Obama Coast Guard Issues Favorable Initial Environmental Review for Off Shore LNG Import Facility

A Test For NJ Governor Christie:

Will Christie Protect US Domestic Gas Producers by Vetoing Gas Import Project?

Will Christie Continue His Huge Support of Gas Pipeline Companies and OK The Deal?

Or Will Christie Continue to Duck The Project Due to National Political Ambitions?

We’ve added enough new oil and gas pipeline to encircle the Earth, and then some. . . . In fact, the problem . . . is that we’re actually producing so much oil and gas . . . that we don’t have enough pipeline capacity to transport all of it where it needs to go.” ~~~ President Obama

Keep these fundamentals in mind while thinking about the off shore Port Ambrose LNG import facility:

First, for obvious economic profit reasons, the US energy industry strongly supports energy exports and offshore export facilities. So do Congressional Republicans and the Obama administration. Exports would provide a lucrative high priced foreign market and alleviate domestic low prices associated by gluts in US production, particularly for Marcellus shale fracked gas.

Second, for the same economic reasons, the US energy producers – but not all pipeline companies –  oppose energy import facilities – to protect US markets and US production and to avoid compounding low prices associated with the current market glut of gas in the region.

Third, the so called “Port Ambrose” offshore LNG project is an energy IMPORT facility that is supported by a major US pipeline company. Gov. Christie has consistently supported expansion of gas pipelines.

Fourth, it is a no brainer that the US energy industry, especially during the current steep decline in world oil prices, would strongly oppose any energy import facilities, such as Port Ambrose.

Fifth, regardless of whether the gas is exported or imported, there are huge greenhouse gas emissions associated with the operations.

Now to the story.

• Obama “all of the above” energy policy invites Climate Chaos

The Maritime Administration (MARAD), U.S. Coast Guard (USCG) announced the release of the Draft Environmental Impact Statement (DEIS) for the Liberty Natural Gas LLC, Port Ambrose Liquefied Natural Gas Deepwater Port License Application for the importation of natural gas.  The release beings a 60 day public comment period and series of public hearings (See this for DEIS documents).

The favorable review of Port Ambrose represents another example of the Obama administration’s “all of the above” energy policy that has driven record fossil fuel production, exports, and infrastructure expansions (pipelines, rail, ports). Emissions from these oil, gas, and coal production will offset and/or exceed any greenhouse gas emissions reductions his EPA has proposed to secure.

Obama policy will drive emissions beyond what scientists see as irreversible tipping points that will result in climate chaos, including virtual destruction of current agriculture.

• Import or Export? Bait and Switch?

The Coast Guard goes out of its way to stress that this project is a import facility – and to distinguish that from an export operation:

Please note that this application is only for the construction and operation of a deepwater port that could only be used as a natural gas import facility. The considerable technical, operational, and environmental differences between import and export operations for natural gas deepwater ports is such that any licensed deepwater port facility that proposed to convert from import to export operations would be required to submit a new license application (including application fee) and conform to all licensing requirements and regulations in effect at such time of application. In addition to payment of the application fee, licensing requirements include, but are not limited to, completion of an extensive environmental impact assessment and financial resources review which would include public participation.

Why would the US government – support gas imports when US markets are glutted and at a time when the price of oil and gas are dropping to record lows?

Clean Ocean Action has proposed an explanation, suggesting that the real objective is gas exports and this project is just a bait and switch:

Port Ambrose would have a 750 million cubic feet per day capacity (by way of comparison, the recently approved Cove Point Maryland LNG export project has a capacity of 1 billion cubic feet per day).

Port Ambrose proposes to connect to the existing Transco pipeline that serves NYC and Long Island

the existing Transco Lower New York Bay Lateral in New York State waters 2.2 nautical miles south of Long Beach, New York and 13.1 nautical miles east of Sandy Hook, New Jersey.

Given that location, the demand for gas in NY City and Long Island region, Governor Cuomo’s ban on in NY fracking, and the outrageous regulatory bad faith that a bait and switch would entail, I must disagree with COA that this is a Trojan Horse export facility.

• What will Christie Do?

Under federal law, any final Coast Guard’s approval of the project could be vetoed by Governor Christie.

Before Christie was running for President and before Republicans were aggressively promoting energy exports, Christie exercised his veto power to block a previously proposed offshore LNG facility known as Port Liberty.

As late as March 20, 2012,  in a letter NJ Attorney General Chiesa reiterated Gov. Christie’s “steadfast opposition to the proposed deepwater port”.

But since the alternative new and modified Port Ambrose import project has been proposed, Gov. Christie has been silent.

The emergence of the new project and the Gov.’s  odd loss of his bold outspoke voice coincides with Christie’s pursuit of the Presidential nomination.

I think we all now realize that Christie will not buck the energy industry and the national republican party to protect the best interests of NJ.

• Bad News

So, with all this background in mind, I was again deeply disappointed with Jim O’Neill of the Bergen Record’s coverage. O’Neill ignores all this, while pouting Christie in a favorable light for his prior veto:

• Coast Guard issues report on off-shore gas port

The project’s opponents remain confident that Governor Christie will eventually veto the project, just as he did with a similar proposal in 2011. In his veto message at the time, Christie cited fears about damage to the state’s commercial fishing and tourism industries and concern the facility would undermine the state’s investments in developing alternative, renewable energy sources such as solar and wind.

Confident in a Christie veto? Absurd.

Christie concerned about undermining investments in off shore wind? Laughably out of touch.

But you don’t have to take my word for it, here’s NJ Spotlight:

• BPU Blocks Off Shore Wind Project Along Jersey Coast for Second Time