Editorial

Gulf Landing

(Liquefied Natural Gas)

   One issue before the legislature in the current session will affect every homeowner and every business in the state and perhaps the nation.
   Nonetheless, 99.9 percent of our people don’t have a clue on what it is all about and the prevailing attitude among those who do is let George worry about it. We believe everyone should be concerned with the issue and have a say in its disposition.
   The issue involves the import of Liquefied Natural Gas (LNG) to Louisiana from overseas sources that will supplement the declining natural gas in our country. Estimates are that demand for natural gas will increase 50% in the next 15 to 20 years thus compounding the short supply that is causing price increases today.
   In order to facilitate the transportation of LNG, it is necessary to build terminals in the Gulf of Mexico that will convert the frozen gas back to natural gas that will then be transported onshore in pipelines already in existence.
   In its simplest terms, the terminals use the OLV (open loop vaporization) systems to utilize the warm gulf waters to heat the frozen gas and return it to its natural state. The OLV system is the most efficient and less costly method for the process.
   There are a half dozen or more oil companies seeking licenses to build proposed terminals in the Gulf. We have only studied the proposal by Shell Oil called "Gulf Landing".
   According to Shell, the terminal will be located 38 miles offshore south of Cameron Parish. Shell’s proposal passed governmental reviews and received a license to operate from the federal government in 2005. Gulf Landing will provide 1.0 billion cubic feet of natural gas a day: enough to supply the energy needs of 4.0 million homes.
   The economic benefits, according to the LSU Center for Energy Studies, could potentially create 11,600 jobs in the state from an emerging LNG industry. (See http://dmses.dot.gov/docimages/pdf90/296320_web.pdf). By using seawater to warm LNG, greenhouse gas emissions are reduced and fuel efficiency increased--saving enough natural gas each day to meet Baton Rouge’s residential daily energy needs according to Shell.
   A sixteen month U. S. government review concluded that Gulf Landing is using the best available technology. This is consistent with a review Shell conducted prior to applying for a license and is validated by an independent scientific review released in January, 2006. A copy of the government review can be found at http://dmses.dot.gov/docimages/p80/315745.pdf while a copy of the independent scientific review can be found at www.lngfacts.org
   There is concern that using seawater may adversely affect marine fisheries. Shell acknowledges the concern and is publicly committed to do what is necessary to ensure that there are no unacceptable impacts on fishing and shrimping from Gulf Landing.
   Shell is working closely with NOAA Marine Fisheries, Louisiana Department of Wildlife and Fisheries and Coastal Conservation Association (CCA) and in addition to detailed environmental safeguards in place, Shell has gone the extra mile and has proposed and is committed to a Prevention, Monitoring and Mitigation Program that adds additional safeguards and protection.
   Any program or proposal that may adversely affect the environment is of utmost concern to every reasonable person. We believe the legislators and the governor will carefully review and weigh the tradeoffs between the need for additional natural gas supplies, the economic benefits to the state and the impact on marine fisheries, if any, and avoid politics in the process.
   There are those who have honest and legitimate concerns and they should be heard. On the other side of the horn, there are those in the lunatic fringe who categorically reject scientific findings, have self-serving interests, and who are more anti-business than pro-environment.
   Hopefully, legislators and the governor can distinguish between the two and ignore the latter.
Shell Oil is a good corporate citizen whose credentials are impeccable as a good employer of Louisiana residents, as a company involved in civic and cultural affairs within the state and as a company that possesses a proven track record of concern and action in regard to protecting the environment and the coastline of Louisiana.
   After doing their due diligence, we respectfully recommend that our legislators and Governor Blanco act without undue delay on granting Shell’s request for a license. The federal government has already done so and all that remains is for the state to act in order to proceed with the program.
   Trust and verify is a technique that should satisfy all parties.

Crowley Post Signal • 602 North Parkerson Avenue • Crowley, LA
Ph: 337-783-3450 • Fax: 337-788-0949