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Quoddy LNG to FERC: We'll Get Back to You

With consideration of its project stalled at the FERC for lack of requested data, the sponsor of the Quoddy Bay LNG Import Project said last week it expects the review to resume after the company submits the requested information "in the near future."

The Federal Energy Regulatory Commission (FERC) told Quoddy in a recent letter that it was dropping consideration of the proposed liquefied natural gas (LNG) terminal in Washington County, ME, due to the sponsor's failure to answer questions and the fact that the project could be modified (see NGI, April 28).

Quoddy Bay President Donald Smith last week said, "The FERC letter accurately describes the present situation. Data supporting our application measures over six feet wide on our shelves and represents two years of engineering, environmental and safety studies. We are working to answer detailed questions on a few aspects of the project for FERC.

"[W]e also are working on other financial and environmental aspects of the project regarding our sources of LNG. LNG from some suppliers has a higher Btu content than others. In order to reach U.S. pipeline standards for natural gas we can either buy LNG with a higher Btu content and then add inert nitrogen, or we can buy LNG that when regasified already meets U.S. pipeline standards."

Quoddy said it has not yet decided whether to build a power generation facility and nitrogen plant that are being considered because it has not finalized its LNG supply. Avoiding these components would allow project costs to be cut "by tens of millions of dollars" and would mean a reduction in air emissions as well, the company said.

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