Living with LNG Everett, Mass., residents split on pros and cons of plant

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EVERETT, Mass. – Liquefied natural gas may be a multimillion-dollar player in this urban community, but not everyone loves their backyard neighbor.

Tractebel LNG North America, Distrigas of Massachusetts, has been in this industrial city for more than 30 years – since 1971. Tractebel’s headquarters is in Belgium.

While LNG has been a way of life for Everett, Down Easters in Maine wonder about the effect a similar project would have on them. The population of Everett is approximately 38,000 people. Washington County has about 34,000 people total, according to the most recent data.

Last year, the Passamaquoddy Tribe and the Oklahoma City-based Quoddy Bay LLC agreed to build a $400 million LNG terminal at Pleasant Point near Eastport. The town of Perry has a say over the commercial use of the annexed land where the LNG terminal is proposed to be built. Voters on Monday are expected to give the project a thumbs up or down.

Quoddy Bay is paying the tribe $15,000 a month as part of an exclusivity agreement the two entered into last year. When a final contract is signed, the company will pay the tribe around $8 million a year. The company, which has no LNG experience, plans to market the agreement to a multinational oil company or to an investment partnership.

At Jenny’s Pizza and Subs on Medford Street in Everett, LNG is a daily event. “It’s a way of life,” said Joey Lecey, who was busy answering the telephone. From their location, Lecey and his crew could see the gigantic green tanker that just had docked at the Distrigas terminal.

“Some places have mudslides, others have tsunamis, we have LNG,” said Joanne Jones, who was making pizzas at the same shop.

Restaurant employees have given the ships names. The green one has been nicknamed Fenway Park. The red, white and blue one is dubbed The All American.

City Alderman Michael Marchese said there were problems associated with having an LNG facility so close.

Marchese’s advice to the Passamaquoddy in Maine: Weigh your options.

“I’m sure they came and offered you [the tribe] all the money in the world, [such as] ‘We’ll put in new schools.'” They can afford to do that,” he said. “So you weigh the good points and the bad points. I just think where we’re located here so close to Boston, I don’t think it’s a good idea to have that tank here.”

Marchese said he was concerned about safety. “I have an issue when they come up here and we read an article that says there’s a safety issue and then they come … and say there’s not a safety issue,’ he said.

The alderman said the city had little say over the company because of the federal government’s role in the permitting process.

“We could revoke their license and they could still operate. They’re the largest supplier of LNG around here, so what can people do?” he asked.

The LNG tanks here are just two among numerous tanks that store everything from gasoline to petroleum along the waterfront.

A housing complex and businesses are nearby. Students at the local school can watch from their windows as tankers arrive. There’s also a community center. On days when the LNG tanker is in, people know because a helicopter is buzzing around, along with boats from Massachusetts State Police and U.S. Coast Guard.

Everett Mayor David Ragucci, who lives within a half-mile of the plant with his wife and two children, said he sleeps very well at night.

“I don’t have any reservations about the security plan that is down there – the deployment of our police officers and the use of the state police,” he said.

The mayor said Distrigas pays the costs associated with moving the ships in and out of the port. He said the price tag was around $1 million, although company officials said it was closer to $30,000 each trip. The ships remain in port for about 24 hours.

The company also pays the city $5.4 million in taxes and employs approximately 36 people.

Distrigas has been a good corporate citizen, the mayor said, offering programs for students and residents alike.

“Anything we need, Distrigas steps up,” he said. “For example, we’re building a new high school and Distrigas is donating $750,000 toward” it.

Although the mayor said he doesn’t have any problems having the facility in his back yard, he suggested the Passamaquoddy keep any development away from homes and businesses.

He also had some business advice for the tribe: “I would tell [the tribe] to squeeze [the company] for every conceivable thing you need in that community because there is a huge profit margin,” he said.

The mayor, who said he would be happy to meet with tribal leaders, also recommended the tribe negotiate directly with a major LNG superplayer.

“Honestly, I wouldn’t want to commit to a mouthpiece. I would want to know who the real players are. So throw that man out of town and bring the real players in,” he said. “The key to this is going to be who the owner and operator is going to be. They [Quoddy Bay] don’t have any experience in LNG. I don’t care what they’re offering them, get rid of them. It’s not worth the risk. It’s not worth [what] you [the community], the tribe, the environment is going to be taking.”

Quoddy Bay developer Don Smith laughed when he learned of the mayor’s remarks. “Maybe people are threatened by new companies in the business,” Smith said. “My company is a real developer. I’ve developed hundreds of millions of dollars in projects, and while we haven’t done LNG, we’ve done similar projects and been quite successful.”

There are developers, Smith said, who work directly for the multinational oil companies that fail because they’re just too big. He said his company is small and can respond to community needs. He described a recent conversation he had with a large national construction firm that wants to build the terminal.

“He said, ‘You guys are smaller and must serve the community that you’re dealing with, and you may find a niche that will succeed.’ They said, in fact, ‘we’ll put our money on you rather than [on a major company].’ It was very flattering,” Smith said.