USA: Downeast LNG puts itself up for sale

Downeast LNG, that is proposing to build an LNG export terminal in Robbinston, Maine, said that its board and shareholders have decided to put the company up for sale as of July 1.

Downeast LNG’s majority shareholder is private equity manager Yorktown Partners, which manages approximately $7 billion in energy investments.

The company is proposing to build a 3 million ton per annum (450 MMCF/Day) liquefied natural gas export facility on Passamaquoddy Bay near the Canadian border. The project would also have the capacity to regasify up to 100 mmcfd.

“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,” said George Petrides, Chairman of the Board of Downeast LNG.

Petrides also said that although global LNG pricing has been low recently, there are two developments in the last few weeks that could help attract potential buyers.

“With the cancellation of the controversial Kinder project that would have gone east from Schoharie County, New York to Boston, we believe it is very likely that the Algonquin expansion will happen and will facilitate natural gas going from the Marcellus in Bradford County, Pennsylvania to our project in northern Maine,” he said.

“Secondly, we noted the successful capital raise by Venture Global last month and see that as continued interest by investors in US-based projects,” Petrides added.

The Downeast LNG terminal would consist of one storage tank, a liquefaction train, a small regasification plant, marine facilities, and a natural gas pipeline that will connect the facility to the existing Maritimes and Northeast Pipeline. The project would access both unconventional US gas reserves and conventional western Canada gas reserves.