INDIANAPOLIS (AP) — Indiana Senate President Pro Tem David Long said Thursday the state needs to review its plans to buy synthesized natural gas from a $2.8 billion plant slated for construction in Rockport.
The Fort Wayne Republican said "the world has changed" since lawmakers first approved a plan that guarantees Indiana Gasification LLC has a buyer for its product over the next 30 years — a prospect that looked good a few years ago when natural gas prices were high but has caused some lawmakers to second-guess that deal with an infusion of new gas on the market because of increased fracking.
"Obviously, just the fact the world has changed since this idea came into being requires us to take another look at it," Long said, calling for either the regulators on the Indiana Utility Regulatory Commission or state lawmakers to review the deal.
He stopped short of saying it should be revoked.
"I'm not willing to say that just yet, but I think we all have questions given the price of natural gas is so much lower now due to the fracking and everything 's that's going on around the country," he said. "What looked like it had a real potential when the price of gas was so much higher, now we have to bring the question whether it makes sense."
The statements from Long and others seeking to review the deal has placed Indiana Gasification on the defensive in a continuing battle with the southern Indiana utility Vectren, which has argued the project would cost Indiana ratepayers more than $1 billion because of a spike in rates from the more expensive synthetic natural gas.