Down East LNG opponents want Robbinston proposal scrapped

Posted Dec. 12, 2011, at 11:31 a.m.
Last modified Dec. 13, 2011, at 12:51 p.m.
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ROBBINSTON, Maine — It has been six years since Downeast LNG proposed construction of a liquefied natural gas importation terminal in this Washington County community.

Some opponents of the terminal say enough is enough and last week asked the Federal Energy Regulatory Commission to pull the plug on the project after the firm backing it failed to meet a Nov. 8 FERC deadline for responding to 14 environmental data questions.

Robert Godfrey, a spokesman for the Save Passamaquoddy Bay organization in Eastport, cites in a letter to FERC what he terms a “long history of FERC deadline abuse” in asking the federal agency to dismiss the application filed by Downeast LNG.

Dean Girdis, president of Downeast LNG, said the deadline wasn’t met because it couldn’t be met, given that new federal standards and technical models for pipelines were only completed in November. Girdis said he expects his company to file the environmental data requested within a few weeks.

“We’re moving forward with the project,” he said Monday in a telephone interview. “We’re expecting a decision, either way, from FERC in April or May. At that point we’ll see how the market looks and make a decision on moving ahead.”

Girdis said Downeast LNG’s option on purchasing the proposed site of the project extends into June 2013.

The proposed $600 million import terminal won approval in a special election held in Robbinston in January 2006, with 227 voters approving the project and 83 opposed. The 80-acre facility sited near the St. Croix River’s confluence with Passamaquoddy Bay then was envisioned to include two LNG storage tanks, a regasification plant and a deep-water pier for docking LNG carrier ships. It also would include a 30-mile pipeline to Baileyville to link the facility to the existing Maritimes and Northeast Pipeline, which runs through Maine, linking Nova Scotia with southern New England.

Girdis said a University of Maine study showed the LNG terminal would create 90 operational jobs, 350 construction jobs and 230 “indirect” jobs in the region.

Canadian officials have opposed the Downeast LNG project and two other proposed terminals, one near Calais on the St. Croix River and another on Passamaquoddy tribal land at Split Rock in Pleasant Point. They cite concerns about safety and environmental risks such projects could pose to what Canada considers Canadian international waters.

Girdis said Canadian government objection amounts to little more than “border politics.”

“When we get approval and it has been determined that we meet environmental restrictions on the federal level, they won’t stop the project,” he said of the Canadian government. “They are not in a legal position to stop the project. They recognized in their own studies that they don’t have a basis in law to stop the project.”

Godfrey said Monday a U.S. Coast Guard requirement may prove problematic for Downeast LNG, which will be required to produce letters of cooperation from the nearby Native American community and from the Canadian government. “I’d be very surprised if either of those letters of cooperation will happen,” Godfrey said.

The Downeast LNG project has been, and remains, an on-again, off-again proposal. After a lengthy and contentious public hearing process, Downeast LNG withdrew its application for state permitting approval in 2007 and has never reapplied. There are no LNG applications pending with Maine’s Board of Environmental Protection.

In his recent letter to FERC Secretary Kimberly Bose, Godfrey claims Downeast LNG has “repeatedly and unapologetically failed to meet FERC information request deadlines, unreasonably stretching out the permitting process, placing an undue burden on the public.”

In his letter Godfrey also contends the natural gas market has changed so significantly during the past six years that the U.S. is evolving into an exporter of LNG rather than a gas-starved importer, making new LNG import terminals unnecessary. The 13 existing LNG import terminals in the United States, he claims, have a combined capacity of 19 billion cubic feet of gas a day. At the same time, the U.S. is projected to import 0.7 billion cubic feet per day in 2012, which translates to existing capacity being 27 times greater than projected import capacity demand.

A recent FERC analysis of natural gas markets supports Godfrey’s contention that the U.S. is experiencing a “glut” that doesn’t warrant expansion of imports.

“Aside from a small amount of LNG imports, at present, the North American natural gas market is self-sufficient and largely insulated from the international pressures that other commodities face,” an April 2011 FERC “State of the Markets” report says. “Strong domestic production growth, combined with added pipeline and storage infrastructure, have increased domestic supply and reduced geographic and seasonal price differences.”

