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Business News/ News / LNG Plant Near Boston May Avoid Closure as Utilities Seek Deals
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LNG Plant Near Boston May Avoid Closure as Utilities Seek Deals

A critical liquefied natural gas import terminal near Boston at risk of being shut may get a new lease on life, as two regional utilities pursue deals to source fuel from the facility.

LNG Plant Near Boston May Avoid Closure as Utilities Seek DealsPremium
LNG Plant Near Boston May Avoid Closure as Utilities Seek Deals

(Bloomberg) -- A critical liquefied natural gas import terminal near Boston at risk of being shut may get a new lease on life, as two regional utilities pursue deals to source fuel from the facility. 

National Grid Plc is asking the Massachusetts Bureau of Public Utilities to approve a six-year supply deal with Constellation Energy Corp.’s Everett Marine Terminal, according to a filing Friday. Eversource Energy, meanwhile, said it plans to submit a similar request to regulators as early as Monday. 

The terminal, which has been in operation for more than half a century, has been a major safeguard against blackouts when bone-chilling cold hits the US Northeast. Because New England lacks enough pipelines to get gas from other parts of the country, it relies on Everett when heating demand spikes.

Read More: Gas Plant Guarding US Northeast From Winter Blackouts Is at Risk

The Everett terminal has been at risk of closure because its biggest customer, the Mystic power station, is set to retire at the end of May. Constellation has said the power plant is no longer economic to operate. Securing additional customers would mean Everett can continue to operate. 

Constellation has asked regulators to expedite their review of the National Grid contract and approve it by May 1, according to a person familiar with the discussions, who asked not to be identified as the information isn’t public. 

“This contract, together with others that we hope to soon finalize, will help ensure the Everett Marine Terminal continues to serve its vital role in supplying natural gas to the New England region, especially during the coldest winter conditions," Constellation said in an emailed statement.

More stories like this are available on bloomberg.com

©2024 Bloomberg L.P.

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Published: 13 Feb 2024, 12:13 AM IST
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