The wrath of the ubiquitous tangerine monsters

Ask any resident in Marsaxlokk about the risks associated with a permanent berthing of a floating LNG supply carrier at a jetty next to the power station and he or she will start complaining that according to some MEP’s warning, this is like living next to another Hiroshima unexploded nuclear bomb (only 50 times more potent). An energetic MEP 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.

People who live in the vicinity of Delimara – where the new gas-fuelled power station will be built – had shown concern over the liquefied natural gas storage facility planned to be berthed inside Marsaxlokk Bay. According to surveys residents would prefer the gas to be stored further out at sea, ignoring the fact this comes at an enormous expense and delays the implementation. Another prospective MEP, who will be running for election next May, rebutted the scaremongering. He said that there is no danger, as all the technical studies show, and as a result of the massive investment in gas, 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 at their doors due to the construction of a new power station, which is expected to run on gas. At present, the controversial BWSC plant is run by burning heavy fuel oil, which is supplied through storage in huge tanks. This article tries to explain in non-technical terms the advantages of using of LNG by way of cost saving and cleaner air, and tries to dispel the myths about the dangers of transporting LNG in tangerine coloured carriers.

To start with one may ask why use LNG and not other fossil fuels? Obviously the heavy carbon footprint of burning heavy fuel oils or diesel to generate electricity is a major hazard contributing in no uncertain terms to worsening climate change. Another factor is cost. One cannot but remember the sharp rise in oil prices due to major crisis – the Crimea border clashes are a typical example.

Under the PN administration users were subjected to high tariffs, blaming oil spikes and cost recovery at Enemalta based on a study by KPMG to yield an 8% return on capital.

But gas supplies also hit the headlines in the recent past. Temporary cutbacks in pipeline gas imports from Russia have also raised concerns about the security, diversity, reliability and affordability of the EU’s gas supply. It stands to reason that the alternative to distribution via pipeline systems is that of delivering LNG by sea and this solution has opened the market, rendering LNG one of the world’s fastest-growing sources of energy.

At the stage one can quote from the JRC Reference Report, entitled Liquefied Natural Gas for Europe – Some Important Issues for Consideration. This is based on 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 tell us that natural gas is the cleanest burning fossil fuel because the combustion process for natural gas is almost perfect, with very few byproducts 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. Ask any housewife and she will tell you how 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, eliminates the threat of corrosion in tanks, leakages in the ground with resultant soil contamination and costly environmental clean-up.

In our case at Marsaxlokk, we were warned that the storage tanks to be built next to the power station would be of enormous size, estimated to reach the size of two Mosta domes. These tanks will clutter the appearance of the Marsaxlokk natural harbour. Critics of gas tell us it is a good substitute as an energy source to other fossil fuels but is not a perfect solution, even if it offers significantly lower emissions of sulfur, nitrogen oxide and particulate matter compared to conventional hydrocarbon fuels. It is important to note that the 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 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 remark that marine LNG import and export terminals are to be found almost everywhere and several new terminals (like the one to be built at Marsaxlokk) are scheduled to be built in future years.

The question arises as to how safe the process of transporting LNG in special ocean-going carriers is. The answer is simple – all precautions are taken to lower risk as stringent operational and safety regulations govern the transport and storage of LNG. As stated earlier, so far since the start of use of sea transportation in past 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 which 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 Harbor every 20 hours.

Modern LNG carriers use 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 aluminum. 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. A romantic will describe a methane tanker like a floating thermos bottle, designed to keep the LNG cold as it travels thousands of kilometers on its ocean voyage. These new vessels are also equipped with back-up power and steering systems as an extra measure of safety.

All LNG vessels and facilities have additional, 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.

The studies at Marsaxlokk Bay aim for a perfect safety record based on a serious operational and financial commitment by government to ensure that it succeeds. Having explained in some detail the technology behind sea transportation of gas one may ask whether there is a bright future for this product in Europe. The answer is that the principal consumption occurs in Asia where it will remain for the years to come as the area in the world where LNG growth is sustained. Within Asia, China has a leading role in terms of growth due to the youth of its LNG industry and the constant and sustained building of new facilities to receive LNG.

Japan, Korea and Taiwan are well equipped and grow constantly. Here the price is sensitive due to competition with other fuels like coal, crude oil and fuel oil. Other newcomers, who may see a growth in their LNG imports, are Indonesia, Malaysia, Thailand and Singapore, but regrettably Europe will continue to consider LNG as a last resort, although the massive investment at Marsaxlokk is commendable.

To conclude, one must appreciate that residents of Birzebbugia, Marsaxlokk and Qajjenza have a heavy cross to bear, considering the area supports a concentration of heavy industrial activity. These consist of the Delimara HFO power station, the Birżebbuġa fuel storage depot, oil tanking facilities, the Wied Dalam installation, Medserve facilities, Mediterranean Offshore Bunkering and the San Lucian facilities as well as the recent addition of the Gasco facilities at Bengħajsa. Undoubtedly this is an unsavoury cocktail in a densely populated area but studies show they can sleep safely knowing that the tangerine monster berthed in harbour will not misbehave.