Responding to FERC’s forewarning that Downeast Pipeline LLC’s pipeline project could be in jeopardy, the company has informed the agency that it will hold a 30-day open season for capacity on the line beginning Monday (Nov. 3).

The Federal Energy Regulatory Commission last Friday indicated that the proposed pipeline to serve Downeast LNG LLC’s liquefied natural gas (LNG) terminal project in Maine faced an uncertain future because of its failure to conduct an open season (see Daily GPI, Oct. 28). The Commission staff said it would discontinue review of the pipeline project unless Downeast Pipeline submitted a schedule for conducting an open season within 20 days or explained why it believed an open season was not necessary at this time [CP07-53].

If FERC halted its review of the pipeline project, this could have put the entire Downeast LNG LLC terminal project in peril. Downeast Pipeline said it would submit to the Commission the results of its open season within 30 days.

Downeast Pipeline earlier this year submitted to FERC a revised route for its pipeline facilities that would serve the LNG terminal proposed for Robbinston, ME, which would have a peak sendout capacity of about 500 MMcf/d (see Daily GPI, Jan. 25).

Downeast originally routed its proposed 31-mile pipeline through Moosehorn National Wildlife Refuge in Washington County, ME, which is owned and managed by the U.S. Fish and Wildlife Service (FWS). But the FWS in September 2007 rejected the company’s plan to run the pipeline through the refuge (see Daily GPI, Oct. 4, 2007).

In its revised proposal, the company seeks authorization to build a 29.8-mile, 30-inch diameter pipeline that would completely avoid crossing the Moosehorn National Wildlife Refuge. The facilities would extend from the proposed Downeast LNG terminal to the Maritimes & Northeast pipeline at the existing Baileyville Compressor Station in Baileyville, ME.

The Downeast LNG and pipeline project has faced its share of problems over the years, putting it almost in the same class as the embattled Weaver’s Cove LNG facility planned for Fall River, MA, in terms of the level of opposition. The project has been the target of criticism in Maine. Downeast LNG and the rival project of Quoddy Bay LNG — a proposed 2 Bcf/d LNG import terminal on a Native American reservation at Split Rock, ME — also ran into opposition from Canada, which objected to tankers using its waters to transport LNG to the Maine terminals (see Daily GPI, Feb. 16, 2007).

FERC earlier this month dismissed Quoddy Bay LNG LLC’s application to build an import terminal at Split Rock, citing the failure of the company to provide requested information (see Daily GPI, Oct. 21). As a result, Quoddy Bay LNG told Maine regulators over the weekend that it was withdrawing its request for state permits to build the project, but expects to refile them in the future (see Daily GPI, Oct. 29).

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