Project suffers major setback

SAINT JOHN, N.B. - The sole financial backer of the controversial Calais LNG has pulled out and that has critics wondering it the project is doomed.

Calais LNG told state regulators last week that if Goldman Sachs can't sell its ownership interest by August 11th, all permit applications will be withdrawn.

New Brunswick Southwest M-P Greg Thompson was one of those who worked with the federal government to protect the Passamaquoddy Bay and St. Croix River.

He says the message has been heard loud and clear, the project lacked value from the start:

" We'll just have to wait and see, but again this is a kind of I guess reality, the grim reality that investors are looking at because again it's a sovereign nation saying no so I think the writing is on the wall, if you will."

Three companies have tried in recent years to build an LNG terminal in Passamaquoddy Bay, one has already pulled out and if Calais LNG gives up that will leave only Downeast LNG which wants to build its project at the mouth of the St. Croix River.