Long Island Sound LNG plan approved -- The Quoddy Tides, Eastport, Maine

The Federal Energy Regulatory Commission (FERC) on March 20 approved a proposal by Broadwater Energy LLC to construct and operate the first floating terminal for the storage and delivery of liquefied natural gas (LNG) in the United States. The Broadwater LNG terminal, which would be located in Long Island Sound east of New York City, is a joint venture between Royal Dutch Shell and TransCanada Corp. The project would help meet increasing energy demand in New York and Connecticut.

The commission's approval of the project is subject to the operator adopting more than 80 mitigation measures to enhance safety and security and to ensure it has limited environmental impacts. In announcing the approval, FERC Chairman Joseph T. Kelliher said, "Based on all available scientific facts, we approved the Broadwater project, subject to rigorous conditions."

Broadwater will deliver a large supply of natural gas directly into Long Island, New York City and southern Connecticut through an interconnection with the Iroquois Pipeline System. The project would consist of a floating storage and regasification unit rising approximately 80 feet above the water line of Long Island Sound, eight LNG storage tanks, a regasification plant and a pipeline.

Not everyone approves of the FERC decision. Following the approval, the New York State Department of Environmental Conservation filed comments with FERC regarding the final Environmental Impact Statement for the terminal proposal. Incoming New York Governor David Paterson has said he may seek additional time to study the proposal. Three members of the Connecticut state legislature released a report denouncing the proposed Broadwater project.