FREQUENTLY ASKED QUESTIONS
To help further inform our community, we have included this list of frequently asked questions about Weaver’s Cove and LNG.
What is being proposed in your project?
We are proposing to build an LNG receiving terminal in Fall River, MA. Our facility will consist of a single storage tank, processing equipment, a new pier and several small support buildings. The facility would be similar, but larger, than the existing Fall River Gas (now New England Gas) LNG plant that has operated safely on Bay Street in Fall River since 1970. The main differences between the two facilities will be that the proposed terminal at Weaver’s Cove will have the capability to unload LNG from tankers bringing the gas from overseas and the storage tank at Weaver’s Cove will be constructed using the latest technology. In addition, two short lengths of new pipeline will be developed to link the facility to the Algonquin Gas Transmission Company natural gas transmission in the area.
What is LNG?
LNG is the liquid form of natural gas - the same fuel used to heat homes, schools and offices or for cooking. Natural gas is processed into a liquid at remote plants, which operate like giant refrigerators, cooling the gas to 260 degrees below zero Fahrenheit, at which temperature it turns into a liquid. As a liquid, its volume is reduced by 600 times. Once the natural gas is turned to LNG, it can be transported and stored at atmospheric pressure in insulated tanks that act like thermos bottles. LNG is not kept under pressure. Rather, as LNG slowly evaporates (a process called "boil-off" or "auto-refrigeration"), it remains a liquid by drawing heat away from itself.
Why liquefy natural gas?
We are used to having natural gas delivered by pipelines. Converted to a liquid, natural gas takes up far less storage space. That makes LNG much easier and less expensive to transport on tankers from remote areas where there are large quantities of natural gas that cannot be otherwise transported to market (either because it is impractical or the costs are prohibitively high). Japan, Korea and Taiwan, major industrialized nations, get almost 100 percent of their natural gas as LNG. Spain and France are also major LNG importers. In some other areas where there is no underground storage, such as New England, natural gas is also liquefied during the summer and stored on site to cover peak winter demands.
Why do we need this project?
It is well documented that additional supplies of natural gas are needed for the New England region, especially in Southeastern Massachusetts. Gas demand in Southeastern Massachusetts has been growing quickly over the past few years due to the construction of many new gas-fired power plants and the growing population in this corner of the region. There is a growing concern at the local and national level regarding our ability to meet the increasing demand for natural gas, the most environmentally friendly of all fossil fuels, from our domestic resources. This is especially true for New England, where our electricity generation system has become heavily dependent on natural gas fueled power plants. This shift has not gone unnoticed. In recent studies, ISO New England, which operates the major electric transmission grid throughout New England and is responsible for reliability of our electric system, has identified the need for additional natural gas infrastructure for the region, especially in Southeastern Massachusetts. Recently, the head of ISO New England warned that we would need to build more power plants to meet the growing need for electricity. Otherwise, we could see blackouts by 2008. New England lies at the very end of the US natural gas pipeline system, far away from the major producing fields in Texas, Louisiana and Oklahoma. Natural gas prices during recent winters have soared, as cold weather has led to increased electric power demand from gas-fueled plants as well as natural gas heating demand for homes, businesses, schools and hospitals. New England, which typically pays 20 - 30% more for its natural gas than the rest of the country, can pay as much as ten times the price for gas compared to producing states like Texas during these peak periods. With so much of our electricity supplied from gas-fired power plants, rising prices for natural gas will also mean rising prices for electricity.
But we are okay right now, are we not?
Actually, natural gas pipelines in New England are almost at capacity due to the rapid growth in demand. According to the Northeast Gas Association (www.northeastgas.org), pipeline capacity was 2.6 billion cubic feet per day seven years ago. Today, it is 4 billion cubic feet per day. Despite this added capacity, demand grows just as fast. On very cold days, demand will exceed the amount of natural gas the pipelines can deliver, and deliveries must be supplemented with other sources. In New England, LNG is stored during the summer and turned back into natural gas and added to pipelines whenever this situation arises. The Federal Energy Regulatory Commission and the US Department of Energy recently completed studies that identify the need for new infrastructure in New England by 2007, ideally including an LNG import facility.
