Broadwater Energy LLC is a joint venture between TransCanada and Shell that is working to develop a Floating Storage Regasification Unit (FSRU) in the Long Island Sound. The first of its kind in the region, the FSRU would receive LNG from tankers and then store and vaporize it. The Broadwater Energy solution also proposes building a subsea underground pipeline that would connect the FSRU and its natural gas to existing pipeline systems servicing the northeastern United States.

Moored 9 miles off the coast of New York's Long Island and 10.5 miles off the coast of Connecticut, the FSRU would receive two to three LNG carriers a week. The Broadwater FSRU would have a storage capacity of 8 Bcf of natural gas and a send-out capacity of 1.25 Bcf/d.

The Broadwater pipeline would connect with the Iroquois Gas Transmission System, providing natural gas to New York and Connecticut. Total project costs have been estimated at $700 million.

Broadwater Energy LLC commenced the regulatory approval activities in 2004, when it began the NEPA pre-filing process. In 2006, the company submitted an application with FERC; and in March 2008 FERC issued its approval of the Broadwater project.

In June 2008, the project received a letter of recommendation from the US Coast Guard. Nevertheless, officials in Connecticut and New York State have made attempts to stop the project. In April 2008, New York Governor David Paterson announced his opposition to the project. Broadwater appealed New York's rejection of the proposal, but the U.S. Commerce Department subsequently upheld the state's decision -- leveling what observers have called a fatal blow to the project.

In its First Quarter 2009 earnings statement in May, TransCanada announced that it was taking a $27 million after tax write-down of Broadwater LNG project costs.