LINCOLN, Maine (NEWS CENTER) -- After the Lincoln Paper and Tissue Mill filed for bankruptcy, many questioned the future of gas expansion in the region. Back in October, Bangor Natural Gas officials said the expansion project would continue - despite the mill shutting down. But now, pipeline officials say the $7.5 million project will be delayed one year.
"The driver here is the schools to justify running the pipe," said Andrew Barrowman, the sales and marketing director of Bangor Natural Gas.
But lower fuel costs have delayed the project to expand natural gas throughout the town of Lincoln. According to Barrowman, RSU 67 officials want to wait to see if the prices correct itself.
"Is the gas going to be cheaper than oil? Right now, oil prices are pretty favorable, but we don't know what the long-term effect is," said David Ham, RSU 67's facilities director. So officials decided to hold off converting the oil-burning boilers at the three schools to natural gas. According to Ham, the delay worked in their favor because school officials have a major roof renovation to complete this summer.
"If both those things would have happened in the same fiscal year, it would have been difficult financially," he said.
But Ham said there is some pressure on the school to convert, because without it, the expansion project may not continue throughout the entire town. "It's a lot riding on it. As a school, we have to do what's best for the schools, especially in the tough economy."
If RSU 67 officials commit to Phase 2 of the expansion project, Bangor Natural Gas says it will begin spring of 2017.
"We look forward to expanding in Lincoln, so all the community and residential customers there can see the benefits and savings of natural gas," said Barrowman.
