Calais LNG project will continue, vows project manager - Jul. 27, 2010
Calais LNG project will continue, vows project manager
By BARB RAYNER
barbrayn@nbnet.nb.caCALAIS – Too much has been accomplished in the development of the Calais LNG project over the past five years for them to stop now, says Ian Emery, development manager for the project.
In a telephone interview he admitted that the news last week that Goldman Sachs is in the process of selling its interest in the project to a new financial partner came as a shock but said the project will still go ahead.
“There is a little hiccup here, a little bump in the road, and we are going to get through it,” he said. “I think it was a shock to us because we have spent five years developing this project and are getting very close to the goal line.
“I can only deal with things that I can touch and feel here in Washington County and I am very much in tune with how my friends and neighbours feel about economic development and about the support they have for our project.”
Emery said he could not represent Goldman Sachs but he could speak to his belief in North East Energy Development, of which he is development manager, the company directed to develop the permitting for the project.
“We have accomplished a tremendous amount of work. We have a third of the permits we need. Now we need state approvals and work authorization.”
He said there had been a “tremendous amount” of money and time invested in seeking approvals with the Federal Energy Regulatory Commission (FERC) and other agencies.
“The project certainly isn’t dead and we are moving forward.”
Emery said the expectations are that the project is going to move forward and they are looking forward to moving into the next phase which is construction.
“Our schedule is basically based on getting our permits, our state approvals this fall and FERC certification – we have finished a third of the data requested – by Christmas or the first of the year in January 2011 and then from there our plans would be to go to construction.”
The earliest they would start construction, he said, would be in the fourth quarter of 2011 and it would take between 38 and 45 months which would make the LNG terminal operational by 2015.
He estimated construction jobs would put 1,000 people to work and, once the facility is complete, there would be between 100 and 150 full-time jobs between there and the four tug boats.
For those who say there is no need for more LNG terminals, Emery said it is their view that Canaport in Saint John cannot meet the current demand and there are expectations of further demand in the future as people are switching from oil and coal to cleaner sources of energy.
“Natural gas in the form of shale gas is not easily accessible. A lot of the shale gas currently being developed is not able to make it to New England markets so we are left with one source from the north coming from New Brunswick,” he said, adding that the Calais LNG project is an opportunity to enter the market to service New England in a competitive manner.
“We feel there is room for us to participate in that market and bring energy costs down and help business. We desperately need jobs in Washington County.”
Emery said that from what he understands when the Maritime and North East Pipeline went through Charlotte and Washington counties there were benefits to restaurants, hotels and the general supply business during the construction phase.
He said the Calais LNG project has two components because they would like to develop a trucking business once the facility is completed so they can truck natural gas to those who cannot access it by pipeline.
“There are paper mills that would love to use natural gas but they don’t have access to it. A big part of my vision is once the facility is up and running we start developing these markets and supply areas not connected to the pipeline. That would create more jobs.”
Emery said he will continue to serve as development manager, as well as informing people on the scope and progress of the project.
“It is a good project and will create new opportunities and will be a reason for my children to stay here because I believe it is going to improve our economy and, if that improves, it means there will be jobs for my children and my children’s children.”
There are a lot of people with a wealth of expertise involved in this project, said Emery, and they could not ask for a better team.
“We are staying focused. I have seen my share of ups and down and been through a lot of challenges with this project and at this point too much has been accomplished for me to stop now and there are too many people relying on this project to succeed and I owe it to the supporters to make it happen. I am marching forward.”
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