Natural Gas

The natural gas-thirsty New England markets may soon be getting some help as Suez LNG has completed pipeline construction for its offshore LNG project, Neptune.

The first phase of construction began in late July and included the installation of a 13-mile sub-sea pipeline that will connect the Neptune LNG facility with the existing Spectra Energy HubLine. The second phase, scheduled to begin in early May 2009 and continue into September, includes connecting the new pipeline to the HubLine and installing two off-loading buoys.

Upon completion, the LNG facility will consist of an unloading buoy system where specially designed vessels will moor, offload their natural gas, and deliver it to New England markets in Massachusetts.

“We’re pleased to have completed phase one of our project with the least possible impact to the environment and what we hope has been minimal disruption to the local communities,” says Suez LNG president and chief executive officer Clay Harris. 

“Suez LNG has been providing about 20% of the natural gas to New England through our Everett LNG import facility, which has been in operation since 1971. The addition of Neptune will solidify and also reinforce our continued commitment to serving the region and helping meet its growing demand for natural gas. This month we have reached an important step in fulfilling this commitment.”

The City of Gloucester will serve as the home port for the Neptune project, representing a direct infusion of more than $10 million into the local economy over the expected lifespan of the project. This includes Suez’s lease at the Cruiseport, where it will dock its support and towing vessel for the project, as well as lease storage and office space.

The support vessel is equipped with fire-fighting equipment, and will be available to local emergency responders.

Pipeline installation activities for 2008 included: laying the pipeline, consisting of both a natural gas transmission line and a flowline that connects the buoys, on the sea bottom; plowing a sub-sea trench and placing the pipeline in the trench; and backfilling the trench and hydrotesting to ensure pipeline integrity. Next year, the company will focus on installing the buoy system, which will connect the LNG vessels to the sub-sea pipeline, and the connection between the new pipeline to the existing Spectra Energy HubLine^.

In case you’re wondering did you sleep through the protests over this project. No, there haven’t been many objections. This project is different from other LNG terminals that seem to draw protests like flies to sugar. This one doesn’t have giant tanks and terminal facilities–it’s a buoy system that is basically out-of-sight and out-of-mind when not in use.

The LNG is turned back into a gas onboard the tankers and then the gas is shipped through the buoys into the pipeline and then into existing networks to reach its intended markets.

Stay tuned. More to come. LNG may become a hot topic when the new president is sworn in–whether it’s Obama or McCain. Both say the nation needs more natural gas, but haven’t said where these new supplies will be coming from.

–John A. Sullivan, News Editor, Oil and Gas Investor, www.OilandGasInvestor.com, jsullivan@hartenergy.com

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