Maryland LNG project wins CZMA appeal

Nick Snow
Washington Editor

WASHINGTON, DC, June 27 -- US Commerce Secretary Carlos Gutierrez overturned one state's objection to a proposed LNG project but upheld another as the US Department of Commerce issued two federal consistency appeals decisions on June 26.

The secretary ruled against Maryland's objection to AES Sparrows Point LLC and Mid-Atlantic Express LLC's proposal to build an LNG facility east of the Port of Baltimore on Chesapeake Bay. However he upheld an objection by Massachusetts to Weaver's Cove Energy LLC and Mill River Pipeline LLC's proposal to build an LNG terminal and pipeline near Fall River.

Sponsors of each project had appealed to a rule after the state had determined that the project was not consistent with its plan under the Coastal Zone Management Act. Under CZMA, federal agencies may not issue permits for a project unless the Commerce secretary overrides the state's consistency objection on appeal.

In a decision announced by the National Oceanic and Atmospheric Administration's Office of General Council for Ocean Services, Gutierrez overrode Maryland's objection after determining that the national interest, which would be served by the Sparrows Point project, outweighs its limited adverse coastal effects.

The proposed terminal and associated pipeline would help meet regional energy demand by providing enough natural gas capacity to heat about 3.5 million homes daily or to generate enough electricity each day for about 7.5 million homes, the decision indicated. The impact of dredging on fish and aquatic vegetation would not be significant, Gutierrez said.

The decision means sponsors of the Sparrows Point project can continue to pursue federal permits and licenses, but will still be required to comply with all state and local permitting regulations and complete all required environmental reviews.

A timetable at the project's online website anticipates that the Federal Energy Regulatory Commission will complete a final environmental impact statement by Aug. 15 and issue a certificate by Nov. 20. Detailed engineering and procurement would occur during 2009's first quarter, and construction would begin during second-half 2009, with completion scheduled for second-half 2012.

In the Massachusetts decision, Gutierrez upheld the state's objection because it determined that adverse coastal effects, particularly navigational concerns associated with tankers traveling up the Taunton River to deliver LNG to the terminal outweighed the project's national interest.

Contact Nick Snow at nicks@pennwell.com.

Related Articles

Woodside to buy Apache’s interests in Wheatstone, Kitimat LNG for $2.75 billion

12/15/2014 Woodside Petroleum Ltd. has agreed to acquire interest in the Wheatstone LNG and Kitimat LNG projects, respectively in Western Australia and Britis...

Watching Government: Russia: On the ropes?

12/15/2014 Russia's Dec. 1 cancellation of its South Stream natural gas pipeline was not surprising. European nations have signaled for years that they intend...

Canada Briefs

12/12/2014

Kinder Morgan to deliver natural gas to Corpus Christi Liquefaction

12/11/2014 Kinder Morgan Inc. (KMI) companies Kinder Morgan Texas Pipeline, Kinder Morgan Tejas Pipeline, and Tennessee Gas Pipeline Co. (TGP) have entered in...

Magnolia LNG lets EPC contract to SK E&C USA

12/03/2014 Magnolia LNG LLC parent-company Liquefied Natural Gas Ltd. agreed to an engineering, procurement, and construction contract with SK E&C USA cov...

Pipeline leak dampens Atlantic LNG production

12/01/2014 Atlantic LNG (ALNG) reported a 35% reduction in LNG production because of insufficient natural gas supply from Trinidad and Tobago’s National Gas C...

Real-time monitoring improves LNG inventory measurement

12/01/2014 Kogas has improved the calculation method for determining stocks at its LNG terminals, changing from a sampling method to a real-time monitoring sy...

Watching Government: Greece and energy in Europe

11/24/2014 Amid growing energy supply geopolitics, Greece is a stable anchor within a rapidly destabilizing region, Yannis Maniatis, its Environment, Energy, ...

Freeport LNG nears construction phase

11/19/2014 Freeport LNG Expansion LP expects later this month to close on financing and begin construction on the first two trains of its natural gas liquefac...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected