Oklahoma company files LNG letter with FERC

Saturday, December 17th 2005, 4:28 pm
By: News On 6

BANGOR, Maine (AP) _ An Oklahoma company has filed papers with the Federal Energy Regulatory Commission stating its intent to develop a liquefied natural gas terminal on Passamaquoddy tribal land in eastern Maine.

Quoddy Bay LLC on Friday filed a pre-application letter with the agency.

``We're thrilled to initiate the structured, transparent, federal permitting process to bring this significant development to Maine,'' said Brian Smith, Quoddy Bay project manager.

The filing is the first step in the federal permitting process. It is evidence, Smith said, of Quoddy's Bay commitment to spurring economic growth in Washington County and helping provide clean, reliable energy to New England.

Quoddy Bay said it plans to build a $500 million LNG ocean terminal at Split Rock on the southern tip of the Passamaquoddy's Pleasant Point reservation. A transfer line would carry the gas about a mile to a storage facility planned for the town of Perry.

In its filing with FERC, Quoddy Bay said it is seeking to begin construction in 2007 and to be in operation in 2010. The company said the project will create 500 jobs during construction and 70 full-time jobs after it is completed.

Besides paying up to 85 percent of Perry's tax revenues, Quoddy Bay has also offered the town a $1 million economic development package. The Passamaquoddy tribe, which would host the facility, would receive lease payments of up to $12 million a year.

Quoddy Bay officials said they expect to release additional details of the project this week.

Two other developers have also expressed interest in building LNG terminals on Passamaquoddy Bay.

Maine-based Calais LNG hopes to build a terminal in Calais with a capacity of 1 billion cubic feet of gas a day. Downeast LNG of Washington, D.C., said it hopes to build a terminal with half that capacity in Robbinston.