You asked (1) whether hurricanes Katrina and Rita damaged the liquefied natural gas (LNG) terminal in Lake Charles, Louisiana; (2) if there has been a comprehensive report on all LNG accidents and incidents, and (3) who pays to rebuild a damaged LNG plant.

SUMMARY

According to the Southern Union Co. , which owns the LNG plant in Lake Charles, the facility incurred minimal damage from Hurricanes Katrina and Rita. We have attached news articles about the hurricanes’ impacts.

There are a number of reports reviewing LNG safety issues. We link to them below.

According to Mark Hershfield, special assistant/counsel for the Federal Energy Regulatory Commission’s (FERC) Office of External Affairs, the federal government does not pay to rebuild damaged LNG plants. We also spoke with Susannah Pierce, government relations director for TransCanada, a partner in plans to build the Broadwater LNG facility in Long Island Sound. She said such costs are borne by the LNG facility owner or private insurance the owner may obtain.

LNG SAFETY RECORD

According to the Congressional Research Service, there have been about 13 serious accidents directly related to LNG at the approximately 190 onshore LNG facilities since 1944. There have been no serious accidents involving LNG tankers since international LNG shipping began in 1959.

The most serious recent accident at an LNG terminal occurred in 2004 at Skikda, Algeria, when a steam boiler exploded, triggering a vapor-cloud explosion and fire that killed 27 people and injured 74 others. The most serious accident at a U. S. LNG facility occurred in 1944 in Cleveland, Ohio, when a tank failed, releasing a vapor cloud that ignited, killing 128 people in a nearby residential area.

Two other U. S. accidents have resulted in deaths in the past 60 years. In 1979, an employee was killed by a natural gas leak and explosion at an LNG plant in Cove Point, Maryland. In 1973 a fire that occurred in an empty storage tank at a Staten Island, New York LNG facility caused a concrete dome to collapse, killing 40 workers. According to a New York state report (see below) LNG was not involved in the Staten Island accident.

Listed below are reports reviewing LNG safety issues, which provide more detail on these incidents. We have linked to each report and can provide you with hard copies if you like. We also have provided a link to testimony on LNG siting before the U. S. Senate Committee on Energy and Natural Resources.

Reports Prepared for the Federal Government

Guidance on Risk Analysis and Safety Implications of a Large Liquefied Natural Gas (LNG) Spill Over Water (“Sandia Report”), December 2004. This report was prepared by Sandia National Laboratories for the U. S. Department of Energy. It specifically examines various risks posed by LNG spills over water and suggests risk reduction strategies.

Liquefied Natural Gas Import Terminals: Siting, Safety and Regulation, Congressional Research Service (CRS), April 20, 2005. This is the most recent of several reports CRS has prepared for Congress on this issue. It provides a good overview of the LNG industry and safety issues.

Testimony on the Future of Liquefied Natural Gas Siting and Safety by Mark Robinson, Director of FERC’s Office of Energy Projects, February 15, 2005.

Reports Prepared for the California Energy Commission

Liquefied Natural Gas in California: History, Risks, and Siting, July 2003.

International and National Efforts to Address the Safety and Security Risks of Importing Liquefied Natural Gas: A Compendium, January 2005.

Safety Advisory Report on the Proposed Sound Energy Solutions Liquefied Natural Gas Terminal at the Port of Long Beach, California, September, 2005

The January 2005 report in particular provides a wealth of information on LNG safety and security agencies, codes and guidelines. The September 2005 report specifically examines safety considerations at the proposed Long Beach facility.

Other Reports

LNG Safety and Security, University of Houston Law Center’s Center for Energy Economics, October 2003. This report was prepared by the Center through a consortium sponsored by LNG and power companies, with support from the U. S. Department of Energy.

LNG Facilities in Urban Areas, May 2005. This report was prepared for Rhode Island Attorney General Patrick Lynch. It specifically looks at the risks of a possible terrorist attack on an LNG facility proposed for the Providence River in Providence, Rhode Island.

LNG Safety Practice and Regulations: From the 1944 East Ohio Tragedy to today’s safety record, Texas A& M University, April, 2001.

Terrorism: Ready to Blow? Bulletin of Atomic Scientists, July/August 2003.

Report on Issues Regarding the Existing New York Liquefied Natural Gas Moratorium, New York State Energy Planning Board, November 1998.

Managing LNG Risks: Separating the Facts from the Myths, ioMosaic Corp. , 2005. (ioMosaic is a safety and risk management consulting service).

PF: dw