Crown LandingJuly 11, 2007
LOGAN TOWNSHIP, NJ - BP's $700 million investment to construct a natural gas import terminal here would provide a major boost to the South Jersey economy and also potentially offer more reliable and less costly energy supplies for the region, according to a newly-released economic impact study.
The study, conducted in 2007 by economists at the Edward J. Bloustein School of Planning and Public Policy of Rutgers University, estimated that the proposed Crown Landing project could - through its construction phase and operating life - generate approximately $1.2 billion in gross state product for New Jersey, as well as $850 million in personal income for workers, while creating more than 1,600 jobs in the state.
The study also concluded that the addition of new natural gas supplies and storage capacity could mitigate the effects of supply disruptions, resulting shortages, and natural gas price spikes, such as those caused by Hurricane Katrina in 2005. This is especially important given New Jersey's current heavy dependence on natural gas transported in pipelines from the Gulf of Mexico. The long transmission distances of the current supplies contribute to the cost of natural gas.
The addition of a reliable and significant supply of natural gas could also cushion the effects of periods of extreme cold or hot weather that, in other areas of the country, have driven up energy and electricity prices and interrupted energy supplies. Moreover, the report states that "this capacity could be re-supplied by tanker if a pipeline disruption were to interrupt delivery for a considerable period of time." In addition, use of cleaner-burning natural gas helps the region with its growing focus on reducing emissions of greenhouse gases.
The future economic development of the South Jersey Region will be enhanced by increased reliability of natural gas supplies. The report adds, "Natural gas and electricity are inputs to almost every part of the economy, and infrastructure investments that provide additional supplies and improve reliability would have widespread and positive impacts."
"This project will give a powerful and immediate boost to the South Jersey economy in terms of jobs, income, and tax revenues. Once completed, the additional natural gas capacity also offers improved energy supply reliability to New Jersey households and businesses," said Joseph J.Seneca, a co-author of the study.
"South Jersey is growing rapidly and we clearly see the need for additional energy supplies as we look to the future," said state Senator Stephen Sweeney. "This natural gas project will help meet those future needs, will provide hundreds of well-paying jobs for our residents, and will help us maintain the high quality of life we enjoy in South Jersey," he said.
The report organized the study's findings into two phases - construction phase and the 30-year operational phase. Results showed that during its three-year construction stage, the project is expected to generate nearly 1,400 new jobs, increase personal incomes by $210 million, add $278 million to gross state product, and generate $13 million in additional state and local tax revenues. Once completed, the on-going operations of the project are expected to create 231 permanent jobs (including 70 at the plant) and annual increases of $15 million in personal incomes, $21 million in gross state product, and $2 million in state and local tax revenues in New Jersey. The majority of these benefits would occur in the South Jersey Region of the state.
The study also found that the natural gas terminal is the most economically viable use of the Crown Landing site and estimated that its benefits would be two to five times greater than any other likely use of the site.
Added Lauren Segal, project manager for the Crown Landing project, "As New Jersey takes up a greater focus on reducing greenhouse gas emissions in the coming years, cleaner-burning natural gas is the right choice to help the state meet its aggressive targets. The state is also focusing heavily on alternative energy sources, such as solar, and BP has been a strong partner in that effort through both residential and commercial solar sales in New Jersey."
The executive summary of the report is available on line at: http://www.bpcrownlanding.com.
Additional background:
The proposed Crown Landing project is expected to deliver 1.2 billion cubic feet of natural gas per day, or enough natural gas to supply approximately 5 million homes per day, in the Mid-Atlantic region. The project includes construction of three storage tanks, a pier for docking ships, and associated equipment for processing and delivering natural gas into the regional pipeline network. The facility would be located in Logan Township, NJ, along Highway 130.
The Edward J. Bloustein School at Rutgers University is one of the nation's key educational centers for the theory and practice of planning and public policy. It conducts leading edge instruction and research into transportation, workforce development, energy, land use, the environment, and the full range of policy and planning issues confronting the state, region, nation and global community.
------------------------------------
For more information about the study, contact Professor Joseph J. Seneca, Rutgers University at (732) 932-2993 x757.
For more information about the Crown Landing project, contact Tom Mueller at (281) 366-5036, or visit http://www.bpcrownlanding.com/.
printer friendly