FERC to decide in December on reopening of Cove Point LNG plant

The US Federal Energy Regulatory Commission will announce within a month if it will reconsider a decision to allow the Cove Point, Md., liquefied natural gas terminal to reopen, US officials said Friday. Comments from Williams and other stakeholders were kept confidential because of homeland security issues, officials said.

Nov. 19, 2001

2 min read

By the OGJ Online Staff

WASHINGTON, DC, Nov. 19 -- The US Federal Energy Regulatory Commission is due to announce with a month if it will reconsider its decision to allow the Cove Point, Md., liquefied natural gas terminal to reopen next year.

Williams Cos. Inc. had received FERC approval a month ago to restart the terminal in May and expand storage capacity to 7.8 bcf from 5 bcf. Local policy makers' concerns led FERC to hold a closed Nov. 16 meeting with state authorities, US lawmakers, and federal security officials (OGJ Online, Nov. 14, 2001).

Comments from Williams and other stakeholders were kept confidential because of homeland security issues, officials said.

Sen. Barbara Mikulski (D-Md.) has led the effort to overturn FERC's earlier decision (OGJ Online, Oct. 12, 2001). She argued residents and local officials are worried ships carrying LNG could be hijacked and used to damage the Calvert Cliffs nuclear plant 4 miles from the LNG terminal. Mikulski also urged the Federal Bureau of Investigation and the White House's Office of Homeland Security to stop the LNG plant from reopening.

Cove Point was built in 1974 and later closed due to poor economics. It was used as a gas storage site for a period in the 1980s.

Gas industry officials say they hope the Bush administration will find that security issues surrounding LNG shipments can be addressed without blocking commerce. LNG shipments into Boston harbor were temporarily suspended following the Sept. 11 terrorist attacks, but the US Coast Guard later allowed them to resume.

But state officials argue that with natural gas prices reasonably low, there is no reason to "rush" forward with a plan to restart a mothballed plant until national security concerns are addressed.