Federal regulators have dismissed Calais LNG's application to build a $1 billion liquefied natural gas terminal and pipeline, citing the company's lack of progress in securing financing.
In a letter to company officials sent yesterday, the Federal Energy Regulatory Commission dismissed the company's application because "your continued inability to secure either financing or a site for the project is evidence that you are not currently in a position to proceed." Calais LNG submitted its application with FERC in December 2009. The next year, the company asked the Maine Board of Environmental Protection numerous times to delay state review of its project after investor GS Powering Holdings, a subsidiary of Goldman Sachs Group Inc., pulled out of the project. The company was also working to renegotiate an option to buy a 330-acre site for the facility. In December 2010, Calais LNG withdrew its state application.
Calais LNG said in 2010 it was working to secure a new investor, but according to the FERC letter, those negotiations are expected to continue at least another six months. FERC dismissed the application without prejudice, meaning Calais LNG could reapply at a later date.