Downeast LNG Puts Maine LNG Export Project Up for Sale

The main project of Downeast LNG is to construct a 3 million ton per annum liquefied natural gas export facility on Passamaquoddy Bay near the Canadian border. (PRNewsFoto/Downeast LNG)

Downeast LNG concept – click for larger version

One of the planned LNG (liquefied natural gas) export projects that would use Marcellus/Utica Shale gas to export to overseas markets is a project called Downeast LNG–to be built along the coast of northern Maine (see 2nd LNG Export Terminal for Marcellus Gas Advances – in Maine!). Downeast was originally planned to be an LNG importing facility, but later changed to be an import AND export facility. Last June the company, backed by New York City venture capital firm Yorktown Partners, hired an engineering firm to design the facility with the promise it would be ready in 2017 (see Downeast Plans to Begin Building ME LNG Export Facility in 2017). But then the bottom dropped out of the oil market, and oil/LNG prices are closely aligned. Downeast put the project on hold earlier this year, asking the Federal Energy Regulatory Commission (FERC) to hold up on reviewing its application until June 1st (see East Coast LNG Export Updates – Bear Head & Downeast). The second shoe dropped not long ago for Downeast. You see, the project was planning to source gas at Wright, NY and transport it via Kinder Morgan’s Northeast Energy Direct (NED) project that would run from Wright, NY to Dracut, MA. That’s no longer an option (see NED is Dead – Kinder Morgan Suspends $3.3B New England Pipeline). There are other pipes that can possibly serve the plant, but not as easily has NED could have. Given the low price and NED cancellation, it won’t surprise you to learn that Downeast has just put the project up for sale. They no longer want to build it. The real question is, will anyone else want to build it?…

Please Login to view this content. (Not a member? Join Today!)
Password Reset
Please enter your e-mail address. You will receive a new password via e-mail.