Does Fall River need more natural gas?
Almost 80% of the homes in Fall River are heated by natural gas — that is one of the highest percentages in the region. Natural gas is the cleanest-burning fossil fuel. It is also more convenient than heating with oil. As a result, it is also the fuel of choice for large users of energy, including power plants, manufacturers and commercial developers concerned about meeting air-pollution standards. Without a reliable and cost effective supply of natural gas, these new businesses will not come to the Fall River area. As the demand for natural gas continues to grow, it may even be difficult to meet existing residential, business and power plant requirements, or the high prices associated with supply shortages may force some energy-intensive businesses to move from the area. Gas bills in Fall River are now close to or greater than real estate taxes for many homeowners. High energy prices were a factor in the layoff announced in November 2004 by Quaker Fabrics.
Are there Fall River-area businesses that especially need natural gas?
Yes. Companies that produce electricity in gas-fired power plants depend on a reliable and economical natural gas supply. The region around Fall River is a major producer of electricity and one-third of all natural gas in New England is used to make electricity. By 2010, natural gas is expected to fuel half of our region's electric supply. A major New England electric utility has warned that the natural gas supply situation has "potentially ominous implications" for power generators. The reliability of our electricity supply is at stake. When natural gas is unavailable or the price is too high, power plants burning coal increase their production, harming the region’s air quality and discharging more warmed water into Narragansett Bay.
So who is behind this project?
Weaver’s Cove Energy, LLC is jointly owned by Poten & Partners and Amerada Hess Corporation. Poten & Partners is a shipping and commodity brokerage firm with over 60 years of experience. Poten provides brokerage, consulting and project development services related to the trading and transportation of crude oil, petroleum products, natural gas, liquefied natural gas (LNG), liquefied petroleum gas (LPG), and other commodities. Amerada Hess Corporation is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas, as well as in refining and in marketing refined petroleum products, natural gas and electricity.
We have assembled a team of professionals that are among the most experienced and reputable executives in the global LNG and energy industry. The project team members have decades of experience in the design, development and operation of large energy projects around the world, as well as right here in Massachusetts.
Where do you plan to build this facility?
The proposed 73-acre site - historically known as Weaver's Cove – is two miles north of Battleship Cove on the eastern bank of the Taunton River in Fall River, Massachusetts.
Why did you pick this site?
Weaver’s Cove is on a navigable stretch of deep water that safely accommodates incoming ships. It is near a major natural gas pipeline to facilitate gas send out from the plant without major new gas pipelines and the site is large enough so that there are appropriate buffer spaces between our facilities and residential areas. In addition, the proposed site can only be used for industrial development due to ground contamination dating back some 80 years, beginning when an oil refinery was located there. Most recently, the site has been used as a marine-supplied oil terminal. Currently, the site has more than a half-dozen unused oil storage tanks. We would remove these tanks prior to constructing the new terminal.
Does the selection of this site help Fall River?
Absolutely! Today, the city collects a relatively modest amount in property taxes from the site owner. After completion, our facility will be the city's largest taxpayer. We also plan to dredge the federal channel in the Taunton River, restoring it to its original permitted depth, which will benefit all users of the channel, as well as the Port of Fall River, at no cost to the taxpayers. Due to existing site contamination, the property is considered a "brownfield." This designation severely restricts the kind of development that can take place. The site is also limited to "marine industrial" uses under Massachusetts’ coastal zone regulations (a form of zoning requirement). Given these restrictions, the site cannot be used for hotels, convention centers, housing, parks or numerous other uses which have been proposed.
How many employees do you expect to have?
