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Long Island Gets Another LNG Proposal

Another offshore liquefied natural gas (LNG) import terminal is being proposed near Long Island, according to reports in local newspapers last week. Plans for the $1 billion Safe Harbor Energy LNG terminal were announced Thursday by New York City-based Atlantic Sea Island Group LLC, which is sponsored by a group of local investors, engineering firm AECOM and investment banking firm Morgan Joseph & Co. Inc.

The project would include development of a 53-acre man-made island off the south shore of Long Island in the Atlantic Ocean "far from population centers and outside vital shipping lanes," according to a report in the Long Island Business Journal. The terminal would have a sendout capacity of 1-2 Bcf/d. It is expected to be in service in the fall of 2010.

"Safe Harbor Energy will use reinforced breakwaters and state-of-the-art security to allow reliable, cost effective global gas supplies to be brought to the New York region and the Northeast United States," the Atlantic Sea Island Group said in a new release on Wednesday, according to The Day, which is published in New London, CT.

The project would be in direct competition with Broadwater LNG, proposed by TransCanada and Shell on the north side of Long Island in Long Island Sound about nine miles from the closest New York shoreline. Broadwater is expected to be submitted for FERC authorization in the next two weeks. It would include a floating LNG storage and vaporization vessel that would be anchored to the sound floor and a 25-mile pipeline project, said Amy Kelley, spokeswoman for the project. Kelley said the interest in building two LNG terminals illustrates the need for new gas supply in the region.

Both projects would be designed to serve New York City regional markets. Broadwater would be connected to the Iroquois Gas Transmission System, while Safe Harbor LNG presumably would be connected to Transcontinental Gas Pipeline.

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