Dear Neighbor:
We have achieved an important milestone in the fulfillment of National Grid’s on-going commitment to transforming its electricity and natural gas infrastructure to support smarter, cleaner, and more resilient energy solutions. The Federal Energy Regulatory Commission (FERC) issued a formal order on October 17 that paves the way for our facility at Fields Point to continue to meet the needs of our customers and become more efficient in our operations.
The
order
comes after an extensive examination by FERC, including the evaluation of key issues such as environmental impact, climate change, environmental justice, and public safety, to name a few. The proposal also underwent a thorough review by state agencies, including several public meetings.
It is important to note that liquefied natural gas (LNG) is just one piece of the region’s energy portfolio – but it is a critical one. LNG comprises up to 40% of the gas supply for National Grid’s customers in New England to heat their homes and businesses during the coldest days of the year. In fact, on two peak days this past January the Fields Point storage facility provided as much as 52% of the supply locally in Providence.
As we continue to support a diversified energy portfolio by driving the growth of renewable energy and innovations in energy efficiency, we are also obligated to provide the continued safe, reliable, affordable delivery of electricity and natural gas to our customers. This project will help us achieve that critical goal.
The existing Fields Point facility has served customers safely and reliably at its present location since the mid-1970s. This project will not change the amount of natural gas consumed in Rhode Island or the amount of LNG stored at Fields Point. The only thing changing is the way we fill the tank – this new equipment will enable us to liquefy natural gas on site.
Currently, we rely heavily on imported supplies to fill the tank at Fields Point and the cost is dependent on the often volatile global marketplace. The liquefaction facility will enable us to access readily available and often lower-cost domestic supplies, which will diversify our supply sources and help us keep costs lower for our customers who choose to heat with natural gas.
What’s next?
The FERC
order
sets the stage for the onset of construction within the facility to produce LNG at the site. We are in the process of completing our construction planning, which includes procurement of certain third-party services. Once that process is finished and all state reviews have been completed, we will provide more details on the construction plan and schedule.
While there will be many variables that will factor into the timeline, it is National Grid’s plan to have the LNG liquefier operational in 2020.
We look forward to seeing this project come to fruition and continuing to help meet the energy needs of those in Rhode Island today and tomorrow.
How to stay connected to the project
