Atlantic Sea Island Group LLC's U.S. Coast Guard application for a deepwater liquefied natural gas (LNG) terminal on a man-made island 13.5 miles south of Long Beach, Long Island, NY, was deemed "complete," allowing the regulatory review to continue, the company said last week.

The terminal proposed by Safe Harbor Energy for the 60.5-acre island would have the capacity to deliver 2 Bcf/d to 65 million consumers. This would end "the area's dependence on natural gas shipped up from the Gulf Coast some 1,200 miles away," the company said.

"In accordance with the Deepwater Port Act, Title 33, United States Code 1504(c)(1), we have completed our review of the Atlantic Sea Island Group LLC (ASIG) deepwater port license application to own, construct, and operate a liquefied natural gas deepwater port...Based on our review we have determined that the application appears to contain sufficient information to begin processing. This project will be known as Safe Harbor Energy," said a letter from the Coast Guard to Atlantic Sea Island.

The letter requests additional information relating to the decommissioning of the LNG island after its useful life; notes that the Coast Guard will retain an environmental consultant to develop an environmental review document for the proposal and its intention to coordinate its actions with other federal and state agencies.

"We are delighted to have received this notification as it validates millions of dollars in environmental, engineering and market studies that we have invested in to date," said Atlantic Sea Island Chairman Howard Bovers.

Atlantic Sea Island is a consortium of private investors active in financing and development of energy and infrastructure projects.

The plan for the terminal in the Atlantic Ocean is in direct competition with the Broadwater LNG project proposed by TransCanada and Shell on the north side of Long Island in the protected waters of Long Island Sound about nine miles from the closest New York shoreline and 11 miles from the closest Connecticut shoreline (see NGI, April 30). 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 presumably would be connected to Transcontinental Gas Pipeline.

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