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"For much of the state of Maine, the environment is the economy"                                            — US Senator Susan Collins, 2012 Jun 21

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Top

30 April 2007

Fight planned for LNG decision — Gloucester County Times, Woodbury, NJ

LOGAN TWP. — The state will take exception to a controversial Supreme Court [Special Master] conclusion that allows Delaware jurisdiction over joint waterways up to New Jersey's shoreline.

"We are in the business of permitting (piers)," said [John Hughes, Delaware Secretary of the Department of Natural Resources]. "In my read, I can't issue a Delaware permit because the future use of the dock is bulk transport which is not permitted under the Delaware Coastal Zone Act."

Would natural gas plant benefit Md.? — The Capital, Annapolis, MD

AES Corp., the Arlington, Va.-based developer of the $400 million project, will need to quantify how the gas imports would lower customers' bills if they hope to sway the governor, according to a spokesman.

During peak periods [when natural gas is frequently used to generate power], electricity can sometimes hit $1,000 a megawatt, 10 times average costs.

Wholesale natural gas prices nearly doubled between 2001 and 2005, according to the Energy Information Administration, hitting $7.33 for a thousand cubic feet at the wellhead. By the time that gas reaches residential customers, its price has risen to nearly $13.

Along with Maryland Reps. Dutch Ruppersberger D-Baltimore County and Elijah Cummings, D-Howard County, Mr. Sarbanes proposed legislation to allow state and local governments to veto new liquefied natural gas facilities in their backyards, overruling the Federal Energy Regulatory Commission. [Red emphasis added.] (Apr 28)

Congressmen, Senators sponsor bill to block LNG terminal — WBAL, Baltimore, MD

Maryland Second District Congressman Dutch Ruppersberger is the U.S. House co-sponsor sponsor of legislation that would give state and local officials the final say over approval of liquefied natural gas (LNG) terminals, similar to the one proposed for the Dundalk area.

Maryland's two U.S. Senators are sponsoring a Senate version of the bill. (Apr 26)

Florida steps into global market for natural gas — Sarasota Herald-Tribune, Sarasota, FL

WASHINGTON -- Workers in Georgia are expected to turn a valve in early May that will send up to 220 million cubic feet of natural gas per day through a new 167-mile pipeline to the power-hungry state of Florida.

The big question is whether reliance on imported LNG will keep prices high or even raise them further. [Red emphasis added.] (Apr 29)

Webmaster's Comments: Contrary to the issue addressed in the above story, LNG proponents frequently advocate that imported LNG will lower the price of natural gas, or keep it lower.

Armed vessels on the Columbia an unwelcome vision — The Daily News, Longview, WA

The LNG ships are expected to arrive at the terminal, which is yet to be approved by federal officials, about twice each week. And, although the Coast Guard won't say what kind of armaments the escorts would include, it has been known to use small vessels mounted with M-60 machine guns on the river. (Apr 27)

Effects of U.S. Supreme Court decision unclear — LNG Law Blog, Washington, DC

Citing investor concerns over new coal-based power plants, [U.S. Energy Information Administrator Guy Caruso] suggested that stricter penalties for carbon emissions could benefit LNG importers, but that clean-coal technology or high gas prices could lessen the advantages of LNG.

LNG industry urged to promote safety record — The Chronicle Herald, Halifax, NS

"It is easy to dismiss the concerns of elected officials and the general public as Nimbyism (not in my backyard) or Bananaism (build absolutely nothing anywhere near anything). However, to do so contributes to the lack of dialogue between the industry and the community and ensures that there will be no public acceptance of a project." [Red emphasis added.] (Apr 27)

Webmaster's Comments: The LNG industry's own standards (as published by SIGTTO) — for dozens of reasons — recommend against siting terminals under the conditions present in Passamaquoddy Bay. Calling opposition to LNG in Passamaquoddy Bay "NIMBYism" is condemning the LNG industry, itself.

U.S. terminals continue record pace — LNG Law Blog, Washington, DC

According to NATS Weekly Data Pack, U.S. terminals processed more LNG (89.7 Bcf) in April than in any previous month.

Algeria set to be a top LNG exporter by 2011 — Reuters, GulfNews.com, United Arab Emerates

Algiers: Algeria, a main liquefied natural gas (LNG) source for Europe and the United States, will expand its output capacity to be a top LNG exporter by 2011, its Energy Minister Chakib Khelil told state radio yesterday.

Spot market for LNG growing as hurdles remain — Reuters, Gulf Times, Doha, Qatar

“There are now serious concerns there will be a supply crunch by 2010.”

With the cost of building liquefaction plants in producer countries escalating, on the back of higher steel and nickel prices, some projects will be shelved.

…there is a growing shortage of trained seafarers to crew [LNG ships], James MacHardy, secretary general of the gas tanker operators society SIGTTO warned.

It takes a decade to train a skilled LNG operator and trainers are also in short supply, he said. [Red emphasis added.] (Apr 29)

Top

27 April 2007

Fishermen tackle LNG — Saint Croix Courier, St. Stephen, NB

Fundy North Fishermen's Association and Fundy Weir Fishermen's Association, both from Southwest New Brunswick, have teamed up to intervene in the State of Maine Board of Environmental Protection (BEP) hearings on the proposed liquefied natural gas (LNG) terminals in Passamaquoddy Bay.

Light and noise pollution could severely impact the herring weir fishery.

All fisheries could lose ecologically valuable larvae, feed, and plankton when each tanker sucks up millions of gallons of ballast water from the Bay as they unload their LNG cargo.

Large numbers of fishermen from both New Brunswick and Maine fish for lobster and other species in the Grand Manan Channel, and would be severely impacted by tanker route exclusion zones.

