Plans Dropped for Massachusetts LNG Facility
June 14, 2011
According to the Providence Journal, Weaver’s Cove Energy and Hess LNG have dropped plans to build a floating liquefied natural gas (LNG) terminal in Mount Hope Bay off Fall River, Massachusetts. The announcement was made in a brief press release Monday afternoon. A spokesman confirmed the announcement.
The project has been widely opposed by Rhode Island and Massachusetts officials as well as environmental groups.
Here is the press release issued by Hess:
“Hess LNG L.L.C. said today that unfavorable economics for liquefied natural gas in the New England region have prompted it to withdraw applications with federal and state agencies for the Weaver’s Cove LNG project in Fall River, Mass. Hess LNG said it will focus its efforts on more viable projects elsewhere.
“The significant increase in natural gas production from shale resources in North America resulting in lower prices as well as the growth in demand for LNG in the rest of the world make it unlikely the company can secure supplies of LNG on economic terms attractive enough to ensure the sustained profitability of the project,” said Gordon Shearer, President of Hess LNG.
The company will concentrate in the near term on its other LNG projects including Shannon, Ireland. Hess LNG retains ownership of the Fall River site and will consider options for the site, including a sale.”
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