Calais LNG folds in Maine, leaving Downeast as only remaining LNG project

CALAIS, Maine - Calais LNG has withdrawn its permit application with state environmental regulators.

Unable to find new money after a primary investor pulled out, the developer blamed lingering impacts from the global financial meltdown.

Calais LNG was one of three terminals planned for the St. Croix River and Passamaquoddy Bay, on the Maine-New Brunswick border.

Following its demise, and the failure of an earlier competitor, Quoddy Bay LNG, a single project now represents the final hope for bringing a new source of natural gas directly to eastern Maine.

"We always believed we'd be the last man standing," said Dean Girdis, co-founder and president of Downeast LNG.

Downeast LNG has a site in Robbinston, downriver from Calais. It's slowly moving through the regulatory process and hopes to gain federal permits next year, and state permits in 2012.

Apache Corp. to supply Kitimat terminal with liquefied natural gas

CALGARY, Alta. - Kitimat LNG Inc. announced on Aug. 10 that it has signed a memorandum of understanding (MOU) with Apache Corp. to supply natural gas to Kitimat LNG's proposed liquefied natural gas (LNG) export terminal on the coast of British Columbia.
The MOU sets a framework for Kitimat and Apache to negotiate a definitive agreement to supply 200 million to 300 million cubic feet (MMcf) of natural gas feedstock per day to the terminal, which has a planned capacity of 700 MMcf per day. Apache also obtained an option to purchase an equity stake in the Kitimat LNG terminal.
"We are very pleased to welcome an industry leader such as Apache to our growing team of exceptional project partners," said Rosemary Boulton, president of Kitimat LNG. "The participation of companies such as Korea Gas Corp. (KOGAS), GAS NATURAL, EOG Resources Canada and Apache gives our project strong momentum and reinforces the fundamental strength of our business strategy."

FERC gives Downeast LNG project favorable review

WASHINGTON - Federal regulators on May 18 gave a favorable environmental review of Downeast LNG's proposed liquefied natural gas terminal in Washington County, Me.
The Federal Energy Regulatory Commission said Downeast LNG's proposed LNG terminal and pipeline would have some adverse environmental impacts, but that they could be "reduced to less-than-significant levels" by the company's proposed mitigation efforts and additional recommendations included in FERC's draft environmental impact statement.
Downeast LNG is proposing a 320,000-cubic-meter LNG terminal, storage tanks, regasification plant and a pier on an 80-acre site on Passamaquoddy Bay in Robbinston, as well as a pipeline that would send the natural gas 30 miles northwest to a point near Baileyville where it would connect with Maritimes and Northeast Pipeline LLC's existing pipeline.