ABSTRACT
Liquefied natural gas (LNG) was the focus of great speculation, evaluation, and facility construction in the late 1970s due to extremely high oil prices and the need for large, sustainable quantities of energy in the US. Importing natural gas in its liquefied form in special-constructed ships was necessary to meet US energy demand. However, lower prices and bringing the oil crisis under control subsequently caused the market potential for LNG to diminish during the 1980s and 1990s. Most of the vessels and facilities constructed in the US to meet the potential demand in the 1970s remained out of service for the next 20 years. However, recent changes in the global and US energy markets have put LNG in the marketplace spotlight again. There is momentum building to create an infrastructure to support the import of LNG into coastal communities around North America. Especially in the wake of the terrible events of September 11, 2001, government and citizens are apprehensive about the potential risks of transporting large quantities of LNG by ship through our coastal waters and into our ports. LNG vessels and waterfront facilities have been well regulated over the past 30 years and have an extraordinarily high safety record. This paper addresses the key issues of risk management that affect LNG import, including maritime security; existing vessel and facility regulations and practices; and risk communication messages. The security of LNG transport, transfer and storage is a critical matter that will be discussed from the generally accepted risk based analysis of consequence, vulnerability, and threat. As a consideration of consequence, is an LNG release an event that could potentially destroy an entire port area? How vulnerable are LNG vessels and facilities, and how can operators, in conjunction with Port Security Committees, evaluate and reduce the likelihood that those with criminal intent will target their vessel or facility? This paper is unique in that it adds the critical element of maritime security to the years of dialogue related to the safe transport of LNG. We are now in an environment where intentionally caused spills and releases must be factored into existing prevention, preparedness and consequence management planning.