LNG Imports

LNG Imports

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A number of proposed LNG import projects failed between 2008 and 2015.  Now the pendulum has swung to LNG exports.  We hope the same mistakes will not be made in proposing LNG export facilities that were made with import facilities.  AAEA's recommendations are crucial to the approval of these projects.  The projects that failed to get approval: 1) Liberty Port Ambrose (NJ), 2) Clearwater Port Project (CA), 3) Long Beach LNG (CA), 4) AES Sparrows Point (MD), 5) Washington Gas Storage (MD), 6) Broadwater Long Islan Sound (NY)

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The Liberty Port Ambrose LNG Project

Failed To Get Approval

January 2015 - New Jersey - Port Ambrose was a proposed deepwater port that was to consist of a submerged buoy system for natural gas deliveries that will be located in federal waters approximately 19 miles from the New York shore.  Each delivery was expected to provide an average of 400 million cubic feet of natural gas per day – enough to meet the energy needs of 1.5 million homes. The majority of these deliveries would  occur during the peak demand periods of winter and summer.

The Liberty Port Ambrose Liquefied Natural Gas Project was going to import LNG that would be delivered from purpose-built LNG regasification vessels (LNGRVs) or Shuttle & Regasification Vessels (SRVs), vaporized on site and delivered through subsea manifolds and lateral pipelines to a buried main line connecting to the existing Transcontinental Gas Pipe Line Company (Transco) Lower New York Bay Lateral in New York State waters.  

New York Gov. Cuomo vetoed the Port Ambrose Liquefied Natural Gas on November 12, 2015. The project was proposed by Liberty Natural Gas off the shores of New York and New Jersey.  

AAEA supported this project but it failed.  We believe that because Liberty Natural Gas did not adopt our recommendations, the project never had a chance to get approval. They made the same mistake as other companies listed in examples below made in not adopting our recommendations.

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Long Beach LNG Project

Failed To Get Approval

January 2007 - The five-member Long Beach Board of Harbor Commissioners unanimously voted to end an environmental review of the Sound Energy Solutions (SES) proposal for an onshore LNG facility.  SES is a partnership of Mitsubishi Corp. and ConocoPhillips to build a $700-million liquefied natural gas plant.

Safety was the major concern cited for voting against the project.  Commissioners felt that there would be the potential for a catastrophic natural gas explosion that could kill hundreds of people and devastate much of the Long Beach waterfront.  

AAEA took no position on this project, although we believe a mutually beneficial agreement could have been reached between project sponsors and opponents if our recommendations had been adopted.

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BHP Billiton Cabrillo Port Project

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NorthernStar Natural Gas Clearwater Port Project

 

Both Failed To Get Approval

BHP Billiton wanted to build a floating terminal larger than an aircraft carrier and standing taller than the Queen Mary. The $800-million Cabrillo Port project would regasify natural gas before pumping it ashore to hook up with existing Southern California pipelines.  California Gov. Arnold Schwarzenegger rejected the project in 2007.  The 12-member California Coastal Commission unanimously rejected it in 2007 too.

The proposed terminal would process imported natural gas, which is chilled to a liquid so it can be transported by ship.  The terminal would be a permanently moored floating, storage, and regasification unit (FSRU). LNG would be stored in traditional storage tanks, regasified, and transported via undersea pipeline into a local pipeline system.

BHP Billiton is the world's largest diversified natural resources company, headquartered in Melbourne, Australia. The company is widely recognized as an industry leader in corporate social responsibility and sustainable development.

The $600-million Clearwater Port terminal, proposed by Houston-based NorthernStar Natural Gas Inc., would have converted an oil platform about 11 miles offshore from Oxnard to receive and process up to 1.4 billion cubic feet each day of liquefied natural gas imported from Pacific Rim countries such as Australia and Indonesia. More than a dozen federal, state and local agencies will eventually review the Clearwater Port Project. The California State Lands Commission, the U.S. Coast Guard and the U.S. Maritime Administration would have overseen preparation of a joint state-federal environmental document.

The California State Lands Commission voted 2-1 on April 9, 2007 to reject Australia energy giant BHP Billiton's Cabrillo Port Project proposal to build a liquefied natural gas (LNG) terminal 14 miles off the coast of Oxnard, California, which is 20 miles north of Malibu. (More: The Malibu Times)

On September 29, 2014, NorthernStar Natural Gas Inc. went out of business as per its Chapter 7 liquidation filing under bankruptcy. [Bloomberg]

AAEA supported both of these projects and believes they would have been approved if the proponents of the projects had adopted our recommendations. Oxnard, California is a rural community with a large Hispanic population.

Malibu LNG Press Release

 

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AES Sparrows Point LNG Project

Failed To Get Approval

March 2008 - The AES proposal to build an LNG project adjacent to the old Bethlehem Steel site at Sparrows Point failed to get approval. A Russian steel company, Severstal, purchased the Sparrows Point site from Mittal Steel.  As in the case of all of the other projects, this project is near a minority community.

Turner Station

AAEA FERC Statement

AAEA took no position on this project but made recommendations to AES that we believe could have ledd to a mutual agreement on the project among stakeholders. AES did not adopt the AAEA recommendations. Without doing so this project failed.

U.S. Department of Commerce Approval

A three-judge federal appeals court has struck down a Baltimore County law designed to stop the project. The 10-page opinion by the 4th U.S. Circuit Court of Appeals sided with AES, which charged that the county overstepped its authority to create zoning regulations and interfered with the National Gas Act.The ruling came weeks after the Federal Energy Regulatory Commission recommended conditional approval for the LNG terminal and an 88-mile pipeline to be built to southern Pennsylvania.

The Baltimore County Council passed an amendment to its Coastal Zone Management plan in 2007 that prohibited LNG plants and other facilities, such as oil refineries, in environmentally sensitive coastal areas.The state Critical Area Commission adopted the change in June, and that same month U.S. District Judge Richard D. Bennett upheld the county law. Lawyers for AES appealed, saying that the county is attempting to circumvent the federal approval process for energy projects.

[Aug 2008] Baltimore County will take its opposition to the proposed liquefied natural gas terminal at Sparrows Point to the U.S. Supreme Court. The appeal will challenge the May decision of a federal appellate court that said the county overstepped its authority to create zoning regulations and interfered with the National Gas Act.

AAEA Testimony June 5, 2006

AAEA Testimony June 9, 2008

Video Norris McDonald

Video Maxine Thompson

Video Phyllis Seward

Turner Station

FERC Official Filing

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Washington Gas Chillum LNG Project

Failed To Get Approval

Washington Gas proposed an LNG storage tank in Prince George's County, Maryland just across the Washington, DC border in a minority community. (More) The project was rejected by the county council.

AAEA took no position on this project but made recommendations to Washington Gas and local community stakeholders that could have led to a mutually acceptable agreement concerning this project. Washington Gas did not adopt the AAEA recommendations and this project failed.

LNG Storage Tank Proposal

AAEA Testimony

Wash Post: Washington Gas Protests Dominion Cove Point Expansion

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Broadwater Long Island Sound LNG Project

Failed To Get Approval

The partnership of TransCanada and Shell (Broadwater Energy) wanted to build an LNG facility in the middle of the Long Island Sound. The project received approval of its environmental impact statement (EIS) by the Federal Energy Regulatory Commission (FERC).

AAEA supported this project, but the proponents did not adopt our recommendations and this project, like the others described above, failed in getting the required state permits.

AAEA FERC Testimony

AAEA Broadwater Page