INDIANAPOLIS (AP) — An Indiana lawmaker who opposes a 30-year contract with the developers of a proposed $2.8 billion coal-gasification plant told a House committee the surge in U.S. shale gas production has driven down natural gas prices, leaving synthetic gas projects unfeasible.
Republican Sen. Doug Eckerty of Yorktown also told the House Utility Committee that the 30-year contract between the Indiana Finance Authority and the plant’s developers contains a “financial imbalance” that would saddle Indiana ratepayers with any potential losses the proposed plant might incur.
The House panel heard testimony Wednesday from Eckerty and several opponents and supporters of the proposed Rockport plant.
Indiana Gasification project manager Mark Lubbers told the committee natural gas rates are historically volatile and therefore difficult to predict. He also said the shale gas boom isn’t sustainable.
