Report: No local need for gas hub

Consultants respond to Houston company’s proposal for Sound terminal; gov’t, trade groups predict future rise in natural gas consumption

NEW YORK – Politicians and environmental groups from New York and Connecticut yesterday released a consultant’s report concluding that a giant liquefied natural gas terminal proposed for Long Island Sound won’t be needed to meet the metropolitan area’s future energy needs as project proponents contended.

The proposal by Broadwater Energy Inc. of Houston for a 1,200-foot floating terminal halfway between Wading River and the Connecticut shore is pending before the Federal Energy Regulatory Commission, which must rule on its safety and possible environmental impact.

The report by Synapse Energy Economics Inc., based in Cambridge, Mass., says, “Having carefully reviewed the project documentation put forth by Broadwater, we find that they have failed to identify any compelling local or regional need for the proposed project that would justify the impact that this project would have on the environmental, economic, recreational and historical value of Long Island Sound.” The report contended that future conservation efforts and more efficient use of gas would negate the need for vast new supplies in coming years.

Broadwater, however, cited a forecast by New York State that, by 2021, natural gas demand will grow nearly 37 percent. “Energy providers and planners recognize the need for more natural gas in this region to help prevent energy shortages and offset consumer price increases,” Broadwater said in a statement.

Newsday