Posted 2011 Jun 13
Hess Energy Pulls Plug on
Weaver's Cove LNG Project
Vast domestic supply, lack of economic viability cited.
After nearly a decade, Hess Energy has finally pulled the plug on the Weaver's Cove Energy LNG project in Mount Hope Bay, Massachusetts (with a navigation route through Rhode Island waters). The project has faced justified and fierce opposition from federal, state, and community elected officials, as well as from the public, from both Massachusetts and Rhode Island.
As with Downeast LNG, Calais LNG, and defunct Quoddy Bay LNG, the Weaver's Cove project was inappropriately sited from the outset, even according to the LNG industry's own terminal siting best safe practices as published by the Society of International Gas Tanker and Terminal Operators (SIGTTO; see link below for more).
The same natural gas oversupply and lack of project economic viability that has brought the demise of Weaver's Cove Energy apply equally — probably even more so — to Downeast LNG and Calais LNG.
Because of vast available supply and pre-existing LNG import gross-overbuild, the smart money has deserted new LNG import terminals in the United States. Now, merely three US LNG import terminal projects remain before FERC — Downeast LNG, Calais LNG, and Oregon LNG.
Two additional offshore terminal projects remain at MARAD — Liberty Natural, offshore from New Jersey; and Calypso LNG, offshore from Florida.