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Downeast LNG submits FERC request

LNG Industry,

Downeast LNG (DELNG) said that it had submitted its pre-filing request with the Federal Energy Regulatory Commission (FERC) to develop an estimated US$ 2 billion bi-directional LNG facility at its proposed location in Robbinston, Maine. The LNG facility will consist of both liquefaction and regasification technology, acting as both an export and import hub.

The facility initially had a proposed production capacity of 2 million tpa, although this was increase to 3 million tpa given market interest. DELNG said that construction of the Maine facility would begin in 2016 and that it would be operational as of 2019 – 2020.

The DELNG porject will offer LNG buyers an opportunity to access gas reserves from both Canada and the US, with gas committed under a fixed price contract or floating index.

Dean Girdis, president and founder of DELNG said that the filing represented an important step in the company’s plans for an LNG facility in Downeast. “Once the bi-directional facility is online, it 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.”

Adding liquefaction capacity

In May this year, the DELNG project received a positive Final Environmental Impact Statement (FEIS) from the FERC for its regasification project, originally proposed in 2005. The newly proposed bi-directional facility will now require modifications to the current site plan, although 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.

DOE export requests

DELNG plans to submit its Free-Trade Agreement (FTA) and non-FTA export requests to the US Department of Energy (DOE). The DELNG project will also contract 450 million ft3/d of firm gas pipeline capacity. DELNG also plans to release up to 20 days of pipeline capacity annually to New England consumers on the coldest winter days to increase gas supply, and thereby reduce high winter spot gas prices in the region.

Local economic growth

According to a study put together by a professor at the University of Maine, the bi-directional project will generate substantial job growth and represent an economic boom to the Downeast area. During its three years of construction, more than 2000 full and part-time jobs and labour income of more than US$ 375 million will be realised. Once completed, the statewide impact of its annual operations, including multiplier effects, will be an estimated US$ 68 million in output, 337 full and part-time jobs, and US$ 21.6 million in labour income.

The impact on Washington County’s economy, including multiplier effects, will be an estimated US$ 46.4 million in output, 207 full and part-time jobs, and US$ 14 million in labor income.

Adapted from press release by Ted Monroe

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