Frequently Asked Questions (FAQs)

Neptune Overview

The Neptune Project is a deepwater port that will be located in federal waters in Massachusetts Bay, about 22 miles northeast of Boston and approximately 10 miles off the coast of Gloucester. Neptune will be prepared to accept liquefied natural gas (LNG) deliveries in late 2009 via specially designed vessels. The LNG will be regasified on board these ships before being injected into a pipeline connection to the sub-sea HubLineSM pipeline, which is owned by Spectra Energy (Algonquin Gas Transmission Company). Natural gas deliveries will be used to meet demand in Massachusetts and throughout New England.

Why is this project necessary?

The demand for clean, safe, and efficient natural gas is projected to continue outpacing demand for all other fuel sources in New England – a successive increase in natural gas consumption of 1.6% per year is expected for the long term. Existing natural gas facilities (including the Everett LNG Terminal) cannot meet this increase in demand alone. New supplies are needed, such as new supply from the Neptune deepwater port.

Were there alternatives to the Neptune port, such as additional pipeline supplies?

New England is at the terminus of the U.S. and Canadian natural gas pipeline systems, and is capacity constrained. Shipments of LNG provide a critical supplement to natural gas pipeline supplies to the region. In fact, currently about 20% of New England’s natural gas is shipped in as LNG.

What company is responsible for this project?

Neptune LNG LLC, a subsidiary of SUEZ LNG NA (SUEZ), is developing the Neptune Project. The company’s business office is at Cruiseport, 6 Rowe Square, Gloucester, Massachusetts.

SUEZ is currently the largest importer of LNG into the U.S. A subsidiary has been operating the Everett LNG Terminal since 1971, which is the longest continuously operating LNG import terminal in the country.

Why is this an offshore project?

In New England, land is at a premium, particularly available coastal land. In addition, LNG facilities need deep water to accommodate the vessels and at least one pipeline connection with enough available capacity to make a meaningful contribution to the region’s natural gas supply.

Why did SUEZ choose this particular location?

This location has several key benefits. It does not require coastal land use. The sea-state conditions (e.g., the depth of the waters) support the technology. It specifically avoids the Stellwagen Bank National Marine Sanctuary. Additionally, the location avoids interfering with essential shipping lanes into Boston Harbor.

What is the construction schedule for Neptune? What about ship construction?

The Neptune Project involves installation of a 13-mile-long sub-sea pipeline that will be constructed between mid-July and September 2008. Connections of this pipeline to the HubLineSM and to the buoys being installed for the project are scheduled to begin in May 2009 and continue into September 2009.

Pipeline installation activities for 2008 include:

  1.  1. Laying the pipeline (consisting of both a natural gas transmission line and a flowline that connects the buoys) on the sea bottom;
  2.  Plowing a sub-sea trench and placing the pipeline in the trench; and
  3.  Backfilling the trench.

Forty-foot sections of the pipeline will be welded together before they are lowered to the sea bottom. A 6-foot-deep trench will then be plowed to accommodate the pipeline, and a 3-foot-deep trench will be plowed to house the flowline. Once the pipeline is set in the trench, the plow will be used again in the reverse direction to cover the pipe.

Two tankers (shuttle and regasification vessels or SRVs) are being built by Samsung Heavy Industries in South Korea. Once completed, Hoegh LNG, a Norwegian company respected worldwide for its expertise in shipbuilding and ship chartering, will provide SRV operating services under a charter agreement. Additionally, Boston Towing and Transport (BTT) is building support vessels that will provide security and bring supplies, food, and personnel from land to the offshore tankers.

Where is the HubLineSM located?

The HubLineSM includes 30 miles of 24-inch, offshore pipe from Salem to Weymouth, Massachusetts. It crosses underwater portions of Beverly Harbor, Salem Sound, Massachusetts Bay, Boston Harbor, Quincy Bay, and Hingham Bay and interconnects onshore with Spectra Energy’s (Algonquin’s) existing facilities in Weymouth.

How does the offshore terminal’s technology work?

Specially designed SRVs will bring the LNG from distant producing areas and moor at the buoy system. Using onboard vaporization equipment, the LNG will then be regasified and discharged through the buoy system into a sub-sea 13-mile, 24-inch-diameter pipeline to the HubLineSM and delivered to customers throughout Massachusetts and New England.

Essentially offshore tankers differ from tankers that dock onshore, in that the offshore tankers include vaporization equipment and a receiving cone to allow the ship to connect with an offshore buoy system for send-out of the vaporized LNG into the subsea pipeline.

How much LNG will Neptune be capable of delivering?

The project will be capable of delivering 400 million standard cubic feet per day of natural gas.

An LNG tanker’s capacity will be about 3 billion cubic feet, or enough to heat about 30,000 homes for a year.

What is the cost of this project?

The estimated cost for LNG ships, the buoy system, and a pipeline connection to HubLineSM is about $1 billion. The vast majority of the costs are for the LNG ships.

What about the mitigation benefits for fishermen, lobstermen, and other organizations?

The timing of mitigation payments is tied to the receipt of all permits and the beginning of pipeline construction.

SUEZ has worked with state and local officials on a package that totals $23.5 million to fund meaningful protection of the environment and assistance to the fishing and lobster industries. The package strengthens Neptune’s value to the region and validates SUEZ’s good neighbor commitment. Components include:

  • $6.3 million to fund a non-profit organization to buy/lease fisheries permits and Days at Sea for the inshore groundfish fleet, with funding managed by the Gloucester Fishing Community Preservation Fund (or an alternate);
  • $1.7 million for compensation for impacts to commercial lobstermen, including funds for unanticipated impacts to lobster gear as a result of construction. Funds will be managed by the Massachusetts Lobstermen’s Association;
  • $12.5 million to support local infrastructure improvements, lobster v-notch programs and seafloor mapping; and
  • $3 million for right whale impact mitigation.

This package includes substantial funding for additional efforts such as seafloor habitat characterization; acoustic buoy technology to protect right whales; a study of the biological impacts of the exclusion zone around the deepwater port; and public access and recreational improvements to the waterfront and Boston Harbor islands.

Is SUEZ a key player in New England’s energy market?

Currently, the company’s LNG provides about 20% of the natural gas to New England. This natural gas is used to generate electricity at power plants (about 30% of the region’s power is generated from natural gas), and to fuel homes, businesses, and industry.

What about the other LNG project that was just completed off the coast of Cape Ann?

This project is owned by Excelerate Energy and is similar in size and scope to the Neptune Project.