Abraham Energy Report: House Coast Guard Reauthorization Bill May Limit New LNG Construction

Abraham Energy Report: House Coast Guard Reauthorization Bill May Limit New
LNG Construction

WASHINGTON, Oct. 19 /PRNewswire-USNewswire/ -- The Abraham Energy Report's new
edition released today to subscribers includes an article highlighting a
little-known provision in the $10 billion Coast Guard Reauthorization bill
passed on Sept. 24 by the House Transportation and Infrastructure Committee
which could place additional limits on construction of new liquefied natural
gas (LNG) facilities in the United States.

The provision, buried in the legislation, focuses on the construction of some
new U.S. maritime terminals for "especially hazardous materials," which
includes LNG and some agricultural chemicals.

The article reports that, "The language was proposed by U.S. Rep. Elijah
Cummings, D-Md., who has expressed reservations about the security of LNG
tankers and terminals along urban waterfronts. Cummings's district includes
part of the Baltimore waterfront.

"The latest Cummings amendment would require the Coast Guard to guarantee the
security of vessels and facilities handling LNG and agricultural resources
before any such facility is even built. Like all shore-side U.S. facilities,
these terminals are already required to operate in strict compliance with
current safety standards, including local and state regulations, before
tankers carrying hazardous materials can use a facility. The rule, if enacted,
would prevent terminals from being used if the Coast Guard says it doesn't
have enough resources to guarantee the security of a facility.

"'My amendment would not stop LNG terminals, or anything else, from being
built,' said Cummings. 'The only thing my amendment does is ensure that
especially hazardous materials are protected with security measures meeting
standards set by the Coast Guard for these materials. These are chemicals that
can do massive, catastrophic damage if they are not properly secured. I
believe my amendment ensures that they are.'

"Republicans and Democrats alike expressed concerns about the provisions. 'The
amendment creates unnecessary and duplicative requirements that will be
impossible to implement, and may simply seek to prevent the construction of
new facilities to handle important energy and agricultural resources,' said
U.S. Rep. Frank LoBiondo, R-N.J., the ranking member of the Coast Guard and
Maritime Transportation Subcommittee. 'I hope we can address these concerns as
this legislation progresses.'

"The reauthorization bill is pending in the House, and a number of members
have vowed to eliminate the provision before the bill is signed into law.

"'As our nation's energy needs are expected to grow by 50 percent over the
next two decades, it is imperative that we pursue an all of the above
approach,' said U.S. Rep. Fred Upton, the top Republican on the House Energy
and Environment Subcommittee. 'Natural gas is of critical importance as we
seek to meet our energy demands of tomorrow. However, the shortsighted
provision tucked into the Coast Guard bill has the potential to derail all new
liquefied natural gas terminals with unlimited government red tape. Such an
effort defies common sense, especially with such stringent laws already on the
books.'"

"There are seven U.S. mainland LNG facilities, according to FERC. Twenty new
LNG terminals have been approved and are under construction or awaiting
construction, as of Sept. 15, 2009, and another nine have been proposed.

About the Abraham Energy Report

The Abraham Energy Report is a subscription-based monthly newsletter, which
offers a unique blend of timely and exclusive insights into global energy
markets coupled with sharp analysis of geopolitics and energy policy. The
Report's publisher and editor is former U.S. Energy Secretary Spencer Abraham
who currently serves as chairman and CEO of The Abraham Group LLC in
Washington, D.C.

Contact: Joe McMonigle 202-393-4673
For More Information: AbrahamEnergyReport.com

SOURCE Abraham Energy Report

Joe McMonigle of the Abraham Energy Report, +1-202-393-4673