The U.S. Coast Guard is giving its approval, with specific conditions, for liquefied natural gas tankers to sail into Passamaquoddy Bay in the latest development in the ongoing regulatory process for two proposed LNG facilities in Maine.

The approval that was sent in a letter to the U.S. Federal Energy Regulatory Commission, which stipulates that ships carrying LNG sail only in daylight at slack tide when visibility is good, means an LNG terminal on the Maine side of the bay is one step closer to being built within sight of St. Andrews.

'These are all conditions that we had expected given that this is how ships are brought in today.'— Dean Girdis, president of Downeast LNG

Downeast LNG and Calais LNG are the two American companies still planning to put liquefied natural gas terminals on Passamaquoddy Bay. Dean Girdis, the president of Downeast LNG, said the conditions attached to this week's coast guard approval were anticipated.

"These are all conditions that we had expected given that this is how ships are brought in today," he said.

"This is one very small piece of a very big reality," he said.

The U.S. Coast Guard's statement is a part of a regulatory application process by the two companies seeking approval from the Federal Energy Regulatory Commission to put LNG facilities in Maine.

Rear Admiral Brian Salerno, the assistant commandant for the U.S. Coast Guard's marine safety, security and stewardship directorate, said in a news release that the coast guard spoke directly with the public and other government agencies to discuss all the potential safety and security risks.

"This yielded broad government support for the coast guard's finding that the waterway is suitable for LNG tankers provided all navigation, safety and security risk mitigation measures are fully implemented by Downeast LNG," Salerno said.

Group hopes Obama will make future approval more difficult

Linda Godfrey of Save Passamaquoddy Bay, a group opposed to the LNG terminals, said the company still has a long way to go to get environmental and other approvals at both the state and federal levels.

She believes U.S. president-elect Barack Obama's government will not make it easy.

"The new administration has much more higher standards about planning and what's possible," Godfrey said.

Downeast LNG's Girdis also said there is still a long way to go, but he stated people in Maine want the project.

"We look forward to moving forward on the project. We're committed to the project as are the people of Maine and as are the politicians of Maine," he said.

While the project may be wanted by some in Maine, it is running into stiff opposition in Canada. The federal government has vowed to refuse permission to LNG ships hoping to enter the bay, a position that has been supported by the New Brunswick government.

Commercial fishermen worried about LNG traffic

Some New Brunswick fishermen are concerned about the U.S. Coast Guard saying that it is safe to sail supertankers into Passamaquoddy Bay. Commercial fishermen say LNG traffic to Saint John is already costing them in terms of damaged equipment.

Greg Thompson, a commercial fisherman living in Dipper Harbour, said fishermen haven't been able to work out a system to protect the traditional fishing areas, despite talking to Irving Oil Ltd., the Saint John Port Authority and Transport Canada.

Thompson said he can't see Canadian fishermen doing any better with an American project.

"We, as an association, attempted to appear before the hearings in Maine and we were denied. We were from a foreign country," Thompson said.

"They wouldn't let us tell our story as to what damage could be done to our gear. Given that, I am not optimistic that, regardless of what Mr. Girdis might say, that they have any concern whatsoever on the Canadian fishing industry."