The Quoddy Tides

13 October 2006

Quoddy Bay LNG expands analysis for FERC

Quoddy Bay LNG has completed filing of its second round of draft resource reports to the Federal Energy Regulatory Commission (FERC), putting the project on track for a formal application this November.

As requested by FERC, the second round of reports includes additional environmental data, updated study results and greater detail of the design. Additionally, Quoddy Bay LNG has filed a report by Maritimes and Northeast Pipeline that defines the engineering requirements and maps the location of additional facilities. The report also lists the environmental resources associated with an expansion of the existing pipeline to accommodate up to 2.0 billion cubic feet of natural gas per day from the Quoddy Bay LNG facility.

Quoddy Bay LNG first submitted a complete package of resource reports to FERC in June. FERC requested additional data on design and analysis in places where that was unclear or not included in the initial drafts.

"A few weeks ago, FERC requested further information on our project, and we are happy to announce that we've submitted updated drafts in a timely manner," said Quoddy Bay LNG Project Manager Brian Smith. "Following this, we're on track to submit our final, formal application to FERC next month."

Resource reports are a series of structured requests, including environmental and safety testing results, design details, facility planning, construction procedures and operational plans for the import and regasification facility, the storage facility and the sendout pipeline.

Critics of LNG development in the area have expressed concern that FERC has not been thorough with its review on all projects. FERC, however, continues to require a higher level of detail and thoroughness in these resource reports than in recent years.

"Much of what FERC has requested would have previously only been required during final design," noted Smith. "These requests indicate FERC is giving the Quoddy Bay LNG project a thorough review in order to ensure not only a complete application, but a safe and reliable facility."

FERC requested a second, comprehensive set of draft resource reports to ensure Quoddy Bay LNG's final application in November will be complete, supplying the commission with the information it needs to review the project with regard to federal regulations.

In the coming months, Quoddy Bay LNG will turn its focus to the state and local permitting process, as well as move forward to other aspects of the development. After submitting the formal FERC application in November, Quoddy Bay LNG hopes to have all local, state and federal permits in hand by fall 2007, which would enable construction to commence in Pleasant Point and Perry toward the end of 2007.