Regional LNG: Mitsubishi?s SES says designs comply with updated LNG guidelines

Sound Energy Solutions (SES), a wholly owned subsidiary of Japan trading powerhouse Mitsubishi Corp said Tuesday that it will comply with newly updated Department of Transportation (DOT) safety standards for liquefied natural gas (LNG) terminals.

Long Beach-based SES has applied to build an LNG receiving terminal in the Port of Long Beach, west coast of USA, with the Federal Regulatory Commission (FERC). Compliance with the new rules will be part of the project review by the FERC.

The terminal will be capable of unloading LNG ships ranging in capacity from 90,000 cubic meters (m3) to 145,000 m3, and provide a sendout capacity of 700 million standard cubic feet per day (MMscfd) of natural gas, with a peak capacity of 1,000 MMscfd. LNG would be shipped to California aboard specially designed ocean-going LNG carriers (approximately 70 vessels per year or 1 ship every 5 days) from gas-producing regions abroad, primarily the Pacific Rim. Indonesia is one of the LNG supplier candidates.

The Research and Special Programs Administration of the DOT last week announced updated safety standards applicable to LNG facilities. The new rules, which take effect April 8, are designed to modernize the standards for the production, storage and handling of LNG to make the requirements more explicit and detailed.

The DOT, as part of its longstanding role in natural gas pipeline safety, periodically reviews and updates the rules applicable to LNG facilities. The new rules adopt the most current scientific analysis for the appropriate safety measures for LNG facilities, including fire protection, operations and maintenance requirements.

There is, for example, increased emphasis on the requirements for operation, maintenance, security, qualifications and training of personnel. There are also changes in the required seismic design methods for storage tanks, based on updated seismic criteria.

The new operation, maintenance and fire protection requirements apply to facilities in existence or under construction as of March 31, 2000. The Long Beach project could begin construction as soon as October and be completed in 2007-08.

"We anticipated these changes and built them into our application to build the safest LNG receiving terminal in the nation," said SES Chief Operating Officer Thomas E. Giles.(alex)