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


News Articles
Passamaquoddy Bay & LNG

2008 April

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30 April 2008

U.S. regulators suspend review of LNG plant on Passamaquoddy land — Radio Googoo

Federal regulators in the U.S. have suspended a review of an Oklahoma-based company’s plan to build a liquefied natural gas terminal on the Pleasant Point Reservation in Maine due to insufficient information.

Those requests were made in May and October 2007. [Red emphasis added.] (Apr 29)

Selectmen not swayed by LNG proposal pitch — The Herald News, Fall River, MA

Somerset — Selectmen are standing pat in the anti-LNG stance, despite the eloquence of Weavers Cove CEO Gordon Shearer. (Apr 29)

New whale detection buoys help ships take right way — Huliq, Hickory, NC

The array of instruments — conceived by biologist and engineer Christopher W. Clark of the Cornell Lab and engineer John Kemp of WHOI — was largely funded by Excelerate Energy, L.L.C., as part of its environmental compliance associated with its Northeast Gateway deepwater port for liquefied natural gas (LNG). The import facility is set to begin operations in spring 2008.

The new listening system allows researchers to detect the location of whales in real time and alert ship operators and coastal resource managers to their presence. With advance warning, ships can be slowed or re-routed to prevent collisions, which is the most common cause of death for the iconic New England whale.

Blumenthal promises a fight over proposed LNG terminal — Legal Newsline, Chicago, IL

"Broadwater is about to embark on a long, costly and doomed legal battle against a coalition of determined states. Connecticut and New York have joined forces in a dogged, resolute fight to kill this threatened assault on Long Island Sound," Blumenthal said in a statement this week.

Broadwater to appeal NY's rejection of liquefied natural gas terminal project — All Headline News, Wellington, FL

Other proposed LNG facilities in various US states from Maine to Maryland have faced similar setbacks from local governments at a time of serious shortage of LNG, according to Globe and Mail.

Team Maryland condemns ruling on environmental safety of liquified natural gas site [News release] — US Senator Barbara A. Mikulski, Washington, DC

“Federal agencies are all too quick to rubberstamp these facilities, despite the significant and very real concerns of Baltimore residents, the State of Maryland, and this Senator,” said Senator Mikulski. “I am absolutely opposed to an LNG facility in Sparrows Point. I am deeply concerned for the safety of communities surrounding LNG sites and the potential environmental impact of these facilities. I will continue to stand up for Maryland, even as federal agencies rush this process.”

“FERC’s draft environmental impact statement fails to adequately address the safety issues of locating a LNG facility in a populated, urban area or what the substantial upgrades to security would entail,” said Senator Cardin. [Red emphasis added.] (Apr 29)

Webmaster's Comments: Unlike Maine's federal delegates — Sen. Olympia Snowe, Sen. Susan Collins, Rep. Mike Michaud, and Rep. Tom Allen — Maryland's delegates are standing up for safety of, and the rights of, their state's citizens.

Maryland legislators voice opposition to Sparrows Point — Energy Current, Houston, TX

"You have once again decided to ignore our safety, security and environmental concerns about this proposed facility. You also have chosen to ignore the concerns of the state of Maryland and Baltimore County."

College to train port workers on LNG — Grunion Gazette, Long Beach, CA

Long Beach City College plans to use $1.2 million in new funding to implement an LNG (Liquefied Natural Gas) program starting this year that would train hundreds of port workers, create a new curriculum for LBCC students and launch a class at Cabrillo High School, all teaching the alternative fuel technology.

“No less than 50% of trucks will have to have LNG engines,” she said. “They are going to need mechanics and technicians who know how to repair and install LNG engines.”

Shell in LNG fleet labor agreement — Energy Current, Houston, TX

USA: Shell Ship Management Ltd. and the American Maritime Officers (AMO) union today signed a Memorandum of Understanding (MoU) formalizing the addition of U.S. seafarers to Shell's officer cadre for its global liquefied natural gas (LNG) fleet.

NATS: As U.S. natural gas prices rise, spread between U.S. and U.K. price levels narrows — LNG Law Blog, Washington, DC

NATS suggests that should U.S. gas traders conclude that current gas inventory levels in the United States  are insufficient , imports may increase at the soon-to-be operational Sabine Pass and Freeport LNG terminals.


29 April 2008

LNG developer suffers setback — Saint Croix Courier, St. Stephen, NB

He noted that it has been a year since FERC made its first requests to Quoddy Bay LNG and the company has not provided the information required.

“I think one of the really important things about this particular filing is they still have not got the required information about their proposed cryogenic pipeline.

