Marketing Communications

340 CHAPTER 10 PUBLIC RELATIONS

Figure 10.4 Stakeholder groups of SUEZ

All this makes LNG as safe, or even safer, to transport and

store than most other fuels. To vaporise LNG, SUEZ and

other LNG import terminal operators, in essence, run LNG

through piping in hot water, and then use equipment to

inject the natural gas into a connecting pipeline distribution

system at the appropriate pressure.

SUEZ’s vision of PR

PR has always been very important for SUEZ. In the beginning,

when it entered the US market, it had to build trust in both

the company and LNG. But even now, after more than 30 years

of operations, PR is still considered business-critical. SUEZ

cherishes ‘local commitment and global vision’. Its business

interests span much of the world, but it is eager not just to

maintain but also strengthen its presence everywhere it

operates. To this end, SUEZ focuses largely on personal com-

munications since it believes that much of its success is built

on the strength of its relationships. Therefore, SUEZ considers

it critical that its communications lines are open, active and

personal. Its CEO, senior vice president of operations, vice

president of shipping, director of communications, etc., have

to be familiar with, and interact with, the appropriate stake-

holders. By engaging with these stakeholders, SUEZ hopes

to ensure that its current business and prospects are strong

in the months and years to come. The company tries to

solidify its position as a credible and important player in

the LNG market in North America, and hopes this reflects

well on the subsidiary as well as the parent company. Having

such solid relationships is indeed a necessity: if SUEZ is not

considered as a credible partner in the eyes of its different

stakeholders, this poses a substantial risk to its current and

future business. Figure 10.4 gives an overview of the most

important stakeholders SUEZ takes into account.

Government relations

SUEZ has built relationships with a variety of government

officials at the federal, state and local level. Table 10.9

provides an overview of key governmental stakeholders.

SUEZ’s major goal is to keep the policy-makers and

elected officials informed about:

1. the need for LNG in New England and the critical role
   of the Everett Terminal (20% of the natural gas
   demand);


2. LNG’s advantages as compared with other fuels (see
   above);


3. the safety and security records of SUEZ and the LNG
   industry.
   Since the Everett Terminal is the only LNG import terminal
   that is located in an urban area in the USA (although there
   are several LNG storage facilities in urban areas), the latter
   is extremely important. The company wants to make sure
   that everyone realises how LNG can be handled safely and,
   in particular, how SUEZ has done so over the years. To this
   end, the company provides its own safety records and com-
   pares them with other alternatives. For example, there has
   never been a recorded incident of collision, grounding, fire,
   explosion or hull failure that has caused a breach to a cargo
   tank of an LNG ship. In 1979, an LNG vessel ran aground
   near the Rock of Gibraltar, but no cargo was spilled. The
   Exxon Valdez , on the other hand, ran aground in 1989 and
   caused a natural disaster by spreading 11 million gallons
   (50 million litres) of oil along 1300 miles (2100 km) of
   coastline. In 2002, a nuclear submarine surfaced beneath an
   LNG vessel in the Mediterranean Sea. No damage occurred
   to the cargo tanks. In contrast, the oil tanker Prestige broke
   in two off the coast of Spain in 2002. Moreover, in 2003,
   there was a fuel oil spill in Buzzards Bay and a gasoline barge
   fire and explosion on Staten Island. SUEZ hopes to prove
   with these records that LNG ships are among the best-built,
   most sophisticated and most robust in the world. Also,
   concerning LNG storage and trucking, the company can
   show excellent records. There has never been a report of
   either off-site injuries or property damage resulting from an
   incident at any LNG import terminal worldwide, or injuries
   or damage to land or water resources caused by a release
   of LNG from a truck.

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