This article tries to explain in non-technical terms the advantages of using LNG by way of cost savings, cleaner air and tries to demystify the myth about the dangers of transporting LNG in tangerine coloured carriers.
An energetic MEP representing the Opposition party has dutifully submitted a petition calling on the European Commission to investigate the risk to public safety from a floating LNG storage unit berthed close to shore. This is fired by an altruistic desire to protect residents in the vicinity of Delimara – where the new gas-fuelled power station is now ready – some of whom have shown concern over the liquefied natural gas storage facility planned to be berthed this month inside Marsaxlokk Bay. The Opposition has been lobbying against the use of gas for electricity generation saying that using the existing oil-fired plant plus the submarine electricity cable to Sicily is the perfect mix to reduce tariffs.
A major bone of contention is the storage of gas. As building storage tanks on land will be an eyesore, the alternative of seaborne storage in turn irritates residents. A government spokesman rebutted the scaremongering saying that there is no danger as all technical studies show that LNG tankers are safe and as a result of the massive private investment, residents will be spared the dense fumes belching out of the oil burning plant. Really and truly the preachers of another Armageddon are saying danger is knocking on their doors due to the berthing of LNG carrier supplying a new power station which is to commence operating shortly.
At present, the controversial BWSC plant in a decrepit Delimara utility is run on heavy fuel oil supplied through onshore storage in huge tanks (it is now converted to run on gas). To start with, one may ask why use LNG and not other fossil fuels? The advantages of switching to gas is amply evident when reading research by the JRC Institute for Energy (IE) as it examines the benefits and drawbacks of the EU’s greater use of LNG shipments. Experts say that natural gas is the cleanest burning fossil fuel because the combustion process for natural gas is almost perfect with very few by-products emitted into the atmosphere as pollutants. Also, with the introduction of new technologies, nitrogen oxide, a pollutant as defined by the Clean Air Act, can be significantly reduced. Any housewife will tell you that the blue flame seen when natural gas is ignited is a sign of perfect combustion. Gas doesn't leave behind any unpleasant soot, ash, or odours.
Obviously, transporting LNG by sea as opposed to pipelines has the added advantage of eliminating huge and ugly looking storage tanks and the threat of corrosion in tanks, leakages in the ground with the resultant soil contamination and costly environmental clean-up.
In Marsaxlokk’s case, an Opposition spokesman warned that erecting storage tanks next to the power station will have to be of enormous dimension estimated to reach the size of two Mosta domes. These tanks will clutter the pristine landscape of the natural harbour. Critics of LNG tell us it is a good substitute as an energy source to other fossil fuel but it is not a perfect solution, omitting to mention that it offers significantly lower emissions of sulphur, nitrogen oxide and particulate matter compared to conventional hydrocarbon fuels. It is important to note that the toxic emissions of carbon dioxide are also lower.
The infrastructure for processing LNG, however, is still inadequate. It will take time and require significant investments to increase the percentage of European ports that can berth huge supply vessels with LNG. LNG carriers move natural gas from liquefaction terminals to re-gasification terminals all over the world, so one can safely say that marine LNG import and export terminals are to be found almost everywhere and several new terminals (like the one built at Marsaxlokk) are scheduled to come on stream in future years. The question arises on how safe the process of transporting LNG in special ocean-going carriers is. The answer is simple... all precautions are taken to ensure a low risk as stringent operational and safety regulations govern the transport and storage of LNG.
As stated earlier, since the start of sea transportation during the last three decades, only minor incidents have occurred where LNG was accidentally released into the atmosphere. These incidents would be impossible to replicate today because technology for transporting and storing LNG has improved immensely, as have global industrial safety regulations and standards. Take the example of Japan, a country that offers an excellent case study, as it imports nearly all of its natural gas in the form of LNG, some of it directly into Tokyo Harbour.
According to the University of Houston Law Center Institute for Energy, Law & Enterprise, LNG carriers supplying Japan have not had any significant incidents or safety problems in port or while at sea. It is worth noting that on average, an LNG ship safely enters Tokyo Harbour every 20 hours. Modern LNG carriers have a double-hull design for increased safety and therefore provide protection in the rare event of a collision or grounding. The double hull consists of a steel outer hull, along with a second steel inner hull, forming a void space approximately 10 feet in depth. The LNG tanks are constructed of either stainless steel or aluminium. They are heavily insulated to protect the steel hull from the elements and to maintain the LNG cargo at its low temperature. The area between the inner hull and the LNG tanks is filled with a nitrogen gas blanket that is monitored for gas leakage so corrective action can be taken immediately if a leak occurs. An idealist will compare a methane tanker to a floating thermos bottle, designed to keep the LNG cold as it travels thousands of kilometres on its ocean voyage.
All LNG vessels and facilities have redundant, nearly fail-safe safety systems. These systems automatically or manually shut down the operations completely when the vessel or facility is not performing correctly or in the event that certain operations or equipment fail. The facility also includes high-tech gas detection systems to rapidly identify even the slightest break in containment, as well as shut-off valves to immediately prevent leaks and spills in the improbable case of tank failure. When the studies on Marsaxlokk are published, it is assumed that they aim for a safety record based on a serious operational and financial commitment by a private sector company responsible for an 18-year-long term service commitment.
Having explained in some details the technology behind sea transportation of gas one may ask: is there a bright future for this product in Europe? The answer is that Malta can exploit bunkering facilities in the centre of the Med once it starts making use of the proposed gas pipeline to Gela in Sicily. To conclude one must appreciate that residents of Birzebbuga, Marsaxlokk and Qajjenza have a heavy cross to bear considering the area supports a concentration of heavy industrial plants. Undoubtedly this is an unsavoury cocktail in a densely populated area and every effort must be done to compensate for this inconvenience. One suggestion is to speed the planning process by Mepa to approve the building of a natural park for families in the vicinity of Zonqor Point.
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Mr Mangion is a partner in PKF an audit and business advisory firm