LNG supply puts Goldboro startup date "under review’ — The Chronicle Herald, Halifax, NS

"The supply situation is having an effect on the whole industry. It’s a question of timing," Mr. Bonini said in an interview after a meeting with ExxonMobil officials in Barcelona at a global LNG conference.

In the absence of a secure supply agreement, Mr. Bonini said the construction schedule at Goldboro is again "under review." Earlier, the terminal’s projected start date was pushed back a year to 2011

Conference delegates have repeatedly heard that the scramble for LNG supplies is getting messier.

Analysts also warn that exporting countries are increasingly keeping their supplies for domestic use or for future generations.

A global LNG expert told the conference that the outlook appears to be bleak for new projects trying to find a gas supply. [Red emphasis added.] (Apr 26)

Hearing examines LNG safety — Baltimore Sun, Baltimore, MD

Gov. Martin O'Malley said the state's billion-dollar economic engine at the port of Baltimore would be crippled if anything went wrong at a proposed liquefied natural gas facility on Sparrows Point. Baltimore County Executive James T. Smith Jr. predicted that local emergency responders could not begin to evacuate residents and workers or fight a fire at the plant. (Apr 24)

Cheniere, Gaz de France make LNG supply and purchase deals — Rigzone.com

Cheniere Marketing and GDF Trading will be entitled to sell one cargo per month to the other party on an ex-ship basis at the at the Isle of Grain LNG terminal, located in the U.K., and the Cheniere Sabine Pass LNG terminal located in the US Gulf of Mexico, respectively. The agreements have a term of 15 years….

Cheniere Energy, Inc. is developing a network of three LNG receiving terminals and related natural gas pipelines along the Gulf Coast of the United States. (Apr 26)

Save some gas for us, exporters — The Anchorage Daily News, Anchorage, AK

Gov. Sarah Palin supports letting Conoco Phillips and Marathon export liquefied natural gas from their plant on the Kenai Peninsula for another two years, provided they set aside enough natural gas to supply Southcentral consumers.

The LNG plant is a huge consumer of Cook Inlet's natural gas supply, taking more than one-third of the annual production, or as much as is used to create electricity and heat Southcentral homes and businesses combined. [Red and bold emphasis added.] (Apr 24)

Webmaster's Comments: This demonstrates only some of the fuel-inefficiencies of relying on LNG, as compared to plain natural gas.

LNG shipping still booming, says James A MacHardy, Secretary General of the Society of International Gas Tankers and Terminal Operators (SIGGTO [sic, "SIGTTO"]) [News release] — LNG 15, Sedigas, Spanish Gas Association, Barcelona, Spain

Barcelona, 26 April 2007 — James A MacHardy, Secretary General [sic] of the Society of International Gas Tankers and Terminal Operators (SIGTTO), began the third day of LNG15 with an analysis of the current state-of–play of LNG transport and terminals. SIGTTO is made up of 159 members who between them account for 95% of the world’s LNG transport and terminals.

The biggest problem for projects that are just beginning or being expanded is finding qualified seafarers. [Red & bold emphasis added.]

Webmaster's Comments: "SIGTTO" was consistently misspelled in the news release, and has been corrected in the citations above.

SIGTTO General Manager MacHardy sent a letter in 2004 to FERC, offering assistance regarding LNG safety. There has been no indication that FERC has accepted the SIGTTO offer.

Staff retention vital to maintain safety record — LNG 15 News, Sedigas, Spanish Gas Association, Barcelona, Spain

Encouraging people to join and stay in the LNG shipping trade has become one of the most acute problems facing the industry, James MacHardy, general manager of the Society of International Gas Tanker and Terminal Operators, said yesterday. …he warned that “we are witnessing an increasing number of minor incidents.” He put that down, in part, to a lack of trained personnel and called for companies and organisations that undertake training to be regulated. With some vessels approaching the 40-year age mark – seven LNG tankers are over 35 years old – the industry “needs to start preparing the public for acceptance of LNG carriers beyond 40 years”. [Bold red emphasis added.] (PDF, 704 KB)

LNG emergency preparedness and industry sustainability discussed at LNG 15 — LNG Law Blog, Washington, DC

[Phani Raj of Technology Management Systems, Inc.] urged the industry to "make every effort to convince the public" that LNG is comparable to the gasoline that the public uses and relies on every day.

LNG15: Industry must clear obstacles to new supply — Oil & Gas Journal, Tulsa, OK

BARCELONA, Apr. 24 -- Speakers on the first day of the 15th Conference & Exhibition on LNG in Barcelona warned attendees that the ability of their industry to supply LNG was in serious question.

In short, medium, and long-term, natural gas supply adequacy remains in doubt and will constrain growth of LNG. [Red emphasis added.] (Apr 24)

Top

26 April 2007

How advanced is the LNG technology that FERC can deny comments about its affect? [Blog] — Nulankeyutomonen Nkihtahkomikumon, Sipayik

What is constant is that Split Rock is a cultural and ceremonial gathering ground, which makes it indeed relevant to "the general background" of the land – we are as much a part of the land as we are the "heartland" waters that have sustained us. [Red emphasis added.] (Apr 25)

Holy waterscapes [Blog] — Nulankeyutomonen Nkihtahkomikumon, Sipayik

Within the reality that each of us now face — global climate change — our work is even more critical for creating justice for Indigenous people facing environmental and cultural destruction. For us, environmental racism is DownEast LNG and Quoddy Bay LNG both vying to control our inherent wealth — our holy waterscapes — our sense of place — our dignity — our heartland — simply because the Governor of Maine thinks it's best. [Red emphasis added.] (Apr 10)

LNG protesters greet FERC officials — Bangor Daily News, Bangor, ME

Protesters at Pleasant Point carried signs reading "This Land is Not For Sale" and "Leaders Selling out to Big Business" and they sang songs in their native Passamaquoddy language as company officials from the Oklahoma-based Quoddy Bay LNG tried to tell federal staffers about their multimillion-dollar project. (Apr 25)

Harbor island LNG plan dead, foe says — The Boston Globe, Boston, MA

"We just don't have to crush an important part of this national park to meet the energy needs of the nation," said Bruce Berman of the nonprofit group Save the Harbor/Save the Bay, an opponent. "There are other options."

