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AES Sparrows Point

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Project Overview

AES Sparrows Point LNG, LLC proposes to construct, own, and operate a liquefied natural gas or LNG import and re-gasification facility located at the Sparrows Point Industrial Complex near Baltimore, Maryland. The AES Sparrows Point LNG Project has been designed to include a marine receiving terminal, three full containment 160,000 cubic meter storage tanks, and facilities to support ship berthing and cargo offloading. The project also includes a closed-loop glycol vaporization system that will convert the LNG back to its gaseous state prior to its delivery into the existing pipeline system. The overall vaporization capacity of the facility is designed for 1.5 billion cubic feet per day, with provisions to allow future expansion up to 2.25 billion cubic feet per day of the facility storage and vaporization capacity.

The AES Sparrows Point LNG facility will interconnect with existing gas pipelines for interstate gas pipelines at a point near Eagle, Pennsylvania via the Mid-Atlantic Express, LLC pipeline. Additional connections will be allowed along the route for local gas distribution companies and other entities. The new pipeline will be approximately 88 miles in length, and will be routed along existing utility corridors to the maximum extent possible. For more information regarding the pipeline, please refer to the following website: www.Mid-AtlanticExpress.com.

The project will provide a means for much needed natural gas to safely reach homes, businesses, and utilities in the Mid-Atlantic Region, which includes Maryland, Pennsylvania, New Jersey, the District of Columbia, the northern parts of Virginia and the southern parts of New York. The area served by the Sparrows Point Project has a high demand and limited supplies to meet the growing demand for natural gas in the region. The general trend in this area, along with the rest of the United States market, is continued steady growth in the overall natural gas market. This market area relies solely on increasingly constrained domestic supplies from distant areas and long-haul pipelines. Meeting the growing demand is a challenge that is only addressed by significant expansion to the interstate pipeline systems bringing natural gas to the region or placement of facilities like the Sparrows Point Project in close proximity to the demand centers for direct supply of gas into those markets.

The project is currently under development. There are approximately 100 permits and approvals required by federal, state and local agencies before construction may begin. Public participation in the permitting process is strongly encouraged. It is possible that construction could begin as early as mid-2008 with a commercial operation date in late-2010.

The project is being proposed by the AES Corporation, which is headquartered in Arlington, Virginia. The AES Corporation is one of the leading power companies in the world - www.aes.com.

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AES Sparrows Point Project


The AES Sparrows Point LNG Project is designed to serve the growing need for natural gas supplies in the Mid-Atlantic Region. At present, the forecasted demand growth of natural gas in this region cannot be met with the existing natural gas infrastructure. As a result, this region experiences high volatility and increasing supply challenges. In addition, because this region is a long way from the areas where natural gas is produced (Gulf of Mexico, Rocky Mountains, and Canada), as demand grows, constraints on the existing long-distance pipeline system may become a critical choke point. To reduce the negative effects created by this situation, there is a need to add new gas supplies to the United States.

The Sparrows Point Project is AES's solution for bringing additional supplies of natural gas to homes, electrical generating plants, and industry in the region in a reliable, safe, and cost-effective manner. To accomplish this, AES intends to receive its LNG from reputable international sources that will transport the cargo in vessels designed to specifically handle the natural gas that has been converted to LNG through a cooling and condensing process that occurs where the gas originates. Upon receipt of the LNG, AES will convert the LNG back to its normal gaseous state prior to sending it out to the Mid-Atlantic Express Pipeline. The natural gas that leaves the project site and enters the pipeline is the same natural gas that we use now in our homes and businesses.

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AES Sparrows Point LNG Terminal

The proposed Sparrows Point Project will be located on an abandoned section of the Sparrows Point Shipyard in Baltimore, Maryland that is currently owned by Willis-Barletta Corp. The approximately 80-acre project site consists of a parcel of land located between the existing graving dock (southern boundary) and Pier 3 (northern boundary). The water's edge is on the western boundary, and the eastern boundary extends just beyond the existing fabrication building located on the boundary, up to and including piers 1 and 2. The project site was previously owned by the Bethlehem Steel Corporation, and was used for manufacturing steel and shipbuilding. Currently, the area proposed for the project site is used to store scrap metal material and to perform some light industrial maintenance work.

