The Federal Energy Regulatory Commission officially rejected KeySpanLNG's plans to develop a liquid natural gas facility at Fields Point, Providence, in a July 5 decision. At the same time, FERC approved Hess LNG's plans for a facility in Fall River, Mass., 16 miles to the east.
In a statement, FERC cited security and public safety as primary motives for rejecting the Providence plan, saying that approval "would be inconsistent with the public interest."
The report also indicated that while KeySpan was considering the new facility a mere renovation to the existing tank - Fields Point has been home to an LNG storage facility since the 1970s - KeySpan's proposal was for "in essence ... a new LNG import terminal" because it would be intended as an import facility instead of a storage facility. KeySpan currently transports fuel to Fields Point tanks on trucks from an import station in Boston.
LNG opponents in Providence argued that an expanded terminal would increase the threat of terrorist attack, going so far as to commission a study by former presidential terrorism advisor Richard Clarke. Clarke estimated that a daytime attack on the vulnerable tanks would cause 3,000 "prompt deaths," 10,000 major burn cases, and massive damage to the downtown area, though he said it was impossible to predict the likelihood of such an attack.
KeySpan has until early August to decide if it will appeal the rejection of the Providence plan. KeySpan has not yet decided whether it will appeal FERC's decision, KeySpan spokesperson Carmen Fields told The Herald.
Tamara Young-Allen, spokesperson for FERC, said that parties typically do not file petitions for re-hearing until the last possible day, which will be Aug. 4.
"We're still evaluating our options, but we're very much dedicated to maintaining the tank there and exploring ways to reliably add to the supply infrastructure in the region," Fields said. When asked what these options - also cited in KeySpan's June 30 press release - might include, Fields declined to elaborate.
Although the Providence facility was rejected because of the security risk inherent in locating LNG tankers in Narragansett Bay, John Martin, a spokesperson for Providence-based Save the Bay, said that the approval of the Weavers Cove facility in Fall River means tankers will still need to pass through the bay on a regular basis.
"As far as the presence of tankers on the bay, closing bridges, security around tankers," Martin said, "the Weavers Cove project impacts the bay almost as much as a Providence project, because you can't get to Fall River without crossing through Narragansett Bay."
In addition, Martin added, Weavers Cove is more environmentally sensitive than Fields Point because of "significant, undeniable issues" like dredging and dredge disposal. He also said that the Taunton River watershed, where the Weavers Cove facility will fall, provides 50 percent of the Narragansett's fresh water supply.
Martin said Save the Bay does not expect KeySpan to appeal the Providence decision and is currently more focused on protecting Weavers Cove.
If KeySpan does appeal the decision, Young-Allen said, FERC will decide whether the case is complicated enough to warrant further studies and reconsideration. She also said FERC's decision has no bearing on future LNG developments. KeySpan "could come in with a new proposal, and now know what the (energy) commission is thinking about their current one. ... They'll start with a clean slate."
Rhoades Alderson, a spokesperson for Mayor David Cicilline '83, said FERC's decision "made it fairly clear that (FERC), as regulators, and industry-friendly regulators, at that," thought "Providence is not the place for a big LNG facility like the one that had been proposed." He added that, although there has been discussion about offshore LNG facilities on islands, the success of such projects "doesn't look like it would be in the future for Providence."
Both Alderson and Martin emphasized that FERC's decision indicated Providence is not the right place for an LNG import facility. Martin cited the failed 1970s proposal to put an LNG facility on Prudence Island in Narragansett Bay. Opposition to the project was the genesis of Save The Bay, he said, and the recent ruling shows that Narragansett Bay continues to be the wrong place for an LNG import facility.
Alderson said that should KeySpan decide to move forward with a petition for appeal, the city would make itself available to help uphold FERC's decision against KeySpan. And despite their recent opposition concerning Fields Point, Alderson added that the relationship between Providence and KeySpan has remained "very cordial."
