U.S.’s thirst for liquid natural gas growing

Natural gas is important for more than home heating and production of electricity. The chemical industry uses gas as a raw ingredient in products and to generate steam and power. The industry says an ample supply of gas with stable prices is needed to keep the domestic chemical business competitive with foreign companies who often have access to much-cheaper fuel.

“Even though some of these terminals have long lead times associated with their construction, those that do exist and those that will come on line hopefully will bring the supply-demand curve for natural gas back into proper proportion,” said Dan Borne, president of the Louisiana Chemical Association, a trade group representing 100 plants in the state.

But along with LNG plant construction comes fears of accidents or terrorist attack. Although not flammable in its liquid state, opponents worry about leaks at terminals and on tankers that would allow the liquid to heat up quickly and return to its flammable gas form.

Environmental concerns also have flared. On March 28, Shell Oil Co. dropped plans to build a terminal in the Gulf of Mexico 36 miles south of Cameron Parish after opposition from fishermen. The dispute arose over Shell’s plans to use millions of gallons of seawater in the process. Opponents feared that would kill fish larvae. Chevron also dropped plans in March to build a $650 million terminal off of Mexico’s West Coast — near the U.S. border but out of U.S. regulations’ reach — after a four-year battle with environmentalists.

But the biggest concern centers on safety.

In 2004, an explosion at an LNG plant in Algeria killed 30 people. The worst accident on record happened in 1944, at a Cleveland LNG plant that burned and killed 128 people after a tank leaked LNG into the sewer system where it became a flammable vapor and exploded.

A congressional study released in March said fire from a terrorist attack on an LNG tanker could cause the gas to ignite so fiercely that it would burn people a mile away. The General Accountability Office said most experts believe intense heat — not explosions — would likely be the biggest threat to the public. GAO urged the Energy Department to perform new research on the risks for such ships.

Tim Riley, a lawyer and consumer advocate based in Oxnard Shores, Calif., said not enough is known about the potential hazards of an LNG spill for the government to be able to continue licensing terminals safely.

“The sheer volume is what makes it eminently dangerous,” said Riley, co-producer of a film called “The Risks and Danger of LNG.”

Industry advocates say the safety fears are exaggerated.

Sempra said its storage tanks are designed to withstand winds of 150 miles and hour and elevated nine feet off the ground for flood protection at its Hackberry project.

In addition, LNG tankers have booked 100 million sailing miles without a death or major accident and modern storage tanks are built with aluminum alloys and reinforced with concrete to withstand LNG’s frigid temperatures, said Bill Cooper, executive director of the Center for Liquefied Natural Gas.

LNG tankers have double hulls, with six to 10 feet of space between the two hulls. There is an insulation layer around the storage tanks, he said.

“We’re talking about a very robust, sturdy ship design,” Cooper said.

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