Americas News
New Deal Could Mean Less Transparency on Tacoma LNG Bunker Business
A new multi-party settlement means that the State of Washington's utilities commission will not regulate the ship bunkering business at the proposed Tacoma liquefied natural gas (LNG) liquefaction facility - although peakshaving operations will be regulated, Argus Media reports.
The move is said to diminish transparency in the bunkering portion of the Tacoma LNG plan.
As Ship & Bunker has previously reported, the Port of Tacoma is the location of Puget Sound Energy’s (PSE's) proposed LNG plant, which will also support LNG bunkering, specifically for Totem Ocean Trailer Express (Totem Ocean).
Under the new agreement, PSE will be able build the $275 million liquefaction facility in order to serve regulated gas customers, bunkering, and other high-horsepower industries in the area.
Further, PSE's parent company, Puget Energy, will be able to establish a new subsidiary, Puget LNG, which will be the primary owner of the Tacoma plant.
Puget LNG, which would not be regulated, would own 57 percent of the infrastructure - used to produce, distribute, and store LNG for bunkering and other high-horsepower applications, while PSE would own about 43 percent of the infrastructure - used to produce, store, and distribute LNG to help peakshaving demand for gas customers.
Puget LNG would own 100 percent of the proposed bunkering facilities, 90 percent of the liquefaction plant, and 95 percent of the truck-loading facilities, while PSE will own the remaining portions, including 100 percent of the proposed vaporization units, and 79 percent of the storage facilities.
According to testimony heard in regulatory proceedings, through the joint ownership with its unregulated affiliate, PSE is said to have been enable to provide tens of millions of dollars in savings to customers for the plant's construction.
The settlement is noted to have been reached by the Washington Utilities and Transportation Commission, PSE, the Public Counsel at the Washington attorney general's office, the Northwest Industrial Gas Users, and the Industrial Customers of Northwest Utilities in late September.
The three governor-appointed commissioners must approve the settlement before it is finalised.
In August, Commissioners of the ports of Tacoma and Seattle, through the Northwest Seaport Alliance, approved two easements for the project.
