Quoddy Bay considering Perry site for $230 million LNG storage tanks

News Release

2005 October 22

WEBMASTER'S NOTES:

• This news release is from Quoddy Bay LLC — via their public relations representative, Savvy, Inc. — the developer proposing an LNG import terminal at Split Rock at Sipayik (Pleasant Point Passamaquoddy Reservation), and also a "fairy tale" never-before-done 8-mile-long cryogenic underwater LNG pipeline from Split Rock to storage tanks in Robbinston. This news release may mean that Quoddy Bay LLC recognizes that their Robbinston project is untenable.
• Placing LNG storage tanks in the location proposed in the news release means that LNG will need to be piped either (1) across a portion of Cobscook Bay — utilizing either: (a) a similar "fairy-tale" never-before-done underwater cryogenic LNG pipeline as the Robbinston project, (b) a pipeline over the water and across the bay, (c) via an underwater tunnel that will be exposed with the clam flats at low tide — or (2) across tribal and private property on land, perhaps utilizing eminent domain.
• This will be a full-blown LNG receiving terminal, with all the accompanying processes and equipment, not simply LNG tanks. Such additional processes and infrastructure may include removing "hot" gasses (such as propane) from the LNG and storing large quantities of it in tanks on site, regasification facilities, etc.

PERRY, ME — Following recent meetings with the Perry Improvement Association, Quoddy Bay, LLC announced today it is evaluating a specific site in Perry for a $230 million LNG Storage Facility in connection with the Passamaquoddy Tribe's Split Rock LNG Import/Pier Facility.

Two weeks ago, Brian Smith, the Project Manager of Quoddy Bay, met with the members of the Perry Improvement Association to discuss locating an LNG Storage Facility in Perry.

"We have been considering the possibility of an LNG Storage Facility in Robbinston but at the request of the Perry Improvement Association we are evaluating a site in Perry that is available to us for purchase," said Brian Smith. "We now have two good possible sites: one in Robbinston and one in Perry."

The company released an initial layout of the potential Perry LNG Storage Facility, which calls for three full containment LNG storage tanks, compressors, regasifiers, and gas send-out facilities. The proposed facility would be located in between Old Eastport Road and Cannon Hill Road in Southern Perry. The facility will be used to back-up the supply of gas form the LNG import facility, which will be located at Split Rock, approximately one and a half miles away.

"While the proposed LNG Storage Facility in Robbinston works, we have always been open to options and alternatives," said Don Smith, President of Quoddy Bay. "The particular site we are looking at in Perry is over a mile from the Passamaquoddy Bay, and is over a mile from the open fishing waters of the Cobscook Bay."

Quoddy Bay intends to send a letter to Perry residents to announce the possibility of an LNG Storage facility and to keep the community apprised.

"We will continue our engineering evaluations of both the Perry site and the Robbinston site," continued Don Smith. "We know that Robbinston will work, and we believe the Perry site is a viable alternative. We will continue look (sic) for support from organizations and individuals in both communities as we proceed with our engineering evaluations."

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