Liquefied Natural Gas

H.R. 6844 seeks to regulate the siting, design, construction, and operation of facilities to be used for the transportation, storage, and conversion of liquefied natural gas (LNG). Current Administration policy which calls for a case-by-case analysis of LNG import proposals is inadequate because it does not alleviate uncertainties associated with such imports. After an LNG accident occurred in October 1944 at a plant in Cleveland, Ohio, the Bureau of Mines recommended that plants dealing with large quantities of liquefied flammable gases should be isolated at considerable distances from inhabited areas and that extreme caution should be taken to prevent spilled gas from entering storm sewers. Safety aspects of LNG were studied in relation to the following: the vulnerability of storage facilities to natural occurrences and sabotage, the transportation of LNG in ships and trucks, liability and compensation in case of accident, and research programs. Key decisions on the location and nature of LNG imports will be made in the next few years and research efforts should be directed to the most urgent problems. Issues to be resolved involve: siting and expansion of LNG facilities in urban areas, the need for regulatory bodies to assess safety and recommend actions, the need to assess existing safety regulations changes in the liability and compensation area, and the formation of an Energy Health and Safety Regulatory Agency.