By Gregory B. Hladky
2:57 PM EST, January 23, 2013
Remember a few years ago when a consortium of energy giants wanted to build a $700 million floating liquefied natural gas plant in the middle of Long Island Sound? It was going to help Connecticut and New York consumers and be wonderful for the economy.
That massive project finally got killed for environmental reasons, and it looks like that was a good decision for very different reasons.
Check out this Boston Globe story about two LNG terminals built off the North Shore of Massachusetts (at a combined cost of $750 million) several years ago that are now sitting completely idle because of shifts in the LNG market.
Those terminals, like the concept of the “Broadwater” plant in Long Island Sound, were intended to take advantage of what was supposed to be a huge increase in LNG imports. What actually happened was a huge increase in domestic U.S. production of natural gas, which made the terminals virtually useless.
The Broadwater plan would have been built just on the New York side of the Sound, about 10 miles off Branford Harbor, in order to keep Connecticut regulators from having any say in the project.
Although the Federal Energy Regulatory Commission (which almost never saw a Big Energy project it didn’t like) approved the Broadwater scheme, New York killed it to the delight of environmental activists and lots of public officials in this state.
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