Federal Court Blocks Sparrows Point LNG Project

A federal appeals court in Richmond, Virginia upheld Maryland's denial of a water-quality permit for a proposed liquefied natural gas terminal in eastern Baltimore County, issuing a decision Tuesday that halts the $400 million project for the time being.

It was just last week that the proposed terminal and a related 88-mile pipeline was reaffirmed by the Federal Energy Regulatory Commission (FERC). But the Virginia-based AES cannot proceed with construction until it secures the required state permits and meets nearly 170 conditions imposed by government agencies, most of them involving environmental and safety issues.

Before tankers could navigate the harbor, AES would have to dredge a 118-acre turning basin and approach channel to a depth of 45 feet. AES has not submitted a plan for disposal of the dredge material, which could contain decades' worth of hazardous materials from industrial operations at Sparrows Point. Maryland Department of the Environment officials argued that such dredging could wipe out aquatic life in the area. (Balt Sun, 12/23/09)