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OTTAWA - It's too early to declare victory, but Art Mackay sounds like he can smell it in the salt air.

Mackay, of the Save Passamaquoddy Bay - Canada grassroots group fighting three proposed LNG terminals in Maine just across the bay from scenic St. Andrews, said his members are weighing the news that one company is at an impasse.

Quoddy Bay LNG has announced it plans to postpone or temporarily withdraw its applications for a review by the state of Maine for its proposed liquefied natural gas terminal at Pleasant Point, Me.

"I see it as a nail hammered in pretty good, even if the lid isn't down," said Mackay.

Quoddy Bay president Donald Smith's news release cited several factors. For example, the company has not finalized which country will be the source of its gas, so it cannot determine the precise chemical composition of the gas or what processing equipment will be required. Building only the necessary equipment could save as much as $100 million, said Smith.

"There has been a recent inflation in construction costs, and we want the opportunity to significantly reduce project costs as well as our environmental impact by eliminating potential unnecessary parts of the project design," Smith said the release.

Smith told the Bangor Daily News that critics are wrong to interpret the company's latest step as a sign their project isn't feasible. By "being patient," he said, the company may end up with a project that's "more agreeable."

The company has also been asked to consider sharing the pipeline corridor with other LNG terminal proponents. It is also awaiting the outcome of a challenge to the Bureau of Indian Affairs' approval of a land lease with the Passamaquoddy Tribe. Another tribal group opposed to the project has sued the BIA over the approval.

This spring, the U.S. Federal Energy Regulatory Commission had already suspended its review of the company's application, citing insufficient information submitted by the company on key issues. Company officials said at the time that they are working to come up with the information that FERC seeks.

One of the major obstacles all the proponents face is the government of Canada's formal opposition to letting LNG tankers transit Head Harbour Passage, the only waterway that would allow the ships to access the proposed terminal.

"They've got so many things that could go wrong for them and they haven't even run into us - the Canadians - standing up for our rights under international marine law," said Mackay.

Quoddy Bay's is one of three proposals for LNG facilities in easternmost Maine. Downeast LNG is seeking approval to build a smaller facility in nearby Robbinston, while a third group - Calais LNG - is in the early stages of mounting a proposal in Calais.

Downeast LNG has also encountered delays. Last September, a state environmental board denied Downeast's request to withdraw its application so it could make revisions. Downeast was able to submit a revised proposal in February.