PRESENTATION FOR THE PUBLIC HEARING OF THE PORTFOLIO COMMITTEE ON WATER AND

ENVIRONMENTAL AFFAIRSre

GREEN PAPER ON NATIONAL MANAGEMENT OF THE OCEANS

23 July 2013

Introduction

• REVAG was formed in 2008 by concerned residents in the bay of Vleesbaai (near Mossel Bay) to oppose a plan by PetroSA to erect an offshore liquefied natural gas (“LNG”) offloading facility in the bay

• Thanks for opportunity• Congratulations with the Green Paper• Best of luck with its path through parliament!

Green Paper (1)

There are two very positive policy statements in the Green Paper which we applaud:•The DEA will assume responsibility as the environmental regulatory authority for all unregulated and new human activity in the ocean environment•The DEA will establish best practice guidelines governing the transport of harmful and noxious substances in the marine environment

Green Paper (2)• The Green Paper’s observations are vital:

domestic legislation with respect to the marine space was largely piecemeal

failed to consider the cumulative effects of human activities in the marine environment

there was a multiplicity of role-players and no central authority in the maritime environment

the ocean was not adequately included in the National Environmental Management Acts

Green Paper (3)

There is a long process ahead:•Green Paper → White Paper, •Oceans Bill → Oceans Act•Only then will the Department of Environmental Affairs commence with drafting best practice guidelines and other specific legislation

Green Paper: REVAG’s conclusions (4)

• There is currently a policy and control vacuum for the evaluation of all LNG maritime projects in respect of siting, safety and security

• The current statutes are inadequate• Ill conceived proposals could cause irreparable

damage to this invaluable resource• Until the laws are in place, all authorities should

suspend the consideration of all applications in respect of maritime LNG projects - Moratorium

PetroSA’s new proposal“PetroSA’s revised proposal involves the importation of LNG into Mossel Bay through a Floating LNG facility Floating LNG facility comprising a breakwater breakwater and berth structureand berth structure allowing a permanently permanently moored Floating, Storage and Re-gasification moored Floating, Storage and Re-gasification Unit (FSRU) Unit (FSRU) to discharge vaporized LNG into a sub-sea and over-land pipelinepipeline leading to the Mossel Bay Gas-to-Liquids Refinery.”

Detail of PetroSA’s LNG import terminal

• On 26 February 2013 PetroSA unveiled detail.• What?

- FSRU permanently anchored- mooring berth with pipeline- LNG carriers

• In water 15 – 20 m deep• 2 km from shore

FSRU: 300 m x 50 m x 30 m high

LNG storage and regasification terminal

LNG Tanker: 300m x 50 m x 30 m high

Two locations to be investigated

Environmental risks (1)• Loss of tranquility and sense of place of a pristine bay• Devastating marine and ecological impacts caused by

cables and anchors to the seabed • Oil, diesel, wastewater and air pollution• Noise (diesel engines of the vessels) and light

pollution: impact on large mammals such as whales and dolphins

• Change of ocean temperature by LNG vessels abstracting seawater for cooling purposes and releasing it at higher temperatures

Environmental risks (2)• Detrimental effect on heritage: globally

significant archaeological finds at Pinnacle Point, which was declared a Provincial Heritage Site in January 2013

• Negative impacts on recreational and other fishing activities

• Domestic and international tourism, will be compromised

• Sustainable development priorities of the Garden Route will be jeopardised

No legal protection• Communities in the vicinity of offloading facilities

are not aware of the risks and dangers • Only have environmental laws to protect them –

which are deficient• South Africa does not have a legal framework to

regulate:the imports of LNG/CNG/LPG by sea the location of the offloading facility the offloading and regasification of LNG/CNG gas carriers and regasification vessels.

USA (1)• The USA has various laws and regulations,

which regulate: - the siting (location) of LNG terminals; and - operational activities at a terminal• Focus on safety , security and environment• The USA Coast Guard plays an important role

from the moment that the LNG carrier enters USA waters until it leaves

• No such laws exist in South Africa

USA (2)

• There are 3 regulatory agencies:Federal Energy Regulatory CommissionPipeline and Hazardous Materials Safety

AdministrationUnited States Coast Guard

• Each has a specific role and responsibility during siting applications for LNG terminals

Food for thought

Book just published:•Energy for the 21st Century – Opportunities and challenges for LNG•Prof. Susan Sakmar, University of Houston Law Center and University of San Francisco Law School

Quote 1 from Prof Sakmar’s book

“Despite regulatory changes and encouragement by many US energy experts and politicians, the proposed construction of new LNG import terminals in the US generated considerable public opposition…Those proposals struggled for approval due to community concerns about the safety and environmental impact of LNG facilities”. (p.178)

Quote 2 from prof Sakmar’s book

• “In 2003, leading energy expert Daniel Yergin predicted that due to environmental concerns in the US, import terminals would probably need to be built in neighboring countries such as Mexico and Canada. Mr Yergin’s predictions were correct. To date the only West Coast import terminal to have been built is in .. Mexico”. (p.179)

• In short, no LNG project was successfully executed in the US in the face of staunch state and local opposition”. (p. 180)

Plea for Moratorium

REVAG repeats its plea to all authorities, and in particular the Departments of Energy and Environmental Affairs, for an immediate moratorium on all maritime LNG activities until the necessary:research has been done locally in respect of the safety and environmental impact; andlaws, policies, norms and standards are in place in respect of the siting, safety and security of LNG import terminals.

Thank you

Any questions?

For more info visitwww.revag.co.za