In light of an unfavorable decision from the Supreme Court Monday, a spokesman for BP Crown Landing LLC said the company is exploring a “variety of options” to site its proposed liquefied natural gas (LNG) terminal along the Delaware River.

The company is interested in “keeping the the facility in the same general area,” but it is exploring “different configurations given the restrictions created by the court,” said BP spokesman Tom Mueller.

He declined to disclose many details, except to say Crown Landing “is looking for options to keep [the LNG project] on the Delaware River.” The 410-mile river constitutes part of the boundary between Pennsylvania and New York, the entire boundary between New Jersey and Pennsylvania, and most of the boundary between Delaware and New Jersey.

On Monday the U.S. Supreme Court threw a wrench into Crown Landing’s project plans when it ruled that the state of Delaware has the authority to block the construction of an off-loading pier that would serve the LNG terminal proposed along the Delaware River in Logan Township, NJ (see Daily GPI, April 1). Delaware opposes the construction of the pier, and it now has the power to halt the entire LNG project in light of the court’s ruling.

In August 2005 New Jersey petitioned the high court to settle an ongoing boundary dispute with the state of Delaware that was reignited when Crown Landing proposed building the off-loading pier along the Delaware River (see Daily GPI, Aug. 4, 2005).

New Jersey’s action was fueled by Delaware’s assertion of regulatory jurisdiction over the construction of the proposed pier. By claiming it had jurisdiction over a portion of New Jersey’s side of the river, Delaware in February 2005 denied a permit to Crown Landing for the construction of the proposed pier (see Daily GPI, Feb. 4, 2005). It said the proposed LNG off-loading pier, which would extend into the Delaware River, was prohibited by Delaware’s coastal zone laws.

The pier would be used to transfer LNG from tankers in the Delaware River to storage and regasification facilities in New Jersey. The proposed import terminal would have a sendout capability of 1.2 Bcf/d and is targeted for service in 2009.

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