We expect to have about 30 new, permanent employees after the facility is built. The actual number of employees may vary depending upon the final design of the plant. Training will be provided on the safe and efficient operation of the LNG terminal. A similar number of contract employees are also expected to help provide security, maintenance and other support services. Local residents will be hired to the maximum extent possible and outside services from local businesses will be required.
How much will the facility cost and how many construction jobs do you expect?
A lot depends upon final construction plans. The total cost could be $250 million or more. We estimate that we may employ as many as 350 workers during peak construction.
Tell us more about your proposed facility. What would it look like?
There are pictures elsewhere on this website which show the visual improvements that are currently planned. First, we would remove the unused oil storage tanks and the old dock from the site. New facilities would include a dock and waterfront improvements for berthing LNG tankers, a single large LNG storage tank, and other equipment and support buildings.
How long will this all take?
The federal permitting process is nearing completion, and the necessary state and local permits are all being reviewed by the appropriate agencies. Once all permits are obtained, construction will start and take approximately three years to complete. We hope to begin delivering natural gas from the facility by early 2009.
What are the environmental impacts of an LNG terminal?
LNG terminals have very low environmental emissions. There are very limited air emissions and only rainwater is drained from the site. There are almost no chemicals used in the process, although we do add "odorant" to the gas to give it a smell so that you can detect if there is a leak (in its normal state, natural gas has no smell). No chemicals or other pollutants will be discharged into the Taunton River or the air. The plant is quiet and even a maximum operation will not be noticeable to the neighbors. We will maintain the existing remediation system, which is slowly removing the earlier contamination from the soil.
Is LNG commonly used in the U.S.?
Yes. In the U.S., there are some 113 LNG facilities, most of them "peak-shaving" facilities, which are essentially the same as the Weaver’s Cove facility without the jetty and the ability to unload tanks or "storage tanks". About one-third of the country's LNG storage tanks are right here in New England. Many people are familiar with the "gas tank" in Dorchester, by the Southeast Expressway; most people don’t realize this is full of LNG. During the coldest winter days, as much as 40 percent of New England's gas supply may come from LNG. That is because stored LNG can be quickly and easily turned back into natural gas and delivered through the existing pipeline grid.
What is a "peak-shaving" facility?
LNG peak-shaving facilities are used to store LNG to meet peak consumption during the winter. Each peak-shaving facility has a regasification unit and some have a liquefaction unit. Most facilities in New England depend upon trucks to transport LNG from LNG import terminals, and even the plants with liquefaction will accept trucked LNG, since it is cheaper and easier to deliver. Of the approximate 113 active LNG facilities in the United States, 93 are peak-shaving facilities. We estimate that Weaver’s Cove will supply an average of about 25 trucks per day (Monday through Friday), and up to 100 trucks on days when extreme cold hits the region and the peak-shaving plant inventories can be rapidly depleted.
Is there a lot of natural gas available?
The world’s reserves of natural gas total more than 6,300 trillion cubic feet (or about 67 years of current consumption) and are growing faster than they are being consumed. Unfortunately, most of this natural gas is located far from North America.
Where does LNG come from?
LNG is produced in Alaska, Abu Dhabi, Algeria, Australia, Egypt, Indonesia, Malaysia, Nigeria, Oman, Qatar, Trinidad and elsewhere. Typically, LNG production areas are rich in natural gas reserves (stranded gas), but have little or no access to local markets (no pipelines). New liquefaction plants are being developed today in Algeria, Angola, Equatorial Guinea, Indonesia, Nigeria, Norway, Peru, Qatar, Russia, Trinidad, Venezuela and Yemen, among others.
How does the LNG get here?
