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Providence City Council Passes Resolution Opposing KeySpan LNG Project

Providence City Council Passes Resolution Opposing KeySpan LNG Project

The City Council of Providence, RI, has passed a resolution opposing KeySpan LNG's proposal to convert its existing liquefied natural gas (LNG) storage facility to an import terminal. It also asked the Federal Energy Regulatory Commission to require KeySpan to bring its existing facility into compliance with federal safety regulations.

It said that Rhode Island Gov. Donald L. Carcieri, state Attorney General Patrick C. Lynch, Providence Mayor David N. Cicilline, the city of East Providence and numerous citizen advocacy groups "have expressed concern about and/or opposition to the proposed LNG facility based upon...safety issues, as well as the overall environmental impact."

In addition, Providence Fire Chief David Costa believes the proposed LNG facility "poses the potential for a serious hazard that could overwhelm the capabilities of the local firefighting departments," according to the resolution, which was filed at FERC last Monday [CP04-293, CP04-358].

It also noted the draft environmental impact statement on the project, which FERC issued in late November, concluded that the current KeySpan facility "does not conform to certain safety regulations established under the Pipeline Safety Act."

KeySpan LNG proposes to convert its existing 600,000 barrel LNG storage terminal in Providence, the capital of Rhode Island, to a receiving terminal. Moreover, it plans to boost the facility's vaporization capacity to 525 MMcf/d from 150 MMcf/d, and provide 375 MMcf/d of additional firm baseload supply of natural gas to Rhode Island and the greater New England region.

KeySpan signed an agreement in October 2003 with BG LNG Services to undertake the $50 million conversion project. Assuming FERC approval, the project is targeted for in-service in November 2005.

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