Hess abandons Weaver’s Cove LNG project

(Updated, 4:13 p.m.)

FALL RIVER – Hess LNG announced Monday it was abandoning plans to develop a controversial liquefied natural gas terminal in Weaver’s Cove.
Hess LNG President Gordon Shearer said changing economics led the company to withdraw applications for the $700 million facility in Mount Hope Bay proposed eight years ago.
“The significant increase in natural gas production from shale resources in North America resulting in lower prices as well as the growth in demand for LNG in the rest of the world make it unlikely the company can secure supplies of LNG on economic terms attractive enough to ensure the sustained profitability of the project,” Shearer said in a press release.
In an interview, Shearer said Hess did not see that outlook changing anytime soon.
The company said that it would concentrate on other LNG projects including one in Shannon, Ireland. Hess LNG will retain ownership of the Fall River site and will consider options for the site, including a sale.
Environmental groups had long opposed the facility, with Save The Bay launching a full-out media blitz criticizing the project. Environmentalists were joined by a host of public officials and federal and state lawmakers, some who worked to pass laws complicating the ability of LNG tankers to reach Mount Hope Bay.
Environmentalists had complained the project would threaten wildlife. Some lawmakers and local business leaders expressed concern that the tankers would force the shutdown of the Claiborne Pell Bridge as tankers passed underneath. They also expressed concern that security zones around the tankers would crimp sailing and shipping activity in Narragansett Bay.
Shearer, in an interview, said the opposition played no role in the decision to abandon the project.
Still, environmentalists hailed the move. John Torgan, Narragansett Baykeeper at Save The Bay, promised to give Shearer “a big smooch.”
“This project was never appropriate for Narragansett Bay, so it’s official demise is long overdue.”
Torgan said had Hess continued the project, Save The Bay would have continued to oppose its applications for environmental permits.
“Whether or not it was profitable for Hess, the environmental permits would have been impossible for Hess and we would have made sure of that,” he said.

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