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New Jersey LNG, Tetco Pipeline Projects Receive Preliminary Environmental OK

FERC in cooperation with five other federal agencies gave draft environmental clearance to BP Energy affiliate Crown Landing LLC's proposed 1.2 Bcf/d liquefied natural gas (LNG) terminal to be built along the Delaware River in Logan Township, NJ. Texas Eastern Transmission's (Tetco) proposed lateral that would connect with the LNG project also received preliminary environmental approval.

"If the project is constructed and operated in accordance with Crown Landing's and Texas Eastern's proposed mitigation and our recommended mitigation measures, the proposed facility would have limited adverse environmental impact," according to the notice of availability of the draft environmental impact statement (DEIS) on the Crown Landing LNG and associated Tetco pipeline projects [CP04-411, CP04-416].

The other agencies involved in preparation of the DEIS were the U.S. Army Corps of Engineers (COE), U.S. Coast Guard, Fish and Wildlife Service, Environmental Protection Agency and the National Oceanic and Atmospheric Administration Fisheries.

The $500 million Crown Landing terminal project calls for the construction of 9.2 Bcf of storage and vaporization facilities, with a baseload send-out rate of 1.2 Bcf/d and peak rate of 1.4 Bcf/d. The facilities would occupy 40 acres of a 175-acre industrial corridor site. Crown Landing hopes to begin operation in 2008.

Crown Landing proposes to interconnect the proposed LNG facilities onsite with three pipelines. One interconnect would be with the new 11-mile pipeline that Tetco seeks to construct (Logan Lateral) between its existing Chester Junction facility in Brookhaven Borough, PA, and the proposed LNG terminal in New Jersey. The other interconnections would be with Columbia Gas Transmission and Transcontinental Gas Pipe Line.

The Crown Landing LNG project would have a maximum delivery capacity of 0.5 Bcf/d to the Columbia Gas pipeline system, 0.6 Bcf/d to the Transco pipe system, and 0.9 Bcf/d to the Tetco system, the company said.

Because both projects will traverse waterways, Crown Landing and Tetco have applied concurrently to the COE for two Department of Amy permits under the Clean Water Act and the Rivers and Harbors Act of 1899. "The decision whether to issue permits will be based on an evaluation of the probable impacts, including cumulative impacts, of the proposed projects on the public interest," FERC said.

Earlier this month, Delaware's Department of Natural Resources and Environmental Control rejected Crown Landing's application to build an offloading pier to serve the proposed LNG terminal along the Delaware River in Logan Township (see NGI, Feb. 7).

John A. Hughes, agency secretary, determined that the proposed LNG offloading pier that would extend into the Delaware River was prohibited under the state's Coastal Zone Act. Under the law, the project "represents a prohibited offshore bulk production transfer facility" with no accompanying manufacturing use that would qualify it for an exemption, he said. In addition, the facility "exhibits characteristics sufficient to deem it a heavy industry," which also is barred under the act.

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