Calais council votes in support of LNG project — The Quoddy Tides, Eastport, ME

Cassidy remarks that he finds it interesting that the mayor of St. Andrews has said that tourism and industry don't mix, yet a state-of-the-art LNG and regasification terminal is under construction in nearby Saint John. (Apr 25)

Webmaster's Comments: Industrialization of Passamaquoddy Bay would damage nature-based tourism that already exists here and is growing. Saint John is already an industrialized city, without the natural attributes of Passamaquoddy Bay.

Quoddy Bay LNG does not foresee long-term problems for proposal despite recent setback — LNG Law Blog, Washington, DC

Donald Smith, president of Quoddy Bay LNG, told Platts LNG Daily [subscription required] that he does not anticipate any long-term problems for the company's LNG proposal for Maine, despite FERC's decision to suspend review of Quoddy Bay's LNG terminal application. In its letter announcing the decision, FERC stated that it did not have enough information to continue to review the application at this time.

Webmaster's Comments: Quoddy Bay LNG has already failed to answer FERC's questions for a year, resulting in FERC suspending review of their application.

Attorney General's statement on Broadwater appeal to U.S. Department Of Commerce [News release] — Media Newswire

“Shell Oil is once again turning to friends — appealing to the Big Energy Bush Administration's U.S. Department of Commerce. This federal administration and its Secretary of Commerce are short lived and certainly will not have the final say on Broadwater. If they fail to respect the law — which Broadwater would clearly violate — the courts can overrule them.” — Connecticut Attorney General Richard Blumenthal

Broadwater to appeal N.Y. permit denial — The Day, New London, CT

In order to have the coastal management decision overturned, Broadwater must prove that“the activity is consistent with the objectives of the (coastal zone management act) or is otherwise necessary in the interests of national security,” according to information on the Commerce Department Web site.

Broadwater will ask U.S. to authorize gas terminal — AP, New York Times, New York, NY [Free registration required]

The appeal follows decisions by M. Jodi Rell, the governor of Connecticut, a Republican, and David A. Paterson, the governor of New York, a Democrat, who both oppose the $700 million terminal by the energy company, Broadwater, a consortium of Shell Oil and TransCanada Pipelines.

Shell and TransCanada to appeal N.Y. rejection — Toronto Star, Toronto, ON

New York Governor David Paterson on April 12 rejected the project because of potential environmental damage. Under federal laws, the Commerce Department can override state objections if an appeal is filed within 30 days. The department then has a year to respond to the appeal.

Broadwater to fight LNG veto — The Globe and Mail, Toronto, ON

OTTAWA -- Broadwater Energy has launched a long-shot appeal to revive its plan to build a liquefied natural gas terminal in Long Island Sound, but New York State's rejection of the proposal underscores the tremendous hurdles facing proponents of LNG sites in the northeastern United States.

The populous region is a major destination for Canadian natural gas — both from Western Canada and for growing supplies from the Maritimes — and producers had worried that supplies of foreign liquefied gas could provide stiff competition and keep a lid on prices in the coming years.

Broadwater LNG to appeal New York's rejection of import terminal — Platts

Broadwater Energy on Monday said it will ask the US Department of Commerce to overturn New York's April 10 decision to reject the company's planned 1 Bcf/d liquefied natural gas terminal in Long Island Sound. (Apr 28)

Power generators' trade group concerned about gas composition of LNG imports — LNG Law Blog, Washington, DC

According to Platts LNG Daily, Angela O'Connor, president of the New England Power Generators Association, expressed concern that new sources of LNG being imported into New England may result in changes in gas quality that potentially could affect electric reliability.

Webmaster's Comments: LNG terminals typically "dilute" natural gas with (non-flammable) nitrogen in order to bring down the resulting burning temperature of the gas (because of the hotter-burning non-methane fuels in the gas). "New sources of LNG" would need more nitrogen dilution; thus, the additional dilution operations would mean more pollution at the LNG terminal.

Also, since the resulting natural gas would still contain higher amounts of non-methane, such as butane, propane, and ethane — all more polluting than methane — customers of the resulting natural gas would be polluting the air more.

New England Power Generators Association's concerns, as expressed in the above article, happen to perfectly contradict statements by Quoddy Bay LNG's Brian Smith to Maine Board of Environmental Protection Chairman Ernest Hilton (2008 Mar 14 letter, PDF, 177.1 KB).

LNG backers challenge ballot title — The Daily Astorian, Astoria, OR

NorthernStar Natural Gas argues that parklands are not ‘protected’

In summarizing the issue, the title says county zoning law "previously prohibited pipelines, sewer lines and cables in areas zoned as open space, parks and recreational lands. The County Commission recently amended that land-use ordinance to allow pipelines, such as one for a liquid natural gas line."