Hull LNG foes win: Plan is pulled - Energy company says opponents doomed its proposal — The Patriot Ledger, Quincy, MA

BOSTON - The company that sparked an uproar over its plan to build a liquefied natural gas terminal off the coast of Hull in Boston Harbor says it has withdrawn the plan.

Global energy giant AES Corp. of Arlington, Va., said yesterday that it has given up on the attempt to built an LNG plant two miles from Hull and 10 miles from downtown Boston.

AES managing director Aaron Samson said opposition to putting an LNG terminal on a state and national island park spelled doom for the proposal. (Apr 25)

Council's LNG opposition sent to Coast Guard — Jamestown Press, Jamestown, RI

"The Town Council of the Town of Jamestown has consistently opposed the Weaver's Cove LNG proposal and writes this letter to inform you of our ongoing opposition to this project based on the negative environmental, economic and disruptive navigational and recreational impacts this project will have on Narragansett Bay and our community," according to the letter.

Save The Bay is among several organizations opposing the LNG project because of dredging as well as security zones for the tankers while in area waterways. It recently launched its own website for opposition, www.stopweaverscove. com.

Final word is sought on LNG — The Baltimore Sun, Baltimore, MD

Yesterday…Maryland's two United States senators announced a plan to reorder who has the last word on the matter.

"What's happening with the LNG plant proposed in Dundalk is a classic example of why state and local governments need to be involved in the process," Sen. Benjamin L. Cardin said in a telephone interview yesterday.

"This isn't aimed at the Sparrows Point project, it's aimed at the process," said Cardin, adding that he will continue to support other efforts to stop the Sparrows Point project. (Apr 25)

Regasification vessels offer flexibility — LNG Law Blog, Washington, DC

The vessels…allow shippers to deliver gas at offshore points, away from densely populated and environmentally sensitive areas.

Sutherland's Global LNG Group to present regarding LNG pricing at Platts 6th annual Liquefied Natural Gas Conference — Sutherland, Asbill & Brennan, Washington, DC

Sutherland Partner Thomas H. Warren will speak at the Platts 6th Annual Liquefied Natural Gas Conference, May 21-22, 2007 at the Hilton Post Oak in Houston, Texas regarding "Evolving Netback Pricing in LNG Sale and Purchase Agreements (SPAs)." (Apr 25)

Webmaster's Comments: Sutherland, Asbill & Brennan is the lawfirm representing the Province of New Brunswick as an intervenor in the Passamaquoddy Bay LNG projects' FERC proceedings.

LNG firm begs feds to 'disregard' state concerns — The Daily Astorian, Astoria, OR

"The Emergency Services Report contains valid concerns that communities along the river just don't have the police and fire capacity to deal with the day-to-day safety problems with LNG tankers, much less dealing with a terrorist attack or explosion," said Astoria resident Peter Huhtala.

The Energy Policy Act of 2005 directs LNG developers to draw up a formal Emergency Response Plan detailing what local resources are needed and how the costs will be covered. According to Tamara Young-Allen, a FERC spokeswoman, the plan is not approved at the same time as the federal LNG terminal license. Allen said after the five-member commission has decided upon a proposal, the decision to approve the ERP is delegated to the director of energy projects. (Apr 25)

Webmaster's Comments: The news article is misleading. The Energy Policy Act of 2005 does not specify that the LNG developer develop a comprehensive Emergency Response Plan. There is no minimum requirement specified in the Act for an Emergency Response Plan outside the terminal, or that the developer pay even a penny in reimbursement.

Quoting directly from the Energy Policy Act of 2005:

‘‘(e)(1) In any order authorizing an LNG terminal the Commission shall require the LNG terminal operator to develop an Emergency Response Plan. The Emergency Response Plan shall be prepared in consultation with the United States Coast Guard and State and local agencies and be approved by the Commission prior to any final approval to begin construction. The Plan shall include a cost-sharing plan.

‘‘(2) A cost-sharing plan developed under paragraph (1) shall include a description of any direct cost reimbursements that the applicant agrees to provide to any State and local agencies with responsibility for security and safety—

‘‘(A) at the LNG terminal; and

‘‘(B) in proximity to vessels that serve the facility.’’.

Sacramento LNG session is rescheduled — Ventura County Star, Ventura, CA

The gathering in Sacramento originally was scheduled for April 10, but Holden asked city officials to scuttle the meeting after Councilman Tim Flynn insisted on attending. Holden worried that three members of the panel constituted a quorum and, without proper legal notice, a potential violation of state open-meeting laws.

In recent hearings, the State Lands Commission and California Coastal Commission rejected the company's proposal. BHP Billiton, however, will also need approvals from the Federal Maritime Administration and Schwarzenegger. The governor has until May 21 to make a decision.

Cardin, Mikulski propose bill to shift LNG siting power to states — Platts [Free registration required]

The bill, S. 1174, would gut a part of the Energy Policy Act of 2005 that solidified the US Federal Energy Regulatory Commission's final permit authority over LNG projects. Under the Cardin/Mikulski bill, FERC could not act before getting consent from the state agencies charged with assessing environmental and land-use issues.

The senators said their bill would give states the same veto authority for onshore LNG proposals that they now enjoy for projects proposed off their shores under the Deepwater Port Act.