The project site is underutilized. By bringing a new, clean industry to the Sparrows Point Peninsula, AES will increase the productivity of the land in terms of jobs, taxes that pay for schools, roads and other public services, and income for local businesses. AES will clean the site to required environmental standards.

The LNG Terminal will include a marine terminal consisting of a pier with berthing areas on both sides, LNG unloading equipment consisting of fully-articulated unloading arms and cryogenic transfer piping, an LNG storage facility consisting of three 160,000 cubic meter full-containment storage tanks, vaporization and vapor handling systems, a gas conditioning and send-out system, and administrative and support buildings.

Marine Facilities
In order to support berthing operations at the facility, AES will need to deepen and widen the existing marine channel to a depth of approximately 44 feet and width of approximately 400 feet. Additionally, AES will dredge a turning basin to allow the ship to be turned under tug support and be berthed at the marine terminal bow out. The areas adjacent to each of the berths will also be dredged to a depth of approximately 44 feet. Total dredge quantity could range from 2.5 million to 4 million cubic yards. AES is reviewing and optimizing the design of the berth to help optimize the dredge material generated. Ship escort and maneuvering simulations have been run to ensure safe transit and berthing of all LNG ships within the design envelope.

Key features of the channel /turning basin include the following:

  • Channel width of approximately 400 feet which is wide enough for the ships, and required to avoid potential grounding of ships if rudder failure and loss of ship's power should occur
  • Turning basin required to rotate the ship to a bow-out position prior to berthing
  • Mechanical environmentally sensitive dredging techniques will be imposed to help avoid the potential for stirring up silt and impacting environmentally sensitive areas
  • Dredge disposal options include potential reuse of some material on site, innovative reuse and recycling techniques, and upland disposal, or a combination of these techniques, depending on market demand
  • AES will refurbish the existing pier 1 located off the Sparrows Point shipyard for use as the marine terminal. Pier 2 will be removed, pier 1 piles will be repaired, the deck will be replaced and a platform for unloading activities will be built to support unloading of LNG ships.

The proposed project will include the construction and operation of a dual-berth marine terminal designed to berth and unload LNG tankers ranging in size from 127,500 up to 217,000 cubic meters. The maximum length of the ships will be approximately 1,000 feet. Although the marine terminal can accommodate two vessels at a time, the unloading and transfer equipment will be designed and constructed so as to restrict unloading to one vessel at a time. AES anticipates approximately two to three ships per week, once the project is full operational. The receiving terminal will be designed to moor and unload most ships within 14 hours of berthing. The ships will be moored with their bow out for safety purposes.

Once berthed, LNG ships will transfer their product in liquid form using the ship's pumps thought three fully-articulated 16-inch diameter stainless steel unloading arms that are constructed to a common 32-inch stainless steel unloading header. The unloading header will transfer the LNG to the LNG storage tanks. As the cargo is transferred from the ship to the storage tanks, heat is added via friction from the pumps and radiant heat into the pipeline and tank. This heat causes some of the liquid to boil off and create vapor within the LNG tank. In order to avoid pressure build up in the tanks, vapor in the tanks is transferred back to the ship using vapor return blowers that take suction on the tank vapor space and transfer the product through one fully-articulated 16-inch diameter vapor return arm. This helps to minimize vapor pressure increase in the tank and to maintain a constant vapor pressure on the ship during unloading. The same vapor return pipeline is used for purposes of directing vapor that is displaced from the storage tanks when the liquid is introduced into them.

AES will design the marine terminal in accordance with applicable codes and standards, including the following: Oil Companies International Marine Forum ("OCIMF"); Society of International Gas Tanker and Terminal Operators ("SOGTTO"); American Petroleum Institute ("API"); and American Society of Civil Engineers ("ASCE"). The project will be designed to provide a safe berth for the receipt and support of LNG ships and to ensure the safe transfer of LNG cargoes from the ships to the onshore storage tanks.

Key features associated with the marine facilities include the following:

  • Sheet-piled bulkhead
  • Dual-berth with dual unloading facilities
  • Common platform for support of unloading facilities and auxiliary equipment
  • Four breasting dolphins per berth
  • Five mooring dolphins per berth
  • Trestle to carry pipelines from unloading arms to shore and vapor return lines to ships and to allow access to mooring dolphins and platform / ship
  • Associated fire protection equipment
  • Associated safety and security monitoring equipment
  • Automated tension and position monitoring for ships mooring lines
  • Containment around unloading arms, platform and pipelines to avoid spillage of LNG should an accidental release occur.

