The right energy
Coves Point is one of the largest LNG import facilities in the United States. Situated in the middle of a nature reserve, the facility is set for an expansion that has passed all the rigorous federal regulatory processes and even met with local approval.
Cove Point is located on the Chesapeake Bay in Maryland, south of Baltimore. The facility is owned and operated by Dominion, which began receiving shipments of LNG in the summer of 2003. Expecting an increase in LNG demand of more than 20% over the next decade, they are set for an expansion of the facility.
“We purchased the facility in 2002 and began the expansion project almost immediately, because we were convinced of the growing demand for natural gas and the need for LNG. We spoke with many parties, but we have chosen Norwegian Statoil as the partner for delivering LNG for the Cove Point expansion project,” says Don Raikes, Vice President, Transmission Marketing & Customer Service for Dominion.
Construction began on October 5. The expansion will nearly double the facility’s capacity, from 1 billion cubic feet (35 million cubic metres) per day to 1.8 billion cubic feet (63 million cubic metres). The deliveries of natural gas will come from the Snøhvit field offshore Northern Norway.
Building trust with the community
Working with the community is a priority for Dominion, and the reception to the facility expansion has been good.
“The regulatory process provides many opportunities for people in the community to be heard. There are annual meetings and other information exchanges, as well as a close cooperation with officials in Calvert County, Maryland. The majority of the community understand the need for the energy and view Dominion as a partner in the community,” says Don Raikes.
Mike Frederick, Director, LNG Operations, and Terry Cox, Senior Safety Specialist, underline the facility’s focus on safety.
“In 2005 we didn’t have a single safety accident. We had 19 audits last year, which includes those from FERC (Federal Energy Regulatory Commission), the Department of Transportation, and the US Coast Guard. We believe that our safety culture encourages and promotes continual dialogue on safety and leads to continuous improvement of procedures and practices.”
Addressing LNG fears
Some of the fears that Dominion and other LNG producers meet are emotionally based, and some are even fuelled by disinformation. Bill Cooper, executive director for the Center for LNG (CLNG), is actively trying to get the facts out on behalf of the industry.
“Our mission is to educate people about the facts of LNG to alleviate some of the fears and to counter the disinformation out there. For example, the public often believes that the LNG is pressurised when it’s stored in the ships or in on-land facilities. It’s not,” explains Bill Cooper.
He feels that the public debate about safety often short-circuits logic, leaping to consequences and worst-case scenarios immediately, skipping steps such as what is the probability of the risk ever occurring and what are the preventive measures in place.
“The only way to counter these doomsday scenarios is with factual information, instead of an emotional response,” says Bill Cooper.
Not risk free
DNV’s LNG Director Ernst Meyer works with the LNG industry to meet and exceed safety requirements. He stresses that LNG is not by any means risk-free. “One should always have respect for combustible materials that is processed, stored or shipped in large volumes and LNG is no exception. However, the LNG industry has taken safety very seriously. In my experience, the risk involved with LNG projects is quite low and easily comparable to that of other energy projects. The LNG industry is in general a very safe industry.”
Back on Cove Point, the LNG plant actually conducts open house tours for the public. “The plant is situated in the middle of a nature reserve. Out of the 1,017 acres we own, only 134 acres are used and the rest is under conservation. This is a beautiful facility and we are proud of it. Visitors often comment that they had no idea what an LNG plant does, and that they understand more about the safety aspect of the plant. We’re glad to hear it, and excited about the prospect for LNG in the United States,” says Don Raikes.