The future of the Calais LNG project is in limbo after the proposed terminal slated to be built in eastern Maine lost the financial backing of Goldman Sachs.

Calais LNG had proposed building a liquefied natural gas terminal in eastern Maine but it hit a major snag as GS Power Holdings, a subsidiary of investment banking giant Goldman Sachs, decided to back away from the project.

Goldman Sachs officials could not be reached for comment about why they're pulling out after investing about $24 million in the project.

The proposal sparked a significant controversy among citizens on both sides of the border because it would require LNG tankers to travel through Passamaquoddy Bay, which Maine shares with New Brunswick.

Both the New Brunswick and federal government have opposed the passage of LNG tankers in Passamaquoddy Bay for environmental reasons.

Calais LNG wrote the Maine Board of Environmental Protection on July 21 saying GS Power Holdings is in the process of selling its interest in the project to a new financial partner.

If the deal doesn't close by Aug. 11, Calais LNG said it expects to withdraw its applications for environmental approval.

That's fuelling speculation by opponents, such as Robert Godfrey, a member of Save Passamaquoddy Bay, that the proposed LNG terminal in eastern Maine may be dead.

"For their financial backer, and especially a financial backer of this financial acumen, to say, 'Well we don't want anything more to do with this' is a pretty good sign that it doesn't have value,'" Godfrey said.