Keyspan LNG and Algonquin Pipeline denied by FERC

This is the denied application that John Peconom gave me:

KeySpan LNG, L.P. and Algonquin Gas Transmission LLC

KeySpan LNG, L.P. Docket Nos. CP04-223-000 and
CP04-293-000
Algonquin Gas Transmission LLC Docket No. CP04-358-000
ORDER DENYING AUTHORIZATION UNDER SECTION 3
AND DISMISSING CERTIFICATE APPLICATION
(Issued July 5, 2005)
  1. In this proceeding, KeySpan LNG, L.P. (KeySpan) requests authority under section3 of the Natural Gas Act to site, construct, and operate a liquefied natural gas (LNG) terminal at its existing LNG storage facility in the City of Providence, Rhode Island.1 In a related application, Algonquin Gas Transmission LLC (Algonquin) requests authority under section 7(c) of the Natural Gas Act to construct and operate 1.44 miles of 24-inch diameter pipeline in order to transport natural gas from KeySpan’s proposed terminal to Algonquin’s existing interstate pipeline system.2
  2. In essence, KeySpan is proposing to construct a new LNG import terminal. It proposes to do so by converting its existing LNG storage facility into an LNG import terminal. In making this conversion, KeySpan does not propose any modification to its existing LNG storage tank, impoundment, or facility site, none of which meet current Department of Transportation (DOT) safety standards for LNG import facilities.3
  3. This order finds that authorization of KeySpan’s LNG import terminal facilities, as proposed, would be inconsistent with the public interest. Although the proposed facilities would provide a new source of reliable LNG imports in New England, are fully subscribed and, if constructed in an appropriate manner, would not constitute a major federal action significantly affecting the quality of the human environment, we find that it is not consistent with the public interest under section 3 to authorize KeySpan to site, construct, and operate a new LNG import terminal that does not comply fully with the DOT’s current safety standards. As a consequence, we will also dismiss Algonquin’s application.

1 KeySpan filed its application in Docket Nos. CP04-223-000 and CP04-293-000 on April 30, 2004.

2 Algonquin filed its application in Docket No. CP04-358-000 on June 14, 2004.

3 KeySpan contends that its existing facilities do not need to meet current safety standards because they were constructed before the current standards were promulgated.

-jsq

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