Natural gas co. closes Loring pipeline deal
The Montana-based Gas Natural Inc., which owns Penobscot Natural Gas Co., announced Thursday that it has closed on a $4.5 million lease for the 189-mile Loring pipeline, extending from Searsport to Limestone.
Richard M. Osborne, the company's chairman and CEO, said in a press release that the company plans to repurpose the liquid pipeline to accommodate natural gas, providing distribution to what Osborne said is the "industrial base in northern Maine" and residential and commercial areas where natural gas is not currently available. The project will be modeled on similar work Gas Natural completed in Ohio.
"Maine has long been identified as a strategic growth market due to the low penetration of natural gas as an energy source for power generation, industry and residential use," Osborne said.
On Wednesday, during a chamber of commerce forum in Bangor, paper industry leaders said that access to cheaper fuel is a key goal to bolster the industry.
Built in the 1950s, the pipeline was once used to send jet fuel from tanks on the coast to Loring Air Force Base. The corridor is owned by Loring Development Authority and Loring BioEnergy was leasing the pipeline as part of its plan to build a co-generation power facility at the former base. The company, however, defaulted on its lease payments, putting the rights up for auction.
Most Recent
Most Recent
Comments