Girdis agrees that market for natural gas has changed significantly with new methods of extracting gas from shale, but said that few of those changes affect seasonal demand in the Northeast, including Maine.

“The Northeast, including Boston, is still dependent on natural gas, and gas remains the fuel of choice for [electrical power] generation,” he said. “Pipelines in the Northeast from November through March, when it’s cold, are constrained by capacity. There may be shale gas in Pennsylvania and West Virginia, but that’s not near where it’s needed. You can’t get any more gas into the Northeast in the winter. New pipelines are so expensive to build, and there’s no right of way.

“I understand that the market has changed fundamentally, and the jury is still out as to whether the U.S. will be a gas-exporting country, as it’s extremely expensive,” he said. “But, even if that happens, the reality is that the U.S. is not one market, but multiple gas markets, and the Northeast will remain very dependent on importing natural gas.”

CORRECTION:

An earlier version of this story contained an error in the headline. The headline should read "Down East LNG opponents want Robbinston proposal scrapped," not "Down East LPG opponents want Robbinston proposal scrapped."

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  • Anonymous

    I see a link between this article and the Forbes Article.
    I see a link betweent this article and unemployment in Washington County and Maine.
    I see a link between this article and expensive energy cost in Maine and the USA.

  • Anonymous

    We are exporting more LNG that we are using. That is true. However should we impede the opportunity to export anything from our country? Even LNG?

  • Anonymous

    Producing natural gas from shale is unsustainable. First, is the impact on drinking water. A major study has shown the link between chemicals used in fracking and carcinogens in drinking water in Wyoming. More, way more important, is the release of methane in the production of natural gas. 8% of methane from production escapes into the atmosphere. Methane is 100 times more heat absorbent than CO2. Methane is warming the planet a lot more than CO2, which is why producing natural gas from shale is unsustainable.

  • Anonymous

    Real good my wealthy ones, Lets do away with job potential, reduced fuel cost and not one bit of problem with environmental. Its all about your personal agenda.
    Thanks for nothing.

  • Anonymous

    It is people like Robert Godfrey and the save Passamaquoddy Bay Group is the reason Maine is at the bottom of Forbes List.

  • Anonymous

    There is plenty of natural gas already available in Maine, as is evident by the distribution pipelines being built in the state — including to the Woodland mill in Baileyville. The problem is distribution infrastructure and cost-return realities, not the lack of natural gas.

    Girdis’ claim that pipelines can’t be expanded to carry a greater volume is even contradicted by his project’s own website, as it appeared today: http://www.downeastlng.com/why.php

    In paragraph 2: “… Only the Maritimes & Northeast (M&NE) pipeline has expansion capacity available, up to 2.2 bcfd from its current capacity of 500 mmcfd. ”

    …and in the first paragraph under the heading, New England: Increasing Gas Supply Connections:

    “… M&NE can readily expand capacity to serve demand growth.”

    Natural gas imports from Canada in the Maritimes & Northeast Pipeline are declining due to the increased supply coming from the US. Canaport LNG in Saint John, New Brunswick, is operating at only around one-third its capacity. The two other new LNG import terminals in Massachusetts Bay are nearly idle.

    This region alone has multiple-times the LNG import infrastructure predicted to be needed by the entire country – Canaport (1.2 bcf/day), Distrigas in Everett (0.715 bcf/day), and Northeast Gateway (0.8 bcf/day) and Neptune LNG (0.75 bcf/d) in Massachusetts Bay, totalling 3.465 bcf/day. The US Department of Energy predicts that the near-future US LNG imports will total only 0.7 bcf/day, and will drop farther off the cliff in the future. Even Trinidad and Tobago, the largest LNG supplier to the US, whose supply to the US has already dropped about 66%, is predicting their exports to the US to drop to zero.

    Importing more LNG would increase US reliance on fuel imported from overseas and would increase the US trade imbalance. Attempting to add more LNG infrastructure in Maine or anywhere else in the lower 48 states makes no business sense — unless all you need is one huge tax write-off from a failed project (putting a greater tax burden on the rest of the US population).

