Officials with Distrigas of Massachusetts LLC and the U.S. Coast Guard confirmed Tuesday that an order banning liquefied natural gas (LNG) tankers into Boston Harbor has been rescinded effective immediately, enabling the company to receive shipments once again at its Everett, MA, terminal.

This action by the Coast Guard puts an end to a nearly three-week-old embargo on LNG shipments into the harbor in the wake of the Sept. 11 attacks on New York City and suburban Washington DC. The Coast Guard cited safety and security concerns when it closed the busy harbor, which borders Boston’s financial district and several other communities, to LNG tanker traffic (See Daily GPI, Oct. 1) .

Both Distrigas and the Coast Guard declined to say when the next LNG tanker would be due. It “has never been our company’s practice to publicly announce ship arrivals, particularly now in the interests of enhanced security,” said Distrigas in a prepared announcement.

Petty Officer Virginia Adams said the Coast Guard had made its decision to lift the LNG freeze after consulting with the “unified command” that had been established in the wake of the terrorist attacks. The “unified command” will address all port security and safety issues, with a focus on LNG transportation through the harbor and off-loading at Distrigas’ terminal. It includes representatives from the Massachusetts Environmental Police, Massachusetts State Police, state and federal agencies, the energy industry and Distrigas, she noted.

Adams said the Coast Guard was “satisfied” after “extensive analysis” of the situation that the safety and security concerns associated with LNG shipments have been met.

Since the attacks, the Coast Guard in Boston had turned away two shipments that were destined for the Distrigas terminal in Everett, with the last one being a tanker carrying about 33 million gallons of LNG from Trinidad. This forced Distrigas to declare force majeure — releasing it from its contract obligations with its major customers — and sent New England gas utilities, power producers and industrial customers looking for alternative sources of supply for the winter heating season.

Many feared that the ban — if it had remained in place for an extended period of time — would have a significant impact on New England, given that Distrigas provides an average of 15% to 20% of the region’s natural gas supplies on an annual basis. This climbs to about 35% during the winter, as the company supplies LNG to local storage facilities for peak shaving.

The company’s Everett facility has storage capacity of 3.5 Bcf, and a send-out capacity of 450,000 MMBtu/d by vapor and 100,000 MMBtu/d by truck.

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