LNG sites in Mass., R.I. get mixed reviews

WASHINGTON – Federal regulators said Friday that a proposed liquefied natural gas terminal in Providence, R.I., would not meet safety standards, but gave a favorable safety and environmental review to a planned LNG facility in nearby Fall River, Mass.

The Federal Energy Regulatory Commission issued separate environmental impact studies that appear to bolster the chances for the Massachusetts facility and hurt those of the Rhode Island terminal.

State and local officials have strongly objected to the projects, which are about 18 miles apart on separate lobes of Narragansett Bay. Both are still awaiting final approval from FERC.

FERC said the KeySpan LNG expansion proposed for Providence’s waterfront would have minimal environmental impact, but the company’s reluctance to meet current safety standards would be considered when the commission makes its final decision. KeySpan has said meeting those standards would force it to spend millions on buying surrounding property for a buffer zone and take its LNG tank off-line for three years.

“KeySpan LNG has not provided any data to show that the proposed import terminal can be brought into compliance with the current safety standards,” the FERC said.

The Weaver’s Cove LNG terminal proposed for Fall River would ensure public safety by implementing a Coast Guard security plan to control the vessels passing through the bay en route to and from the facility, the FERC said.

Both terminals would require tankers to pass through Narragansett Bay, bypassing several Rhode Island communities along the way.

Keith Stokes, executive director of the Newport County Chamber of Commerce, said he was concerned that the FERC had not paid enough attention to residents’ questions how the tankers would affect boating, fishing and other pursuits.

“They just want to know what all this means,” he said.

Officials in both states have fought the proposals, setting up special meetings with the FERC chairman earlier this year to lay out their concerns about environmental and safety threats to the region.

FERC officials have said repeatedly that New England has serious energy needs that must be addressed, and that LNG terminals that can deliver gas to the region would be an appropriate way to do that.

KeySpan has proposed a $100 million expansion of its current facility on the waterfront at Fields Point. The expansion would include a dock so the company can begin accepting frequent LNG deliveries by ship.

Rhode Island Gov. Donald Carcieri and Attorney General Patrick Lynch both oppose the proposal. Spokesmen for both officials said their staffs are reviewing the FERC reports.

Lynch has sued Keyspan in state and federal courts, arguing the project would illegally trespass on state-owned land.

Sen. Jack Reed, D-R.I., said the FERC’s approval process is flawed and leaves too many unanswered questions, including how the already budget-strapped Coast Guard will be able to fund additional patrols on the bay.

“There is no regional approach to determine how many facilities a region needs and where they should be placed,” he said.

Messages left with the Providence mayor’s office and the Greater Providence Chamber of Commerce were not immediately returned.

New York-based Weaver’s Cove Energy LLC has proposed building a $250 million LNG terminal at a former Shell Oil site in Fall River. The facility would include a ship unloading berth, storage tank and two pipelines. It could transport up to 800 million cubic feet of LNG per day.