Advertisements

Unseen Risks of Puerto Rico’s Surge in LNG Imports

by Krystal

Puerto Rico’s shift toward green energy has faced numerous challenges, including economic instability, natural disasters, and ineffective oversight from local and federal authorities. Now, a liquefied natural gas (LNG) terminal could be the next source of danger for the island.

For years, Puerto Rico’s energy security has been severely threatened. The island’s electrical grid has suffered from decades of neglect and lack of investment, primarily due to its struggling economy. The situation worsened dramatically in September 2017 when Hurricane Maria, a Category 4 storm, struck the island, killing thousands and devastating the power grid. This disaster forced Puerto Rico to essentially declare bankruptcy and resulted in the longest blackout in U.S. history, significantly contributing to the storm’s death toll.

Advertisements

Since the storm, Puerto Rico has been working to rebuild. A key part of its recovery strategy is an ambitious clean energy plan aimed at achieving net-zero carbon emissions by 2050. Many Puerto Ricans support this initiative, leading to a surge in rooftop solar installations and energy storage systems. This decentralized approach aims to create a more resilient grid for future hurricane seasons.

Advertisements

While residents focus on clean energy, mainland companies are transforming Puerto Rico into a major LNG hub. Over the past few years, the U.S. has become the world’s largest LNG exporter. One company, New Fortress Energy, has been storing LNG in tankers at Puerto Rico’s ports, which frequently face hurricanes. Local residents are understandably worried about safety, especially after New Fortress received permission to bypass federal safety regulations for its makeshift import terminal—a floating tanker.

Advertisements

The government has instructed New Fortress to comply with permitting processes retroactively, though under less stringent standards than usual. Even with these relaxed requirements, the LNG facility may still not meet safety criteria. According to the Huffington Post, New Fortress has yet to submit a finalized emergency plan and has cautioned investors that it may not secure approval from the Federal Energy Regulatory Commission. A draft emergency plan is expected in November.

Advertisements

Despite Coast Guard warnings about the size of New Fortress’s vessels, the company continues to import larger LNG shipments to the island.

Safety standards for LNG projects exist because the substance is highly flammable and poses significant risks if not managed properly. “LNG transport carries unique dangers due to its high pressure and density,” said Hailey Duncan, a policy adviser for the Pipeline Safety Trust, a nonprofit watchdog group. “These risks are particularly alarming when a facility is near populated areas.”

Historically, poorly regulated fossil fuel operations in Puerto Rico have led to disasters. In 2009, an oil refinery explosion damaged 300 homes, released 30 million gallons of oil into the ocean, forced thousands to evacuate, and burned for three days. This incident occurred while oil was being transferred from a tanker to a storage facility. An investigation revealed that the project lacked necessary risk assessments and emergency response evaluations. This disaster unfolded just ten miles from where New Fortress is now facing similar risks.

Concerns about the exploitation of Puerto Rico by the mainland fossil fuel industry are valid. However, the situation is complex. Even with ambitious clean energy goals, oil and gas will likely remain essential temporary solutions for energy security until a dependable renewable grid is established. Yet, New Fortress’s expanding LNG operations may undermine the growth of rooftop solar, a vital resource for the island’s energy resilience.

Puerto Ricans consume only a quarter of the energy that people on the mainland do, but the island still uses 70% more energy than it generates. Approximately 60% of this energy comes from fossil fuels. While the U.S. is not at fault for sending large amounts of LNG to Puerto Rico, it is certainly unethical to transfer risks to the island’s residents. Federal regulations apply throughout the U.S., including its territories like Puerto Rico.

Related Topics:

Advertisements
Advertisements

You may also like

oftrb logo

Oftrb.com is a comprehensive energy portal, the main columns include crude oil prices, energy categories, EIA, OPEC, crude oil news, basic knowledge of crude oil, etc.

【Contact us: [email protected]

© 2023 Copyright oftrb.com – Crude Oil Market Quotes, Price Chart live & News [[email protected]]