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Frequently Asked Questions About Fields Point

Liquefied natural gas (LNG) is natural gas cooled to a temperature of -260 degrees Fahrenheit, turning it into liquid form. This is achieved through a process called liquefaction. Converting natural gas to LNG reduces its volume, making it more convenient to store and transport. On frigid days when natural gas is needed to heat customers’ homes, LNG is converted back to natural gas by pumping it from its storage container and warming it to approximately 60 degrees Fahrenheit. In New England, LNG accounts for 39 percent of the gas consumed on the coldest, peak usage days and approximately 4 percent of the gas supply for an entire winter heating season. The Fields Point Liquefaction Project will include the installation of new equipment adjacent to the existing LNG storage facility which will help National Grid source LNG to keep homes and businesses in New England warm on the coldest winter days and help keep prices stable.

On the coldest winter days, Rhode Island and much of the northeast depend on liquefied natural gas to maintain sufficient gas supply in the distribution system to keep furnaces running to warm the region’s homes and businesses. In New England, LNG provides for 39 percent of the gas consumed on the coldest, peak usage days and approximately four percent of the gas supply for an entire winter heating season. To maintain supplies, National Grid currently relies on imported liquefied natural gas supply from areas outside New England, which is trucked to local storage facilities. National Grid LNG LLC, a National Grid subsidiary, is proposing to create its own source of liquefied natural gas by installing liquefaction equipment at its existing Fields Pt. storage facility on Terminal Road in Providence. The facility would take natural gas from the local distribution system during off-peak times and cool it to a liquid state to be stored in the existing tank, which has operated safely and reliably in this industrial area since 1974. While other areas of the country meet their peak demands from pipeline supplies or underground storage, New England has no underground storage facilities and must rely on pipeline supplies and LNG to meet peak demand.

Currently, most of National Grid’s New England LNG supply is shipped to the region from foreign sources and transported to National Grid’s storage facilities by tanker trucks. It takes approximately 2,500 trucks to fill the Fields Point tank to prepare for the winter heating season. Demand for LNG has increased around the world, creating market volatility for LNG pricing. Unforeseen events can also place the reliability of LNG deliveries at risk, making it essential that the company do all it can to secure a reliable, reasonably priced LNG supply.

The tank and accompanying equipment at Fields Point are used to store and vaporize liquefied natural gas, but not make it. We are simply proposing to change the way we fill the existing tank. We are proposing to locate the liquefaction equipment on the same property, which has a number of advantages:

  • The existing facility is located in an area that has been industrial since the 1800’s therefore we are not disturbing natural resources or green space.
  • The facility is a substantial distance away from residential areas.
  • There is adequate land on the site to accommodate construction
  • The existing storage tank has adequate capacity and will not need to be expanded.
  • The existing facility has operated safely for more than 40 years.
  • There is easy access to major highways.
  • There is an existing natural gas pipeline connected to the site.
  • With on-site liquefaction, the tank will no longer need to be filled by tanker truck deliveries.

The manufacturing, storage and transporting of LNG all have outstanding safety records and are closely regulated. The existing LNG facility at Fields Point in Providence Rhode Island is used to store liquefied natural gas and has continuously operated since 1974 without incident. National Grid has LNG storage facilities in Massachusetts, Rhode Island, and New York and over 40 years of experience in the liquefaction process. National Grid owns and operates 13 LNG storage facilities, an LNG trucking company and 2 liquefaction facilities in NYC and Long Island, NY, all with excellent safety records.

LNG facilities owned and operated by interstate companies, like National Grid LNG, are regulated by the Federal Energy Regulatory Commission (FERC) and the Pipeline and Hazardous Material Safety Administration (PHMSA). More about PHMSA can be found at http://www.phmsa.dot.gov/. The facility is currently inspected by FERC every other year for compliance with engineering and safety standards. The facility is also inspected by DOT/PHMSA on an annual basis for compliance with federal safety codes and operations. All facilities undergo frequent inspections to ensure compliance with environmental regulations, industry safety codes, training practices and operational standards. They also must comply with security standards issued by the Department of Homeland Security.

The new equipment at the Fields Point facility is designed to PHMSA and the National Fire Protection Association standards. These standards include but are not limited to requirements that the LNG plant work with local emergency responders in development of emergency plans and provide designs that prevent any accidents or spills from impacting any areas beyond the plant property. The liquefier is being designed with storm hardening features to withstand natural disasters, including a 500-year flood, 150 mph winds, or an earthquake of a magnitude consistent with geological events in the region. This analysis is included in the project application. These important features ensure that any unlikely spills, releases or accidents do not impact any of the other facilities or infrastructure in the Port of Providence. Importantly, the LNG plant has never had one of these incidents in over 40 years of operation.

National Grid has performed extensive analysis as part of the permitting process for this project. The evaluation included in the application and supporting documentation has determined that there is no significant impact on air quality or public health.

The existing facility at Fields Point, which has operated continuously for more than 40 years, has an excellent environmental and safety record. The liquefaction project will require environmental approvals from Federal Energy Regulatory Commission, Rhode Island Department of Energy Management (RI DEM), and the Rhode Island Coastal Resources Management Council (RI CRMC). In addition, National Grid has consulted with NOAA Fisheries, U.S. Environmental Protection Agency, the Natural Resources Conservation Service, and the United States Geological Survey on the plans.

