Coast Guard seeks more LNG data Impact reports hinge on Canadian information

The northern New England branch of the U.S. Coast Guard has sent a letter to the Federal Energy Regulatory Commission asking the developers of two proposed liquefied natural gas facilities in Washington County to provide more information about the impacts of their projects on Canada.

Specifically, the Coast Guard wants to know what Canada’s concerns are regarding LNG and what the developers’ plans for LNG transport will be should Canada remain opposed to LNG tankers in Head Harbour Passage.

“Until the Coast Guard obtains the information requested … we consider both applications incomplete and will not be able to finish and submit the Waterway Suitability Reports for either of the two projects,” the letter stated.

The letter was dated June 19 but appeared on the FERC Web site last week. It was signed by Capt. Stephen Garrity, who recently retired and was replaced by Capt. James Rendon. Rendon and Security Specialist Alan Moore are stationed in Portland and are preparing the Waterway Suitability Reports on both Quoddy Bay LNG in Perry and Downeast LNG in Robbinston.

In February, the New Brunswick government submitted a motion to FERC requesting that the commission terminate its review of the two LNG proposals. FERC declined. That same month, the Canadian government announced its intention to take legal action against the proposed LNG terminals. Canada has cited, but has not released, a study it commissioned to review the navigational safety, environmental and other impacts the LNG projects could have on Canada.

The Coast Guard’s letter asks LNG project developers to produce the Canadian study or “some other suitable governmental articulation of Canadian issues.” The Coast Guard also requests “specific options to facilitate the safe and secure movement of LNG tankers through U.S. and Canadian waters should Canada remain committed to a policy of non-cooperation.”

“We want to gather every fact that we can get and come up with a very fair and impartial assessment,” Moore said Thursday. “Their [Canada’s] opinion matters to the United States Coast Guard.”

Neither LNG developer was surprised by the letter and both said the Coast Guard already had asked for the information requested in its letter.

Quoddy Bay LNG Project Manager Brian Smith said he doubts the existence of the Canadian study and said he is about to release a report that will address safety, security and environmental transport issues related to travel through Head Harbour Passage.

“Our first preference by far is to have Canadian participation, and we hope they’ll break their silence and start talking to us,” Smith said.

Downeast LNG President Dean Girdis said he knows the Canadian study exists and is not worried about its conclusions.

“We believe the additional information we submitted [to FERC] about six weeks ago addressed all the issues,” Girdis said, referring to the information requested in the Coast Guard’s letter.

Save Passamaquoddy Bay, a group opposed to both LNG projects, expressed relief that the Coast Guard is making an effort to consider Canada’s point of view.

The letter “is a deeply serious response from a federal agency that has decision-making power over these proposed LNG projects,” said Linda Godfrey, spokeswoman for Save Passamaquoddy Bay. “We’ll of course follow the serious implications of this letter to its eventual outcome.”