Downeast LNG pushes forward with LNG plant

Downeast LNG (DELNG) has announced plans to develop a bi-directional LNG facility at its proposed location in Robbinston, Maine, USA.

The proposed LNG plant will be able to handle both the import and export of natural gas. The LNG facility will be able to liquefy 2 million tpa of LNG or regasify 100 million ft³/d of LNG, as market conditions warrant.

DELNG President and Founder, Dean Girdis, said: “Our project will bring much-needed jobs and economic development to Maine […] Having a bi-directional facility will give us the ability to respond to market conditions and customer needs while increasing the supply of natural gas in the state, whether we are importing or exporting.”

In May 2014, the LNG project received positive Final Environmental Impact Statement (FEIS) from the Federal Energy Regulatory Commission (FERC) for its originally proposed regasification project. Although the proposed bi-directional LNG facility will require modifications to the current site plan, much of the facility will remain the same.

The reconfigured DELNG project will retain one LNG storage tank, pier, regasification equipment and natural gas pipeline as currently proposed, adding liquefaction capacity to the current design. The estimated cost of constructing the facility is between US$ 1.3 and US$ 1.4 billion.

The LNG project aims to begin production in 2019/2020, offering LNG to buyers through a tolling model. As compared to other LNG projects proposed in the US, DELNG will offer LNG buyers an opportunity to access Canadian and US gas reserves, with gas committed under a fixed price contract.

DELNG plans to submit its FTA and non-FTA export requests with the DOE and enter the pre-filing process with FERC within a month. DELNG hopes to begin construction in 2016 and looks forward to developing its proposed project in collaboration with the citizens of Maine.

The company hopes that the development of the LNG project will help alleviate gas supply constraints in the New England region by contracting for 300 million ft³/d of firm gas pipeline capacity, thereby supporting the construction of new pipelines to the region and increasing market liquidity. DELNG will also release up to 20 days of pipeline capacity annually to New England consumers on the coldest winter days to increase gas supply, thereby reducing high winter spot gas prices in the region.

Adapted from press release by Callum O'Reilly

Read the article online at: https://www.lngindustry.com/liquefaction/23062014/downeast_lng_pushes_forward_with_lng_plant_820/