Shell and TransCanada to Appeal New York’s Rejection of LNG Plan
Shell and TransCanada are planning to appeal the New York government’s decision to reject the companies’s proposal to build a liquefied natural gas platform in Long Island Sound, reported Reuters.
The two energy companies are likely to approach the US Commerce Department with an appeal to overturn the decision. It is reported that in preparation of an appeal, John Hritcko, regional project director for the Broadwater (liquefied natural gas) LNG project, has asked the Federal Energy Regulatory Commission to forward the case details to the Secretary of Commerce. The appeal will be made before May 12, 2008.
The Broadwater project was rejected in April by David Paterson, the governor of New York, who reportedly said that it was ‘fundamentally wrong’ to privatize open water. However, the Federal Energy Regulatory Commission had already approved the project in March despite concerns from local officials, who feared that the plant could be a potential target for an attack.
According to the Coastal Zone Management Act, the state’s objection prevents federal agencies from issuing permits required by the project, unless it is overridden by the Secretary of Commerce through an administrative appeal.
If initiated, the project is likely to be the first floating storage terminal in the US, delivering LNG, which is natural gas super cooled into liquid form, for transport in ships. The project will reportedly deliver 1.25 billion cubic feet of natural gas per day to fuel electric generating plants and heat homes, supporting energy demand in New York and Connecticut.
However, Richard Blumenthal, Connecticut’s attorney general, has said that he would continue to fight against the project. “This federal administration and its Secretary of Commerce are short lived and certainly will not have the final say on Broadwater. If they fail to respect the law, which Broadwater would clearly violate, the courts can overrule them,” Mr Blumenthal was quoted by Reuters as saying.