Key features associated with the marine unloading and vapor return systems include the following:

  • Three articulated unloading arms and one vapor return arm per berth
  • Quick-connects for ship connections on unloading and vapor return arms
  • Automatic disconnects to avoid damage to unloading arms and accidental release of LNG while unloading
  • Liquid unloading line (32-inch outside diameter) to transfer product from unloading arms to the LNG tanks
  • Vapor return (16-inch outside diameter) line to return LNG vapor to the ships
  • Cryogenic blowers to remove vapor from the tank and return it to the ship
  • Knock-out drum to catch and remove liquids from the vapor line
  • Recirculation line from the LNG pump discharge through the unloading line to maintain the line cooled down during periods when a ship is not unloading.

LNG Storage Tanks
LNG unloaded from the ships will be transferred to and stored in three 160,000 cubic meter full-containment storage tanks at atmospheric pressure. Boil-off of the LNG (slow revaporization resulting primarily from the seepage of ambient heat through the tank walls and insulation) may increase the pressure within the tanks up to 4.0 psig. The boil-off gasses will be vented from the tanks, compressed, and injected back into the revaporization system. The double walled tanks will each have a primary inner container and a secondary outer container, and will be designed so that both the self-supporting inner container and secondary container can independently contain the entire amount of the LNG product. The inner container will be made of 9 percent nickel alloy steel and the outer container will be pre-stressed reinforced concrete. The annular space between the sidewalls of the inner and outer tanks will be insulated with a loose fill expanded perlite and a fiberglass blanket. A pre-stressed concrete domed roof will be constructed over the outer container. A deck designed to cover the inner tank will be suspended from the domed roof. The suspended deck at the top of the tank will be insulated with a fiberglass blanket and the bottom of the tank will be insulated with foam glass blocks with interleaving asphalt sheets between the courses of foam glass blocks.

The diameter of the outer tanks is expected to be approximately 259 feet at its base. The height of the storage tanks will be approximately 170 feet above a base elevation of approximately 15 feet above mean sea level. The storage tanks will be supported on a piled concrete mat foundation.

In addition to the tank-in-tank design described above, a dike (or berm) will be built around the tanks. The size of the dike will hold 100 percent of one of the tank's contents.

Transfer piping will enter into and exit from well-sealed passages in the top of the tanks. There will be no penetrations through the inner or outer walls or through the bottom of the tank. There will be 3 fifty-percent low pressure send-out pumps per tank (9 combined total) The low-pressure send-out pumps, mounted on top of the storage tanks, will transfer the LNG to a high pressure Pump Drum. A spare column will be available to each tank for maintenance purposes. An earthen berm will be installed around the three storage tanks to prevent LNG from flowing offsite in the highly unlikely event that both the inner and out tanks fail. Space on the overall site plan has been left for the possible addition of a fourth storage tank for project expansion. Such expansion would be dependent on favorable market conditions and be subject to receipt of all necessary federal, state, and local approval processes.

Key features associated with the storage tanks and the low pressure send-out pumps include the following:

  • 3 x 160,000 cubic meter full containment storage tanks.
  • 9 percent nickel steel for inner tank - cryogenic storage.
  • All penetrations through the top of the tank.
  • Can fill to either the top or bottom of inside the tank to avoid potential roll over conditions.
  • Relief valves for over pressure protection.
  • Vacuum breaker valve for protection from collapse.
  • Low pressure pumps for removal of product from the tank.
  • Spare pump column for maintenance and potential expansion.
  • Other tank penetrations for vapor return system and boil-off gas system.
  • Outside ladder and elevator access for maintenance and monitoring.
  • Foundation heater system and temperature monitoring to avoid potential frost heaves impacting foundation.
  • Inclinometer and foundation monitoring devices to ensure proper tank settlement and positioning.
  • Built in accordance with NFPA 59A and 49 CFR 193 (most recent versions).
Vaporization System
The LNG from the storage tanks will be transferred by low pressure in-tank pumps at approximately 60 PSIG to the high-pressure send out pumps. There will be 10 high- pressure pumps (8 operating and 2 installed spares) that pressurize the LNG up to approximately 2,200 PSIG. Once the LNG leaves the discharge of the high pressure pumps, it will enter a closed-loop shell and tube heat exchanger system called vaporizers where the LNG is warmed and turned from its liquid form into its gaseous form. The heat source of these vaporizers will be from hot water heaters and a closed loop heater/ethylene glycol system. The AES anticipates that there will be 7 vaporizers (6 operating and 1 spare). The pressure of the natural gas leaving the vaporizer will be approximately 2,150 PSIG. The temperature of the natural gas existing the vaporizer will be approximately 40-degrees F. Vaporization capacity will be designed for a continuous duty of 1.5 billion cubic feet per day. The system will be designed to allow future equipment and increased capacity for up to 2.25 billion feet per day. The natural gas will be metered and odorized on site prior to entering the Mid-Atlantic Express Pipeline.

