NGI The Weekly Gas Market Report / NGI All News Access

Boston Tries to Nix Tennessee Project, Says It Would Cause Upsurge in LNG Tanker Traffic

December 12, 2005
/ Print
| Share More
/ Text Size+

The city of Boston, in a late motion filed at FERC last week, said it opposed a proposal by Tennessee Gas Pipeline to build a nearly eight-mile pipeline expansion that would provide additional capacity to transport regasified gas from a liquefied natural gas (LNG) terminal in Everett, MA.

The project, which Tennessee applied for in October, would provide an additional 82,300 Dth/d of firm capacity on the El Paso pipeline's system, all of which has been contracted by Distrigas of Massachusetts LLC, which owns and operates the LNG terminal in Everett [CP06-18]. Tennessee has asked the Federal Energy Regulatory Commission to approve the 24-inch diameter pipe expansion by Aug. 1, 2006.

The city in a Dec. 7 letter asked the Commission to accept its late opposing motion, noting that it "was not properly notified" by Tennessee of the project, and only "learned about the proposal earlier [last] week." The deadline to intervene in the case was Dec. 1.

"The city of Boston's substantial homeland security and energy policy interests, as well as the project's proponent's failure to properly notify the Mayor's Office of Environmental and Energy Services, serve as good cause" for granting late intervention, the city said.

"The city's prime concern, voiced frequently by Mayor Thomas M. Menino since Sept. 11, 2001, is the need to reduce and ultimately cease all LNG shipments through Boston Harbor. The potential increase in transportation capacity made available by the project would work counter to the city of Boston's important homeland security interests."

The mayor's office acknowledged the need for the construction of "significant infrastructure" to meet New England's growing demand for natural gas, and the favorable air quality impacts of natural gas as a fuel for power plants. "Review of this project, however, needs to be made within the context of an analysis of the comprehensive range of sites and LNG technologies that will satisfy the basic purpose of providing reliable long-term supply of natural gas to meet the increasing residential and commercial demands within New England," the city said.

FERC "should not license the proposed project until the relationship between the expansion of pipeline capacity and the LNG ship traffic to the Everett LNG facility is clearly understood." In the event the Commission should approve the Tennessee project, "it should place a cap, based on the recent average of annual shipments over the past 10 years, on the number of LNG shipments that are being made to the Everett LNG facility as a license condition for the proposed project," the city recommended.

©Copyright 2005 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.

ISSN © 2577-9877 | ISSN © 1532-1266
Comments powered by Disqus