Offshore gas
11 Nov 2004
TransCanada Corporation and Shell US Gas & Power have announced plans to develop an offshore liquefied natural gas (LNG) regasification terminal, named Broadwater Energy, in the New York State waters of Long Island Sound.
The proposed terminal would be capable of receiving, storing, and regasifying imported LNG with an average send-out capacity of approximately one billion cubic feet a day of natural gas.
In the proposed project, TransCanada and Shell will build and install a floating storage and regasification unit (FSRU) that will receive, store and re-gasify LNG in Long Island Sound at a proposed location about nine miles (15 kilometres) off the Long Island coast and 11 miles (18 kilometres) off the Connecticut coast.
Broadwater Energy LLC will operate the facility, while Shell will own the capacity and supply the LNG. The estimated cost of construction is approximately $700 million.
Before construction of the facility can commence, the proposed Broadwater Energy LNG facility must receive regulatory approval to proceed from US Federal and State governments, a process that is expected to take approximately two to three years.
TransCanada and Shell have filed a request with the US Federal Energy Regulatory Commission (FERC) to initiate a six-to-nine month public review of the Broadwater proposal. Provided the necessary approvals are received, it is expected the facility will be in service in late 2010.