A recent report by the Government Accountability Office, Congress' research arm, questioned the adequacy of federal data on the potential LNG hazards, Mikulski noted. "Yet federal agencies are all too quick to rubber-stamp these facilities," she said. [Red emphasis added.] (Apr 24)

EPA relaxes air pollution rules for oil industry [News release] — CommonDreams.org

WASHINGTON - In a major victory for the oil industry, the U.S. Environmental Protection Agency has adopted looser air pollution limits for sprawling petroleum production and exploration operations, according to an agency order released today by Public Employees for Environmental Responsibility (PEER). As a result, petroleum facilities will be allowed to emit additional tons of hydrocarbons each day.

MacClarence, a 20-year environmental engineer, had persuaded the State of Alaska to require aggregation in the BP permit, but under intense lobbying from the Alaska Oil & Gas Association, the state reversed its stand in July 2003. Initially, EPA echoed those concerns but eventually also reversed its position. In the order, EPA Administrator Johnson denied that his agency "altered its position on aggregation ...because of aggressive lobbying by the Alaska oil and gas industry…" but admitted that "EPA did meet with the applicant, at the applicant's request, on two occasions to discuss aggregation…" (Apr 25)

Pro-offshore US drilling bills won't pass before 2009: Barton — Platts [Free registration required]

The ranking Republican on the US House Energy and Commerce Committee, Joe Barton, said Wednesday there is "not a prayer of a chance" for any legislation authorizing additional offshore oil and natural gas exploration and development to pass this session of Congress. (Apr 25)

Europe strategically located for securing its supply of LNG, says Rune Bjørnson, Executive Vice-President of Statoil, at the LNG15 Conference — LNG 15, Sedigas, Spanish Gas Association, Barcelona, Spain

Bjørnson stated that “reserves of natural gas are huge”, but he believes there is a big disparity between the geographical location of producer areas and their consumer markets. (Apr 25)

Top

23 April 2007

Chasing a supply of LNG — The Chronicle Herald, Halifax, NS

Jorge Ciacciarelli, Canaport LNG general manager, says it is "essential" for anyone involved in the LNG business to be at this world event, which is held every three years.

"It’s one of the most important LNG conferences because all the suppliers and major companies working in LNG will be there," said Mr. Ciacciarelli in a recent telephone interview from his office in Saint John.

Energy industry experts predict many North American projects will fail to obtain [LNG] supplies over the next few years. [Red emphasis added.]

Quoddy Bay LNG inks deal with tribe — Bangor Daily News, Bangor, ME

The parcel of land will be sold to Quoddy Bay LNG if its project receives approval from the Federal Energy Regulatory Commission and the state Board of Environmental Protection. [Red and bold emphasis added.] (Apr 21)

Mass. steps up climate rules for developers — The Boston Globe, Boston, MA

Effective immediately, developers planning projects large enough to warrant a state environmental review will have to assess how the projects contribute to the pollution that leads to global warming, Environmental Affairs Secretary Ian A. Bowles told the Globe.

The review process could change dramatically with the consideration of greenhouse gases, possibly allowing the state to prevent construction of certain developments, such as a power plant. In the past, the proponent of a power plant had to demonstrate why it should be built at a certain spot. Now, the applicant may also need to show why the plant would need to burn coal; for example, rather than generate electricity from solar.

"Right now, you can [ask] -- whether it's an LNG project or a power plant -- is there an alternative that's more environmentally sound?" [Red emphasis added.] (Apr 22)

Don’t try to put anything over on this town — New York Times, New York, NY

…Branford has led the opposition against a proposal by Broadwater Energy, a partnership of Shell Oil and TransCanada, to build a floating liquefied natural gas terminal about 10 miles south of Branford in New York State waters. Since the project was proposed two years ago, Branford residents have repeatedly turned out at meetings to oppose it, most notably in January, when more than 700 residents packed the high school auditorium in a session that went past midnight.

“Rather than at a breaking point, Branford is probably more galvanized and unified than it was five years ago,” said John E. Opie, 59, an engineer who is a lifelong resident and a Republican selectman. “I don’t see any weakening in our spirit. I think it’s toughened us.” (Apr 22)

Connecticut Attorney General takes Broadwater fight to New York — AllAmericanPatriots.com

"Our two states have a huge common stake in this shared threat," Blumenthal said. "My hope is that New York will join Connecticut in vehemently and vigorously opposing a project imperiling the scenic and visual quality of the public trust lands and waters of the Sound. Its sheer scale will blight the visual quality of miles of coastline of the Sound. It will be visible from both shores as the largest man-made object in the Sound, permanently scarring the horizon." (Apr 20)

Broadwater's protection focus of May hearing — Newsday.com

A congressional subcommittee plans a hearing May 7 on Long Island on whether the Coast Guard can protect facilities such as the proposed Broadwater liquefied-natural-gas terminal in Long Island Sound.

Meanwhile, the chief executive of the Long Island Power Authority, a potential customer for the terminal's gas, criticized as premature a recent vote of conditional support for Broadwater by the Island's largest business organization, of which LIPA is a member. [Red emphasis added.] (Apr 19)

Feds, Coast Guard say LNG plant needs more review — Baltimore Business Journal, Baltimore, MD

…Monday, a proposed $400 million liquified natural gas plant and the $250 million 88-mile stretch of pipeline in Eastern Baltimore came under scrutiny by U.S. Coast Guard security officials who protect the Port of Baltimore.

During a hearing, Gov. Martin O'Malley and county leaders opposed the proposed plant. The company lobbied for its development touting its industrial benefits. Officials with the U.S. Coast Guard and the federal agency regulating and permitting the plants said they needed more time to review the matter.

Officials to testify on LNG project — The Baltimore Sun, Baltimore, MD

Now the Baltimore Democrat [Rep. Elijah E. Cummings] has some weighty questions for Coast Guard officials, including whether they can handle the additional security jobs associated with the proposed facility in Maryland.
The hearing in Baltimore is the first of two sessions on the topic of LNG to be held away from Capitol Hill. Another hearing, to be held in New York where another company is proposing to build an LNG facility, is planned for next month.

