BG Group

IEA-GLE Workshop
May 19-20, 2005

Making Gas Markets Global

LNG Safety Issues

A. Acton LNG Development Manager BG Group

Safety of the LNG Industry

The LNG Industry has an excellent safety record
No LNG ship has ever had a major loss of LNG in ~40 000 loaded voyages No LNG tank built of suitable materials has ever failed catastrophically No member of the public has suffered a fatality due to a recorded incident at a LNG facility since 1944 A rolling study by the International LNG Importers Group currently shows less than 0.35 incidents of any concern (including near misses) per import terminal site-year since 1965

LNG facilities & ships are built & operated to strict standards
Location is based on study of incidents & hypothetical worst-case events Design is to international codes supported by Hazid, QRA, Hazop studies Operating licences require approved & regularly updated Safety Cases Key international organisations control & advise on LNG safety & security (GIIGNL, SIGTTO, IMO, OCIMF, Ship Class Societies, GLE, IGU) LNG Ports are subject to new security (ISPS) regulation from 2004 LNG safety and security are controlled by international systems and organisations

 Safety of the LNG Industry

There is not and cannot be any room for complacency
A LNG tank made of non-cryogenic steel collapsed in 1944 A fire occurred during decommissioning of a LNG tank in 1973 A leaky LNG pump seal caused a switch room collapse in 1979 A liquefaction heat exchanger burst during maintenance in 1983 A LNG ship broke its moorings and LNG was spilt on the deck in 1989 A LNG road truck exploded after crashing on a mountain road in 2002 An explosion in a LNG liquefier caused extensive on-site damage in 2004

Members of the public now demand full information on potential hazards before construction is approved & LNG operations can start Heightened security based on advice from Government Security Services and Industry information sharing is required to protect people and fixed assets from potential risks due to increased terrorist activity in the world
The LNG Industry cannot afford to loose its excellent safety record

LNG Liquefier Explosion, January 2004

Train 40 Boiler

Center of Larger Explosion Approximate Location of Fence Damage

Incident analysis and photograph from US FERC-DOE Report, April 2004

Perceptions of LNG Safety & Security

The LNG Industrys safety record is exemplary, but this is not always understood by a public faced with proposed new LNG facilities Freedom-of-information legislation means that reporting has to be clear and understandable to the layman - hypothetical worst cases used in risk analysis must be understood as such The Internet has created an open platform for all views on LNG Incidents and near-misses are recorded by industry bodies and the results of analysis are reported within the industry and publicly Detailed independent reports are prepared for the few major incidents occurring There are many initiatives to improve procedures & educate new LNG operators and the public these need to be co-ordinated Recent work in the US and Europe has specifically covered security issues and appropriate actions have been taken Vigilance, openness, clear reporting and education can keep the LNG Industrys safety record & ensure its correct public perception

New LNG facilities to feed world energy demand need to be publicly accepted