F/y/i-- See article below -- It looks like there may be a shortage of terminal capacity (and some surplus LNG supply) for awhile.

Dan Rogers

 -----Original Message-----
From: 	"Weems, Philip" <PWeems@KSLAW.com>@ENRON  
Sent:	Monday, November 12, 2001 1:44 PM
To:	Rogers, Daniel R.
Subject:	FW: FERC Re-Opens Cove Point Approval

> Monday November 12, 1:46 pm Eastern Time
> U.S. to reconsider LNG plant due to security fears
> WASHINGTON, Nov 12 (Reuters) - Due to national security concerns, the
> Federal Energy Regulatory Commission said it will reconsider its decision
> last month to approve the restart of a liquefied natural gas plant near
> the Calvert Cliffs nuclear power plant in southern Maryland.
>
> The Williams Cos won FERC's approval on Oct. 12 to re-open and expand the
> company's Cove Point liquefied natural gas (LNG) plant, despite concerns
> that the facility could be subject to sabotage that would threaten a
> nearby nuclear plant owned by Constellation Energy Group.
> In an order issued on Friday, FERC said it would be ``in the public
> interest to reconsider'' the agency's reactivation decision and hold a
> technical conference ``to take further evidence with respect to national
> security implications'' connected with restarting the plant.
> An LNG facility in Boston had been closed by state officials following the
> Sept. 11 attacks on the World Trade Center and the Pentagon. Officials
> feared an LNG tanker entering Boston harbor could be subject to sabotage,
> causing massive damage.
> Williams wants to resume LNG shipments to the Cove Point plant during the
> second quarter of 2002. The company also plans to build a fifth storage
> tank at the site that could hold up to 2.5 billion cubic feet of gas.
> The Cove Point plant, built in 1974, was bought by Williams last year from
> Columbia Energy Group for $150 million. The plant stopped importing
> natural gas in the early 1980s, but reopened as a natural gas storage site
> about 10 years later.
> State, local and federal officials with have been asked to participate in
> the FERC conference, which will take place at the agency's headquarters on
> Nov. 16.
> ``In view of the nature of the national security issues to be explored,
> the conference will not be open to the pubic,'' FERC said.
> LNG is kept at ultra-cold temperatures and compressed for transport aboard
> special tankers.
> It begins as natural gas in a vapor form. The manufacturing process cools
> the gas to minus-259 degrees Fahrenheit, changing the gas into a liquid
> and shrinking it to less than 1/600th of its original size.
> LNG, which is odorless and colorless, is then loaded into tankers and
> shipped to markets where it is converted back into dry gas for electric
> power generation or another use as a fuel source.  LNG facilities are also
> located in Massachusetts, Louisiana and Georgia.
>
>
>
>
>



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