There is significant interest in the development of a liquefied natural gas (LNG) sector in Queensland based on processing coal seam gas (CSG). As the CSG-LNG sector presents both opportunities and challenges, the Queensland Government is conducting a review to help shape its policy response.

How safe is LNG?

LNG is relatively inert and is not explosive. It is also lighter than air, so it tends to rise and disperse rapidly limiting the ignition zone. Its flammable limits (the mixture of methane in air that must exist before ignition can occur) at atmospheric pressure is between 5–15 per cent, which is quite narrow.

What is the safety record for LNG facilities?

Modern LNG facilities have a good safety record when compared to other refineries and petrochemical plants.

The LNG sector has been operating globally since 1941 and since then, there have been only seven incidents where loss of life occurred.

The most serious and first incident occurred in 1944 in Cleveland Ohio when a LNG tank, which was adjacent to a residential neighbourhood, fractured resulting in the death of 128 people. Investigations indicated that the cause of the LNG release was the brittle fracture of the inner tank, vibration from the nearby railway and bombshell stamping plant, inadequate diking around plants and the buckling of uninsulated tank legs when exposed to direct flames.

Since this incident, there has been significant improvement in construction codes and no similar incident has occurred since.

In 1973 at Stratten Island (USA) 40 people were killed when a LNG tank was being taken out of service for internal repairs. The tank had been warmed, purged of combustible gases and filled with fresh recirculating air. Ten months later an unknown source ignited the mylar lining in the tank, presumably a spark. The rapid rise in temperature resulted in a corresponding pressure rise in the tank, lifting the concrete roof which collapsed, killing the 40 workers inside.

Investigators concluded that this was a construction accident, not a LNG accident.

The most recent incident occurred in 2004 in Skikda, Algeria, when a leak in the cooling system resulted in gas being drawn through the air inlet of a steam boiler. The resulting pressure increase was sufficient to rupture the steam drum of the boiler, which ignited the LNG vapour cloud causing 27 deaths and 72 injuries.

The LNG process has been changed to reduce this risk.

How safe is LNG shipping?

LNG ships have travelled over 100 million nautical miles - and over 470 000 cargoes have been delivered. To date, no major spill of LNG has occurred. No LNG containment system has been breached and no fatalities have occurred as a result of an incident on-board an LNG ship.

What mechanisms are in place to deal with potential security threats?

Like many heavy and petrochemical industries across the globe, the LNG sector has procedures in place to deal with security threats, such as terrorist attacks. The potential for terrorism is considered at various junctures: as part of the company’s ongoing global operations, as part of the environmental impact statement process, (including the design of the LNG plant), and the various planning parameters which place conditions on the location of heavy industry.

The International Maritime Organisation has also developed the International Ship and Port Facility Security Code in 2002 and the Australian Government enacted the Maritime Transport and Offshore Facilities Security Act 2003 and associated regulations.

These codes and legislation require that port operators and ships have a maritime security plan, outlining the measures to protect vessels that trade in Australian seaports. Typically, a maritime security plan identifies the type of threat and the security measures that need to be put in place. This may include measures in the vicinity of the LNG wharf and on the ship, as it enters and leaves the port.

Contact the LNG projects team

tel:        +61 7 3404 8206
email:    lng.team@dip.qld.gov.au
post :    LNG Industry Unit
Department of Infrastructure and Planning
PO Box 15009, Brisbane City East QLD 4002

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Safety record of liquefied natural gas fact sheet   42 KB