The TEX Report Topics < Others > Home
HOME >> Topics List >> March, 2012 >> 22 (Thu)
New Letter Of Protest Against LNG Import Project On U.S. East Coast
=Called for cancellation of "Downeast LNG Project"
An letter of protest was sent against new construction of LNG import terminal on the U.S. east coast. Concerning the LNG import project, which the U.S. Downeast LNG, Inc. is planning in Passamaquoddy Bay, the state of Maine, U.S.A., Anti-LNG Organizations, "Save Passamaquoddy Bay" strongly urged Federal Energy Regulatory Commission (FERC) to cancel the project. The organizations said in its letter, "FERC should not approve the project."

Just the other day, the U.S. Broadwater Energy LLC, decided to cease its project on account of opposition by local inhabitants. The project was to build an offshore LNG import terminal, which is more environmental-friendly than onshore ones. The local residents fiercely criticized the project for the influences, that will be caused by installation of sea-bed pipelines.

There are several LNG import projects in the U.S., where LNG imports had been expected to grow. On the other hand, in the process of shale gas development, most of these projects have been put on hold.

However, Downeast is said to be requesting FERC to grant approval to implement the project. The company is appealing for the needs to import LNG in an effort to cover demand for natural gas in the Northeast region of the U.S.

The organizations, which sharply react against the project, claimed that the LNG terminal is not necessary because supply-demand balance of natural gas in Northeast region of the U.S. will not become tight, citing the data about short-term energy outlook and plans to install pipelines, which was issued by the U.S. Energy Information Administration (EIA) this month.

Meanwhile, the organizations explained the present situation, where LNG import terminals are almost unworkable, which are in operations on the U.S. east coast such as Northeast Gateway Deepwater Port, Neptune floating LNG terminal and offshore Cove Point LNG terminal. Furthermore, it added the fact that there have scarcely been any imports of LNG at Canaport LNG terminal in Canada and Canaport LNG Limited Partnership cancelled a plan for construction of No.4 LNG because it has become unnecessary.

On the other hand, the U.S. General Electric Company (GE) submitted a written statement to FERC in favor of LNG import project at Sabine Pass LNG terminal, which the U.S. Cheniere Energy Partners L.P. has developed. It said in the statement that FERC should approve the project as soon as possible.

GE has been selected as a supplier of main equipments to Sabine Pass LNG terminal such as GE Gas Monitor system, etc. and insisted that a great deal of jobs will be created including for its subcontractors if the project is put into execution. In addition, the company emphasized the importance of the project because the LNG export project from the U.S. will contribute to the U.S. economy as well as firmly establish the country's place in the world as main suppliers of natural gas, a clean energy.

In view of changes in supply-demand of gas in the future, even if LNG import terminals should be newly built, LNG will be imported only for the purpose of keeping cooling state of the facilities. If the terminals seldom have chances to exist over long period of time and if the terminals can give only small contribution to local economy, it is natural to consider that they are simply hazardous objects.

It is hard to think that LNG import projects will be promoted again since the import projects are obviously inferior to export ones, which are regarded to serve U.S. national interest. Decisions might have already been reached to cancel many LNG import projects although they have not been made public.
last modified : Tue 27 Mar, 2012 [10:04]
Copyright (C) 2004 The TEX Report Ltd. All Rights Reserved.