Calypso LNG LLC said it has informed the Maritimes Administration (MARAD) and U.S. Coast Guard that it will withdraw its application for a deepwater port license to build a liquefied natural gas (LNG) facility off the southeastern coast of Florida.

The announcement comes about a week after Florida Gov. Charlie Crist vowed to oppose the Calypso project, which was to include ships, a marine offloading buoy and anchoring system located eight to 10 miles offshore of Broward County northeast of Port Everglades. The explosive growth in gas shale production, which has offset the demand for LNG in the United States, also may have factored into Calypso’s decision to pull the plug on the project (see Daily GPI, Jan. 5).

“The Maritime Administration and Calypso remain committed to the long-term value of liquefied natural gas as a new source of clean, reliable and secure energy, and hold out the hope that the company may resubmit the application at a later date and under more favorable conditions,” MARAD said.

The Calypso project last July received a final environmental impact statement from MARAD and the Coast Guard (see Daily GPI, July 17, 2008). The proposed Calypso port was designed to connect to an undersea pipeline to be operated by affiliate Calypso U.S. Pipeline LLC. The pipeline would have been capable of delivering more than 1 Bcf/d of natural gas into the Florida market (see Daily GPI, May 18, 2006).

Calypso LNG is a subsidiary of GDF SUEZ Energy North America Inc. SUEZ also is the parent of Distrigas of Massachusetts, owner and operator of an LNG receiving terminal in Everett, MA, which began operations in 1971 and serves most of the gas utilities and key power producers in New England.

In addition, SUEZ is building the Neptune deepwater port 10 miles off the coast of Gloucester, MA. Last October it completed the construction of a 13-mile subsea pipeline that will connect the Neptune LNG facility to the existing Spectra Energy HubLine (see Daily GPI, Oct. 20, 2008). The terminal ultimately will deliver 400-750 MMcf/d of gas to New England markets.

The second phase of construction, which is scheduled to begin in May, includes connecting the new pipeline to the HubLine and installing two off-loading buoys. Upon completion, the Neptune LNG facility will consist of an unloading buoy system where specially designed vessels will moor, offload their gas, and deliver it to customers in Massachusetts and throughout New England.

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