LNG terminal proposed for Brayton Point property
projo.com
07/30/2003
By C. EUGENE EMERY JR.
Journal Staff Writer
SOMERSET -- The number of proposed liquid natural gas terminals in Southeastern Massachusetts doubled last night.
Less than two weeks after Weavers Cove Energy began actively promoting an LNG import facility for the former Shell Oil refinery in Fall River, a group of investors last night announced plans for a separate terminal three miles down the Taunton River on the Somerset property now used by the Brayton Point Power Plant.
Michael Feodorov, president of
Somerset LNG LLC, said the
project, expected to cost $250
million to $300 million, would
be on 15 acres at the south end of the site now used to house five Brayton Point fuel tanks, two of which are in the process of being removed.
He said construction could, in theory, begin in 2005 with the facility opening in 2007, providing about 15 percent of the natural gas for New England.
The Fall River proposal is already sparking opposition from residents, environmentalists and city officials because tankers would have to travel up the Taunton River, going under the Braga and Brightman Street bridges. Some of those objections surfaced at a hearing last night at the Venus de Milo [See story, Page B-1]
.
In contrast, yesterday evening's news release from the Somerset group included statements of support from Eleanor Gagnon, chairwoman of the Somerset Board of Selectmen, Town Administrator John McAuliffe, state Rep. Patricia Haddad, and state Sen. Joan Menard, whose districts include Somerset.
The town, which stands to earn an extra $2 million in tax revenue per year from the facility, is already home two power plants: Brayton Point and Somerset Station, the former Montaup Electric plant.
While the Fall River LNG proposal has drawbacks, "the site location [in Somerset] is perfect," said Neal Costello, a lawyer for the developer. "The waste heat [from Brayton Point] can be used in the process, it's reasonably far away from residences, it's in an industrial area, there's no trucking required, and the political support has been remarkably positive."
Feodorov said the project has been in the planning stages for about a year and the investors -- described as "major energy companies" -- are not ready to reveal their participation yet.
The group decided to go public with the plan because of all the interest in the Fall River project. A final agreement to lease the Brayton Point land has not been negotiated, in part because the power plant's owner, USGen New England, a subsidiary of PG&E National Energy Group, is in bankruptcy proceedings. That has complicated the process, said Feodorov.
Costello asserted that the two projects are not in competition. "From a business standpoint, the region could use two LNG facilities," he said.
The Somerset facility would include one 280-foot-wide tank about 150 feet wide and capable of holding 3.5 billion cubic feet of liquid natural gas, said Feodorov. Unlike the Fall River proposal, no trucks would be required because a natural gas pipeline is already on the site.
The tank would be fed by one LNG vessel, which has a capacity of 3 billion cubic feet, coming up Mount Hope Bay each week, he said, adding that more vessels could be brought in "if the market demands it."
Because Brayton Point is removing two of its five oil tanks, and that's where the LNG site is, "there will be fewer tanks when all is said and done," Feodorov asserted.
The LNG facility should also help reduce the thermal pollution coming out of the Brayton Point plant, pollution that has been blamed for reducing fishing stock in the bay, because hot water coming from the plant will be used to vaporize the LNG so it can be sent through the pipes.
"That saves a tremendous amount of energy and it helps cool the water down for the plant," said Feodorov. It won't eliminate Brayton Point's thermal pollution problem, but it will help.
"That's why we feel it's a beautiful fit with the coal plant," he said.
Some dredging will be required to bring in the tankers, although much less than the Fall River proposal, he said.
And the dredging for the Somerset project will help reduce electric generating costs at Brayton Point because it will allow fully-loaded coal ships to get to the power plant.
"Right now the ships coming into the coal plant are coming in lightly loaded" because the water isn't deep enough," Feodorov said. As a side benefit to the dredging required for the LNG project, "there's going to be a reduction in the number of coal ships" coming up the bay.
The project is expected to create a few hundred construction jobs, according to Feodorov. About 20 to 30 people would be used for the day-to-day operation of the facility.
In the Somerset LNG news release, Gagnon, the Board of Selectmen chairwoman, expressed appreciation that the company briefed her on the project and said it "would provide significant economic and environmental benefits to the town of Somerset and surrounding region. ... I am confident that as the many benefits of the project become known during the public hearing process, the community will be supportive as well."
Haddad said the plan "has considerable merits and warrants further study. Economically, it will have a positive impact, not only for the town of Somerset, but for our entire area. That means more stable property taxes, more employment opportunities and greater possibility of containing home energy costs for the region."
Menard said "Thus far each and every question, rumor and criticism has been addressed" by the company.
Fall River Mayor Edward M. Lambert Jr., who opposes the Fall River LNG proposal, said he's not endorsing the Somerset project -- at least not yet.
But if a facility must be located in the region, he said, "the Somerset LNG initiative, thus far, seems like it could be a more acceptable alternative for our region."
To contact Gene Emery, phone 508-674-8401 or e-mail gemery(at)projo.com.
Opponents of LNG plan in Fall River speak out
projo.com
Terrorism and traffic are among the concerns expressed at a hearing on a plan to build a facility to import liquefied natural gas. Fall River is the Weaver's Cove Energy proposal and if deiierent from the Brayton Point proposal |
