No plans for LNG fueling or storage at Port of Fernandina

Spottswood (Spots) B. Watkins, Fernandina Maritime Exchange, opens meeting.

Submitted by Suanne Z. Thamm

Reporter - News Analyst

December 10, 2014 12:19 p.m.

The Fernandina Maritime Exchange, Inc. (FMX) hosted a meeting on December 9, 2014 in the James S. Page Government Center in Yulee, FL. Approximately 50 people, including several elected officials and U.S. Coast Guard representatives, attended the meeting to listen to presentations affecting the Port of Fernandina, shipping and security matters.

Of particular interest to many audience members was an update on LNG – liquid natural gas – as a fuel source for vessels and trucks and the movement of LNG via tank containers through area ports. U.S. Coastguard Lt. Cmdr. Robert S. Butts (ret.), LNG Liaison for U.S. Coast Guard Sector Jacksonville, briefed the audience on the future of LNG as a fuel source for road and ocean going vessels, progress in converting vehicles to LNG, and safety concerns.

Lt. Cmdr. Robert Butts (ret), LNG Liaison

The turn toward LNG as a fuel source has gained momentum as a result of DEP requirements to cut down on carbon, sulfur and nitrogen oxide emissions. LNG is a clear, colorless, non-toxic liquid that forms when natural gas is cooled to minus 260 degrees Fahrenheit. The cooling process shrinks the volume of the gas 600 times making it easier to store and ship than conventional diesel fuel.

According to Butts, Jacksonville is well positioned to become a leader in LNG storage and delivery. There are no plans for the Port of Fernandina to become an LNG fueling facility or to handle LNG-fueled vessels. He emphasized that the Coast Guard does not issue LNG permits. The permitting process is regulated by the Federal Energy Regulatory Commission (FERC) www.ferc.gov, which to date has issued no permits. There are four LNG-powered vessels currently scheduled for delivery between 2015-2017. While there are many regulatory requirements that must first be met, Eagle LNG Partners is proposing to build along the St. Johns River the first LNG fueling facility on the Eastern Seaboard to supply to maritime, heavy duty trucking and rail in April 2016.

There is currently an LNG fueling station on Lane Avenue in Jacksonville that services fleets for companies like UPS that are converting from conventional gasoline and diesel.

Audience members expressed concern over locating LNG facilities near residential areas. Butts said that there is limited residential in the area of the current and proposed Jacksonville facility, and that the Coast Guard requires a 100-yard safety zone around vessels.

In response to audience questions, Butts said that the switchover to maritime LNG would have “no direct impact here in Fernandina Beach.” He said that in the United States today there has not been any transfer from trucked LNG to vessels, and that there is no application for the Port of Fernandina to carry out such activity.

In response to a question on the safety of LNG, USCG Captain Tom Allan said that LNG is safer when it lays in state than conventional fuel sources like gasoline or diesel. He said that LNG is classed as flammable, but not explosive.

Butts emphasized that the Coast Guard assesses risk for safety on the waterways, and that FERC issues permits following an analysis of safety issues and port characteristics. He said that the Coast Guard conducts annual security inspections of ports and spot checks for safety issues. Ocean Highway and Port Authority Commissioner Richard Bruce reported that the Port of Fernandina passed a recent annual inspection with flying colors.

The FMX (www.portoffernandinamaritimeexchange.org) is a business association of transportation stakeholders that in partnership with the Nassau County Ocean, Highway & Port Authority supports the financial success of the Port of Fernandina for growth in ship activity and jobs through the advancement in port facilities, highway, rail and warehousing throughout Nassau County.

Editor's Note: Suanne Z. Thamm is a native of Chautauqua County, NY, who moved to Fernandina Beach from Alexandria,VA, in 1994. As a long time city resident and city watcher, she provides interesting insight into the many issues that impact our city. We are grateful for Suanne's many contributions to the Fernandina Observer.