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October 2, 2007

Alert: National Grid drops bid for Providence LNG site

National Grid announced this afternoon it has dropped its pursuit of establishing a major LNG marine terminal in Providence.

The decision ends a years-long effort by the company's KeySpan subsidiary to re-vamp its existing storage facility on the Providence River into a terminal that would receive LNG deliveries by tankers. And it is apparently a victory for the citizens, organizations and public officials who fought the proposal.

Though KeySpan's proposal was rejected by the Federal Energy Regulatory Commission in 2005, the company had appealed that decision in federal court. The company was scheduled to make oral arguments on Oct. 26 at the federal appeals court in Washington, D.C.

In a brief statement, National Grid said it met with Attorney General Patrick C. Lynch, who has been among the most vocal opponents of the KeySpan proposal.

After that meeting, the company said it announced it was dropping its appeal.

"National Grid announced that it has dropped its appeal of a Federal Energy Regulatory Commission (FERC) decision not to approve proposed changes to the company’s Field’s Point Liquefied Natural Gas (LNG) facility in Providence," the statement says.

"National Grid Executive Vice President of Business Development, Steve Zelkowitz, advised the Attorney General that the company would continue to evaluate natural gas needs in the region," the statement said.

" The company believes LNG will continue to play a critical role in both energy reliability and price. National Grid committed to work with public officials prior to any future decision impacting the facility."

The statement did not say why the company had decided to drop its appeal.

Lynch issued his own statement in which he hailed National Grid's decision. “The public safety issues surrounding this plan were always clear to me," Lynch said.

Those issues, he said "were confirmed by the experts I retained, including Richard A. Clarke, who prepared an extensive report detailing the perils of locating an LNG terminal in an urban area.”

Lynch added, “I fully recognize the need to address our region’s energy needs. I am confident that National Grid, which has a history as one of our state’s most responsible corporate citizens, will continue to play a leading role as government, business, and other interested parties work together to find safe, efficient, environmentally responsible, and economical solutions to meeting those demands.”

Posted by Tim Barmann  at 12:27 PM | Permalink

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