GloucesterTimes.com, Gloucester, MA

Local News

March 21, 2007

Pipeline for offshore LNG ports approved

A pipeline to connect the two liquefied natural gas ports proposed off Gloucester to the existing underground Hubline pipe linking Salem to Quincy has won approval from the federal government

The Federal Energy Regulatory Commission approved Algonquin Gas Transmission LLC, a subsidiary of Spectra Energy, to construct the 16-mile, 24-inch pipeline to its Hubline pipe, which runs underwater from Salem to Quincy.

"We anticipate starting construction in late spring, in the May time frame, and we anticipate being ready by December for the 2007-08 heating season," said John Sheridan, a spokesman for Spectra Energy.

Excelerate's Northeast Gateway Energy Bridge, proposed 13 miles southeast of Gloucester and expected to be operational by the end of the year, and Suez North America's Neptune, proposed seven miles southeast of the city and expected to be ready in 2009, will both tie into the Algonquin line.

Algonquin's path is a camel hump, bending north to avoid ridges, and connects with the Hubline off Marblehead.

"Excelerate is extremely pleased that we passed another major milestone for this project," said Douglas Pizzi, a spokesman for Excelerate Energy.

Sheridan said Spectra will recoup the $179 million cost of the pipeline from Excelerate through "a long-term transportation agreement."

Each port will be an underwater buoy to which tankers filled with supercooled liquefied natural gas will moor. The vessels reheat the liquid and pump the gas into the pipeline.

Last year, both companies had to assemble environmental impact statements for the U.S. Coast Guard, the U.S. Maritime Administration and the state Executive Office of Environmental Affairs. The state required the companies to supplement first drafts last summer with more detailed information, though the concerns of Stephen Pritchard, secretary of the Executive Office of Environmental Affairs under former Gov. Mitt Romney, focused more on the impact of the LNG tankers and the process to reheat the natural gas into vapor.

The ports will be in the northern part of an area of ocean known as Block 125. Many in the fishing industry have said that area is particularly valuable to fishermen, especially since their time at sea has been reduced by federal regulations. Environmentalists fear the construction will disturb the fragile fish stocks those federal regulations are attempting to help rebuild and additional ship traffic could strike and kill endangered North Atlantic right whales.



Romney approved both ports in December, clearing a major hurdle for the two projects. As a condition of state environmental approval, both companies were ordered to pay a total of $12.6 million to a Gloucester nonprofit organization designed to keep fishing permits local should fishermen decide to get out of the industry.

In all, Excelerate and Suez are to pay a total of $47 million for mitigation of their projects, including the Gloucester package; $10.6 million for improvements to the islands in Boston Harbor; $6.5 million to build a passive acoustic buoy system to detect and monitor whales; $3.4 million to compensate commercial lobstermen; $3 million to map and study the activities and habitats of the sea floor; $150,000 to the Gloucester Marine Heritage Center; $150,000 to the Peabody Essex Museum in Salem; and $150,000 to the Essex National Heritage Center.

Local industry advocates and fishermen opposed the location of the projects because of an 800-yard security perimeter around each buoy and tanker, which could force fishermen to steam farther away for their catch, eating up limited days permitted at sea.

Conservationists opposed the projects because of the potential of the tankers warming the ocean surrounding the ports when moored. Previous descriptions from Excelerate and Suez said the tankers would use seawater to warm the supercooled liquid natural gas before discharging the resulting natural gas vapor into the buoy.

Both companies have said they would change the warming process.

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