Constellation Energy unit buys capacity at Texas LNG terminal — Platts

The terminal has no known source of supply, despite the fact that it is scheduled to begin operating in January. (Apr 20)

FERC will answer senator's questions — The Daily Astorian, Astoria, OR

In a letter sent mid-March, Wyden asked Kelliher to answer seven key questions about FERC's LNG approval process. Among other questions, Wyden asked how FERC will ensure the safety of people on Astoria's waterfront, fill emergency response resource gaps, protect salmon and their habitat and incorporate local and state government voices into the final siting decision.

He also inquired about what tools FERC is using to determine the overall safety of the Bradwood LNG project as proposed - especially given the potential for LNG tankers to carry loads beyond those which have been reviewed for safety. (Apr 19)

Legislators push environmental efforts — LA Daily News, Los Angeles, CA

SACRAMENTO — Fueled by growing concerns over global warming, California lawmakers have launched new environmental efforts in hopes of harnessing reinvigorated public attention and overcoming intensive lobbying pressure from heavy-hitting opponents. (Apr 22)

Analysts have differing views on US summer gas supply, demand — Platts

Washington (Platts)--23Apr2007 — Two noted natural gas analysts took a look at the same numbers and came to opposite conclusions Monday on gas supply, demand, and prices this summer.

Analyst Ron Denhardt, vice president for natural gas and power at Winchester, Massachusetts-based Strategic Energy and Economic Research, said he expects US supply to grow 1.5% in 2007, while demand grows 0.8% assuming summer weather is 5% warmer than normal.

Top

21 April 2007

Pipeline firm calls Quoddy Bay LNG's request 'misguided' — The Quoddy Tides, Eastport, ME

Quoddy Bay's request "has no relevance" to the Maritimes pipeline expansion project, comments Marylee Hanley, manager of government and public affairs for Maritimes and Northeast, which is owned by affiliates of Duke Energy, Exxon Mobil Corporation and Emera Inc. "None of the issues raised by Quoddy Bay are within FERC's jurisdiction." [Red emphasis added.] (Apr 13)

Group calls on BEP to reject Downeast LNG's application — The Quoddy Tides, Eastport, ME

In its filing, the group calls on the board to reject Downeast LNG's application based on: Downeast LNG's failure to show that any financial entity has committed to funding the construction, operation or maintenance if the permits were to be obtained; the Canadian government's recent decision to prohibit LNG tankers from passing through Head Harbour Passage, which would be Downeast LNG's sole supply route for natural gas; the improbability that Downeast LNG's proposal could be constructed in the time period required by state regulations, which call for permit holders to begin construction within two years and complete it within five years. [Red emphasis added.] (Apr 13)

Tribe approves land sale to Quoddy Bay — The Quoddy Tides, Eastport, ME

Some tribal members have been concerned about the tribe selling off its land and resources and also believe that the land is worth more to the tribe than the $1.56 million. Reportedly the land has a significant amount of rock that could be turned into aggregate, or crushed stone used in construction, although Quoddy Bay LNG is not interested in removing any aggregate from the property. [Red emphasis added.] (Apr 13)

Perry voters narrowly approve $3.6 million Quoddy Bay deal — The Quoddy Tides, Eastport, ME

By an 18-vote margin, 229-211, voters approved the Financial Framework Agreement, and by a 31-vote margin, 205-236, they turned down a referendum question on forming a special negotiating committee concerning the liquefied natural gas project. They also re-elected, by a 13-vote margin, selectman H. Richard Adams, who has been supportive of the Quoddy Bay LNG proposal. A total of 442 voters cast ballots, out of 630 registered voters, for a turnout of 70%. (Apr 13)

Perry election results are announced — The Quoddy Tides, Eastport, ME

Three referendum questions were posed to Perry registered voters. (Apr 13)

Governor Baldacci is not thinking straight on issues [Letter to the editor] — Kennebec Journal, Augusta, ME

He is agin' gambling with money.

He is not agin' gambling with peoples lives.

Blumenthal files formal objection to gas plant — New Haven Register, New Haven, CT

HARTFORD — Connecticut Attorney General Richard Blumenthal filed a formal objection Friday with a New York agency responsible for issuing a key permit.

Connecticut officials have angrily criticized the plan and their exclusion from the approval process.

Secrecy, ethics and LNG ignite Port races — The Daily Astorian, Astoria, OR

As a crowd of about 50 learned at an American Association of University Women candidate forum Wednesday night, three incumbent Port commission candidates are proud of what the agency has accomplished under the current leadership.

But their challengers take issue with the Port's secrecy, questionable ethics and support for liquefied natural gas.

[Seaside businessman John Dunzer] is "a big supporter" of LNG, but he doesn't think the Skipanon Peninsula, where the Port has leased property to an LNG development company, is the right place. (Apr 19)

Vested interest [Letter to the editor] — The Daily Astorian, Astoria, OR

I am furious with those river pilots who care more about their ability to handle LNG tankers than about what the long-term implications are if they do ("Experiencing a real-life view of LNG," The Daily Astorian, March 13). (Apr 20)

Lieutenant Governor John Garamendi: Reflections on first 100 days in office — CaliforniaProgressReport.com

I led the State Lands Commission to reject the proposed Liquefied Natural Gas (LNG) terminal off the Oxnard/Malibu coast – because of the plan’s deficiencies in protecting the environmental health of our communities, the ocean and our shoreline; and because of the potential for this project to increase the creation of greenhouse gases that contribute to global climate change.

Gas to liquids technology and market potential — PRLog.org

Technological improvements and investment commitments by the world’s (sic) largest oil companies suggest that the gas to liquids industry (GTL) is likely to transform itself from a small, specialized producer to a large-scale fuel producer over the next decade. As expansion of GTL proceeds, the industry could become a major consumer of natural gas, placing it in direct competition with the growing liquefied natural gas (LNG) industry for access to natural gas supply. If competition leads to limited natural gas supplies, the result is likely to be higher prices for natural gas consumers at the same time the United States looks to world LNG markets to meet increasing domestic demand. [Red emphasis added.]

