November 07, 2024
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3rd firm interested in building coastal LNG facility

CALAIS – A Maine-based developer in partnership with members of the Passamaquoddy Tribe has become the third entity attempting to build a liquefied natural gas facility along the coast of eastern Washington County.

BP Consulting LLC, a local firm formed specifically for the project, along with members of the Passamaquoddy Tribe at Indian Township, introduced the plan at a meeting of the Calais City Council on Thursday night.

The plan calls for the $500 million facility to be built on more than 250 acres in Red Beach between Devil’s Head Park and St. Croix Island, near Route 1. Red Beach is a village within Calais. In 1604, St. Croix Island was the site of the first French settlement in North America. A purchase agreement on the land has been reached with the unnamed owner, according to the developer. The price was not disclosed.

“It is important to point out that this is a community-based effort,” tribal state Rep. Fred Moore Jr. said. Moore is one of the partners in BP Consulting LLC. The company’s other partner is state Rep. Ian Emery, R-Cutler. “By that we mean the community of Washington County, that being the tribe, a local development consulting company… and other Maine companies and communities. We are not here for the fast buck and then leave. We are from here, we are going to stay here, and we are going to work together to develop the area.”

Moore said the consulting firm has other partners, but he declined to identify them. He said members of the firm are working with other tribes on similar projects in other parts of the country.

Under the plan, BP would own the land and the tribe would own the facility that would employ approximately 50 people. Plans call for a pier to be built in the St. Croix River, across from the Canadian shipping port at Bayside, New Brunswick. The gas would be piped along the pier to two storage tanks. Moore said the tribe would pay city, county, state and federal taxes.

The plan is one of three LNG proposals now being considered in the area.

Earlier this year, Oklahoma-based Quoddy Bay LLC entered into a lease agreement with the Passamaquoddy Tribe at Pleasant Point, a reservation located approximately 60 miles from Indian Township, to build a facility at Split Rock with an 8-mile underwater pipeline connecting to storage tanks in Robbinston. Cost of the project is estimated at $400 million. In return for the land, the tribe would be paid between $4 million and $8 million a year.

A few months ago, Washington D.C.-based Downeast LNG proposed building a $400 million LNG terminal and storage tank facility in Robbinston.

At the Thursday meeting, the City Council approved a resolution in support of an LNG facility within the city limits. It also agreed to send a letter of support to Gov. John Baldacci.

“I just want to say I’m really excited about this,” said Calais Mayor Vinton Cassidy. He said he viewed the proposal as the first real economic development project to come along in the city in a long time. “It’s going to happen someplace, and I wish it would happen here.”

Indian Township Lt. Gov. Joe Sockabasin thanked the council for its support. “I look forward to the tribe and city working together to bring economic development to this area. It’s sorely needed,” he said.

If the Pleasant Point project is not permitted, Sockabasin said after the meeting, Pleasant Point would be invited to become part of the Red Beach project. “If Split Rock doesn’t come to fruition for Pleasant Point, we definitely are not going to leave them out in the cold. We’ve always partnered in the past on different business ventures and we will continue to do that,” he said. He said both tribal councils and governors have said they supported an LNG facility in Washington County.

Moore said after the meeting that they expect to receive their permits in a year. Although Moore declined to identify the company’s other partners, Emery said they had spoken with several LNG companies that were interested in the Red Beach project.

Moore said the tribally owned project would benefit the community. “The tribe has secured the ability to finance the project and is eager to move forward in partnership with other communities in Washington County,” he said. He did not identify where the tribal funds had come from.

Moore said that once the facility was built, natural gas would be made available to institutions such as Calais Regional Hospital and Washington County Community College. He said it also was possible for LNG to be piped into homes.

The tribal representative said they were looking at building a cogeneration facility at Domtar Industries Inc. pulp and paper mill in Baileyville. Although he said he was not speaking for the paper company, he said the two sides had talked.

This latest plan, like the others, calls for large ships to travel through Canadian waters to their respective piers. In the past few weeks, officials in St. Andrews, New Brunswick, have said they were opposed to an LNG terminal across from their shores. Just this week, New Brunswick Premier Bernard Lord also said no to LNG.

Moore said he did not believe it was up to St. Andrews to decide. “I don’t think, with all due respect, it is within the right or capacity of a small town … to dictate the energy interests of the United States of America,” the tribal representative said. “That’s really an issue between [Canadian Premier] Paul Martin and [President] George Bush. And Canadian ships also have to go through U.S. waters in order to serve their interests. So I don’t really see this as a big issue.”


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