Jun 10 – Lloyd’s Report: Proposed LNG Facility Presents “Intolerable Risks” To Densely Populated Areas
The Government’s proposed LNG terminal facility has been judged to present “high” and “intolerable risks” to nearby residential areas and the cruise terminal, according to a report conducted by Lloyd’s Register.
The detailed and highly technical report, undertaken by international leaders in the field of risk assessment, was made public this morning at a press conference hosted by the GSD.
THE REPORT
Trevor Hammond, the GSD party Chairman, led a presentation which revealed and explained the major findings of the report and its methodology.
The report considers the operational risks associated with an LNG terminal in the Port of Gibraltar. The terminal would include a jetty, LNG offloading arms, storage tanks, a regasification system and an export pipe which would supply the new power station.
The two possible locations examined by the report for this facility were the Detached Mole and the North Mole. The study assesses “all credible accidental events” and recommends actions to reduce the risks associated with the operation of such a facility.
CONCLUSIONS
It concludes that some of the risks surrounding these proposed options are “significantly greater than those found to be acceptable for conventional LNG marine storage terminals.”
Its executive summary states: “…both Options give rise to potentially intolerable levels of individual and societal risk to third parties.”
Mr Hammond was clear that the report had followed a strict remit and did not consider the risks posed by acts of terrorism, acts of God or third party interventions like an aviation accident. He stressed that, although the report relies on certain initial assumptions concerning adequate safety measures and average weather conditions, its conclusions “remain valid and cogent unless you move the LNG facility to another location.”
The report makes 33 recommendations which can lower the risk of an accident which could affect residential areas. However, Mr Hammond was clear that such steps would have “no effect whatsoever” on the severity of the consequences which would follow a major incident.
Fourteen potential hazards are also identified and half of them are deemed to be “of significant concern.”
Mr Hammond concluded: “The safety of our community must come first.”
SHIP-TO-SHIP
The report also focuses on the safety of ship-to-ship LNG transfers, the first of which took place within BGTW in the Bay earlier this year. The report says that the Port Authority needs to “address Emergency Response” and establish operating procedures before allowing similar transfers in the future.
FEETHAM: “LNG is not a risk worth taking.”
The Leader of the Opposition, Danny Feetham, was emphatic: “LNG is not a risk worth taking.”
He said the report was “not a political report” and had, instead, been commissioned by a member of the GSD who was worried about the potential impact of an LNG-related incident.
Mr Feetham rejected the accusations levelled against him in recent Government press releases that he was scaremongering and providing the Spanish Partido Popular with ammunition. He said that Mr Picardo should “stop being a political coward and stop hiding behind the nationalist card.” He added that the Government’s responses so far were an attempt to “stifle debate in Gibraltar”.
He argued that, so far, the Government had only provided a “generic report” on the health and safety risks associated with locating an LNG storage facility in the area.
“The Government simply didn’t do their homework,” he said adding that Mr Picardo and his team had not been transparent on this matter.
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