Quoddy Bay LLC Awards Engineering Contract and Increases Scope for Pleasant Point LNG Terminal Project

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Researched by Industrial Info Resources (Sugar Land, Texas). Quoddy Bay LLC (Augusta, Maine) has awarded Black & Veatch (Overland Park, Kansas) several contracts for its planned Pleasant Point LNG receiving and regasification terminal to be located near Eastport, Maine. The contracts awarded to Black & Veatch include the design-feed, permitting and E+P+C contract for the proposed LNG terminal. Awarding of all these contracts in advance to lock in an engineering company’s services is becoming more common as the demand for such services has increased over the past year and a half.

In addition to awarding these contracts, Quoddy Bay has increased the scope of the Pleasant Point LNG terminal. The original proposal was for the construction of an LNG terminal with a regasification capacity of approximately 500 million cubic feet per day (mmcfd) of natural gas. The project scope has been expanded to support a daily natural gas send out capacity of approximately 2 billion cubic feet per day (Bcf/d). The terminal will now incorporate two shipping berths, three 160,000 cubic meter cryogenic LNG storage tanks, as well as a cogeneration plant to supply power the terminal. The cogeneration facility will be able to generate 160MW and will be composed of four GE LM2500 turbine generator sets. The cogen will be arranged in a 3 x 1 set up with three units online and the fourth unit being held as a back up.

To export the natural gas to the pipeline grid, Quoddy Bay is proposing the construction of a new 35 mile pipeline that will originate at the tail end of the terminal and interconnect with the Maritimes & Northeast pipeline system, just south of its Baileyville compressor station. The pipeline will be operated at 1,900 psig and therefore avoid the need for a new compressor station at the point of interconnection. Quoddy Bay is one of several LNG terminal developers seeking to tie into the Maritimes & Northeast pipeline system.

Quoddy Bay expects to complete its FERC filing by September 2007 and receive all pertaining approvals by September of the following year. After Quoddy Bay has all of its permits in place, the company expects it will take an additional six months to finance the project since the price tag for the project has increased from the original $300 million to well over $850 million. Once the financing is in place, Quoddy Bay expects to begin construction on what would be the largest LNG terminal on the east coast in the summer of 2009, with a completion and in-service date targeted for some time in 2012.

For details see - New LNG Receiving Terminal Proposed for Tribal Lands in Maine

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