LNG is transported in specially built, state-of-the-art tankers. Worldwide, there are about 160 of these ships, and many more are being built. On the outside, many of these LNG tankers resemble oil tankers, but on the inside, they are far more sophisticated. All LNG tankers have double hulls and specially insulated cargo tanks to maintain the LNG at minus 260 degrees Fahrenheit and guard against leaks. The insulation space is kept under a blanket of nitrogen and continuously monitored for leaks. The nitrogen ensures that if a leak occurred, there could not be a fire since no oxygen would be present. LNG tankers are among the strongest and most technologically advanced ships in the world, fitted with an array of sophisticated cargo monitoring and control systems to maintain operations within strict predetermined parameters. It is no wonder that the LNG-shipping business has an enviable safety record: there have been no major accidents involving a major release of LNG, or any injury to the public or damage to the environment, in more than 40 years and over 45,000 voyages.
How is LNG stored?
LNG tanks are always designed and built using double-walls, with extremely efficient insulation between the walls. The inner tank is made from special steel alloys that can resist the cold temperatures. Storage pressures in these tanks are very low— less than 5 psig. The temperature within the tank will remain constant if the gas evaporating from the liquid, known as boil-off gas, is removed from the tank. This is known as "auto-refrigeration." As the gas boils off, it draws heat away from the liquid and keeps it cold. The boil off gas is collected, pumped into the pipeline, or used as a fuel source in the facility or on the tanker transporting it. To produce natural gas, the LNG is warmed to a point where it converts back to its gaseous state. This is accomplished using a regasification process involving heat exchangers, which use fluids like hot water to heat the LNG back into natural gas. Odorant is then added to the gas before it leaves the plant in the pipeline system. This odorant smells like rotten eggs (the classic natural gas smell you would notice if your stove had a leak or took a while to light), but it is not toxic – just smelly.
Are there government safety procedures?
The Federal government regulates all aspects of LNG transportation, unloading, storage and distribution. The siting, design, construction and operation of our proposed facility will be regulated by many federal agencies, including the Federal Energy Regulatory Commission (FERC), US Department of Transportation (USDOT) and the United States Coast Guard (USCG). In addition, many state and local agencies will be involved. The community has had the opportunity to participate in and comment on the proposed project during the approval process. The key agency during the approval process has been and will continue to be the FERC. You can learn more about their role from their website, www.ferc.gov.
What about security?
The project will meet or exceed every government security requirement. Right now, the US Coast Guard and the FERC are continuously improving safety and security procedures for LNG marine import facilities and shipping in light of the September 11, 2001 terrorist attacks, and taking into account the latest studies detailing best management practices for maximizing safety and minimizing security risks. Most elements of the nation's energy delivery infrastructure are undergoing similar safety asnd security reviews. The Project is working with federal regulators and local agencies to ensure that our facility and the ships that serve it are as safe and secure as they can be.
What is LNG's operating history?
LNG receiving terminals are located throughout the world, predominantly in Japan, but also in Korea, Taiwan, Belgium, Spain, France, Italy, Portugal, Turkey, India, Great Britain, and at five sites in the U.S.A. (including Everett, MA). Many of these terminals are operating in locations adjacent to heavily populated areas. LNG has had a superb operating history and all these facilities have been operating without serious public safety incidents, some for over 40 years. The most serious LNG accident occurred more than sixty years ago (1944) in Cleveland, Ohio, when LNG storage was still an inexact science. Substandard materials used in the construction of an LNG storage tank failed and resulted in a spill of LNG that traveled into a sewer system, and spread through and adjacent neighborhood. A resulting fire caused numerous deaths, injuries and property damage. Today's regulations and codes require multiple containment systems and the use of modern materials, along with numerous leak detection systems, making such an accident virtually impossible.
Why do some people worry about LNG's potential hazards?