The liquefaction equipment is being designed to stringent standards meant to capture any emissions that might occur during the liquefaction process. The equipment we are proposing to use at Fields Point does not require the use of any hazardous chemicals or toxins. The only substance required for the liquefaction process is nitrogen, a safe element that makes up about 80% of the air we breathe.

In addition to the environmentally benign nitrogen refrigeration system project will avoid the use of combustion driven compressors and pumps through the use of electric motors to drive equipment. This feature will ensure air quality is not reduced by the project.

The Fields Point equipment has been designed with the environment in mind, and will also be designed to withstand natural disasters, including a 500-year flood, 150 mph winds, or an earthquake.

Additionally, this project will not increase the number of trucks traveling to and from the Fields Point site and will not drive additional emissions caused by trucking.

Detail on design features and analysis of impacts are contained in the Resource Reports of the project application.

The liquefaction project will not in itself impact the volume of natural gas extracted from any region. The nature of LNG peak shaving operations is to use underutilized supply during the summer months to store as LNG for use during peak demand. No more or less natural gas will be entering the region by pipeline as a result of this project.

Most of the natural gas consumed in the United States is produced in the United States. However, Canada provides approximately 10 percent of the U.S. supply, with 1.5 percent imported as LNG. Production from the Lower 48 states is the largest component of U.S. natural gas supply. Natural gas is transported across the U.S. via an integrated interstate pipeline system from gas producing regions to customers across the entire continent. Shale gas is one of many gas resources that feed the interstate pipelines along with conventional gas, underground storage, re-gasified LNG and renewable bio-methane. The liquefier will use the natural gas that is flowing to the region and already used by customers in Rhode Island.

The Fields Point project is independent of other proposed gas infrastructure projects in the region and does not include or require any pipeline infrastructure or increased pipeline capacity.

Customers’ natural gas bills already include the price of LNG purchased on their behalf. The cost of building the proposed liquefier will be included in the natural gas energy supply cost of the LNG supplied to National Grid’s New England natural gas customers. National Grid retail companies that purchase the LNG will bear their proportionate share of the costs within rates determined by the state regulatory commissions.

National Grid is not proposing any change to the retail rates that customers pay as a result of this project. In fact, the project is premised on the expectation that it will actually reduce price volatility for retail consumers and allow for stable, predictable natural gas costs for customers in the long term.

National Grid is not asking the City of Providence for a tax subsidy or any kind of special avenue to reduce the tax liability for the new LNG equipment installed. We have discussed a stabilization plan with the City, which is a process of estimating what the total tax would be on the property over a designated number of years and establishing an annual average payment. This would allow the City and the company to better budget the tax payments.

The Fields Point application was submitted in the Spring of 2016 to the Federal Energy Regulatory Committee (FERC). As FERC reviewed the application, National Grid responded to the commission’s requests for additional materials, continuing a dialogue with local officials and the community about our efforts, and looking to address any remaining concerns that may have been raised within the community.

The public comment period on the application ended on May 6, 2016. Prior to the application being submitted, National Grid held a public open house on the project to gather public feedback. In addition the FERC staff conducted its own outreach, including holding a public scoping meeting.

National Grid received the FERC certificate on October 17, 2018. With all necessary approvals and permits, FERC staff permitted mobilization for the project to begin on March 18, 2019.  Construction began on March 18, 2019, and the project is projected to be in service by Mid-2022.

Guidance on how to be added to the service list or how to subscribe to the FERC docket is available on the FERC website.

Preliminary schedules anticipate construction commencing in early 2019 with a project in-service date in late 2021.

The construction of the liquefaction facility will be strictly within the existing LNG property, while some adjacent National Grid property will be used for temporary construction storage and access. There are no plans to expand the plant.

This project will create over 150 construction jobs during the construction phase of the project. Construction practices and noise created by construction activities will meet all local ordinances. National Grid expects that work will be performed during weekday hours established by the City of Providence. The location of the construction activities within the LNG plant at Fields Point is at a significant distance from residential areas. Construction practices and noise created by construction activities will meet all local ordinances. National Grid expects that work will be performed during weekday hours established by the City of Providence. National Grid will continue to provide updates via stakeholder newsletters, and will maintain a project email and hotline throughout construction.

The Fields Point facility, today, already serves Rhode Island gas customers during times of very cold weather to keep homes and businesses warm and will continue to do so. Without the ability to inject LNG into the gas distribution system our customers would be impacted by a potential loss of pressure in the distribution system, which could cause a disruption of gas supply. By securing our own LNG supply we are securing our ability to meet the current local gas system needs for Rhode Island customers.

The health of New England’s economy, communities and environment depends on reliable, sustainable, and affordable energy supplies. Our customers depend on us to provide a safe reliable source of natural gas to serve their homes and businesses each day, which is why this project is important. But we are also focused on other energy supply initiatives. While much has been done in recent decades to strengthen the region’s electric power system, we now face an unprecedented challenge: Due to natural gas transmission pipeline constraints we are beginning to experience shortages of natural gas, which is used to fuel about half the region’s power plants. But National Grid has a strategy to address these challenges: We advocate for an “all of the above” solution that includes renewables, energy efficiency and increasing natural gas transmission. We’re working on a wide variety of initiatives, from solar installations and delivery of large-scale renewable electricity sources to natural gas infrastructure investment that will help the entire region move toward an affordable, clean, reliable energy future. You can learn more about National Grid’s energy strategy for New England here.