American Gas - November 2013 - (Page 16)
As a result of Superstorm Sandy, some 31,700
NJNG customers lost service-and a lot more.
In its filing with the state Board of Public
Utilities, the company said it will seek to recover the costs of the NJ RISE projects through
annual base rate adjustments.
As a result of Superstorm Sandy, approximately 31,700 of NJNG's 500,000 customers
lost service. In the eight weeks that followed,
the company repressurized or replaced more
than 270 miles of main and replaced or
rebuilt 51,000 gas meters. Recovery cost can
estimated $76.3 million.
"What we've learned from several recent
weather events, particularly Sandy, is that our
infrastructure will be tested more often and with
greater force and severity than ever," New Jersey
Resources Chairman and CEO Laurence M.
Downes told American Gas. "NJ RISE will allow
us to make specific investments in our system
that will not only improve safety and reliability,
but will make the system far more resilient in the
aftermath of such devastation." -J.P.T.
An unusual LNG facility could reduce
gas price spikes in New York
PorT AmbroSe, nY-Liberty Natural Gas
is seeking federal approval for a LNG import facility off the coast of Long Island and New Jersey
that it says would operate during peak demand
and reduce the average annual price of natural
gas in the New York City area by 4 percent.
Under the New York-based energy company's
plan, two submerged buoys-each 33 feet tall and
24 feet in diameter-would be located 20 miles
off the coast of Jones Beach on Long Island.
Ships known as shuttling and regasification
vessels would connect to a buoy, then regasify
the LNG onboard before pumping it into a new
22-mile subsea pipeline. That pipeline will connect onshore with the Transco Lower New York
Bay Lateral Pipeline that currently serves New
York City and Long Island, Liberty CEO Roger
Whelan told American Gas.
Each delivery will provide an average of
400 million cubic feet of natural gas per day,
enough to provide energy to 1.4 million homes,
AmericAn GAs november 2013
Whelan said. Most of the deliveries would
occur during January, February, and March,
when the region typically experiences shortages
that have led to drastic price spikes.
In a report commissioned by Liberty, ICF
International estimated that the offshore port,
named Port Ambrose, would help stabilize
prices and save New York area natural gas consumers up to $325 million a year.
Whelan says it would be cost-prohibitive to
build an onshore pipeline in the Northeast that
only operated three months out of the year.
He said Port Ambrose would cost about $300
million to build and the regasification vessel to
serve it would cost another $300 million.
Whelan said that in the short term the LNG
would likely come from Trinidad and Tobago.
Port Ambrose would be part of an international
network of offshore regasification ports, including Port Meridian, which Liberty is currently
developing off the west coast of England.
The Port Ambrose project has been
vigorously opposed by several environmental
groups, including the Sierra Club of New
Jersey and Clean Ocean Action, which says it
would deepen the region's reliance on fossil
fuels. Some have said they believe it will be
turned into a facility to export domestic LNG
from the Marcellus Shale, a claim Whelan calls
a "red herring."
Port Ambrose would only be licensed as an
import facility, and the cost to convert it for
export would be in the billions. "Anyone who
understands this technology knows you're not
going to have an LNG export facility sitting off
the coast of New York City," Whelan said.
The U.S. Coast Guard and the Maritime
Administration are currently conducting
environmental reviews of the project. Even if it
does receive federal approval, it could be vetoed
by either the New York or New Jersey governor. In 2011, New Jersey Gov. Chris Christie
vetoed another Liberty proposal to build a
deepwater port off the coast of New Jersey.
But Whelan said he is optimistic that Port
Ambrose could get the go-ahead as soon as
2014. He said the earlier proposed port would
have been much larger and closer to shore.
"We learned a lot from our past experience,
and now we've got good New York City and
state support," he said. "This is a different time
and a different project." -J.P.T.
Table of Contents for the Digital Edition of American Gas - November 2013
American Gas - November 2013
Head Start: On Energy Education
By the Numbers
Need to Know
The Wheels on the Bus...
Fueling the Future
U.S. Secretary of Energy Ernest Moniz
A Tight Ship
Expanding the Reach of the Gas Infrastructure
American Gas - November 2013