The Federal Energy Regulatory Commission (FERC) has approved a proposal by Weaver’s Cove Energy and Mill River Pipeline to build an 800 million-cubic-foot, liquefied-natural-gas (LNG) tank in Fall River, the commission announced Thursday.
The FERC, however, rejected a similar proposal by Brooklyn, N.Y.-based KeySpan Corp. to expand its LNG terminal at Fields Point, Providence. KeySpan applied to expand its Providence facility to hold 500 million-cubic feet of LNG and – like the Weaver’s Cove proposal – accept marine shipments.
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The commission ruled that KeySpan’s expansion “would not meet current construction and safety standards.” The 31-year-old facility fails to comply with current safety standards, the FERC said, adding that KeySpan did not propose modifications necessary to bring its facility into compliance.
“We are quite naturally disappointed by the decision, and respectfully disagree with the rationale for it,” said David J. Manning, KeySpan’s executive vice president and chief environmental officer, in a press statement.
“We will be reviewing the decision and evaluating alternative options to reliably address the growing demand for natural gas in this region,” Manning added.
The LNG proposals have drawn the ire of residents and each state’s political leaders, who have noted the dangers of expanding highly combustible LNG tanks in urban areas. They also cited reports that terrorists target LNG facilities and marine tankers as a means to inflict mass casualties.
The FERC said the additional LNG capacity at Weaver’s Cove in Fall River would serve the public interest because its pipelines are already running at full capacity during winter months when demand is highest. The commission also stated that the updated facility, proposed by limited liability affiliates of Hess LNG, “may be constructed in an environmentally friendly manner.”
Fall River Mayor Edward M. Lambert vehemently disagrees.
Lambert announced, shortly after FERC’s decision on Thursday, that he will “exercise every legal avenue available” to appeal the commission’s 3-1 vote in favor of the Weaver’s Cove proposal.
“By its decision,” Lambert said, “FERC has jeopardized the safety of the citizens of my city by authorizing, for the first time in 30 years, the construction of an LNG terminal in the heart of a densely populated urban area.”
Rhode Island politicians were pleased with FERC’s denial of KeySpan LNG’s facility proposal, but voiced disappointment and trepidation about its approval of the Fall River plan.
“I have strenuously opposed this project because I believed it posed far too many safety, security and environmental risks to Rhode Island residents,” said Gov. Donald L. Carcieri, in a press statement. “I am heartened that FERC agreed with my analysis, and I am hopeful that (Thursday’s) decision signals the end of KeySpan’s efforts to push this project forward.”
The governor added, however, that he was “disappointed” with FERC’s decision to permit the Weaver’s Cove facility, and “deeply concerned” about the hazards of transporting LNG up Narragansett Bay.
Those concerns were echoed by U.S. Sen. Jack Reed, D-R.I., who also vowed to “work with … colleagues in Rhode Island and Massachusetts to discuss what we can now do to reverse the Weaver’s Cove decision.”
Attorney General Patrick C. Lynch said, in a statement, that he was “confident that Rhode Island officials … recognize just how catastrophic FERC’s decision is to our region,” and “will continue with our fight to right this alarming and shameful abandonment of the public interest in favor of pumping up the profits of big energy.”
In May, Lynch released a report by anti-terrorism expert Richard A. Clarke, who concluded that LNG tankers traveling through 29 miles of Rhode Island waters “have security vulnerabilities that are unlikely to be successfully remedied.”
Though the FERC has denied KeySpan’s proposal, it grants applicants 30 days to either accept its decision or request an appeal before the commission.
