PLEASANT POINT (AP) – An energy company said Tuesday it has signed an agreement with the Passamaquoddy tribe to develop a liquefied natural gas terminal on tribal land in eastern Maine.

The deal with Quoddy Bay LLC, based in Tulsa, Okla., is worth at least $4 million to $8 million to the tribe and could be more with the tribe as a business partner, said Quoddy Bay spokesman Jim Mitchell.

For its part, Quoddy Bay could see permitting and tax advantages from leasing 40 acres at Pleasant Point, near Eastport.

Gov. John Baldacci expressed support and promised to work with Pleasant Point Gov. Melvin Francis and federal agencies.

About a half-dozen sites up and down the state’s coast have been reviewed by several companies as potential LNG terminals. Harpswell voters rejected a proposal to have an LNG terminal in their town.

Part of the reason for the success at Pleasant Point was that Quoddy Bay has included the tribe in the process of developing the terminal, which would cost between $300 million and $400 million, Mitchell said.

A preliminary engineering survey suggests the site is suitable for an LNG terminal. The natural gas would be brought in on ships and would be pumped into an existing natural gas line in Baileyville.

In addition to the financial incentives for the tribe, there’s also the possibility that the tribe could get free natural gas for housing projects on tribal land, Mitchell said.

The proposal came together after tribal Rep. Frederick J. Moore III helped initiate discussions between the Pleasant Point tribal government and representatives of Quoddy Bay.

“The proposed project opens up for all of us in eastern Maine new economic development options that previously had not been within the realm of possibilities,” Moore said.

Quoddy Bay’s proposed LNG import terminal will be designed for an initial volume of 0.5 billion cubic feet and could be boosted to 1 billion cubic feet.

The project proponents expect to notify the Federal Energy Regulatory Commission of their intent to file an application by December 1, 2004.

AP-ES-06-08-04 1738EDT