Vapor Handling System
During normal operation, ambient heat input into the LNG storage tank will cause a small amount of LNG to vaporize, commonly referred to as boil-off gas. Some boil-off of LNG will also be caused by other factors, such as barometric pressure changes, heat input from the LNG pumps, and ship vapor flashing. The boil-off from the LNG storage tanks will be compressed to approximately 60 PSIG by the low-pressure boil-off gas compressors and then passed through a condenser system where it will be combined with the outgoing LNG before being pumped up to pipeline pressure by the second stage high pressure pumps. During ship offloading, a portion of this vapor will be returned to the ship to compensate for volume of liquid pumped out of the tank into the onshore LNG storage tanks. The vapor handling system will be a closed system designed to prevent the escape (venting) of vapor into the atmosphere. At least 3 spring-loaded pressure relief valves per tank will be provided to ensure overpressure protection to the LNG storage tanks. However, discharge through these relief valves to the atmosphere is expected to occur only during emergency situations when all other protective features of the terminal are insufficient to protect the tanks from over pressurization. All thermal or process relief valves and manual vent valves in LNG and cryogenic vapor service are designed to discharge into a closed system of manifolds. Because all vents, drains and BOG are directed into the BOG Header, which is connected to the vapor space of the LNG storage tanks (T-201 A/B/C), there is no need to vent the system pressure until the vapor pressures in the LNG storage tanks approach the set point of PIC-290, which directs gas to the Discretionary Vent Stack, L-210.

Safety Features
The plant will have extensive safety systems to detect LNG spills. Specifically, numerous gas detectors, fire detectors, smoke or combustion product detectors, and low temperature detectors will be placed at locations throughout the facility to ensure that any leak is immediately detected. These sensors input to the control system that includes automatic shutdown systems.

A firewater system will be installed to protect both the onshore terminal and the marine facilities.

The terminal will contain a system of spill collection channels and basins to contain any liquid if it were to be spilled and prevent any LNG from entering the surface water drainage system.

Site Utilities
Electricity for operation of the project will be supplied from the local utility. Appropriate design and feed systems will allow for redundancy and back-up of equipment on project site so as to ensure adequate power exists at all times. Additionally, a back-up diesel-fired engine will be on site to ensure critical system components can continue to run and ensure safe operation of the project should a utility power outage occur. Water for potable uses and fire protection will be provided to the project from off-site public utilities. The fire protection will be constructed in accordance with National Fire Protection Association (NFPA) requirements, and will provide adequate storage and coverage for the entire project site. The fire protection system will be backed-up with a secondary diesel-powered seawater pump and system should the supply of off-site water from the fresh water system be interrupted or in case of a power outage. Sewage and waste water from the project will be discharged into the local sewer system. An oily-water storage system will be installed to collect and treat oil-contaminated drains prior to discharge into the local sewer system.

Administrative and Other Support Buildings
There will be a building containing administration offices and the project's operating control room. Additionally, there will be warehouses and shops for storage and maintenance of project equipment.

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Mid-Atlantic Express Pipeline

After the LNG has been re-gasified, the natural gas will be transported via the Mid-Atlantic Express LLC pipeline's connection point with three existing interstate pipeline systems located in Eagle Pennsylvania. Those three interstate pipelines combined to serve the natural gas needs throughout the Mid-Atlantic Region. The Mid-Atlantic Region consists of Maryland, Pennsylvania, New Jersey, the District of Columbia, the northern parts of Virginia, and the southern parts of New York.

