FERC terminates Downeast LNG applications

The United States Federal Energy Regulatory Commission on Wednesday issued an order dismissing and terminating Downeast LNG’s applications to build an LNG import/export terminal and associated facilities in Washington County, Maine. 

The project has been plagued with delays and hold-ups, with Downeast LNG requesting the commission to hold the pre-filing process in abeyance several times, first in November 2015, with the latest request filed on June 2 asking for the extension of the hold on the proceeding until September 30, 2016.

According to the FERC order, Downeast LNG requested the latest extension while it “pursued discussions with existing and potential investors to optimize the Downeast LNG project.”

Prior to the last request to hold the pre-filing process, Downeast LNG, with its majority shareholder, a private equity manager Yorktown Partners, put the company up for sale.

“We have reviewed our strategy and decided that an industrial player or a specialized investor such as an infrastructure fund is better suited to continue the permitting process and eventual build-out of the project,” George Petrides, Chairman of the Board of Downeast LNG, said at the time.

However, the commission noted that its “pre-filing process in Downeast has resulted in no significant recent progress toward the development of the bi-directional import/export project application or in stakeholder engagement.”

In the past nine months, Downeast LNG made no progress and presented nothing to persuade the commission that its situation is likely to change, FERC said, declining the latest request to hold the proceedings in abeyance until September 30.

In addition, because the project has not made progress in the pre-filing review process towards a single proposal, “its pending import application and bidirectional import/export pre-filing proceedings have become stale”, FERC said.

The proposed project was planned to have the capacity to export up to 3 million tons of liquefied natural gas per year (450 mmcf/Day) and regasify up to 100 mmcf/d.