Uncontrollable price rise can slow down global LNG demand — PRLog.org

With consumers’ unwillingness to pay high prices for LNG (Liquefied Natural Gas), there may be a dramatic slow down in the global demand for the fuel, as per industry officials and analysts. They said this in a Conference on Flame energy held at Amsterdam on 13 March 2007.

Growth of global LNG market is mainly hindered by the rising costs of converting gas to liquid form, and escalating demand in countries that produce it. (Apr 20)

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20 April 2007

Environmental awareness group takes aim at siting of offshore LNG terminal in Massachusetts — The Marine Executive, Fort Lauderdale, FL

Safer Waters in Massachusetts (Nahant SWIM, Inc) Polly Bradley letter raises several objections to the placement of LNG terminals in Massachusetts waters and specifically calls the Port Access Route Study (PARS) “fundamentally flawed.” SWIM characterizes their letter as “a supplemental submission to the docket.” (Apr 11)

Hess predicts success on LNG — The Providence Journal, Providence, RI [Registration required]

Governor Carcieri’s spokesman, Jeff Neal … asserted … that there is “a real chance of getting the original FERC decision [approving the project] overturned.” (Apr 18)

Intrepid notes new federal biogas initiative — Grain Journal, Decatur, IL

"The technology to break down animal wastes to create biogas already exists but it needs encouragement from the federal government to become a commercially-viable alternative to natural gas.

"This new energy source would benefit rural communities and the environment while lessening our dependence on fossil fuels," said Senator Nelson.

Rejection hurts Broadwater plan [Editorial] — Connecticut Post, Bridgeport, CT

For opponents of a natural gas terminal proposed in Long Island Sound, it was heartening news. A major off-shore facility similar to the local project was rejected in California, signaling that public outrage can effectively be mobilized to block powerful, well-funded opponents. (Apr 18)

[Yet another] Incident at BP Texas refinery — BSR News, Boseman, MT

At least 90 contract laborers working in a crude oil processing unit at BP p.l.c.'s (NYSE:BP) refinery in Texas City, Texas, were taken to the hospital with nausea and eye irritation, according to Beth Heinsohn of Dow Jones Newswires.

Webmaster's Comments: The BP refinery in Texas City is the refinery that exploded in 2005 March, killing 15 workers and injuring around 180. OSHA fined BP after that incident for wilfully violating over 300 safety rules. During the 20 years prior to that explosion, 10 people were killed in accidents at the refinery. (See "Probe of Texas City Refinery Explosion Finds Weak Oversight," 2007 Mar 20, CNBC. BP is also engaged in the LNG industry, but FERC doesn't take into account BP's lack of corporate safety culture when evaluating permitting BP's LNG applications.

Kelso opts not to weigh in on LNG — The Daily News, Longview, WA

The Kelso City Council has decided not to consider a resolution opposing a controversial liquified natural gas terminal proposed for Bradwood, Ore., because it would be too time consuming and, in the end, meaningless, members said.

"We're looking at something that has no clear answer and that we are very unlikely to have an effect on," said Councilman David Futcher, who made a motion out of the blue during Tuesday's meeting to "postpone any other discussion indefinitely" about the LNG project. (Apr 18)

Herdt: LNG issue isn't frozen: Unless state acts, more showdowns will follow [Op-ed column] — Ventura County Star, Ventura, CA

California policymakers have two choices. They can allow the other LNG proposals to move along the permitting process until they, too, come to showdown votes of the Lands Commission and Coastal Commission. Or, they can create a front-end system of review that ranks the proposals based on which do the most to increase the state's energy supply, do the least harm to the environment and do the best job of ensuring public safety.

"It's really not appropriate for the burden for this level of review to fall on the public."

Legislation to require a statewide review would start by requiring regulators to openly address the fundamental question of whether California needs LNG. "It's never been done in the context of an evidentiary hearing process," she said. "This permitting free-for-all is not in the best interests of California." (Apr 18)

LNG advocates spin revolving door again [Politics blog] — San Francisco Chronicle, San Francisco, CA

The push to bring liquified natural gas to California may have suffered a setback this week, but it's still providing great jobs for state energy officials.

Steve Larson, the executive director of the Public Utilities Commission, announced Thursday that he's leaving his state job to go to work for Woodside Natural Gas, an Australian company hoping to build an LNG operation in the ocean about 22 miles south of Malibu.

Larson joins Joe Desmond, and David Maui in leaving jobs at pro-LNG state agencies to work for private LNG interests. (Apr 13)

Three more SoCal LNG projects work their way through system — Malibu Surfside News, Malibu, CA

The apparent scuttling of the proposed BHP Billiton ship off Malibu’s northern end does not end the local concern about liquefied natural gas terminals in nearby waters.

Another Australian energy firm, Woodside, is expected to file its application soon to locate an LNG terminal 22 miles south of Point Dume. And two other companies are poised to apply for offshore LNG regasification projects near Oxnard and Long Beach.

