Constellation Energy will continue operating a key LNG import site for the Northeastern U.S., months after the company announced the facility was potentially on the chopping block.
Enough regional gas customers signed six-year LNG supply contracts to make operations at the Everett LNG terminal in Boston economically viable, according to the Massachusetts Department of Public Utilities.
Everett LNG had faced closure because its operations were formally tied to supplying the Mystic power plant, which closed in May. The Federal Energy Regulatory Commission (FERC) warned that an extreme cold event could threaten the northeastern power grid without the LNG backup supply.
With the terminal remaining open, Boston will have two LNG import terminals, Everett and the Northeast Gateway LNG terminal, an offshore facility 13 miles off the coast of Massachusetts.
Keeping the facility open will not directly boost U.S. LNG manufacturers. The plant is subject to the U.S. Jones Act, which bars non-U.S.-made and non-U.S.-crewed ships from traveling between U.S. ports.
Since no U.S.-made LNG tankers are operational, Constellation will purchase LNG from the international market.
According to the U.S. Energy Information Administration, the U.S. imports less than an average of 100 MMcf/d of LNG, almost all of which goes to New England during the winter months. In 2023, all LNG imported into New England was delivered at the Everett terminal.