    If Downeast LNG actually believed their project were needed, all they would have had to do is to move to a site that complies with the world LNG industry’s own terminal siting best safe practices. They could have then satisfied one of the two US Coast Guard’s roadblocks to the project. The requirement is that Downeast LNG obtain Government of Canada cooperation and coordination for safe and secure transits in both Canadian and US waters — an issue totally unrelated to Downeast LNG’s Law of the Sea innocent passage claim or to any US-Canadian maritime treaty. Quite simply, even if Canada were to passively allow LNG transits, they have no treaty obligation to coordinate or cooperate with secure transits.

    It is clear that Downeast LNG would rather fail than do the diligent thing from a business perspective. That alone betrays Downeast LNG’s false front; they never expected the project to succeed in the first place, and they still do not. All the developer (Girdis) is interested in is a good salary  so long as he can keep the project alive, and all the venture-capitalist backers are interested in is a huge tax write-off on a project they never expected to succeed.

  • Anonymous

    Investment bank Goldman Sachs knows how to make money, even when it is losing money. Goldman withdrew its investment in Calais LNG in July 2010 for a good reason: Calais LNG has no viability due to the decades-long domestic natural gas surplus. Goldman Sachs now advocates exporting LNG, not importing it. 
     
    Downeast LNG lacks the same business viability for the same reason, as well as for others already mentioned — only in Downeast LNG’s case, venture-capital investors Kestrel Energy Partners and York Town Energy Partners apparently seek multi-million-dollar tax write-offs instead of profit.

  • Anonymous

    Is there anything that the Godfreys and their allies will allow in Washington county? It seem that the only growth industry at the moment is assisted living facilities and nursing homes. God forbid that they attempt to build one near the Godfreys.

  • Anonymous

    Mr Godfrey, please enlighten us with what you have done to create jobs in Washington County  What is that I hear? Ah yes the sound of crickets, You and your group with the likes of recently recalled Perry selectman John Cook seem to be very good at saying no to anything and everything.  With NO solution or any personal investment in creating opportunities in Washington County.

  • Anonymous

    This project would create many jobs.  How about we take the names of anyone who opposes this project.  If they’re drawing unemployment, STOP THEIR BENEFITS IMMEDIATELY.

    This is nothing more than NIMBY. 

  • Anonymous

    You are the type of people we do not need here – divisive and self protective- go home

  • Anonymous

    what about exporting the gas via LNG ? what about the infrastructure a 30 mile pipeline would bring. If we let them build it gas can flow both ways and the gas can be tapped by communities reducing foreign oil. Ps you know nothing about the gas line in woodland and the reasons and circumstances related to it.

  • Anonymous

    The only reason the LNG shills came here is because they thought they could manipulate a bunch of poor desperate people who would believe anything they told them. They spread a little money around, took out some options and lease to purchase agreements, and started leveraging the tax credits versus the cost of maintaining a front. I’ll bet Dean Girdis is still getting paid from someone. They knew that industry surveys showed that there was little need for such a facility, and that there was a well-funded LNG terminal being built 50 miles away, with access to the same pipeline and less logistical problems, that would mean there was no need at all very soon. They milked their investors and the government money for all they could and then they packed up and went elsewhere. It’s fine if Mr. Godfrey thinks Save the Bay turned away LNG, and for the people burned by the developers Godfrey gives them a straw man to get all fussy about, but the fact is if there was a need, and the big money thought this was worth it, we’d have an LNG terminal around here by now. The Arabs and bankers  that write the big billion dollar checks aren’t scared of a few hundred people protesting. Corporations with real resources could have buried “Save the bay”, and greased the path with our Canadian neighbors if they thought it would pay off. The old saying, “money talks, bulls**t walks” comes to mind.

  • Anonymous

    The Save us groups ,No Common sense groups along with the TreeHuggers up north are only intrested in regaining there youth as a bunch of draft evading old hippies
    ps. Hows those tax dollar supported pay checks holdinig out? Like to write more but I have to go to work to support these free loaders. 

  • Anonymous

    Saving Passamaquoddy bay for who?  It is people like the Save Passamaquoddy Bay Group that has killed Washington County.
    MAINE……A GREAT PLACE TO DIE.

  • Anonymous

    Canada doesn’t want those LNG tankers comming through their waters to the US. I wonder how they feel about spilling radioactive water from Point Lepreau?
    http://www.ctv.ca/CTVNews/AtlanticHome/20111213/point_lepreau_111213/

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