The lead agency handling the Woodside application will be the City of Los Angeles, because its natural gas pipeline would come ashore near Los Angeles In ternational Airport. That means the L.A. City Council will have veto power on the project that is being marketed as OceanWay. (Apr 19)

Commission adopts gas interchangeability policy in setting gas quality standards for Florida Gas pipeline [News release] — FERC, Washington, DC

The Federal Energy Regulatory Commission [FERC] will not accept requests from interstate natural gas pipelines to compensate customers or other downstream entities for any costs they may incur in using gas supplies that include revaporized liquefied natural gas (LNG) that meets approved standards for gas quality and interchangeability. (Apr 19)

FERC: No extra pipeline fees for LNG — AP, Yahoo Finance

The U.S. Federal Energy Regulatory Commission Thursday adopted a policy that rejects requests by pipeline companies to be compensated for costs incurred from shipping certain types of natural gas on their systems. (Apr 19)

Green Coast Related		Marine energy can be forecast — USA Today

After sputtering along for nearly a decade, marine power appears poised to join the alternative energy juggernaut, though the technologies are still in the early stages and have no guarantee of success. Developers are using an array of contraptions — from spinning turbines to bobbing buoys and undulating, snakelike cylinders — to convert ocean or river movements into electricity. (Apr 18)

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19 April 2007

Russia to build tunnel and pipeline to Alaska — BSR News, Boseman, MT

Russia is planning to construct a 64-mile long tunnel under the Bering Sea as part of a plan to supply the U.S. with electricity, oil, and natural gas, according to Yuriy Humber and Bradley Cook of Bloomberg. The tunnel is part of a 3,700-mile transport corridor, known as the TKM-World Link, that would originate in Siberia and end in Alaska; the project is expected to cost $65 billion and to take 10 -15 years to complete. The tunnel alone will cost up to $12 billion and will include room for railroads, truck traffic, pipelines, and power lines. (Apr 18)

Webmaster's Comments: Russia, with over 30% of the world's natural gas resources, will be piping natural gas directly to the US, without liquefying it into LNG, without the current marine vessel transit delay and costs, and without the uncertainty that exists with LNG supply. The US government will also be part owner of the project.

What does this mean for the future of the proposed LNG terminals in Passamaquoddy Bay and elsewhere in the US?

Hess LNG: Importers of LNG concerned about prices they will receive in U.S. markets — BSR News, Boseman, MT

Gordon Shearer, CEO of Hess LNG, said there are fewer LNG terminal projects being developed in the Gulf Coast area because of concern over prices that importers will receive for their natural gas…. (Apr 18)

Senator Boxer plans to pressure EPA on CO2 emissions — BSR News, Boseman, MT

Senator Barbara Boxer, chairman of the U.S. Senate committee on the environment, stated that she plans to keep "constant pressure" on the U.S. Environmental Protection Agency to regulate emissions of greenhouse gases….

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18 April 2007

Industry insider tells Platts Energy Podium new LNG terminals unlikely in the United States over next 10 years [News release] — Yahoo Finance

As for the East Coast, [Hess LNG CEO Gordon Shearer] said, "Boy that one's tough; we've got one in Canada [The Canaport LNG project in St. John's (sic), New Brunswick] that's clearly in construction, I struggle to see many more. The problem on the East Coast is the opposition is going to be tremendous. Who's got the patience, the time, the energy, and in the end, the money to get through it?" [Bold red emphasis added.]

Gordon Shearer, CEO Hess LNG, Energy podium podcast — Platts

Podcast (Subscribe via iTunes. Two versions: Full presentation 1:03:03 & Edited version 15:14)
Shearer stresses four important issues:

Locate LNG supply terminals near the market.

It's much easier and more economical to expand existing LNG terminals than to build new ones.

High natural gas prices are undermining the industry.

We may be betting too much on natural gas.
(Apr 17)

Report raises red flags — Newsday.com

Horsley said GAO officials are still working on studies to fully examine security issues and other concerns. One study is due this summer, the other next year.

Task Force: Broadwater blast 'big unknown' — Connecticut Post, Bridgeport, CT

"…it doesn't look like the Coast Guard exclusion zones are enough, not even in the best case," he said.

Fasano is referring to a report by the U.S. Coast Guard that determined a "no go" zone encompassing .7 mile radius around a tanker bringing frozen natural gas to Broadwater's proposed terminal would be sufficient to protect the public. A similar zone would be established around the terminal.

The GAO also noted that none of the studies, some conducted by government agencies, took into account whether a cascading fire, moving from tank to tank, would increase the size of the resulting fire.

The studies looked at what would happen if up to three tanks on a five-tank tanker leaked, but did not consider what would happen if all five tanks were breached and spilled gas onto a waterway.

Fasano said the task force will issue a report in a week or so, and send that document to the Federal Energy Regulatory Commission, which is considering permits for Broadwater. [Red emphasis added.]

Supreme Court rules that EPA can limit CO2 under Clean Air Act — BSR News, Boseman, MT

The U.S. Supreme Court ruled five to four that the U.S. Environmental Protection Agency (EPA) has the authority under the Clean Air Act to impose restrictions on greenhouse emissions from power plants and automobile makers; essentially, today's ruling also allows states legal standing to sue the EPA for not regulating these emissions, according to articles by Mark H. Anderson of Dow Jones Newswires, Pete Yost of the Associated Press, and Greg Stohr of Bloomberg. (Apr 2)

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17 April 2007

[LNG] Tanker damage to fishery feared — Bangor Daily News, Bangor, ME

Leo Murray of Lubec was skeptical about the Quoddy Bay LNG project. He pointed at a place on the map near Split Rock.

"That’s one of the best lobster areas in our whole fishing areas. That is really heavily fished," Murray said. He estimated there were 4,000 traps in the area in the fall.

[Brian] Smith said Canada was unwilling to deal.

Smith said the company’s goal was to minimize impact. "That means both minimize our fishing route and maximize what we can do for the fishermen," Smith said.

Balto. Co. lawmakers praise session's victories — The Baltimore Sun, Baltimore, MD

NB Premier Graham responds to Wall Street Journal [Letter to the editor]

A Grand new vision for Newport — Providence Business News, Providence, RI

Environmental Justice & Racism [by We Take Care of Our Land] — GoogleGroups.ca: Save Passamaquoddy Bay, NB

Are We More Than A Tourist Destination? You Bet We Are!

