US DOC quashes Broadwater LNG terminal plans

In an Apr. 13 decision with implications for gas supply to the US Northeast, the US DOC denied an appeal by sponsors of the planned Broadwater offshore LNG terminal in a dispute with New York state.

Warren R. True
OGJ Chief Technology Editor-LNG/Gas Processing

HOUSTON, Apr. 14 -- In an Apr. 13 decision with implications for natural gas supply to the US Northeast, the US Department of Commerce denied an appeal by sponsors of the planned Broadwater offshore LNG terminal in a dispute with New York state.

The decision stated Broadwater had failed to meet its burden of proof that the project "furthers the national interest" to the extent that it "outweighs the…adverse coastal effects."

Sponsors of the project, TransCanada Corp. and Shell Gas & Power, were appealing a decision by New York almost exactly 1 year ago that the project was "not consistent with six policies under New York's coastal zone management plan (OGJ, Apr. 28, 2008, p. 26)."

DOC's decision agreed with the state, going to state the "record does not establish that the project is necessary in the interest of national security."

The project had already received approval from the US Federal Energy Regulatory Commission (OGJ, Jan. 21, 2008, p. 44).

The Broadwater project sought to build and installed the world's first permanently moored floating LNG terminal, a 1,200-ft floating storage and regasification unit (FSRU). It was to have been moored near the middle of Long Island Sound about 9 miles from New York and 10 miles from Connecticut.

Vaporized LNG would flow through a 22-mile pipeline to shore, connecting there with the Iroquois pipeline and moving on to be distributed to consumers in Long Island, New York City, and Connecticut.

LNG storage capacity on the FSRU was to equal 8 bcf; maximum sendout was to have been 1 bcfd.

Contact Warren R. True at warrent@ogjonline.com.

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