Content provided in partnership with

Environment plan OK for LNG terminal at Sparrows Point

Daily Record, The (Baltimore), Apr 28, 2008 by Andy Rosen

A preliminary approval for a proposed liquefied natural gas terminal at Sparrows Point is an important step forward for the project, but there are still a number of questions that must be answered before the terminal can be built.

Federal Energy Regulatory Commission staffers issued a more than 700-page report Friday that said the project will be environmentally sound if its developer follows commission guidelines.

The report is preliminary and even when final will only constitute part of a final FERC approval. Still, it is the first major statement by the commission on the project, which was proposed by the Virginia-based AES Corp., and comes after more than two years of review.

Most Popular Articles in Business: Research and Markets : Tesco Plc - SWOT Framework Analysis; Do Us a Flavor - Ben & Jerry's Issues a Call for Euphoric New Flavors; eBay made easy: ready to start an eBay business? These 5 simple steps will ...; Katrina's lawsuit surge: a legal battle to force insurers to pay for flood ...; Wal-Mart's newest distribution center opened last month near the southwest ...; More »

There is still a long way to go before FERC makes a final decision. In the meantime, AES has to adjust its plan to ship LNG through the Chesapeake Bay after the U.S. Coast Guard ordered changes to the company's security measures.

The report has to go through a public comment period that extends into June. After several planned public hearings, the report will become a factor in FERC's final decision. The commission will also consider public testimony on the issue.

"We're kind of still in the early stages as far as this whole process goes," said FERC spokeswoman Barbara Connors. She said no date has been announced for a final decision.

AES is still engaged in a legal battle with the state and Baltimore County over a zoning law that would bar the plant because of its proximity to the Chesapeake Bay. The zoning law could block the company from building the plant, even with FERC approval.

AES is suing the county in the 4th U.S. Circuit Court of Appeals in Richmond to overturn the zoning law. The company has also challenged the state agency that approved the county's zoning change in the Anne Arundel County Circuit Court.

Still, AES hailed the FERC report as a "long-awaited milestone," in a statement issued Friday.

"The AES Project fills a variety of needs for businesses, industry, and, perhaps especially, the millions of area energy consumers who care about both our natural surroundings and rising energy costs," the statement said.

Baltimore County officials had no comment on the report, but said they remain opposed to the terminal and continue to believe they are on solid ground in terms of the zoning law.

If AES sticks to its environmental plans for the project and follows recommendations by FERC staff, the report said the terminal "would have limited adverse environmental impact and would be an environmentally acceptable action."

The wide-ranging report considers the effect of the Baltimore County plant, the related shipping traffic as vessels bring natural gas for storage at the terminal, and an 88-mile pipeline that will ship the gas to a regional distribution network.

Environment plan OK for LNG terminal at Sparrows Point

Daily Record, The (Baltimore), Apr 28, 2008 by Andy Rosen

Find Research Guides for:

Find Featured Titles for: Reference

Most Popular Articles in Business

Most Popular Publications in Business