New England lawmakers danced on the grave of the Weaver’s Cove Energy terminal this week after Hess LNG axed the imports proposal.
Congressman James McGovern, who represents the Massachusetts district that includes the facility’s intended home of Fall River, said the withdrawal of local and federal permit applications was “terrific news”.
“At long last, Hess has realised that we were going to continue to fight and fight until they pulled the plug on their ill-considered proposal,” McGovern said.Representative Jim Langevin of the neighbouring state of Rhode Island said the decision “is a great credit to the tireless dedication of local non-profit groups, such as Save the Bay, and countless citizen advocates who made their voices heard time and again”.
Hess, however, said the withdrawal was the result of “unfavourable economics” in New England.
“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,” said Hess LNG president Gordon Shearer.
The company said it plans to focus on other projects, including Shannon LNG in Ireland. Shearer said Hess LNG is retaining the Crown Landing project, also in the US Northeast, because it is cheaper to build and less far advanced. “This keeps a longer term, lower cost option on the table.”