AES chose the interconnection point near Eagle, Pennsylvania because the 3 interstate pipelines converge within 1 mile of each other at that location. By connecting near Eagle, AES is able to avoid the additional environmental impacts that would come with building separate connecting pipelines to each of the three interstate lines. The pipeline will be a 30-inch outside diameter, 2,200 PSIG pipeline that extends from the LNG Terminal to the interconnection points of the Columbia Gas Transmission, Transco, and Texas Eastern pipelines located in Eagle, Pennsylvania. The pipeline is expected to be approximately 88 miles in total length. The general alignment of the pipeline envisions leaving the project site via Bethlehem Boulevard (the access road to the project site). After reaching North Point Road, the pipeline is expected to be routed along the shoulder of the Beltway (I-695) and then along the shoulder of Interstate Highway (I-95N). Once the pipeline reaches a point north of Gunpowder Falls State Park, it is expected to depart I-95N corridor and follow an existing transmission line corridor heading in the northerly direction. Alternatively, the pipeline may follow existing pipeline and/or electric transmission line corridors. Once the pipeline reaches approximately the Whiteford and Dublin road intersection, it is expected that the pipeline will parallel an existing Columbia Gas Transmission pipeline corridor through Pennsylvania to the interconnection points with Columbia Gas Transmission, Transco, and Texas Eastern pipelines. At each of the three interconnection points, there will be a metering system for measuring flow to each of the delivery points.

The AES expects to use horizontal directional drills (HDD) for crossing water bodies, bridge abutments, major roadways, and sensitive environmental areas. A jack and bore technique will be used for crossing minor roadways where trenching is not considered to be a feasible means of construction. By selecting existing pre-disturbed right-of-way corridors, AES hopes to avoid and/or minimize any impacts due to construction. This also minimizes disturbances to the public.

For more information on the Mid-Atlantic Express Pipeline, refer to the website at www.Mid-AtlanticExpress.com.

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Safety and Security

Maintaining the safety and security around the project is of the utmost importance to AES. Every effort will be made to ensure that the people and property around the facility and the ships transporting the LNG are protected from accident or harm. This effort begins with locating the project a long way from residential areas then extends to strict conformity to rigorous design, construction and operation standards.

The major risk factors associated with LNG are its very cold temperatures (cryogenic) and its flammability should it be released into the atmosphere and convert back to its normal gaseous state. The low temperatures are addressed with the use of materials that can withstand the cold - typically, stainless steel alloys with a minimum nickel content of 9 percent, and aluminum. The flammability is addressed with the use of rigorous design, construction, and inspection requirements and set-back distances. Set-back distances are determined using computer modeling requirements and conservative assumptions. For example, it is determined that an LNG spill on water spreads most rapidly when there are no waves present; the assumption that is built into the model will describe a smooth, glassy surface. By using conservative assumptions on top of conservative assumptions, maximum safety is incorporated into the design of LNG facilities.

In addition, federal codes require that we model and plan for failure of the roof of an LNG tank and the subsequent tank fire. Failure could be the result of an airplane crash, terrorist attack, or other scenario. The facility layout has been designed so that the radiant heat from this fire would be contained on our plant site or over the water.

SAFETY REPORT ON SPARROWS POINT LNG by Richard Clarke, Read Here.

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LNG Ships

The transportation of LNG by ships began in 1959. Since that time, more than 80,000 shipments of LNG have been safely transported to and stored at terminals all over the world, including the United States, Europe, and Asia. Many of these import facilities are close to populated areas where demand for natural gas is greatest. The best example of this is Tokyo Bay, which is home to four import terminals that see the arrival of one LNG cargo every 20 hours.

All LNG ships are fitted with a sophisticated array of cargo monitoring and control devices, and numerous navigation and communication systems. The officers and crew must comply with strict international and U.S. Coast Guard shipping industry standards, and have special training in the handling of LNG and its associated safety equipment.

In addition, all ships that transport LNG are double-hulled, operated by highly trained crews, employ numerous other safety provisions, and are frequently inspected. There has never been a major shipping incident in port or on the seas that has resulted in a loss of containment. In addition, LNG shippers have redoubled their already stringent efforts to ensure transportation security in light of heightened awareness of terrorist activity.

A Liquefied Natural Gas Ship - and containment system

The LNG for Sparrows Point will be delivered in these specially built ships. The LNG vessels are among the most expensive and best-maintained ships in the world.

