According to a recent state report on improving the economy of Washington County, one of the most promising areas is energy, including liquefied natural gas. Although not the sole answer, an LNG terminal, it said, would bring jobs to the area. Done right, such a facility could be compatible with tourism and fishing and could boost other industries in the state.
Such thinking was strengthened by the first economic analysis of a specific proposed LNG project by an independent entity. The study of Downeast LNG’s plans to build a terminal in Robbinston was done by the Margaret Chase Smith Policy Center at the University of Maine. Although the study was paid for by the company, it is interesting to note that the economic benefits it expects are half as large as those predicted by a broader state analysis of the potential of LNG to create jobs in Maine.
According to the UMaine study, the Robbinston project would support 375 new jobs in Washington County and 966 jobs statewide during its three-year construction phase. The Washington County workers would receive an estimated $15.3 million in income annually. In addition, $223 million would be spent in state largely on the construction planning and supplies. Once the facility was operational, it would support 187 jobs in Washington County with total incomes of $8.1 million a year. Downeast LNG also plans to purchase tugboats built by a Maine company to bring tankers to its pier. This would support 87 jobs in Maine, adding $3.2 million to the state’s payroll.
These are not huge economic benefits, but in the absence of other plans to create jobs in the county, it is a good start.
Job creation is only one benefit of LNG. Having another source of fuel is another. LNG is cleaner burning than oil and coal, so displacing more polluting fuels in power plants would improve air quality in Maine and the region. Having additional supplies of gas will also lessen supply constraints that are currently causing officials to warn of electricity shortages and blackouts this winter.
These are among the many reasons that the Federal Energy Regulatory Commission is pushing for more LNG terminals in the United States. Three are proposed for Maine and many others are proposed around the country. Experts believe one or two terminals will be built in the Northeast. Regulators and financiers will play the largest role in determining where they are located because they will favor the best sites.
Jobs aren’t the only consideration, of course, and if Maine wants to be considered, it must first decide that LNG is welcome here and then solidify its support behind the best project. The economic impact study helps address the first point.
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