Massachusetts approves plans for two LNG terminals
Source: Reuters
BOSTON, Dec 19 (Reuters) - Massachusetts Gov. Mitt Romney approved on Tuesday the construction of two offshore liquefied natural gas terminals, saying they would help the state meet growing energy demand and reduce security risks. The Northeast Gateway and Neptune LNG terminals would be located in federal waters between seven and 13 miles (11 km and 21 km) south-southeast of Gloucester, a fishing port. Romney said the facilities, which still require approval by the U.S. Maritime Administration, would reduce reliance on an LNG facility in the populated Boston suburb of Everett. According to former U.S. anti-terrorist chief Richard Clarke in his book "Against All Enemies," federal officials worried on the morning of the Sept. 11 attacks that the LNG terminal in Everett was a possible terrorist target. Boston's fire department has estimated that 10,000 people could die if a gas tanker were set ablaze en route to the Everett facility although the Federal Energy Regulatory Commission, which oversees the industry, regards it as safe. Roughly a third of the natural gas consumed in Massachusetts is provided by the Everett facility on the coldest winter days when demand is at its peak. "While deliveries there will continue, the addition of new offshore terminals will permit new deliveries without the risks associated with transporting gas through populated areas," Romney said in a statement. Liquefied natural gas is chilled to minus 259 degrees Fahrenheit (minus 162 degrees Celsius) to reduce its volume before being shipped around the world aboard tankers from Indonesia, Algeria, Trinidad, Qatar, and other big exporting countries. While not flammable in liquid form, it could be ignited as it vaporizes. Romney said the new terminals also will make Massachusetts less reliant on gas received through more expensive transmission methods such as interstate pipelines. He estimated the new facilities could provide on average an extra billion cubic feet per day of natural gas to New England, a 20 percent increase over current peak supply. The two companies proposing the terminals agreed to pay $47 million in mitigation fees for any impact on commercial fishing and marine life, or $23.5 million for each project. "These new terminals will allow us to safely expand gas supply without undue harm to the environment or to the fishing industry that is Gloucester's lifeblood," Romney said. Offshore LNG terminals, such as the Northeast Gateway and Neptune projects, are essentially underwater buoys that attach to the bottom of LNG tankers for offloading gas in its vaporized form. Equipment on board the tankers converts the LNG to vapor and then pumps the vaporized gas into a pipeline that will link to the existing Hubline Natural Gas Pipeline that crosses Massachusetts Bay, according to Romney's statement. A joint review by the U.S. Coast Guard and the Massachusetts Executive Office of Public Safety found that the projects addressed public safety concerns, it said.
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