LNG supplies, solutions lacking

New England badly needs new supplies of liquefied natural gas, the country's top energy regulator said yesterday, but he's skeptical of calls for regional decision-making about where to put controversial LNG unloading and storage facilities.

Joseph T. Kelliher, chairman of the Federal Energy Regulatory Commission, speaking at a Boston energy conference, said the region came close to having to shut off gas customers involuntarily two winters ago to ration scarce supplies.

``You were saved last winter by the fact that we had the warmest January in 112 years," he said. ``You can't base your policy on the assumption that that will recur. New England does need new energy supplies. You're at the end of the pipeline."

With nearly a dozen proposals for LNG plants pending from Eastern Canada to Rhode Island, many local officials and environmental activists have said Kelliher's agency should get more involved in shaping a regionwide planning process for how many plants need to be built, and where. Many proposals, such as one in Fall River, face fierce opposition over fears that a terrorist attack or an accident involving an LNG tanker or storage plant could unleash a catastrophic firestorm, killing thousands of people.

``Regional siting has some initial appeal," Kelliher said.

But in other instances, such as finding places to store low-level radioactive waste, it has either failed to get anything constructed or has led to states due to get unpopular facilities reneging on their commitments to participate in multi-state planning.

``Regional siting is difficult. It hasn't actually worked in other contexts," Kelliher said.

He added that the FERC can't fill the role of regional decision-maker because ``We're not an economic regulator when it comes to LNG. We are purely a safety regulator."

Besides the Weaver's Cove LNG facility proposed for Fall River, other LNG proposals in the region include:

Converting Outer Brewster Island in Boston Harbor from a park into an LNG terminal.

Building two offshore unloading facilities about 10 miles southeast of Gloucester.

Erecting a facility on Passamaquoddy Indian tribal land close to the Maine-New Brunswick border.

Irving Oil is currently building an LNG plant in St. John's, New Brunswick, near a pipeline that feeds New England.

Kelliher spoke at an energy conference at the Marriott Long Wharf Hotel sponsored by Independent System Operator New England, which runs the six-state power grid.

Peter J. Howe can be reached at howe@globe.com.