Feds Approve Plan to Ship Liquefied Natural Gas to South Jersey by Rail

SEATTLE (Oil Monster):  Plans to build New Jersey’s first liquefied natural gas terminal moved forward when federal regulators approved the use of trains to ship the fuel to Gibbstown on the Delaware River from Wyalusing in northeastern Pennsylvania — the first route in the nation where transportation of LNG by rail would be allowed.

The U.S. Pipeline and Hazardous Materials Safety Administration published its approval on Friday of the plan by Energy Transport Solutions, a logistics subsidiary of New Fortress Energy, which wants to liquefy natural gas from the abundant reserves in Pennsylvania’s Marcellus Shale, and export it via a yet-to-be-built terminal at Gibbstown in Gloucester County.

The idea of carrying the super-cooled natural gas by train about 175 miles to South Jersey was an unexpected development after earlier plans to use at least 360 truck trips a day. It is unclear whether trains would substitute for trucks or will be in addition to them.

The pipeline regulator said it was satisfied that Energy Transport Solutions could safely operate the trains despite protests by environmental groups that the highly explosive liquids carried in them represent a grave risk to public safety, especially if they travel through densely populated areas like Philadelphia or Camden.

“PHMSA’s technical evaluators have determined that the special permit provides an equivalent level of safety to what is required under the Hazardous Materials Regulations, and recommend that the permit be granted,” the agency said in a statement.

It authorized a special permit for shipments only between the two points, in a specific type of tank car; directed the applicant to submit its plans for the quantities of LNG to be shipped, and their timing, within 90 days, and said it must prepare local emergency responders to deal with any incident involving the release of LNG. The company must comply with the conditions within an estimated 6-12-month period before the shipments begin.

Courtesy: www.whyy.org