Massachusetts Gov. Jane Swift anticipates that Boston Harbor will resume liquefied natural gas (LNG) tanker traffic in the near term, “possibly [in] only a matter of weeks,” said a spokeswoman for the governor.

The governor is working closely with the U.S. Coast Guard and U.S. congressional delegation to re-open the harbor in a “timely and safe fashion” to LNG shipments, said Swift aide Sarah Magazine in Boston, MA. “I don’t expect it to be a long-term thing,” she told NGI.

She noted that the issue was not critical yet in light of the still warm weather, but said it would become “more pressing” in the next few weeks as the winter heating season approaches.

The Coast Guard last week denied entry to an LNG shipment bound for Distrigas of Massachusetts LLC’s Everett, MA, terminal due to safety and security concerns in the wake of the terrorist strikes on New York City and the Pentagon. This marked the second shipment destined for Distrigas that the Coast Guard had turned away, with the first one diverted immediately after the Sept. 11 attacks.

Distrigas declared force majeure Friday — releasing it from its contract obligations with its “20 or so” customers in New England — only days after the Coast Guard took this action, a federal regulatory spokeswoman said. The company, the only LNG importer on the East Coast, reportedly is suffering losses of as much as $100,000 a day as a result of the blocked shipments.

Future LNG shipments bound for the Everett terminal will be turned away by the Coast Guard as well, until the company, in cooperation with state and federal authorities, devises a plan to ensure the safety and security of the tankers and surrounding communities that would be vulnerable in the event of a terrorist attack against the ships.

As of mid-Friday, Distrigas reported that the 33 million gallons of LNG from Trinidad — enough to heat an estimated 30,000 homes for a year — were being diverted to either Trunkline’s terminal in Lake Charles, LA, or El Paso Corp.’s about-to-be-reopened terminal on Elba Island, GA

Meanwhile, supplies of LNG for the New England market were growing “very limited,” said Distrigas spokeswoman Julie Vitek. She declined to estimate the level of current supplies. Distrigas provides about 15% to 20% of the region’s natural gas needs on an annual basis. This figure climbs to 35% in the winter, Vitek noted, as Distrigas provides local storage facilities with LNG for peak shaving.

©Copyright 2001 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.