KeySpan seeks rehearing for LNG upgrade

Aug. 5, 2005
KeySpan Corp. formally asked the US Federal Energy Regulatory Commission to reconsider its July order denying authorization for an upgrade of the existing Fields Point LNG peaking plant in Providence, RI.

By OGJ editors
HOUSTON, Aug. 5 -- KeySpan Corp. formally asked the US Federal Energy Regulatory Commission to reconsider its July order denying authorization for an upgrade of the existing Fields Point LNG peaking plant in Providence, RI.

FERC is required to respond to the rehearing request within 30 days with an order either granting or denying further consideration. KeySpan wants to convert the plant from a truck-fed peaking facility to a ship-fed base-load facility.

KeySpan Vice-Pres. David Manning said, "The FERC agreed with much of our reasoning for proposing this project, including the need for energy supply in Rhode Island, the lack of significant environmental impacts (such as dredging), and the lack of environmentally preferable alternatives."

The Aug. 4 rehearing filing questioned FERC's assertion that several aspects of the KeySpan upgrade proposal make it unique among LNG projects.

KeySpan pointed out that FERC authorized upgrades and expansions at four other LNG terminals during 1999-2004 without requiring them to satisfy new construction standards mentioned in FERC's KeySpan order.

Several of those facilities were first constructed and operated in the 1970s, when the Providence LNG facility was built, KeySpan said.