FERC Rejects Application for Maine Downeast LNG Export Facility

rejected.jpgTen years is long enough for the Federal Energy Regulatory Commission (FERC) when it comes to an LNG (liquefied natural gas) project. Yesterday FERC pulled the plug on an application from Downeast LNG, telling them their application to build an import/export plant along the shoreline of Maine (in Washington County) has been rejected. In December 2006, Downeast filed applications “for the siting, construction, and operation of an LNG import terminal and associated pipeline take-away facilities in Washington County, Maine.” In July 2014, Downeast filed a letter requesting the Commission initiate the pre-filing process for the conversion of its proposed import project facilities into a bidirectional import/export LNG terminal and associated pipeline facilities. The facility would use Marcellus Shale gas to export–an important new market for our overabundant gas supplies. In August 2014, the FERC approved Downeast’s request to pre-file the bidirectional import/export project. As recently as June 2015, Downeast boasted of plans to begin building the facility in 2017 (see Downeast Plans to Begin Building ME LNG Export Facility in 2017). But then oil prices crashed, and along with them, LNG prices. In May of this year, Downeast put their LNG project up for sale (see Downeast LNG Puts Maine LNG Export Project Up for Sale). Now it looks as though no one is going to build it, with FERC’s rejection. The agency said, in essence, it’s been ten long years with no appreciable progress, and that’s long enough…

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