NY gov to oppose Broadwater LNG project-paper

NEW YORK, April 10 (Reuters) - New York Governor David Paterson is expected to oppose a project by Shell U.S. Gas and Power (RDSa.L: Quote, Profile, Research) and TransCanada Corp (TRP.TO: Quote, Profile, Research) to build a floating liquid natural gas processing plant in Long Island Sound, Newsday reported on its Web site on Thursday.

The Broadwater project, a joint venture of the two energy companies, is for a terminal with a capacity of 1.25 billion cubic feet of natural gas per day.

Paterson's office declined to comment.

Broadwater could not confirm that New York would oppose the project, but said it would not give up on the planned terminal.

"A denial would be a significant missed opportunity to lower energy prices for consumers and businesses. The regulatory process provides Broadwater a number of options going forward, and we intend to fully review the decision and findings, then evaluate the project's next steps," said Teresa Covington, a spokeswoman for Broadwater Energy in Houston. (Reporting by Matt Daily in New York and Bruce Nichols in Houston; editing by Jeffrey Benkoe)