A proposed energy corridor between New Brunswick and Maine has been stalled as a new lobby group turns up the heat on state politicians over Canadian opposition to proposed LNG terminals in the area.

'There is considerable unhappiness here in Maine with the Canadian federal government and New Brunswick provincial government taking such an active role in blocking the development of LNG in Maine's poorest county.'— Kevin Raye, Maine Senate minority leader

Senators and members of the House of Representatives have been hearing from a group called Maine Jobs First, which have been urging them to withhold approval for the corridor until the New Brunswick and Canadian governments stop opposing liquefied natural gas terminals on Passamaquoddy Bay.

Maine's Senate minority leader, Kevin Raye, who represents Washington County, home to two proposed LNG terminals, said he is not pleased with the opposition to those terminals on this side of the border

"There is considerable unhappiness here in Maine with the Canadian federal government and New Brunswick provincial government taking such an active role in blocking the development of LNG in Maine's poorest county," Raye said.

N.B. government tones down LNG rhetoric

There has been a hint in recent weeks that the New Brunswick government may be coming around to Raye's position.

The province has started toning down its rhetoric when it comes to opposing the construction of liquefied natural gas terminals on the U.S. side of Passamaquoddy Bay.

Energy Minister Jack Keir said recently the province is not opposed to the terminals and will let the U.S. Federal Energy Regulatory Commission process unfold.

The province, he said, has always backed the regulatory process that will decide the fate of any planned LNG terminals in Maine. However, the Liberals opposed the projects in the 2006 election campaign.

The energy corridor project was first announced in March by Premier Shawn Graham and Maine Gov. John Baldacci, an initiative intended to explore the development of an energy corridor to move electricity and natural gas between the Maritimes and New England.

Saint John-based Irving Oil Ltd. is studying the potential construction of a 500- to 600-megawatt natural gas-fired power plant to sell into the energy-hungry New England market.

Republicans, Democrats unite in energy committee

Democrats and Republicans sitting on the Select Committee on Maine's Energy Future united this month in a 15-1 vote to withhold approval of the energy corridor.

They want to know it will benefit Maine and not just Canada, the message being pushed by Maine Jobs First, which claims to represent energy companies, manufacturers, and organized labour.

But Bob Godfrey, a member of Save Passamaquoddy Bay, which opposes LNG terminals, said this appears to be a last-ditch effort by a special interest group trying to push LNG by confusing the issue.

He said Canada has made it clear its opposition is limited only to the Passamaquoddy terminals.

"The jobs issue is a red herring. They could have the jobs. They could have the gas. They could have their terminals if they simply moved south of west Quoddy Head," he said.

The select committee will spend the next few months studying the energy corridor proposal. It will return with a report and recommendations in December.