Frequently Asked Questions

What is being proposed in your project?

We are proposing to build an LNG receiving terminal in Fall River, MA. Our facility will consist of a single storage tank, processing equipment, a new pier and several small support buildings. The facility would be similar, but larger, than the existing Fall River Gas (now New England Gas) LNG plant that has operated safely on Bay Street in Fall River since 1970. The main differences between the two facilities will be that the proposed terminal at Weaver's Cove will have the capability to unload LNG from tankers bringing the gas from overseas and the storage tank at Weaver's Cove will be constructed using the latest technology. In addition, two short lengths of new pipeline will be developed to link the facility to the Algonquin Gas Transmission Company natural gas transmission in the area.

What is LNG?

LNG is the liquid form of natural gas - the same fuel used to heat homes, schools and offices or for cooking. Natural gas is processed into a liquid at remote plants, which operate like giant refrigerators, cooling the gas to 260 degrees below zero Fahrenheit, at which temperature it turns into a liquid. As a liquid, its volume is reduced by 600 times. Once the natural gas is turned to LNG, it can be transported and stored at atmospheric pressure in insulated tanks that act like thermos bottles. LNG is not kept under pressure. Rather, as LNG slowly evaporates (a process called "boil-off" or "auto-refrigeration"), it remains a liquid by drawing heat away from itself.

Why liquefy natural gas?

We are used to having natural gas delivered by pipelines. Converted to a liquid, natural gas takes up far less storage space. That makes LNG much easier and less expensive to transport on tankers from remote areas where there are large quantities of natural gas that cannot be otherwise transported to market (either because it is impractical or the costs are prohibitively high). Japan, Korea and Taiwan, major industrialized nations, get almost 100 percent of their natural gas as LNG. Spain and France are also major LNG importers. In some other areas where there is no underground storage, such as New England, natural gas is also liquefied during the summer and stored on site to cover peak winter demands.

Why do we need this project?

It is well documented that additional supplies of natural gas are needed for the New England region, especially in Southeastern Massachusetts. Gas demand in Southeastern Massachusetts has been growing quickly over the past few years due to the construction of many new gas-fired power plants and the growing population in this corner of the region. There is a growing concern at the local and national level regarding our ability to meet the increasing demand for natural gas, the most environmentally friendly of all fossil fuels, from our domestic resources. This is especially true for New England, where our electricity generation system has become heavily dependent on natural gas fueled power plants. This shift has not gone unnoticed. In recent studies, ISO New England, which operates the major electric transmission grid throughout New England and is responsible for reliability of our electric system, has identified the need for additional natural gas infrastructure for the region, especially in Southeastern Massachusetts. New England lies at the very end of the US natural gas pipeline system, far away from the major producing fields in Texas, Louisiana and Oklahoma. Natural gas prices during recent winters have soared, as cold weather has led to increased electric power demand from gas-fueled plants as well as natural gas heating demand for homes, businesses, schools and hospitals. New England, which typically pays 20 - 30% more for its natural gas than the rest of the country, can pay as much as ten times the price for gas compared to producing states like Texas during these peak periods. With so much of our electricity supplied from gas-fired power plants, rising prices for natural gas will also mean rising prices for electricity.

But we are okay right now, are we not?

Actually, natural gas pipelines in New England are almost at capacity due to the rapid growth in demand. According to the Northeast Gas Association (www.northeastgas.org), pipeline capacity was 2.6 billion cubic feet per day seven years ago. Today, it is 4 billion cubic feet per day. Despite this added capacity, demand grows just as fast. On very cold days, demand will exceed the amount of natural gas the pipelines can deliver, and deliveries must be supplemented with other sources. In New England, LNG is stored during the summer and turned back into natural gas and added to pipelines whenever this situation arises.

Does Fall River need more natural gas?

Almost 80% of the homes in Fall River are heated by natural gas — that is one of the highest percentages in the region. Natural gas is the cleanest-burning fossil fuel. It is also more convenient than heating with oil. As a result, it is also the fuel of choice for large users of energy, including power plants, manufacturers and commercial developers concerned about meeting air-pollution standards. Without a reliable and cost effective supply of natural gas, these new businesses will not come to the Fall River area. As the demand for natural gas continues to grow, it may even be difficult to meet existing residential, business and power plant requirements, or the high prices associated with supply shortages may force some energy-intensive businesses to move from the area. Gas bills in Fall River are now close to or greater than real estate taxes for many homeowners. High energy prices were a factor in the layoff announced in November 2004 by Quaker Fabrics.

Are there Fall River-area businesses that especially need natural gas?

Yes. Companies that produce electricity in gas-fired power plants depend on a reliable and economical natural gas supply. The region around Fall River is a major producer of electricity and one-third of all natural gas in New England is used to make electricity. By 2010, natural gas is expected to fuel half of our region's electric supply. The reliability of our electricity supply is at stake. When natural gas is unavailable or the price is too high, power plants burning coal increase their production, harming the region's air quality and discharging more warmed water into Narragansett Bay.