Statement on LNG risks from Lloyd's Register North America,
Inc.
In a speech recently delivered to the Houston Forum, Lord Levene,
Chairman of insurer Lloyd's of London, stated the following:
Gas carriers … whether at sea or in ports, make obvious targets.
Specialists reckon that a terrorist attack on a LNG tanker would
have the force of a small nuclear explosion. And it's not just the
vessels, but the terminals and the whole infrastructure which are
at risk from terrorism.
In response to these comments on the subject of the risks
associated with the maritime transport and shore-side reception and
storage of liquefied natural gas (LNG), Lloyd's Register North
America, Inc. (LRNA) would like to clarify the following:
- The Lloyd's Register Group and Lloyd's of London are not
affiliated. The former consists of risk management companies, whose
activities are primarily based in technical engineering
disciplines, while the latter is an insurance organisation.
- LRNA is a company in the Lloyd's Register Group of companies,
and is one of the leading participants in the safety and
verification of LNG facilities around the world. The Lloyd's
Register Group's knowledge of LNG spans the whole chain from gas
field development through to transport, loading, offloading and
storage facilities (both on land and at sea). The Group has
completed numerous studies for government agencies and private
companies on the risks associated with LNG and today classes more
than 30% of all ships that transport LNG around the world. The
Group has substantial knowledge and experience in the analysis of
fires, gas dispersion and potential ignition sources. Its knowledge
is built on the industry experience, experimentation, science and
theories developed over many years of handling and transporting
LNG.
The real risks
In the US, regulators and
other interested parties have identified as key concerns the
possibility of a terrorist attack involving an LNG terminal or an
LNG carrier, and the consequences for the surrounding population
and infrastructure. Global terrorism is certainly a major threat
and all reasonable measures should and must be taken to mitigate
the risks and consequences of any actions, however, commentators
and observers are incorrect if they believe that a terrorist attack
on an LNG carrier would have the impact of a nuclear explosion.
There are several technical reasons which bear this out:
- LNG is transported globally in insulated tanks on specialised
ships. These tanks provide four physical barriers and two layers of
insulation between the LNG and the outside environment. Further,
the separation between the inner and outer hulls of an LNG carrier
is typically over two meters. These two factors combined mean that
LNG cargo carried at sea has a very high in-built level of
protection from external blast sources.
- In the event of an attack, even if a one-meter hole were to be
formed in the inner hull, the resultant holes in the primary
containment barrier would be significantly smaller due to the
increased separation distance from the blast source combined with
the pressure absorption properties of the secondary containment
barrier and insulation materials.
- It is unrealistic to imagine that the entire cargo of any ship
can be instantaneously released. To mount an attack on an LNG
carrier that would result in the instantaneous release of all of
its cargo would require the equivalent of a full scale military
operation, not a clandestine terrorist operation like those carried
out against the USS Cole and the Limburg.
- The idea that LNG carriers are potential nuclear devices is
erroneous. There is a lot of energy in LNG and natural gas, as in
any hydrocarbon. However, the 'nuclear explosion' statement
describes the total energy an LNG carrier contains, not the rate at
which the energy would be released in an incident. For example, a
lump of coal contains lots of energy, but when set on fire, its
energy doesn't all come out instantly like a bomb. Instead, the
coal burns over a period of time releasing its energy as it goes.
Similarly, LNG carriers contain large quantities of energy, but the
energy can only be released slowly in the event of a spill or a
fire.
- An LNG spill in open air will not result in a bomb-like
explosion. This has been consistently demonstrated in experiments.
Not everything that is ignited explodes like a bomb. For example,
when a match is lit, it burns but does not explode. Similarly, the
natural gas vapour that could result from an LNG carrier spill also
falls under the category of substances that will burn but not
explode like a bomb.
Reason and caution
Paul Huber, Director of
LRNA, says: "There are risks associated with the transport and
storage of LNG, as there are with any hydrocarbon energy source,
and these are precisely the reasons that the LNG industry operates
with extensive international and national regulations which govern
the safety of LNG transport and storage. The effectiveness of these
regulations is apparent in the LNG shipping sector, which has an
unblemished safety record spanning 40 years - a track record which
is unrivalled by any other maritime sector and most land-based
industries. It should also be remembered that LNG itself is one of
the cleanest-burning and most environmentally friendly energy
sources currently available on a global scale.
"While the shadow of terrorism hangs over us, we have to do as
much as we can to protect ourselves and our borders, but it is
misleading to state, as some have, that an attack on an LNG carrier
would be similar to a nuclear event. It is difficult for us to know
the rationale behind the assertion contained in the speech to the
Houston Forum, but it is clear that it is not supported by
fact.
"LRNA works closely with the US Coast Guard, regulators,
shipowners and terminal operators to help ensure that stringent
safety standards are formulated and adhered to, and we will
continue to do so in the future."
Ends
For more information
Dolly Robinson
Marine Media Manager
Lloyd's Register
T +44 (0)20 7423 1682
F +44 (0)20 7423 2069
E
dolly.robinson@lr.org
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