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March 27, 2008

Off-shore LNG berth proposed for Mount Hope Bay

Weaver’s Cove Energy said today it is preparing a proposal to build an off-shore LNG berth in Mount Hope Bay that would allow tankers to offload liquefied natural gas about a mile from the nearest shore.

The company said it will soon file the plan with federal energy regulators in the hopes that it will be better received than its widely opposed plan to build an LNG terminal in Fall River.

The berthing structures would secure an LNG ship in place during unloading operations, the company said, and support the beginning of a 4-mile long pipeline that would be buried in a trench between portions of Mount Hope Bay and the Taunton River.

The LNG would be piped to a storage tank and regasification facility in Fall River, where the company had originally planned to build an LNG terminal.

The berthing platform would be located in waters within the town of Somerset, Mass., about one mile from the nearest shoreline and two miles south of the Braga Bridge, Weaver’s Cove said.

James Grasso, a company spokesman, said this new proposal does not replace the original proposal to build an LNG terminal in Fall River.

“We are not giving up on our original proposal,” he said in a phone interview. “What we are doing is proposing a possible alternative to perceived issues with tankers.”

The Weaver’s Cove proposal to build the Fall River LNG terminal was conditionally approved by the Federal Energy Regulatory Commission in 2005, despite widespread opposition from elected officials in Rhode Island and Massachusetts, as well as citizens groups and residents near the proposed facility. But the proposal met a major setback when the U.S. Coast Guard found that it was too risky to allow LNG tankers to traverse parts of the Taunton River because of two bridges that are close together.

This new proposal would not require LNG ship traffic within the congested areas of the Taunton River, the company said, and would address concerns expressed by the community and the U.S. Coast Guard.

It would also greatly decrease dredging within the Taunton River, the company said.

“We have listened closely to the community’s concerns on how best to provide a safe and secure supply of natural gas for the community and the region,” said Gordon Shearer, chief executive officer of Weaver’s Cove Energy, in a statement.

-- Journal staff writer Timothy C. Barmann

“If moving LNG tanker unloading operations offshore proves technically and economically feasible, it would address many of the community’s concerns while providing the benefits of jobs, taxes, and lower energy prices,” Shearer said.

“It is widely recognized that New England has a pressing need for additional energy, particularly natural gas… Whether we provide that through our earlier proposal, which we believe meets or exceeds all applicable safety standards for LNG projects, or this new option offshore, our goal is to find a solution that works best for the community and for New England.”

Grasso said that the company began speaking with elected officials in Fall River and Somerset last week about this new alternative. “They are, I believe, digesting the information we gave them, and don’t have really a response yet.”

“I’m in the process of making phone calls to several of the key stakeholders so everyone knows what’s going on.”

Posted by Mike McKinney at 6:45 PM | Permalink

March 27, 2008

Off-shore LNG berth proposed for Mount Hope Bay

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