Over the past six months, BP’s Liquefied Natural Gas (LNG) project proposed for Logan Township, Gloucester County, cleared two hurdles in the regulatory assessment and approval process, moving closer to becoming a reality. In December 2005, the U.S. Coast Guard completed its preliminary review of a waterways suitability assessment for LNG ship transits on the Delaware River.  Most recently on April 28, 2006, the project cleared a second hurdle when the Federal Energy Regulatory Commission’s (FERC) final environmental impact statement found that the proposed facility will have “limited adverse impacts.” 

With these major milestones accomplished, the proposed facility is one step closer to contributing to economic stability, new jobs, and most importantly, providing a safe, reliable source of natural gas to meet the growing energy needs of residents, business and industry in New Jersey and the region.   

Coast Guard Assessment 

The Coast Guard review, which was carried out in conjunction with the Area Maritime Security Committee, concluded that, with the application of appropriate resources, the LNG ships could be safely managed on the Delaware River. It was an extraordinary and unprecedented review process conducted by a very diverse group of law enforcement representatives, anti-terrorism officials and maritime interests from the three surrounding states – New Jersey, Pennsylvania and Delaware.

Coast Guard Sector Delaware Bay Commander Capt. David Scott said that the review committee had been diligent in its fact-finding and had focused on a broad set of potential issues affecting the ability to properly integrate the LNG transits onto the Delaware.  One key finding of the report is that no roadway or bridge closures would be necessary as a result of LNG shipments.

The report did recommend that some additional security measures be added, and BP is working closely with local, county, state and federal officials to identify available resources on the Delaware River and work out plans for any additional resources that may be required.  BP also continues providing information and training to local emergency responders, including LNG firefighter training at the prestigious Texas A&M fire school which hosts a LNG firefighting training program funded by BP.  

FERC’S Environmental Impact Statement

FERC’s final environmental impact statement issued this spring supported the agency’s conclusions in its preliminary impact statement published last year. It also concluded that taking no action or postponing action on the Crown Landing project could lead to higher natural gas prices or even require forced conservation measures throughout the region.

By contrast, building the facility will make available a significant new supply of energy to the state’s residential, commercial and industrial customers.  The facility will provide enough natural gas to supply approximately 5 million homes per day, and will help alleviate pipeline constraints that limit the amount of natural gas that can reach the state during peak demand periods.  Having a ready local supply of natural gas provides assurance that supply will be available when demand peaks, and will also help provide more stability to natural gas prices

Industry experts, including those at BP, emphasize that LNG has an excellent 40-year safety record due in part to meticulous oversight and, most significantly, safety precautions built into the tankers, storage facilities and pipelines.  The LNG will be transported on specially designed, double-hulled ships and stored in concrete-encased tanks at Crown Landing, then reconverted to gas and distributed via pipelines to area homes and businesses.  BP will use state of the art technology to secure the facility and ensure immediate detection of any safety or security threats.

The news over the past six months has been encouraging for BP, but the proposed LNG Crown Landing facility has a distance to go before breaking ground at its South Jersey site.  BP intends to begin construction of the Crown Landing LNG facility after all permits required by applicable federal, state and local regulatory agencies are granted.  We remain very grateful for all the positive support for the facility we receive from the community and businesses in Southern New Jersey, and we look forward to providing a safe, reliable energy source to help meet the region’s growing energy needs.