A bill under consideration by Massachusetts' Democratic U.S. senators could slow or halt the construction of new U.S. LNG terminals and crossborder pipelines by prohibiting the construction of natural gas compressor stations linked to export projects.
Sens. Edward Markey and Elizabeth Warren plan to introduce legislation "that would block construction of any compressor station that would be built as part of a pipeline project meant to export natural gas overseas," according to a statement from Markey's office.
The proposed legislation is targeted at stopping the construction of a 7,700 horsepower compressor station, which Spectra Energy Partners LP subsidiary Algonquin Gas Transmission LLC has proposed to build in the city of Weymouth, Mass.
A two-page draft of the proposed bill — the Community Outreach, Maintenance, and Preservation by Restricting Export Stations from Subverting Our Regulations, or COMPRESSOR Act — calls for a ban on the construction and operation of any gas compressor station that would be part of a project that the Federal Energy Regulatory Commission finds would either lead to the export of natural gas or facilitate gas exports.
The Weymouth compressor station would be part of Enbridge Inc.'s Atlantic Bridge pipeline project, which is designed to serve as an expansion to the Algonquin system. Atlantic Bridge is expected to expand Algonquin's capacity by roughly 133,000 Dth/d from receipt points in New York and New Jersey along the mainline, which extends to the north of Boston.
In supporting the legislation, Markey and Warren highlighted arguments made by opponents of the compressor project, who contend its location in a densely populated part of the state would expose local residents to toxic fumes and excessive noise.
But it is the export component of the system that Markey emphasized in proposing the legislation. The Atlantic Bridge project is expected to increase exports into eastern Canada by expanding south-to-north capacity on the existing Maritimes and Northeast pipeline by its interconnect with Algonquin in Beverly, Mass.
"We should not move forward with a project that asks our residents to sacrifice health and safety just to be a throughway for American natural gas to get to foreign markets," Markey said in a statement. "No compressor station should be built in our communities, threaten the safety of our residents, and harm our environment just to support our natural gas being sent overseas to the highest bidder."
Enbridge, however, has argued that the region needs the compressor station.
The construction of the compressor station is necessary "in order to meet commitments at Atlantic Bridge's delivery points along the Maritimes and Northeast existing pipeline system in northern New England and the Canadian Maritime provinces," Enbridge spokesman Max Bergeron said in an Oct. 8 email statement. "Algonquin Gas Transmission remains committed to working with federal, state and local agencies and stakeholders to obtain the applicable permits, construct all the facilities required for our Atlantic Bridge customers and deliver much-needed natural gas as soon as possible."
"Local gas utilities in Massachusetts and Maine will be among the customers served as part of the Atlantic Bridge project," he added.
Jim Magill is a reporter with S&P Global Platts. S&P Global Market Intelligence and S&P Global Platts are owned by S&P Global Inc.
