Downeast LNG Announces Letter of Agreement with CB&I

ROBBINSTON, Maine — Downeast LNG, Inc. (Downeast) has announced it has signed a letter of agreement with CB&I (NYSE:CBI) to work collaboratively to secure the phased development, design and construction of the Downeast project at Mill Cove in Robbinston, Maine, on Passamaquoddy Bay.

The initial phase of the project is review of the FERC engineering design, which will serve as the basis for the execution of a FEED by CB&I.

Downeast will construct a 3 million ton per annum liquefied natural gas (LNG) export facility. The Downeast 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 approved pipelines, Downeast can access both unconventional US gas reserves and conventional western Canada gas reserves.

“Downeast looks forward to working with CB&I on the development of the project. CB&I’s depth of design and construction experience in the LNG sector is unparalleled,” said DELNG president and founder Dean Girdis.

In May 2014, Downeast completed the environmental review of its originally proposed LNG import facility with the Federal Energy Regulatory Commission (FERC), receiving its Final Environmental Impact Statement. Downeast entered pre-filing for its proposed export project in July 2014 and received its Free Trade export authorization from DOE in early 2015.

The Downeast project has strong local and political support in the state of Maine and will bring over 1,000 construction jobs and 200 permanent jobs to Washington County and the state. The project will also help to reduce the cost of natural gas in region through its’ support of new gas pipeline infrastructure and the resulting increased delivery of gas supply to the region. Estimated project cost is $2.2 billion.