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 U.S. Department of Commerce Approves Maryland LNG Project

The U.S. Department of Commerce approved the Sparrows Point LNG proposal by AES Corporation stating that the need for natural gas outweighs any environmental damage that could be caused by the LNG terminal and the dredging that would be needed in the PatapscoRiver to accommodate the tankers importing the fuel.

"The impact of dredging to fish and aquatic vegetation will not be significant," according to the Commerce report, which notes that the project would "help meet regional energy demand by providing enough natural gas capacity to heat approximately 3.5 million homes per day or to generate electricity for 7.5 million homes per day."

The ruling from the federal agency does not guarantee approval for the project, but the decision is another disappointment to elected officials and community leaders fighting the plan by AES Corporation to build the terminal at the old Bethlehem Steel shipyard site on Sparrows Point. Once the liquid is processed, it would be distributed for use through an 88-mile pipeline, under the company's plan.

Senator Barbara A. Mikulski, Senator Benjamin, Governor Martin O'Malley and Baltimore County Executive James T. Smith Jr.oppose the project.

In July 2007, the Maryland Department of the Environment reviewed the AES proposal and found that there was not enough information to determine whether it violated the Coastal Zone Management Act, and that - in essence - if forced to make a decision at that point, officials would conclude the project did not meet the state's environmental standards. But the Commerce Department concluded AES had provided enough information to show its project meets an overriding goal of the CZMA, meeting the nation's energy needs.

Yesterday's finding does not resolve a separate legal dispute over whether Baltimore County can ban LNG facilities in environmentally sensitive waterfront areas, as part of its federally sanctioned Coastal Zone Management plan. Because of a federal appeals court ruling last month finding fault with the county's ban, officials have asked for federal approval of its amended coastal zone management plan.

Union leaders have long supported the project because of the jobs it would create, including 50 permanent jobs and 375 temporary construction positions.

This year, Federal Energy Regulatory Commission staff members recommended conditional approval for the LNG project. A final report from FERC is expected in August, with the five-member commission tentatively set to make a decision about the project in November. The Army Corps of Engineers is reviewing the company's request to dredge an 118-acre area in the Patapsco River.

 

Baltimore Sun, By Laura Barnhardt, June 27, 2008

Supreme Court To Hear LNG Case

On Nov 27, 2007 the Supreme Court will hear from lawyers for Delaware and New Jersey in a legal dispute over plans for a BP-proposed liquefied natural gas terminal on the Jersey side of the Delaware River.  A court-appointed special master concluded that Delaware, which opposes the project on safety grounds, controls the river all the way to the Jersey shore. If adopted by the court, that determination could mean the end of the terminal.

The case was brought to the court after Delaware rejected a permit for a 2,000-foot-long pier, which would be used by tankers to make deliveries to the planned terminal.  As the sovereign owner of the Delaware River bottom, Delaware can regulate and police developments extending from New Jersey's shoreline.

New Jersey officials filed a legal brief stating that it should have exclusive jurisdiction over its shoreline as well as construction of the pier.  A century-old agreement between New Jersey and Delaware gives each state authority over piers and other structures on its side of the river.

BP wants to build the terminal directly across the river from Claymont, Delaware.  BP has said that its understanding is that New Jersey can decide what gets built and Delaware would have authority over the pier once it has been constructed.

Texas LNG Facility Approved

June 18, 2004 -- The Federal Energy Regulatory Commission (FERC) approved a $500 million liquefied natural gas (LNG) complex owned by a three-company consortium that will be located in Quintana Island, Texas.  Freeport LNG Investments, Cheniere LNG and Contango Oil and Gas will build the facility 70 miles south of Houston, Texas, which will have the capability to unload 200 ships a year of LNG. 

The Freeport LNG venture will be partially financed by ConocoPhillip oil company in exchange for a portion of the gas.  Dow Chemical will also receive a large portion of the gas.