Friday, September 24, 2010

Calais LNG must have Canadian cooperation - Sep. 24, 2010

U.S. Coast Guard says international agreements vital to LNG plan


CALAIS – The U.S. Coast Guard says Calais LNG must have Canadian cooperation when their tankers pass through the Canadian portion of the planned route to their LNG terminal.
The U.S. Coast Guard captain of the port for Northern New England, Captain J.B.McPherson, submitted his waterway suitability analysis and letter of recommendation to the Federal Energy Regulatory Commission (FERC) Tuesday.

The analysis refers to “the development, by the applicant, of standard operating parameters approved by the U.S. Coast Guard and coordinated with the government of Canada to enable the safe and secure movement of LNG tankers through Canadian and U.S. waters”.

It goes on to state “The most probable security regime should consist of a mix of U.S. and Canadian federal, state/provincial and local law enforcement, which may require cost-sharing agreements, as outlined in the Energy Policy Act of 2005.

“As mentioned previously, a major portion of the vessels’ route is initially through Canadian waters. Calais LNG must be able to adequately demonstrate that an effective security regime has been established during the Canadian portion of the vessels’ planned route prior to a loaded LNG vessel being allowed to transit to the facility.”

Save Passamaquoddy Bay webmaster Robert Godfrey commented, “The government of Canada has repeatedly and firmly stated at the highest level that LNG transits are banned from Passamaquoddy Bay, indicating Canadian safety and security cooperation will not occur.”

He said all three LNG companies with proposals to develop LNG terminals in Passamaquoddy Bay have known of this reality since 2007.


  1. Two of the three LNG proponants here have come up against FERC'S Canadian requirement and have been stopped short.
    Calais LNG has a "It's not my problem, the hole's in their side of the boat" attitude.

  2. Actually, it is a US Coast Guard requirement, rather than a FERC requirement. Even if FERC were to grant a permit to construct, without Canadian cooperation LNG transits to the US terminals would be prevented by the Coast Guard.

    All three of the local LNG proposals have run up against this Coast Guard obstacle, although Quoddy Bay LNG was booted out of the permitting process by FERC, leaving Downeast LNG and Calais LNG without a way to obtain LNG.

    Calais LNG now has two insurmountable problems -- an inability to obtain LNG and no financial backing due to the project's lack of value.