BROADWATER UPDATE  1/31/08 provided by our Sound Alliance partner Save the Sound:

FERC’s newest report may show where it is headed on the Broadwater decision (it can issue a final decision as soon as February 11^th), but it is New York that has been, and continues to be, the real decision maker.  That is why all eyes are on the next move in the Broadwater saga—the any-day-now decision by NY Department of State (DOS) on Broadwater’s coastal policies (expected before February 12^th) with a decision by NY Office of General Services on whether Broadwater can take submerged land away from the public to follow.

The Federal Government:

FERC: When FERC issued the Draft Environmental Impact Statement last January, no one was surprised.  It was missing data and detailed analysis. A year later little has changed.  This time FERC has issued a Final Environmental Impact Statement (http://elibrary.ferc.gov/idmws/File_list.asp?document_id=13571218) that in essence tells the public: Broadwater will only harm Long Island Sound a little, selling off a portion of the citizen owned waters is not too bad, the numerous alternatives--like implementation of conservation programs, other supply facilities under construction in our region, and ocean based siting options—are not real alternatives, and setting the precedent of constructing industrial complexes in the middle of regional treasures is just something with which we will have to live.  But again, this is coming from a federal agency that has yet to meet a new liquefied natural gas facility that it doesn’t like.

GAO: FERC’s Broadwater findings come on the heels of the Government Accountability Office report stating that the United States Coast Guard (Coast Guard) may not have the needed resources to protect new liquefied natural gas facilities.  Part of FERC’s review of Broadwater includes a safety and security analysis by the Coast Guard.  In its study of the project, the Coast Guard found that it did not currently have the resources-- staffing, funding, or equipment--- to continue existing Long Island Sound duties and protect a new liquefied natural gas facility.  For the GAO report go to http://www.gao.gov/new.items/d08141.pdf for the Coast Guard report on Broadwater go to http://www.uscg.mil/d1/units/seclis/broadwater/broadwater.html#WSR

New York:

There are a handful of decisions New York must make, two of them are critical: the DOS decision on coastal policies and the Office of General Service decision on Broadwater’s right to use public submerged land for its exclusive benefit.  But the NY Department of Environmental Conservation (DEC) has a number of important environmental permits as well.

Shortly before FERC’s FEIS, DEC issued a letter to Broadwater that outlined additional information needs and explained that there are “a number of significant issues.” It noted that the water temperature around the pipeline can exceed 20 degrees Fahrenheit above ambient temperatures that would be "detrimental or fatal" to the lobster population. Referring to the application, DEC raised concerns that the LNG industrial complex and its supply tankers would withdraw approximately 28.2 million gallons of seawater a day, resulting in the destruction of approximately 274 million eggs and larvae every year, and an unknown number of juvenile and young adult fish; that the habitat of the underwater organisms located near the intake screening would be negatively impacted; and that the use of chlorine to clean the screening would result in the deaths of organisms.  It went on to say that “there are design changes suggested below to reduce this impact, but even with these changes the project’s effect on the fishery will be significant.”

Connecticut:

In the week following the FEIS, Connecticut officials came out in full force.  Governor Rell wrote to NY Governor Spitzer asking that he reject Broadwater, Attorney General Blumenthal has vowed to fight FERC and to work at the agency level in New York, Congressional Representatives called upon FERC to halt its review of Broadwater, and the CT LNG Taskforce Chairs, CT State Senators Fasano and Stillman, expressed serious concerns over the outcomes of the FEIS.  Connecticut is doing everything in its power to ensure the Sound is preserved for future generations, it is now asking New York to stand up for the citizens of the region by protecting Long Island Sound.

Alternatives:

YES!  Synapse Energy Economics identified energy system alternatives that will save citizens money, and supply alternatives that are currently under construction and designed to meet the region’s needs (see the original report http://www.cfenv.org/STS/broadwater/news/alternatives-analysis.pdf and the update http://www.cfenv.org/STS/broadwater/images/synapse_update.pdf).  Currently Northeast Gateway is under construction and is expected to receive its first shipment within the next few months. And Canaport is 65% complete and expected to be in operation by the end of 2008.

Furthermore, Long Island Sound expert consultant Coastal Vision noted that there are potential siting alternatives for Broadwater in the Atlantic Ocean, and two other companies have proposed two other LNG facilities in the Atlantic Ocean (Sea Island Group and Exxon Mobile).  The evidence shows that an LNG facility in the middle of Long Island Sound, an estuary of national significance, is not needed.

Global Market Implications:

Here are two excerpts from LNG industry reporters:

Competition for LNG Spot Cargoes Intensifies: World Gas Intelligence [subscription required] reports on the impact that the globally competitive LNG spot cargo market is having on the price of gas. The article notes that high bids in Asian and European markets are fueling this competitive environment. WGI also adds that beyond baseload supplies being delivered to the Everett terminal in Massachusetts, very little LNG came into the United States in January. 

Rising Global Demand May Lead to Decreased U.S. Imports: Platts LNG Daily [subscription required] reports that despite new North American terminal capacity that is scheduled to come online this year, rising LNG demand in other areas of the world may lead to decreased U.S. imports.

Snapshot of Broadwater:

The complex that Shell Oil is proposing for Long Island Sound would be approximately 11 miles south of Connecticut and nine miles north of New York, in New York waters. It is expected to receive two to three weekly shipments of LNG via tankers that will enter through The Race – the Sound’s constricted, eastern-most access point. Broadwater would exclude citizens from large portions of Long Island Sound and could require them to subsidize safety and security response for the project through federal taxes and local cost sharing. For additional info on Broadwater visit www.savethesound.org.

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