For us, environmental racism is DownEast LNG and Quoddy Bay LNG both vying to control our inherent wealth — our holy waterscapes — our sense of place — our dignity — our heartland — simply because the Governor of Maine thinks it's best.

We did not choose LNG: it was chosen for us. (Apr 3)

Significant Rock Formation: Split Rock

The developers for LNG for Maine (which include [Sen.] Raye and his closest associates) are proposing to "blast" parts of Split Rock — a cultural and ceremonial gathering place — in order to underlay a pipe for a Perry-based "Tank Farm." If that's not environmental racism, I don't know what is. (Mar 29)

The "Facts" on LNG in Passamaquoddy Bay speak for themselves; Pinder responds to Girdis attack on Janice Harvey — GoogleGroups.ca: Save Passamaquoddy Bay, NB (published in the Telegraph-Journal, Saint John, NB)

In his public statements, Mr. Girdis is attempting to put the best face on his project, and to intimidate its opponents through bombastic, personal slurs. His reliability as a source of information undermines his efforts in this regard. The cited USCG letter consists of four pages of notations of missing or inadequate information submitted to FERC by Downeast LNG. Eight times, the USCG says Downeast statements are "misleading," "not entirely correct," "inaccurate," "not fully accurate," "somewhat inaccurate", or they "could be misconstrued," and "it would be more accurate to say...". Three times, the USCG "disavows any inference made by this [Downeast LNG] statement."

We rest our case. [Red emphasis added.] (Apr 4)

Respect Canada’s rights [Letter to the editor] — Bangor Daily News, Bangor, ME

The United States has lost respect around the world because of our arrogant, might is right attitude and our transparent justification about "bringing democracy" to other countries. Haven’t we learned anything about the terrible results of these policies?

Now our governor, our senators, and even this paper’s editorial page are challenging the right of Canada to express its opinion about the passage of tankers through its waters in the Passamaquoddy Bay and the St. Croix River. Surely we don’t want to make an enemy of Canada, too.

U.S. says Canadian position on LNG tankers is "inappropriate" — The Working Waterfront, Rockland, ME

In a related development FERC Chairman Kelliher wrote to Ambassador Wilson on March 2 asking for more information from Canada and adding. ìBecause neither Quoddy Bay nor Downeast LNG have amended or withdrawn their applications, the FERC staff is continuing the process of preparing an environmental impact statement (EIS) for each project that will address the environmental impacts and the maritime safety and security of the projects. The US Coast Guard Captain of the Port, Sector Northern New England, is preparing a Waterway Suitability Report as to the waterway to accommodate LNG marine traffic.î [Errata: Accented characters — such as "í", "î," and "ó" — that may appear in this quote and the linked online story are the result of non-standard HTML coding by the Island Institute, publisher of The Working Waterfront.] (April edition)

Webmaster's Comments: FERC Chairman Kelliher seems to be implying that Canada is obligated to observe the FERC process as it relates to Canadian waters. Canada is under no such obligation.

If FERC, Downeast LNG, and Quoddy Bay LNG would simply observe the world's LNG industry best practices safety standards (see SIGTTO) regarding LNG terminal siting, there would be no international issue, since the LNG industry's own standards disqualify Passamaquoddy Bay as an LNG terminal location.

State Department Supports LNG Developers Over Canadian Protests — Bloomberg.com

"We have repeatedly told Canadian officials that your project is subject to ongoing Federal Energy Regulatory Commission review and that your permit request should be allowed to go forward and conclude normally, without any prejudgment, outside political or other extraneous interference,'' wrote [Paul Simons, deputy assistant secretary at the State Department]. (Apr 5)

Webmaster's Comments: The US State Department, too, seems to believe that Canada is under some obligation to observe FERC's decisions regarding Canada's waters. Again, Canada has no obligation to observe the FERC process, and FERC has no authority over Canadian waters.

If FERC, Downeast LNG, and Quoddy Bay LNG would simply observe the world's LNG industry best practices safety standards (see SIGTTO) regarding LNG terminal siting, there would be no international issue, since the LNG industry's own standards disqualify Passamaquoddy Bay as an LNG terminal location.

Excelerate: U.S. mariners will crew entire fleet — LNG Law Blog, Washington, DC

Excelerate yesterday announced that U.S. mariners will be integrated into the crews of its entire fleet.

Md. Senate lets LNG bill die as session ends — Baltimore Sun, Baltimore, MD

…as state lawmakers concluded the 90-day session in Annapolis late last night, legislation aimed at stopping the unpopular LNG project in eastern Baltimore County failed to win approval.

Several officials, including Baltimore County Executive James T. Smith Jr., said lobbyists hired by AES Corp. had done an effective job swaying some lawmakers.

Eight lobbyists were listed as working on behalf of the company's Sparrows Point proposal, according to state ethics records.

"We're not going to just roll over," said Smith, who is scheduled to testify later this month before Congress about LNG safety concerns.

Contango announces discovery at its Dutch Prospect and updates operations — Oil and Gas Online, Erie, PA

Houston, TX — Contango Oil & Gas Company announced recently a significant discovery at its Dutch prospect located offshore Gulf of Mexico at Eugene Island block 10. The Dutch #2 well is located approximately 1 mile from the Dutch #1 well and has extended the reservoir found by the Dutch #1 well. Both wells are operated by Contango Operators, Inc. (ìCOIî), a wholly-owned subsidiary of the Company. The two Dutch wells will produce from the same reservoir at a depth greater than 15,000 feet.

Calif. panel votes against LNG pipelines — Business Week

The state panel decided late Monday not to award a lease essential to a proposed liquefied natural gas terminal off the Southern California coast, citing environmental concerns.

The 2-1 vote complicated efforts by Australia's BHP Billiton LNG International Inc. to build an $800 million terminal in the ocean northwest of Los Angeles, about 14 miles off Malibu and about 20 miles off Oxnard.

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