Regulators say loss of Everett LNG terminal threatens New England energy reliability

Big Sky Industrial

06/11/2023 22:14

Nov 6 (Reuters) - A possible loss of the Everett Marine
LNG terminal can jeopardize the reliability of New England's
energy supply during extreme cold weather, the Federal Energy
Regulatory Commission (FERC) and the North American Electric
Reliability Corp (NERC) said on Monday. 
    Constellation Energy  CEG.N , a U.S. energy firm, owns the
1,413-megawatt Mystic natural gas-fired power plant and the
Everett liquefied natural gas (LNG) import facility on the
Mystic River in Everett, Massachusetts. The Mystic power
facility is scheduled to retire after May 2024.
    The company provides fuel to its Mystic power plant and to
gas providers in New England using the LNG imported at Everett.
    However, the retirement plan may change if the regional grid
operator or another body determines the plant is required to
preserve reliability or for other reasons.
    The regulators noted evidence indicating that Everett's
retirement would be "manageable" for the electric system, at
least in the near-term.
    But if these expectations did "not materialize as
anticipated", it may become difficult to maintain affordability
and reliability in the event of a major winter event, they said
in a joint statement.
    In September, FERC and NERC presented findings and
recommendations of their joint inquiry into the power outages
and rolling blackouts during winter storm Elliott in December
2022.
    The inquiry found that the sub-freezing temperatures and
extreme cold weather caused unplanned electric generation supply
losses exceeding 90,000 megawatts.
    "Although much of the attention has focused on the electric
outages, the storm's effects on the natural gas system, and the
local gas distribution system in particular, cannot be
overlooked," FERC and NERC warned.
    The storm lowered flows of natural gas into the pipelines at
a time when shippers were requesting increased volumes of
natural gas, dramatically lowering line pressures and putting
stress on the natural gas system.

 (Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing
by Stephen Coates)
 ((sherinelizabeth.varghese@thomsonreuters.com;))