TYPE: Natural Gas
OPPOSITION: State of Delaware; Sierra Club Delaware Chapter
BACKGROUND: Crown Landing is a proposed liquefied natural gas (LNG) receiving terminal located near the New Jersey/Delaware state line, in New Jersey’s Logan Township. First proposed by BP America Inc. in 2003, Crown Landing involves the construction of a marine pier into the Delaware River and three storage tanks and a land terminal onshore. The onshore facility would store and convert the LNG into gas and send it into the nearby natural gas pipeline systems. Vessels containing LNG will unload at the marine pier on a recurring basis throughout the year. The project’s construction costs were estimated at $750 million, and upon completion the facility would be capable of sending out natural gas at a rate of 1.2 billion cubic feet per day.
Sierra Club Delaware Chapter opposes the project, citing violations of Delaware’s Coastal Zone Act, environmental and public health concerns, and terrorism and national security risks.
Permits have been Crown Landing’s main problem. The State of Delaware, which opposed the project, argued that its authority extends to the New Jersey bank of the Delaware River, and that it had jurisdiction over the 2,000-foot pier that is part of the project. Delaware and New Jersey litigated the issue. Citing Colonial era precedent, the U.S. Supreme Court sided with Delaware in 2008, essentially giving Delaware the ability to stop the project. Crown Landing was on indefinite hold after the Supreme Court’s decision.
In 2009, Hess Corporation purchased the Crown Landing project from BP. It has communicated to authorities an intent to restart the approval process in 2011, and is considering a reduction in the project’s scope by roughly 50 percent.
SOURCES: Reuters (http://www.reuters.com/article/idUSN1633454020070416);
State of Delaware (http://www.dnrec.delaware.gov/Info/Pages/BP.aspx);
Sierra Club (http://delaware.sierraclub.org/CrownLanding.htm);
LNG World News (http://www.lngworldnews.com/usa-hess-considers-changes-in-crown-landing-lng-project/);
Gloucester County Times (http://www.nj.com/gloucester/index.ssf?/base/news-5/125732404271810.xml&coll=8);
Rutgers University (http://policy.rutgers.edu/reports/other/BPCrownLanding.pdf)
Last Updated: November 24, 2010