Over the years, there has been a lot of misinformation regarding LNG. LNG tankers and storage facilities are not as familiar to most people as power plants, gas stations and other energy infrastructure. They hold a lot of stored energy and people wrongly assume that this energy can be released in an instant, in a large explosion with calamitous results. Clearly, the ultimate purpose of LNG — as well as other fuels — is to be burned as a source of energy either directly in factories, homes and schools, or in power plants to generate electricity. Of course, many substances burn, but not all substances that burn will explode. For example, wood logs burn in a fireplace, but they do not explode. Similarly, without understanding how LNG is transported and handled, as well as the characteristics of LNG - especially how it burns – people overestimate the hazards. LNG, in liquid form, cannot explode. Natural gas vapors are not explosive when unconfined. Some people overstate the risks deliberately to scare the public and create opposition to the facilities. The bottom line is that LNG, based on its safety record and characteristics, ranks as one of the safest and least environmentally hazardous energy sources.
What if there is a spill or a release from a tanker? What would happen?
LNG is not explosive, toxic, or carcinogenic. Compared to gasoline or heating oil, LNG will not pollute the marine environment if it were to spill. In the unlikely event that there is an accidental release from a tanker, the LNG will vaporize. That means the liquid will warm up and change back into a gas. This gas would quickly dissipate because it is lighter than air, leaving no environmental trace. There would be no messy cleanup, dead birds or fish, or spoiled beaches. Because the LNG is not transported under pressure, any leak would evaporate more slowly and cover a much smaller area than a pressurized gas, such as propane. There have been minor leaks from LNG tankers, but these have never resulted in major incidents.
Will LNG explode?
LNG and natural gas cannot explode in the open air, for example, if LNG spilled onto water or the ground. When LNG is vaporized, the gas (natural gas) burns only when mixed with air in concentrations of 5% to 15% gas in air. In order to explode, LNG would have to be spilled, evaporate to create natural gas, be mixed in an even tighter ratio with air, be in an enclosed space (such as a building) and have an ignition source – circumstances which are nearly impossible to find either at an LNG terminal or on board an LNG tanker. LNG spill studies have shown that high winds rapidly dissipate the LNG vapor and low winds (or no wind) keep the flammable vapor cloud very close to the source. LNG is not stored under pressure, so even if there was a leak or failure of the storage tank (which has not happened in the past 50 years), the LNG would evaporate quite slowly, reducing any risk to the surrounding community.
Does LNG burn?
By itself, LNG cannot burn, because it does not contain oxygen or air. However, LNG vapor (natural gas) is flammable only when mixed with air in a narrow range — at least 5%, but not more than 15% natural gas-to-air mixture. If the natural gas concentration is lower than 5%, it cannot burn because there is insufficient fuel. If the natural gas concentration is higher than 15%, it cannot burn because there is insufficient oxygen (mixture is too lean). Therefore, an LNG fire hazard depends on the following series of events: a release of LNG; the LNG vaporizing; mixing with air in a very narrow gas to air ratio of 5% – 15%; and having an ignition source. This is the basis on which "exclusion zones" for LNG spills at facilities are calculated by the FERC and the Department of Transportation (DOT), except that they require the exclusion zones to assume a fuel-air ration of 2.5% (or half the flammable limit) as an added precaution.
Is LNG likely to be the target of a terrorist attack?
No. LNG’s properties and systems make it unlikely to be used in terrorist plans because it does not explode like gasoline or propane. Any weapon capable of piercing a double-hulled LNG ship or storage tank would be almost certain to ignite the escaping gas. The gas would then burn at the source of the spill with limited spreading. This would restrict the impact to the immediate vicinity of the incident. In addition, following the events of 9/11, the safety of LNG operations at U.S. terminals in Maryland and Massachusetts was closely examined in hearings and investigations involving the Coast Guard, FBI and other federal safety and law enforcement agencies. Although many of the findings remain confidential for obvious security reasons, the conclusion was to allow the continuation of LNG operations with enhanced safety and security measures.
What would happen if someone "bombed" an LNG terminal?
The design of our proposed LNG storage tank involves a very thick outer wall of reinforced concrete with additional layers of steel and insulation inside. Security systems surround the terminal and the design makes it very difficult for anyone to place an explosive device of any size close to the tank. This makes it very hard to breach the storage with any conceivable bomb.