For additional views of other styles of LNG ships, please refer to the following web site: http://www.mossww.com/mossmaritime/. Also, see Section 6 of "THE FACTS ABOUT LNG."

The LNG shipping industry continues to make steady advances in security and safety. The safety record of LNG ships far exceeds any other sector of the shipping industry. And, LNG terminals have advanced safety systems and are regularly inspected by the Federal Energy Regulatory Commission (FERC) and U.S. Department of Transportation.

Other key components of LNG ship and product transfer safety include the following:

  • Ships are doubled hulled and designed in such a way that even if a collision occurred and penetrated the outer hull, the LNG cargo storage would remain intact.
  • Ships are built to International Maritime Organization (IMO) safety standards.
  • Some of the protection systems on LNG ships include fire and smoke detection, thermal sensors, radar, global positioning and monitoring systems, global marine distress systems, safety detection and emergency shutdown systems.
  • Systems are designed to protect the integrity of the cargo and avoid any accidental release unless by ensuring all systems are functioning properly to allow transfer of product.
  • Product unloading arms are designed to automatically shutdown the transfer system and disconnect the unloading line should a ship move out of position during product transfer.
  • Security plans approved and certified by the U.S. Coast Guard must be in place for all LNG ships operating in United States waters. These plans will identify escort and security buffers as appropriate.
  • Access to the ships will be restricted during transit and at port during unloading operations.
  • Security checks of vessel personnel.

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Environmental Commitment

The AES Sparrows Point LNG, LLC project will have minimal impact on the water and air resources and, in many ways, will help improve the environment. The project will improve the environment by…
  • bringing more clean-burning natural gas to Maryland and the Mid-Atlantic Region,
  • removing contaminated sediments from the Chesapeake Bay and recycling those materials into useful products,
  • decreasing the amount of water run-off from a large part of the Sparrows Point industrial complex, and
  • putting back to productive use a Brownfield site. Where improvements are not possible, minimization and mitigation techniques will be used.

AES has performed environmental surveys, cultural resource studies, threatened and endangered species studies, noise modeling, traffic studies, and emission studies to quantify all potential impact. The results of these analyses are contained in the many thousands of pages of application materials AES has provide to federal, state, and local agencies. Refer to the Environmental Resource Reports heading for more information.

The introduction of additional LNG traffic in the Chesapeake Bay will have limited or no impact on the animals and plants along the transit route. Also, large vessels that use the Bay or are destined for the Baltimore Inner Harbor will not be impacted as existing ship management procedures used by the Association of Maryland Pilots should ensure that orderly inbound and outbound traffic is maintained. The impact to recreational and other small watercraft will be on the order of minutes per week during project operation. Those impacts will be felt only in the area of the main shipping channels along the Chesapeake Bay (where recreational boaters should stay away for reasons of safety and common sense) and within a few hundred yards of the project site.

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Regulatory Compliance

The Federal Energy Regulatory Commission (FERC) is the lead federal agency responsible for the approval on all technical aspects of the AES Sparrows Point Project. Construction and operation of the Sparrows Point Project can only move forward when all FERC, state, and local approvals are in place.

AES is in the process of scheduling the formal pre-filing meeting with FERC. After this meeting, AES will actively begin the public participation program, involving a series of local meetings among other things, along with facility surveys and preparation of the required Resource Reports in preparation of the filing its formal application with FERC. AES anticipates being in a position to file the formal application in late-2006.

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Permitting/Consultation Agencies

As detailed in the list below, numerous federal, state, and local permits and consultations are required to construct, operate, and maintain the Sparrows Point LNG Import Terminal and the Mid-Atlantic Express Pipeline. AES has sought out and implemented suggestions from the regulatory entities and other interested parties below, and will continue to seek constructive input throughout the process.

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Economic Benefits

The Sparrows Point Project will create significant economic benefits. Some of the benefits from this facility include the following:
  • Potential to off-set natural gas prices:
    • Energy demand is increasing: Approximately 40% of America's electrical power-generating plants are powered by clean natural gas.
    • Pipelines are constrained: A report prepared for the Governor of Maryland says that pipelines serving the State have been fully subscribed for many years.
    • Basic supply-demand economics says that introduction of additional commodity into an area of demand will have the effect of reducing the cost of that commodity.
    • The alternative to bringing natural gas directly into the area of demand is to transport it by pipeline from existing (declining) areas of current production; experts estimate a 15-to-30% savings when comparing delivery by LNG to new-build pipeline options.
  • Potential to off-set electric prices: Natural gas sets the price of electric power in the Mid-Atlantic Region almost 50% of all hours; lower gas prices will produce lower electric prices.


