Broadwater’s Consumer Savings Debated
By Bill Cummings, Connecticut Post, Bridgeport
Jan. 12–An environmental group is disputing claims by Broadwater Energy that its proposed floating gas terminal in Long Island Sound would save consumers more than $300 a year in heating bills.
The Connecticut Fund for the Environment on Thursday said, contrary to advertisements Broadwater is running across the state, the gas terminal would not result in any savings for consumers.
“Broadwater Energy’s claim that their facility will save citizens $300 to $400 per household are based on reports that are outdated and misrepresented,” said Leah Schmalz, legal affairs director for Save the Sound, an offshoot of the CFE.
“Those reports are filled with phrases like ‘has the potential’ and ‘has been estimated,’ hardly promises citizens can take to the bank,” Schmalz said.
Still, Amy Kelly, a Broadwater spokeswoman, defended the projected savings, saying reams of data show Connecticut residents, on average, will save $400 a year, while New York residents will save $300, if the gas terminal is built.
“Right now, Connecticut and New York are operating at an energy deficit,” Kelly said. “They need more supply. This goes to supply and demand.”
Schmalz said energy experts from Synapse Energy Economics in Cambridge, Mass., analyzed the Broadwater project and concluded it would have little to no impact on natural gas prices.
“There is no evidence of any formal commitments to low-cost service,” said Ezra Hausman, senior associate with Synapse.
“This means prices will be dictated by market forces only,” Hausman said. “If Shell can sell gas at a higher price, that’s what they will do.”
The latest dispute over the controversial Broadwater terminal comes five days before the Federal Energy Regulatory Commission holds its second public hearing on the venture, scheduled for 7 p.m. Tuesday at Branford High School.
A similar hearing in New London Tuesday drew hundreds of opponents and a handful of supporters. Opponents said the project represents an environmental disaster and unnecessary industrialization of the Sound, while supporters said the project is needed to lower energy costs and meet future demand.
Broadwater, a joint venture between Shell Oil and TransCanada Corp., proposes to build a floating gas terminal some 15 miles across Long Island Sound from Milford, and nine miles from Riverhead, N.Y. Those distances vary depending on the source; some opponents claim the facility is closer to 10 miles from Milford.
The $700 million terminal would process one billion cubic feet of natural gas per day, enough to heat 4 million homes, and is expected to be completed in 2010.
The facility would measure four football fields in length, and rise seven stories above the water. Every two or three days, tankers would bring frozen natural gas to the terminal, where it would be converted back to a gaseous state and pumped through miles of pipelines.
“No-go” zones, stretching miles in diameter, would surround the tankers as they ply the Sound. A similar “no-go” zone would surround the terminal.
Kevin Conroy, chief of staff for the New England Council, a business group, said he could not confirm Broadwater’s claim of annual savings, but said overall the company’s proposed terminal would save consumers money.
“If Broadwater gets up, it will lower the cost of natural gas,” Conroy said.
Conroy said the Broadwater plan would save consumers money because of its proximity to population areas. “The closer you bring [natural gas] to population areas, the less cost. If we don’t bring in Broadwater, it will cost consumers.”
Hausman, the Synapse Energy associate, said he questions Broadwater’s assertions about the region’s future natural gas needs.
“The total natural gas consumption in New York has actually decreased over the past decade,” said Hausman, who pointed out that other, smaller natural gas facilities now being built in Canada and Massachusetts will provide any additional gas the region needs.
Bill Cummings, who covers regional issues, can be reached at 330-6230.
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Copyright (c) 2007, Connecticut Post, Bridgeport
Distributed by McClatchy-Tribune Business News.
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