Opportunities for Maine
Energy infrastructure has always been a challenge for Maine. Volatility in energy markets makes diversification a critical priority, and that means making sure we have infrastructure for all types of energy sources. Expanding our options can help reduce price spikes, and it also means the creation of good-paying jobs in the construction and energy industries.
Goal: Lower Energy Costs
Maine people work hard, and increasing energy costs are continuing to put a burden on our families and businesses. We need to explore a wide array of solutions to get Maine’s energy costs under control. By leveraging storage capacity and taking proactive steps, we can mitigate price spikes and deliver a reasonably-priced and dependable flow of energy to the people of Maine.
A Record of Success
Successful projects start with successful people. From planning to execution, our team has a record of success developing and building large-scale energy infrastructure projects. In fact, we’ve developed, constructed, and operated nine independent power generation facilities with 1,000 MW capacity and $1.7 billion in construction costs.
Lowering Energy Costs for Maine
Energy prices are volatile. Especially in peak usage times – summer and winter. Maine ratepayers and homeowners are subject to wild pricing swings, and sometimes at the time when they can least afford additional costs.
Plentiful natural gas resources have put downward pressure on energy costs, and Maine is investing heavily in infrastructure to take advantage of low cost natural gas. But natural gas, like all energy commodities, is subject to price spikes.
And while gas prices are relatively inexpensive now, financial forecasters predict that increasing demand will mean a capacity shortage as soon as 2022. That means potential supply shortages that could drive the cost of energy for Mainers even higher.
These price spikes can be mitigated through the use of Liquefied Natural Gas (LNG) storage facilities. By purchasing gas when prices are low and storing it in these facilities, then releasing the gas back into the pipeline when prices are high, we can soften the spikes and provide a more affordable product at peak times.
LNG Capacity Deficit
Source: Bloomberg Business, December 1, 2015
High energy costs not only hurt our working families, they also discourage companies from expanding in our state. By lowering energy costs, we can put more money in everyone’s pocketbooks while also creating a better environment for investment in Maine. And that means more jobs.
In addition to lowering energy costs, building LNG storage facilities will create good-paying jobs in the construction and energy industries. By adding significant energy infrastructure to Maine, we can provide employment opportunities and economic activity that will help small business throughout our state.
We have an opportunity now to make real, positive change in Maine by lowering energy costs, mitigating price spikes during peak energy usage periods, and putting Maine people back to work.
Northern LNG is working to develop LNG storage facilities in Maine which will provide a flexible energy solution to meet peak natural gas demand and act as Maine’s strategic energy reserve. By storing LNG, The Project can provide lower-cost gas at times when Maine needs it most. The facility will provide good jobs for Mainers and will help keep energy costs lower for Maine families and businesses by storing gas when it is cheaper and releasing it into the pipeline system when it is more expensive.
Here’s how it works:
- Domestic natural gas is liquefied and stored in LNG storage tanks
- After being stored, LNG can be trucked to consumers (utilities, power generators, commercial/industrial users)
- The stored LNG can also be vaporized again and re-injected into the interstate pipeline system
Our Record of Success
Northern LNG is a joint venture of the principals of Energy Management, Incorporated (EMI) and JGC.
- Established program management contractor and investment partner with engineering background
- Extensive experience on 20,000+ hydrocarbon projects in 80 countries
- Responsible for the construction of one-third of world’s base load LNG plants producing 152 million tons/year of LNG
- Long-standing history of development, investment and management of oil & gas, power, water desalination assets valued at $600 million+
- Founded in 1928
- Headquartered in Japan with 10,000 personnel worldwide
- 200 engineers at JGC America in Houston, TX
- Energy company founded in 1975
- On the cutting edge: Successful 40-year track record of developing, financing, constructing, owning and operating first-of-a-kind clean energy projects
- Started with successful small-scale energy efficiency and pollution control projects, and advanced to turnkey combined heat and power facilities
- Developed, constructed, and operated nine independent power generation facilities totalling 1,000 MW capacity and $1.7 billion in construction costs
- Developed utility scale renewable energy facilities, including biomass, offshore wind, and solar
- Constructed first non-PURPA independent, combined-cycle, air-cooled and inlet chilled power projects in New England
- Constructed largest utility-scale biomass project in the U.S.