WSJ Says: Don’t Bet on LNG to Reduce US Natural Gas Prices —

According to the WSJ article: “Today, a tanker of liquefied natural gas, or LNG, pulling into port in Japan can command close to $20 per million BTUs, roughly double the price of the U.S. benchmark.”

As with any globally traded commodity, the marginal price sets the price for everyone. If Japan is willing to pay $20 per million BTUs (mmBTU) for LNG, prices globally will float up towards this price, and that’s about what we should expect to pay here in the Northwest if an LNG terminal is built. We’ll essentially be linking our mostly regional market to an intensely competitive global market for LNG, where the price is set by the highest bidder.

The Coast Guard Authorization Act of 2008 explained — MarineLog, New York, NY

Law firm Winston & Strawn has prepared an advisory that summarizes key features of the Coast Guard Authorization Act of 2008 (until recently, the "Act of 2007").

Here's what the Winston & Strawn advisory says about some the most important elements of the bill.

The Coast Guard has strongly opposed the provision because, in their view, it shifts security responsibility from owners and operators to the Coast Guard and will force the Coast Guard to draw security resources from other important tasks to concentrate on LNG security. Many terminal owners oppose the provision, especially those with terminals under development, because the newly proposed burdens would fall heaviest on such terminals.

NatGas purchasers looking for Spring price dips need to be nimble, NGI reports — Business Wire, San Francisco, CA

CHICAGO -- (BUSINESS WIRE) -- Utilities, power generators and industrial end-users are going to have to pick their spots and move quickly to secure lower-priced natural gas in the increasingly higher-priced and challenging market, according to Val Trinkley of EnergyUSA, a NiSource company, who will be conducting a strategy workshop at GasMart 2008 in Chicago May 20-22.

LNG Siting Bill Requires DHS Input — HSToday, McLean, VA

Markey’s amendment calls for DHS to assess whether the waterway leading to a proposed waterside LNG facility meets security and safety concerns and would be suitable for the increased marine traffic that would result from any LNG facility. DHS would then communicate their assessment to the Federal Energy Regulatory Commission (FERC) and FERC, in turn, would be required to tell DHS what action FERC will take on the LNG application within 90 days or the expiration of any available appeal, whichever is later.

“The need for this kind of commonsense coordination between DHS and FERC has been highlighted recently by the situation in Fall River, Massachusetts, where the FERC has approved a license for an LNG facility that the Coast Guard says shouldn’t be built because the waterway to the facility is not suitable. Despite this action by the Coast Guard, which effectively blocks the facility, the FERC license remains in place. This lack of coordination makes no sense and my amendment will ensure that this doesn’t happen in future siting decisions,” Markey said. [Red & bold emphasis added.] (Apr 24)

Shell to sign historic agreement with American Seafaring Union to hire U.S. officers for LNG vessels [Media advisory] — Center for Liquefied Natural Gas, Washington, DC

The signing will take place at the U.S. Department of Transportation, Media Center, First Floor (off the inner courtyard), U.S. Department of Transportation Headquarters, 1200 New Jersey Avenue, SE, Washington, D.C.


28 April 2008

Bridges to raise LNG issue at U.N. forum — The Quoddy Tides, Eastport, ME

As a member of the IEN delegation, Bridges is putting forth the Passamaquoddy community's issues around the proposed LNG industrial site as part of the local organization's global approach to keeping Passamaquoddy Bay free of LNG. (Apr 25)

Quoddy Bay's LNG review suspended — MaineBiz, Portland, ME

The Federal Energy Regulatory Commission on Friday suspended its review of Quoddy Bay LNG's proposed liquefied natural gas terminal on Passamaquoddy land in Washington County because of insufficient data.

Quoddy Bay LNG receives FERC letter postponing (sic) action — Quoddy Bay LNG

Donald Smith, Quoddy Bay President says, “The FERC letter accurately describes the present situation."

The FERC letter notes that Quoddy Bay has not submitted information that has been requested in the past.“We haven’t decided whether to build the electric generation and the nitrogen plant because we haven’t finalized LNG supply. [Red & bold emphasis added.]

FERC suspends review of Quoddy Bay LNG project — MorningStar, Dow Jones & Company

WASHINGTON -(Dow Jones)- The Federal Energy Regulatory Commission on Friday suspended its review of a liquefied natural gas project by Quoddy Bay LNG LLC.

The agency acted in response to company filings that it isn't able to respond to staff questions related to safety and reliability. (Apr 25)

Maritimes & Northeast Pipeline plans Phase V U.S. expansion to deliver new offshore natural gas supplies to Atlantic Canada and the Northeast [News release] — Maritimes & Northeast Pipeline

HALIFAX, Nova Scotia and WALTHAM, Mass. – Maritimes & Northeast Pipeline is proposing to increase the capacity of the U.S. portion of its pipeline system to transport new natural gas supplies from EnCana Corporation’s planned Deep Panuke project, located off the coast of Nova Scotia, to growing markets in Atlantic Canada and the Northeast United States.

