State needs increased supply of natural gas
By J. ROGER WHELAN • June 6, 2008
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New Jersey needs a new supply of clean safe natural gas. Across the nation people are now embracing natural gas as the transitional fuel of choice as we continue to work towards permanent renewable energy solutions. This should not be surprising as globally natural gas is an abundant, clean and affordable fuel.
On an equivalent energy basis, the national benchmark for natural gas trades at roughly $70 per barrel of oil — roughly 55 percent of the current crude oil trading range. However, interstate pipeline transportation is expensive and often overloaded, so in New Jersey we pay in the $80 to $90 range for a barrel of oil equivalent. That's still a much better deal than crude oil, which accounts for more than 50 percent of our statewide energy consumption.
New Jersey needs more natural gas and with the aging interstate pipeline system unable to expand to meet the challenge, LNG supplies from the Caribbean and West Africa are the best, and probably only, feasible solution.
But at what cost to the local environment? I do not want to look out at a large LNG processing and storage island or platform barge off the Jersey Shore. Nor do I want to run the security risk of sizable permanent storage facilities in our harbors or off the coastline. These are real and understandable concerns.
The energy industry has incurred the wrath of local communities with its tone-deaf response to these issues. Given the progress made in on-ship regasification and submerged natural gas delivery, the resultant breakdown was simply not necessary. Our community needs natural gas, and suppliers should do their part to protect the environment and the way of life of residents, local fishermen and the community at large.
Liberty Natural Gas is proposing a real solution to our energy needs. We propose locating a total of four natural gas receiving buoys — each measuring just 20 feet by 30 feet and situated 100 below the sea's surface — 15 to 17 miles off the Asbury Park coast. When a ship arrives at the marker buoy, it winches one of the receiving turrets into its hull, securing it safely to the ship, and then connects to onboard regasification equipment.
Natural gas will travel to the Amboy area through a new marine pipeline, then on to the Linden gas transportation hub via a new onshore line that follows the existing industrial corridor. No new storage, no islands, no barges or tanks. When the ship has finished its delivery, it lowers the turret 100 feet back to the seabed and sails away. The submerged buoy system has been tried and tested in the extreme weather conditions of the Norwegian North Sea with more than 2,000 successful transfers without a single disruption for weather.
Closer to home, a similar project to the Liberty Natural Gas proposal, the North East Gateway Project, began successful delivery operations off Boston Harbor in the Massachusetts Bay just last week.
As an added environmental protection measure, the proposed regasification ships will operate using LNG rather than bunker fuel oil. Modern vessels designed with this new technology are in service today and have already reduced regular air and water emissions by more than 98 percent compared to conventional vessels.
We believe our project is the right solution to bring clean and safe natural gas to our region, and we look forward to meeting with residents in the Monmouth County area over the next few months to talk about our project and answer questions. More information is available at www.libertynaturalgas.com.
J. Roger Whelan is president of Liberty Natural Gas in Jersey City.
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