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Quoddy Bay LNG, Maine

STATUS: Suspended

TYPE: Natural Gas

OPPOSITION:  Environmental groups; local residents

PROSPECTS:  Highly Unlikely

BACKGROUND:  In August 2004, the Passamaquoddy Tribe voted to allow Quoddy Bay LLC to build a liquefied natural gas (LNG) terminal on tribal land on the Pleasant Point Reservation near Eastport, Maine.  At the time, some members of the tribe opposed the project, and in 2005 a group of Passamaquoddys who call themselves “Nulankeyutmonen Nkitahkomikon” (We Take Care of Our Land) unsuccessfully challenged the Bureau of Indian Affairs’ (BIA) approval in federal court.  The project is estimated to cost of $700 million, and could achieve a peak sendout of 2 billion cubic feet of natural gas per day.

Various groups oppose LNG development on the bay, including the following:  Save Passamaquoddy Bay 3-Nation Alliance; Local Residents; Passamaquoddy Tribe Members; Local New Brunswick and Passamaquoddy Tribe Canadian Residents; Government of Canada; and the Providence of New Brunswick.  Canada has repeatedly stated that for safety reasons it will use every legal and diplomatic means to prohibit LNG transits into Passamaquoddy Bay, but that it does not oppose appropriately-sited LNG projects in Maine.

In October 2008, the Federal Energy Regulatory Commission (FERC) dismissed Quoddy Bay’s application without prejudice (meaning it can be re-filed) because the company failed to provide information the agency had requested.  At the time, Don Smith, President of Quoddy Bay LNG, said he was uncertain whether Quoddy Bay would have to start over, but that the dismissal simply delays the project’s timeline by a few years.  Smith said at the time that his company expected to be on line and operational by 2014. 

In June 2009, the Pleasant Point Passamaquoddy Tribal Government officially ended its lease agreement with Quoddy Bay, leaving the project with no terminal site.  Quoddy Bay LLC challenged the tribe’s legal grounds to terminate the contract.  In July 2009, FERC removed Quoddy Bay from FERC’s maps of Proposed LNG Sites in North America and Potential Sites in North America. On April 27, 2010, the BIA officially canceled the tribe’s lease contract with Quoddy Bay LNG.

At this time, Quoddy Bay LNG has not taken action to file a new application.   The status of the project is dead. 

SOURCES:  Environmental News Service: http://www.ens-newswire.com/ens/jan2006/2006-01-06-04.asp;
Bangor Daily News: http://www.bangordailynews.com/detail/142166.html;
FERC's Proposed LNG Sites in North America: http://www.ferc.gov/industries/lng/indus-act/terminals/lng-proposed.pdf
http://www.ferc.gov/industries/lng/indus-act/terminals/lng-potential.pdf (demonstrating absence of Quoddy Bay LNG)
FERC Docket No. CP07-38, Accession No. 20081017-3018, "Dismissal of Application" http://elibrary.ferc.gov/idmws/common/OpenNat.asp?fileID=11832541(where FERC states in the last paragraph, "This dismissal is without prejudice to Quoddy Bay filing a new application in the future if Quoddy Bay is able to finalize its design and provide a complete application. However, in accordance with the Commission’s regulations, it will be examined as a new proceeding.");
"Harper Tells Bush During Summit: No LNG Tankers," WQDY-FM http://www.wqdy.fm/2007_08_01_archive.html#8855409303527197108;
FERC Docket No. CP07-38, Accession No. 20070621-5006, "Protest of the City of Eastport" http://elibrary.ferc.gov/idmws/common/OpenNat.asp?fileID=11374700;
Nulankeyutomonen Nkihtahkomikumon ("We Take Care of Our Land"): http://www.WeTakeCareOfOurLand.org

Last Updated:  November 22, 2010