NEW YORK, May 18, 2016 /PRNewswire-iReach/ — George Petrides, Chairman of the Board of Downeast LNG, announced that the company’s board and shareholders have decided to put the company up for sale as of July 1, 2016. The main project of Downeast LNG is to construct a 3 million ton per annum (450 MMCF/Day) liquefied natural gas export facility on Passamaquoddy Bay near the Canadian border. The project is presented at http://www.downeastlng.com. Downeast LNG’s majority shareholder is premier energy private equity manager Yorktown Partners, which manages approximately $7 billion in energy investments.
Mr. Petrides said, “We have reviewed our strategy and decided that an industrial player or a specialized investor such as an infrastructure fund is better suited to continue the permitting process and eventual build-out of the project.” Mr. Petrides also mentioned that although global LNG pricing has been low recently, there are two developments in the last few weeks that could help attract potential buyers. “With the cancellation of the controversial Kinder project that would have gone east from Schoharie County, New York to Boston, we believe it is very likely that the Algonquin expansion will happen and will facilitate natural gas going from the Marcellus in Bradford County, Pennsylvania to our project in northern Maine,” Mr. Petrides stated. “Secondly, we noted the successful capital raise by Venture Global last month and see that as continued interest by investors in US-based projects.” Venture Global LNG has raised over $265 million to date for the development of its proposed export facilities in Louisiana.
The Downeast LNG terminal will consist of one storage tank, a liquefaction “train”, a small regasification plant, marine facilities, and a natural gas pipeline that will connect the facility to the existing Maritimes and Northeast Pipeline. Strategically located and using existing and proposed pipelines, Downeast will access both unconventional US gas reserves and conventional western Canada gas reserves.