  • Direct good-paying jobs:
    • Up to 4 million union man-hours during construction with approximately 325 persons on average and over 600 at peak
    • 60+ permanent jobs at the facility.
  • Numerous indirect jobs: tug boat operators, ship pilots, maintenance,
  • security, etc. Full-time employment by AES of these sorts of workers is neither practical nor economic. That is why we will hire people from the local communities to provide those services.

  • Direct/indirect benefits to the local economy during the three year construction period: $200+ million.


  • Direct operating expenditures and indirect/induced business supports local vendors: $40+ million each year of operation.


  • Over $13 million in State & local government sales, income, and property taxes each year.


  • No government subsidies or taxpayer support.


  • Beneficial long-term re-use of underutilized 80-acres on Sparrows Point industrial site.


  • Spin-off commercial and industrial opportunities that can benefit from clean natural gas.


  • Innovative re-use of dredge sediments may be used to kick-start a statewide program to recycle dredging material into roadbed or other concrete-like uses: An environmentally-preferred option to disposal sites.


  • Social Responsibility: AES will be a good corporate citizen and contribute to worthy causes in the community. The closest example of AES's social responsibility philosophy is seen at the clean coal plant we operate in Cumberland, Maryland An overview of the many community programs that AES has supported in Cumberland includes: Boys and Girls Club, YMCA, tree-planting projects, high school science fair, college scholarships, youth sports, food banks, hospital auxiliaries, children's homes, March of Dimes, American Cancer Society, a local music festival, local civic business groups, and a local volunteer fire company. Some $1 million alone was given to the local Board of Education to enhance their technology capabilities.

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Environmental Resource Reports

Throughout 2006, AES conducted field work and prepared extensive reports that examined the potential impacts of the proposed terminal and pipeline. The reports and topics developed are comprehensive and include the following subjects:
  • Resource Report 1-General Project Description
  • Resource Report 2-Water Use and Quality
  • Resource Report 3-Fish, Wildlife, and Vegetation
  • Resource Report 4-Cultural Resources
  • Resource Report 5-Socioeconomics
  • Resource Report 6-Geological Resources
  • Resource Report 7-Soils
  • Resource Report 8-Land Use, Recreation and Aesthetics
  • Resource Report 9-Air and Noise Quality
  • Resource Report 10-Alternatives
  • Resource Report 11-Reliability and Safety
  • Resource Report 12-PCB Contamination
  • Resource Report 13-Engineering and Design Material

The detail of each Resource Report is developed to be commensurate with the complexity of the project and its elements, and the potential for environmental impact. Each Resource Report addressed existing conditions or resources that may be directly or indirectly affected by the project or that may affect the project; effects on the resource as a result of construction, operation (including maintenance and malfunctions), or abandonment of the project, as well as cumulative effects that may result from the combination of the project and existing or reasonably foreseeable projects; all proposed measures to enhance the environment or avoid, minimize, mitigate, or compensate for adverse effect; a list of data sources (publications, reports, other literature and communications, including agency contacts) that were used in the preparation of the Resource Reports; and evidence of agency and stakeholder consultation used to identify concerns and mitigation measures.

All the Resource Reports are available on the FERC website. They will be used to form the basis of the Environmental Impact Statement that the FERC will prepare.

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Timeline

The Federal Energy Regulatory Commission (FERC) is the lead federal agency and has final approval on all technical and environmental aspects of the AES Sparrows Point LNG facility. Construction and operation of Sparrows Point can only move forward when all FERC and state approvals are in place, and those approvals can only be given after completion of an Environmental Impact Statement (EIS). A summary of key project milestones are as follows:
Pre-filing Phase: April 2006 to January 2007
FERC Application Submitted - January 2007
Draft EIS – April 11, 2008
Public Hearings – May 2006
Close of Public Comment Period – June 2, 2008
Final EIS – August 15, 2008
FERC Certificate – No later than November 20, 2008
Start Detailed Engineering/ Procurement – First Quarter 2009
Start Construction - Second Half 2009
Construction Complete – Second Half 2012

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Internal Information

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