How about an attack on a LNG tanker?
LNG tankers are less vulnerable than oil tankers because of the ship's double-hull construction and separate, insulated storage tank design. Unlike other petroleum vessels, LNG does not come in contact with either of the double hulls. There has never been an incident where LNG has escaped into the water from a ship’s cargo tanks. A second key difference is the nature of LNG compared to other fuels — LNG does not explode. For example, an attack on a gasoline tanker could produce an explosion, fire and environmental damage from the unburned spilled fuel. A deliberate bomb attack on a LNG tanker could produce a shipboard fire, which would burn at lower temperatures and slower than a petroleum fire. That is because LNG, which is kept at extremely cold temperatures, absorbs heat from the surrounding environment and evaporates. Recent studies conducted for the Federal government by ABS Consulting and Sandia National Laboratories have attempted to assess the vulnerability of LNG tankers to deliberate attacks, the consequences of such an attack and ways to reduce the risk. The consequences of an attack could be quite severe to anyone in the immediate vicinity if the weapon or explosives used were large enough to create a large hole in the side of the LNG tanker. With this knowledge, security is provided to protect the LNG tankers from such an attack and reduces the risk to the surroundings to a very low level.
Will all this security cost the City money and offset the property taxes?
Weaver’s Cove Energy has worked with the US Coast Guard, state and local police forces and the Bristol County sheriff’s department, as well as the FBI and Homeland Security, to design a robust security plan that will protect the citizens of Massachusetts and Rhode Island. To the extent that the cost of such security measures are not subject to federal reimbursement, we have committed to reimbursing the state and local agencies for the costs incurred, over and above the property taxes collected by the City. This is the procedure being followed in Boston Harbor when the LNG tankers enter, and we believe it is appropriate to follow it here.
Can you summarize your proposal?
We propose turning an unused and lightly-taxed, industrially zoned property that is located within a designated industrial marine port area (DPA) into a state-of-the-art LNG facility. New England — and Fall River — requires new sources of natural gas that our facility would help provide. Construction and operation of the facility will create jobs for Fall River area residents. The proposed LNG plant will be the largest taxpayer in Fall River and will place very limited demands on local services. Perhaps, most importantly, LNG is the safest and most environmentally friendly way of providing a new source of energy to help Fall River and our region grow and prosper.
Will the presence of this facility impact my property value?
Weaver’s Cove, in preparation of its filing to the Federal Energy Regulatory Commission (FERC), prepared two studies of real estate impacts near existing LNG facilities (Giroux, 2003; Appraisal Consultants of New England Corporation, 2003), which found that property values and real estate tax assessments have not been harmed by the presence of an LNG facility. Further, as stated in the Final Environmental Impact Statement (FEIS), the FERC found that "Based on the location of the LNG terminal on an existing industrially zoned site and the information from these general and site-specific studies, we do not believe that the LNG terminal would negatively affect property values in the surrounding area. Because the pipeline routes are predominantly located within existing utility corridors, operation of these pipelines is also not expected to have a measurable impact on property values." (FEIS, 4–191)
Will the presence of this facility affect my insurance rates?
Insurance rates will not be impacted by the presence of the proposed LNG terminal. As stated in the Final Environmental Impact Statement (FEIS), the Federal Energy Regulatory Commission (FERC) staff found that:
"Homeowner insurance rates are generally set on a county-wide basis, with individual rate adjustments made to reflect the age and value of the property and the claims record of the owner; insurance rates are not based on the surrounding landscape or structures at the local level. However, insurance companies may reject coverage in an area based on high risks. Typically in Massachusetts, insurance coverage is denied when a property is in a poor state of repair or located along the coast where it would be vulnerable to storms. The properties in the vicinity of an industrial facility may be older and not as well maintained. These types of factors would affect the availability of insurance coverage, not the presence of the facility itself (Giganti Insurance, 2004)." (FEIS, 4-191)