A proposal to build a liquefied natural gas (LNG) terminal in Robbinston brings to two the number of sites being considered in Washington County. On July 11, Downeast LNG announced its plans to build an LNG terminal at Mill Cove in Robbinston.

     The announcement was followed by two meetings held in Calais to acquaint Robbinston residents with the proposed project. A similar information session will be held in Calais at 7 p.m. on Monday, July 25, at the American Legion Hall and in Eastport on Thursday, July 28, at 7 p.m. at the Eastport Youth Center. Informational meetings will also be held in surrounding New Brunswick communities. A meeting with elected officials in St. Andrews is also planned shortly, followed by a public meeting. According to LNG opponent Art MacKay of St. Andrews, the Canadian opposition to the LNG proposals will now become more proactive.

     Downeast LNG was founded by Dean Girdis of Washington, D.C., who serves as its president and has 17 years of experience in economic and energy development. Robert Wyatt, an environmental consultant who has worked on permitting major projects in 30 states and several foreign countries, serves as vice president of environmental affairs. The project's financial backers now are Kestrel Energy Partners LLC, an oil and gas private equity investment firm based in New York. Kestrel Energy Partners LLC and Dean Girdis are the only owners of the project. Additional members, such as a gas supplier and plant operator, will be added to the Downeast LNG team as the project proceeds through the permitting process, which is expected to take approximately two years.

     Kestrel LLC has no connection with Oklahoma-based Quoddy Bay LLC, which in partnership with the Passamaquoddy Tribe proposes to build a terminal at Pleasant Point's Split Rock site.

     Girdis says the 80-acre site on the south side of Mill Cove was selected after more than a year of extensive research. Kestrel LLC has a four-year option on the property. "We began our research in March 2004. Initially, our research focused exclusively on identifying communities that were receptive to LNG. This was done by speaking with groups working in the county, such as Sunrise County Economic Council and Eastern Maine Development Corporation, regarding communities that had expressed an interest in developing an LNG facility. Thereafter, environmental and technical site conditions were reviewed to determine if the communities had the proper conditions to support an LNG terminal. These included, but were not limited to, proximity to pipeline, deepwater access with no dredging, sufficient land for a terminal site, and minimal environmental impact."

     The Robbinston facility will consist of a single storage tank, processing equipment, a new pier and several small support buildings. Site acreage is adequate for the installation of a second storage tank if the demand for gas outpaces current projections.

     Girdis says the project will create about 300 construction jobs over the three-year period required to build the facility. After completion of the construction period it is expected that there will be about 45 to 50 supervisory, technical and maintenance jobs. According to Girdis, extensive training will be provided so area residents can fill the various job positions. Using the state of Maine's economic modeling, it is predicted that during the three-year construction period, direct local construction employment would provide 240 jobs, secondary employment would create 1,620 jobs, and the direct and secondary employment payroll would reach $54 million. During the 30-year operation phase, direct operation employment would provide 56 jobs, and secondary employment would create 243 jobs.

     Downeast LNG plans to promote sustainable and diversified economic development in Washington County, and as part of this objective, Girdis says Downeast LNG has decided to establish the Washington County Economic Development Trust (WCEDT) to assist local communities in achieving sustainable economic development by providing an ongoing source of funds to support a diverse mix of economic development initiatives. According to Girdis, WCEDT will support business development by providing funds of up to $500,000.

     Girdis says his company will assume 95 percent of Robbinston's tax burden and expects to pay approximately $5 million in local, county and state taxes. It is expected the project would pay about $600,000 in Washington County taxes.

     The project will require as many as 50 or more permits and a comprehensive Environmental Impact Statement (EIS) before site construction can be started. Each of the major permitting steps will involve significant public comment and involvement.

     Downeast LNG expects to receive one ship a week on average. Ship transit from Head Harbour Passage to the pier is expected to take less than two hours and offloading about 12 to 14 hours.

     As part of the planned community involvement, Girdis says his company will open an office in Calais, as early as next week. "We will have an open-door policy." He urges residents to visit the office or call the office to discuss any aspect of the planned development.