Gibbstown LNG Port Trying Sneak Around FERC and DRBC

For Immediate Release
Contact: Jeff Tittel, NJ Sierra Club, 609-558-9100

“There has been a major new development on the Gibbstown, NJ LNG port. Delaware River Partners, a subsidiary of New Fortress Energy LLC, has filed a Petition for a Declaratory Order with FERC for the Gibbstown LNG terminal. It was in the Federal Register; the Notice is attached. “The petition seeks a declaratory order from the Commission stating that DRP’s proposed liquefied natural gas transloading operations, as part of its multi-use deep-water seaport and industrial logistics center in Gibbstown, New Jersey (facility), would not subject the facility to the Delaware River Basin Commission’s jurisdiction under section 3 or section 7 of the Natural Gas Act, 15 U.S.C. 717b and 717f (2018), as more fully explained in DRP’s petition.”

“Delaware River Partners are trying to sneak their disastrous Gibbstown LNG port through without proper review and approval by FERC. Their Declaratory Order states that their proposed port for LNG is not under the FERC’s jurisdiction and therefore does not need the agency’s approval. This is downright wrong, DRP is trying to get around FERC approval. DRP are building an LNG facility and will ship it out to Puerto Rico. This come under the Natural Gas Act and FERC does have jurisdiction to open a docket a require an EIS. All other LNG ports have come under FERC,” said Jeff Tittel, Director of the New Jersey Sierra Club. “FERC needs to take jurisdiction over this facility and open a new docket like they did in Puerto Rico. That way there will be an opportunity for public comment and more transparency over the project. This is one of the few times we want FERC to get involved because they will require more scrutiny on this project.” 

The Delaware River Basin Commission voted to put a stay on the approval of New Fortress Energy’s LNG facility. The vote was 3-1-1. This stay will allow the agency to have more time to review the project and halt any construction. The Delaware River Partners (DRP) Gibbstown Logistics Center project includes a multi-use deep-water seaport and international logistics center currently under development, located at River Mile 86.5 of the Delaware River in Greenwich Township, Gloucester County, New Jersey.

“By trying to get around FERC, DRP are also trying to get around the DRBC. Under federal law, the Delaware Basin Commission was set up by Congress to have a 4 state compact with the federal government. The DRBC has equal footing with FERC and therefore DRP should not be able to get around their review. DRBC can have a separate EIS from FERC and turn down the project even if FERC approves it. These games that DRP is playing is an attempt to get around federal law and federal rules,” said Tittel. “LNG facilities are extremely dangerous to the nearby communities and can have wide-reaching environment consequences. A port along the river where combustible fuel like LNG is being transported and stored brings great danger to the region from potential spills and explosions. These are very real concerns, not just remote possibilities. Fortress Energy has been hiding what they have been doing, and the DRBC needs to do their job and protect the basin.”

In June, the Federal Energy Regulatory Commission (FERC) gave New Fortress Energy LLC 30 days to explain why they did not seek federal approval for their liquified natural gas (LNG) handling facility constructed at the Port of San Juan in Puerto Rico. Delaware River Partners (DRP), a subsidiary of New Fortress Energy, has proposed to build a liquified natural gas (LNG) export terminal in Gibbstown, NJ. This is a setback for New Fortress Energy because their facility in Puerto Rico is supposed to get gas from Gibbstown.

“FERC has called out New Fortress for cutting corners in Puerto Rico, it’s time they step in again. This is part of New Fortress’s pattern to get around anything and everything. They don’t want the public or government agencies to know what they’re doing. They will bluff and bully their dangerous and unnecessary projects through. New Fortress is gaming the system and it’s time for FERC to pull the plug. They have jurisdiction over this major facility, it’s time they use it,” said Tittel.  

The NJ Department of Environmental Protection issued an Air Pollution Control and Preconstruction Permit and Certificate to Operate Revision to the Delaware River Partners LLC. DRP is building a large-scale Liquified Petroleum Gas (LPG) and Liquified Natural Gas (LNG) gas facility. The permit is for the Dock 1 LPG degassing and flare for the cavern, which stores LPG. With this permit, they will be adding propane. 

“DEP should have held off and looked at the proposal in its entirety. Instead, they have issued DRP’s first air quality permit for the butane cavern. This alone can cause serious environmental problems and what’s even worse is DRP will be coming back to DEP for their permits to transport explosive LNG.  Many of these communities are in Environmental Justice areas such as Paulsboro. Now DRP is going to come back and apply for a permit for their Dock 2 that includes LNG. If DEP only looks at each segment of this project, they will overlook the overall project’s cumulative and secondary impacts. Components of LPG, such as butane and LNG, such as methane, come from fracking,” said Tittel. “Even though DEP have issued DRP’s first round of permits, they can still deny the LNG port air permits.”

New Jersey, The Sierra Club, Delaware Riverkeeper Network are among the groups and states being are in a legal challenge on the final rulemaking by PHMSA that approved the federal rule to allow LNG to be transported by rail all over the U.S.

“New Jersey has already filed a lawsuit suing the Trump Administration over a new rule that would allow for the transportation of liquefied natural gas (LNG) by rail. It would only make sense that they would oppose a facility that would be transporting LNG by rail through our communities. Delaware River Partners plan to bring 3.5 million gallons of LNG a day to the port from truck or rail, this is equivalent to 2 billion gallons of natural gas. What’s even more alarming is that PHMSA is going to allow rail tank cars carrying explosive LNG through our communities and neighborhoods. The dangers of a possible derailment, spill, or explosion would be catastrophic.  A train derailment carrying LNG will be much worse than what happened in Paulsboro, New Jersey when a tanker derailed and released 23,000 gallons of toxic vinyl chloride gas,” said Tittel. 

The Puerto Rico Electric Power Authority will be required to acquire thousands of megawatts of renewables and storage in the coming years, according to an order from the island’s energy regulators that also rejected many natural-gas additions included in the utility's integrated resource plan.

“We cannot let this DRP cut corners and bully their unnecessary fossil fuel project through. This is not just a small pier; this is a massive port that will major implications to the entire Basin.  Puerto Rico does not want LNG and now Ireland recently said that they won’t import LNG. This project is the opposite of what Murphy stands for, it will promote more fracking, more fossil fuels, and cause more air pollution in Environmental Justice Communities. If Governor Murphy is true to his word, then he needs to lead and stop this dangerous LNG facility,’ said Jeff Tittel, Director of the New Jersey Sierra Club. 

The public has until October 15th to intervene and or submit public comments into FERC.