never been an incident involving LNG tanks of our proposed design anywhere in the world.
Can you guarantee the safety of the residents in Canvey in case of an incident on site? |
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In the UK all construction and maintenance relating to so called hazardous installations come under the jurisdiction of the Health and Safety Executive. This is a very powerful independent statutory body that assesses risk in an objective and scientific way. Our plans will be scrutinised by them in great detail and we are looking forward to a long dialogue with them to establish the integrity of our plans. For the HSE to give their approval to the construction of an installation like this one – the risks would have to be calculated as acceptable.
The partners in Canvey LNG are all world leaders in their own right in their own particular disciplines within the international gas industry. They have extensive experience in the construction and operation of gas facilities and are fully committed to safety during design, construction and operation. Safety will always remain our top priority.
This new large installation would clearly be a major terrorist target? |
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There is actually no evidence that installations such as that proposed at Canvey would be a target for terrorist action. As we all know recent experiences have been tragically aimed at crowds/transport infrastructure in major cities. However we do remain constantly vigilant and have excellent contacts through the intelligence community and our own extensive security measures on the site
In addition, to address terrorist risk, the Ship and Port Facility Security Code was adopted in 2003 by the member countries of the International Maritime Organization (IMO), an agency of the United Nations responsible for maritime matters concerning ship safety. This code requires both ships and ports to conduct vulnerability assessments and to develop security plans. The PLA is very active in this arena and we have an excellent relationship with them to share intelligence and best practice.
What would happen if the unthinkable does take place and the terminal developed a major leak/ was successfully breached through sabotage or tragic accident? |
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Firstly we cannot emphasise enough that the chances of this happening would be extremely remote but full contingency plans and emergency response actions will be in place for the LNG terminal just as they are now with the LPG installation. In the case of a leak, remember that the 2 inch thick steel walls of the tanks are encased in 2 and a half feet of concrete with a 3 feet space in-between so it would be incredibly unlikely for this to happen. Should it occur, sensors would detect it immediately and the operation would shut itself down automatically. The design of the Terminal dictates that there would be no sources of ignition within the vicinity of the tank. Onsite and offsite emergency plans would be invoked if there was a significant release.
How safe are the Tankers and what safety measures are in place to protect Canvey during off-loading? |
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LNG tankers are amongst the most sophisticated and robust vessels sailing our oceans. They have been operating for over 40 years – indeed Canvey received 900 cargoes whilst it was previously an LNG terminal and during that time no cargo ignition has ever been experienced. The Port of London Authority also has to ensure that before any LNG ship arrived it would have to show it was "in a sound and safe condition, all its certification correct and up to date, its equipment operating as it should, and any defects reported so that an appropriate assessment can be made. Every ship will be piloted into the Jetty by a dedicated pilot and will be accompanied by tugs. There are extensive fail safe shut off valves that would be automatically triggered in case of an incident or manually operated by the ship or terminal
It is everyone’s hope that we become less dependent on fossil fuels as time goes on. The reality is that the Government’s target of 10% of energy from renewables by 2010 is looking increasingly ambitious. The reality is that they are a long way away. In the meantime, natural gas is amongst the cleanest of all fossil fuels and when it is used to displace coal or oil in power generation can make a significant contribution to the environment both in terms of CO2 reduction and air quality improvements.
Both Calor, through its parent company SHV are very active in investing in renewable technology