FERC Approves LNG Terminal, Mid-Atlantic Express Pipeline

March 2009 Vol. 236 No. 3

The Federal Energy Regulatory Commission approved, with conditions, a new LNG import terminal and connecting interstate pipeline proposed by AES Sparrows Point LNG, LLC and Mid-Atlantic Express, LLC that will bring 1.5 Bcf/d of natural gas to serve rising demand in the northeastern U.S.

FERC Chairman Joseph T. Kelliher said, “When FERC reviews a proposed LNG import project, our primary concern is assuring public safety. We have done so in this order, by attaching 169 conditions that will protect public safety and mitigate any adverse environmental impact and assure the AES Sparrows Point LNG Project will provide service in a safe and secure manner and provide fuel to generate electricity and heat homes. I realize this is not a popular decision, but it is the correct decision, rooted in a voluminous record and based on sound science.”

AES plans to construct and operate the new import terminal and related facilities at an industrial port setting at Sparrows Point, southeast of Baltimore in Baltimore County, MD. The number of ships transiting to and from the Sparrows Point terminal is projected to increase commercial marine traffic in the Chesapeake Bay by 5 to 7%.

The project includes facilities capable of unloading LNG ships, storing up to 480,000 cubic meters of LNG, vaporizing the LNG and sending out natural gas at a base-load rate of 1.5 Bcf/d.

FERC also authorized Mid-Atlantic Express to construct and operate an estimated 88 miles of 30-inch diameter natural gas pipeline, of which about 48 miles would be located in Baltimore, Harford and Cecil Counties, MD with the other 40 miles in Lancaster and Chester Counties, PA, ending in Eagle, PA.

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