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Experts analyze LNG proposal

Industry consultant and policy analyst share thoughts on Liquefied Natural Gas at Woodfibre
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RiSK AnALYSis Two experts discuss the feasibility of the LNG plant proposed for the Woodfibre area as Pacific Energy Corp. works toward purchasing the land on Howe Sound and building an energy export facility at the former pulp mill location. FILE Photo courtesy ofwww.gregwint.com

Despite a lack of solid information a low-key debate continues over whether a proposed Liquefied Natural Gas (LNG) plant proposed for the shores of Howe Sound is good for the area, or not.

People who live and recreate around the area have many questions. Most haven't been answered, however, because the company proposing to build the plant doesn't own the land yet, and therefore hasn't finalized its plan for the former pulp mill site.

Despite that, Pacific Energy Corp. has announced it plans to build a small-scale LNG plant on the east side of Howe Sound in full view of Highway 99 travellers.

Ratnesh Bedi, the president of the company based in Singapore, told Pique in March that his company will meet or exceed all environmental requirements and maintain the improvements to Howe Sound.

The improvements the Pacific Energy president referred to include the reduction of acid rock drainage entering the fjord from the former mine operations at Britannia Beach and the reduced amount of pollution entering the water since the Woodfibre pulp mill stopped operations while Howe Sound Pulp and Paper at Pender Harbour has reduced the amount of pollution it produces.

Environmentalists are concerned about pollution and safety risks while industry supporters want the high paying jobs and economic development major industry installations like this brings.

Zoher Meratla, an LNG expert who lives in Whistler and consults for the LNG industry has assessed the project based on the small amount of information shared so far. Meratla has 35 years of experience in the LNG industry and has worked on projects around the world, including the proposed Kitimat LNG plant. He has operated his LNG consulting business for the last 15 years from his home in Whistler offering design and engineering services along with safety auditing.

He said the Woodfibre proposal calls for a facility that will accept natural gas, purify the gas then cool it down until it becomes a liquid so it can be stored until a tanker ship arrives to move it.

Meralta has been to the site and checked it out. The principal with CDS Research Ltd. said he hasn't done any work on the Woodfibre proposal, but his company could potentially contribute to the project in the future.

"It definitely can happen there," he said from Vancouver Island in a telephone interview. "The site is a very good site because it's completely isolated from everything."

Ben Parfitt, a resource policy analyst with the Canadian Centre for Policy Alternatives, doesn't believe there is much of a chance the plant will ever be completed.

"B.C. is way behind the game in terms of the global footrace to get gas to the Asian market," said Parfitt. "Australia is well ahead of B.C. in terms of LNG production and that country is already starting to scale back numerous proposals because it looks like the market is going to become over supplied."

On the issue of safety Meralta believes the greatest risk would come from the tanker movements alongside Bowen Island and Horseshoe Bay if the facility were built.

"Some attention would need to be paid to the ferry traffic and big fishing vessels, small vessels, etcetera," said Meralta. "LNG carriers are always piloted so I don't see that as a problem."

On the east coast of the U.S.A. the concern over the vulnerability of LNG tankers is so great that the ships are required to maintain significant buffer zones when they move through populated areas with their volatile cargo.

"You are talking about a massive increase in tanker traffic in the more populated region of the province," said Parfitt, pointing out the LNG tankers will likely travel through the Juan de Fuca straight by Victoria. The logical shipping route would also bring the tankers in close proximity to Vancouver.

According to both Parfitt and Meralta, LNG facilities require significant amounts of energy to convert the gas coming into the plant to a liquid so it can be efficiently stored then transported for use somewhere else.

Parfitt said LNG plants produce greenhouse gases in huge amounts during the super cooling process.

"B.C. would essentially have to jettison all of its greenhouse gas emission reduction targets if just a single large plant was built," said Parfitt.

Meralta said carbon dioxide is produced in the process of separating out impurities and removing moisture during the conversion to a liquid. Gas flaring is used at the end of that separating process, adding that flaring is required when LNG facilities are in start-up mode.

Meratla also noted that air pollutants produced by LNG plants vary depending on how a plant is powered. The Kitimat plant he designed is to be powered by electricity. Plants powered by fossil fuel burning produce more on-site air pollution.

The geographic factors in B.C. further support Parfitt's belief the Howe Sound LNG project won't happen. He noted that the gas is being pulled out of the ground in northeastern B.C.

"Howe Sound is a lot further away from that gas production area than is Kitimat or Prince Rupert so I have real questions about whether or not this thing can be pulled off," Parfitt said.

Fracking, the primary method used to remove natural gas from the earth, wouldn't impact the Sea to Sky area directly, but environmentalists are critical of the process and the impact it has on the environment around the extraction zone. The construction of an LNG plant on Howe Sound would directly link the region to the controversial extraction technique.

Before Pacific Energy can complete its purchase offer, the current owners have to finish cleaning up the site. It is currently working on a business plan that will clarify how much gas will be handled at the plant, which will determine the size of the facility.