Even as a controversy continues around the Broadwater liquefied natural gas terminal proposed for the Long Island Sound, Shell Energy North America is taking steps to sell natural gas that would be delivered through the terminal.

Shell is one of two Broadwater partners, along with TransCanada Pipeline. Shell said Wednesday it will begin discussions with gas distribution companies, power plants, and large commercial and industrial users of natural gas in Long Island, City and southern Connecticut. Broadwater could supply nearly 30 percent of the current annual demand for natural gas in its service area, Shell said.

"Based on Broadwater's continued progress, now is the right time to have further discussions with our potential customers regarding natural gas supply contracts from Broadwater," said Mark Hanafin, CEO of Shell Energy North America, in a statement. "Broadwater may well change the dynamics of the gas supply in New York."

The announcement is a sign of further confidence by Shell in the terminal project, which has faced strong opposition from Connecticut elected officials and residents who say Broadwater would harm the environment and pose a safety hazard.

A January report from the Federal Energy Regulatory Commission said the project would have no significant impact on the environment. The U.S. Coast Guard has said the project can be safely operated and protected, given the right conditions.

Broadwater and its opponents now await a decision from the New York Department of State on whether the proposal complies with New York environmental regulations for coastal areas.

"Subject to the upcoming decision by the governor of New York, we will introduce a competitively priced new supply of natural gas," Hanafin said.

Copyright (c) 2008, The Hartford Courant, Conn. Distributed by McClatchy-Tribune Information Services.

Related Project
Broadwater Energy
Facility Type: LNG Owner: Broadwater Energy LLC (TransCanada and Shell)
Scope: New Construction Location: Long Island Sound, NY United States