Canada maintains LNG tanker stance despite study

Ottawa unmoved by positive LNG study
Shawn McCarthy, Globe and Mail, 06-Oct-2007

Canada maintains LNG tanker stance despite study
Energy Current, 09-Oct-2007

The Senes Consulting Report

Unstable Mix: Politics and Liquefied Natural Gas
Rob Annandale, The Tyee.ca, 11-Oct-2007

The proponents:
Downeast LNG Inc.
Quoddy Bay LNG Inc.
Calais LNG
WestPac LNG LLC

The opponents:
Save Passamaquoddy Bay
Texada Action Now
www.texadalng.com

A federal study has concluded that LNG tankers could navigate Head Harbour Passage off the Bay of Fundy with little risk of accident, but Ottawa continued to insist yesterday that it will bar U.S. tankers from the disputed waters.

Proponents of the competing LNG plants proposed for northern Maine have seized on the study - which was released on an obscure federal website - to argue that the Canadian government has exaggerated the safety concerns in order to favour domestic producers.

The federal government has refused to co-operate with U.S. regulators who are reviewing three separate plans for terminals that will regasify imported liquefied natural gas and pipe it to markets in the U.S. Northeast.

Earlier this year, Canada's Ambassador in Washington, Michael Wilson, wrote to U.S. Secretary of State Condoleezza Rice that the projects "present risks to the region of southwest New Brunswick and its inhabitants that the government of Canada cannot accept."

However, the report by Toronto-based Senes Consultants Ltd. said there have been no serious accidents involving LNG tankers in the nearly 50 years they have been in use.

"While large accidents involving the shipping and handling of LNG are possible, the probability of occurrence is small, especially with Canadian and U.S. regulation in place and enforced," it said.

It added the risk of incidents involving the uncontrolled release of liquefied natural gas is "very small."

Still, the Senes report noted the tricky waters of Head Harbour Passage require extremely careful navigation and that the surrounding eco-system could be severely affected by the discharge of fuel or LNG from tankers.

Dean Girdis, president of Downeast LNG Inc., said the report will be helpful as the U.S. Coast Guard and Federal Energy Regulatory Commission prepare their environmental impact statement, a process that should be completed by early 2008.

"I don't see how the study supports the conclusion that it is unsafe for ships to navigate Head Harbour Passage," Mr. Girdis said in an interview yesterday. "There is nothing in the study that concludes our project should not proceed."

Mr. Girdis said he believes - with backing for some Canadian academics and the U.S. state department - that tankers heading for a northern Maine terminal would have the right to traverse Canadian waters.

"They may maintain their position on no transit but there is no law or regulation which restricts LNG traffic going through Head Harbour Passage," he said. "And according to our lawyers, it's clear that it is Canadian waters, but that you have right of passage through it."

But Veteran Affairs Minister Greg Thompson, the government's senior New Brunswick minister - said the proponents face other hurdles - including opposition to their pipeline routing and lack of sources of LNG. But should they proceed, Canada will oppose all LNG tanker traffic through head Harbour Passage, he said.

"This particular location is not a smart location, it's not a safe location," Mr. Thompson said. "And we consider those internal Canadian waters so we have a responsibility to protect our citizens, protect the environment and protect the economy."

CANADA: The Canadian government will continue to insist that it would ban U.S. liquefied natural gas (LNG) tankers from traversing Canadian waters despite the results of a consultants' report that concludes that LNG tanker travel in the Bay of Fundy to the proposed Quoddy Bay and Downeast LNG projects in the U.S. could be done, The Globe and Mail reports.

The Canadian government has refused to cooperate with U.S. regulators, including the Federal Energy Regulatory Commission, who are reviewing the Quoddy Bay and Downeast projects proposed for construction in Maine.

Earlier this year, Michael Wilson, Canada's ambassador in Washington, D.C., wrote to U.S. Secretary of State Condoleezza Rice that the projects "present risks to the region of southwest New Brunswick and its inhabitants that the government of Canada cannot accept."

However, LNG plant proponents say the Canadian government is exaggerating safety concerns in order to favor domestic gas producers.

The report by Toronto-based Senes Consultants Ltd. noted that no serious accidents involving LNG tankers have occurred in the almost 50 years in which they have been used.

However, the report notes that traveling the waters of the Head Harbour Passage will require careful navigation. During the study, Senes found that the navigating the Old Sow whirlpool when moving from the Head Harbour Passage to the Western Passage, which requires a 102-degree turn, will be difficult at manoeuvring speed.

Use of the market software "National Manoeuvring Guidelines" supported Senes' concerns by clearly showing that the waterway at its narrowest point near the elbow is barely wide enough to support safe passage of this type of vessel in an autonomous way at normal manoeuvrability speed in light currents and mild winds."

"Given these findings, the transit of an LNG tanker similar to the sample vessel involves a considerable level of risk."

Senes said in the report that it is possible adopt an approach that will allow for risk management and for the application of a number of measures to mitigate risk. However, these measures give rise to additional costs in the implementation and operation of the transportation system. The measures also generate "considerable operational limitations."

Bathymetry indicates that the water depth is suitable for the type of vessel that is expected in this area and does not pose any problems. The topography of the shore and the islands, which provide good reference points for radar navigation, and the Differential Global Positioning System (DGPS) can be used with the DGPS coverage available.

Senes also noted that the surrounding eco-system could be severely affected by the discharge of fuel of LNG from tankers.

PM Harper: Opposes LNG shipments through New Brunswick waters. Citing 'safety concerns,' feds fight LNG project back east -- but not along BC's coast.

Chuck Childress moved to "paradise" over 40 years ago. He enjoys nature, but this veteran of the mining, construction and pulp and paper industries is no enviro-fundamentalist.

Read the rest of this article at theTyee.ca:
http://thetyee.ca/News/2007/10/11/LiquifiedNatGas/