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Quoddy Bay Files to Build Maine LNG Terminal

Quoddy Bay LLC filed an application at FERC Friday to build a 2 Bcf liquefied natural gas (LNG) import terminal on a Native American reservation at Split Rock, ME, and a storage project in Perry, ME.

Quoddy Bay, an independent energy company based in Oklahoma, submitted its application after completing a year-long pre-filing review of its proposed LNG facilities at the Federal Energy Regulatory Commission.

The $700 million LNG project, which has been the target of considerable local opposition, would be partially located on the Pleasant Point Reservation of the Passamaquoddy Tribe in Washington County, ME. The 15-acre site abuts the Passamaquoddy and Cobscook Bays.

The project includes a 36-mile sendout pipeline from the proposed terminal to the Maritimes & Northeast Pipeline system for the delivery of gas throughout Maine and into southern New England; an onshore storage and regasification facility within one mile of Split Rock in Perry; three storage tanks with a capacity to hold about 10 Bcf of gas; and up to 2 Bcf/d of regasification capacity at either the pier or the storage tanks. Quoddy Bay expects the LNG terminal and storage facilities to be in service in the winter heating season of 2009-2010.

Assuming approvals by FERC and other agencies, Quoddy Bay said it plans to begin construction of the LNG project in the fall of 2007 and complete it in 36 months. The company expects to apply to other federal and state agencies for permits within the next several months.

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