Following a successful open season for its Phase V Project, Maritimes has executed a commercial agreement with a subsidiary of EnCana to transport up to 170,000 dekatherms per day (Dth/d) year-round, and an additional 30,000 Dth/d during the winter months.

The Phase V Project continues Maritimes’ efforts to add incremental supplies from diverse sources to ensure that Atlantic Canada and the Northeast markets of the Mid-Atlantic and New England states have access to ample natural gas. (Feb 5)

Webmaster's Comments: Expansion Phase V will not be completed until 2010. This expansion will not be able to accommodate natural gas from the proposed LNG projects in Passamaquoddy Bay.

Public comment invited on the Comprehensive Study Report for the proposed Grassy Point Liquefied Natural Gas project [Newfoundland] — Canada News Centre, Ottawa, ON

Newfoundland LNG Ltd. proposes to construct, operate and eventually decommission a LNG transshipment and storage terminal. The proposed development would include a marine terminal comprised of thee jetties, a tug berth, eight LNG storage tanks, and supporting infrastructure including an access road, office facilities, security fencing, and utilities such as water and power. The proposed facility will provide LNG to markets in the north-eastern United States and Canada.

The proponent proposes to locate the development at Grassy Point, within Come-by-Chance Harbour, at the head of Placentia Bay.

TransCanada fights U.S. decision on huge gas terminal — AP, The Globe and Mail, Toronto, ON

The appeal follows decisions by Connecticut Gov. M. Jodi Rell, a Republican, and New York's David Paterson, a Democrat, who both oppose the $700-million (U.S.) terminal by Broadwater, a consortium of Shell Oil and TransCanada Pipelines Ltd.

“They apparently are in favour of squandering their money,” [said Adrienne Esposito, executive director of the Citizens Campaign for the Environment]. “They can appeal all they want. We are very confident they are going to lose. They are acting like a spoiled child that is not used to losing.”

Broadwater starts to fight state rejection of gas barge — Newsday, New York, NY

Meanwhile, state and local officials and environmentalists in New York and Connecticut have in recent weeks formally asked the Federal Energy Regulatory Commission to reverse its March 20 decision approving Broadwater's application with conditions, on the grounds of potential environmental damage to the sound and a contention that the commission violated federal law by making its decision before New York State officials had made theirs.

Broadwater challenging LI Sound gas terminal edict — AP, Republican-American, Waterbury, CT

GARDEN CITY, N.Y. — Elected officials and environmentalists shrugged off an announcement Monday by Broadwater Energy that it would appeal to the U.S. commerce secretary in its bid to build the world's first floating liquefied natural gas terminal in Long Island Sound.

Broadwater plans appeal to revive Sound plan — Connecticut Post, Bridgeport, CT

Once Broadwater formally files its appeal, the commerce secretary would have 220 days to make a decision that could then be challenged in federal appeals courts in either New York or Washington.

Rather than go down that path, Blumenthal called on Broadwater to "surrender now" and avoid the expense of years of litigation "for a needless project when safer and saner natural gas supply alternatives have already been proposed."

"Connecticut and New York are well aware of their energy needs, and support the many common-sense alternatives to Broadwater," he said.

LNG proposals pose new threat [Editorial] — Asbury Park Press, Neptune, NJ

Plans to build two liquefied natural gas plants about 20 miles off the Monmouth County coast deserve to sink under the weight of major safety and environmental concerns. Local, state and federal lawmakers who represent the Jersey Shore should muster support from their colleagues in what is sure to be a fierce battle to protect the ocean from this latest environmental onslaught.

FERC issues draft EIS on Sparrows Point LNG terminal — Oil & Gas Journal, Houston, TX

Maryland state and local government officials have expressed opposition to the project, saying it would bring LNG tankers up Chesapeake Bay and potentially disrupt Baltimore Harbor vessel traffic. New York state officials raised similar points Apr. 10 when they rejected the proposed Broadwater LNG project in Long Island Sound.

LNG plant proposal finding opposition — AP, WMAR-TV, Baltimore, MD

Federal regulators are recommending conditional approval for a proposed liquefied natural gas terminal at the Port of Baltimore.

The recommendation comes despite opposition to the plan from elected officials and community leaders.

Natural gas terminal sparks debate — WMAR-TV, Baltimore, MD

The plan still needs final approval and the public will get a chance to weigh in, but so far it's tough to find anyone in favor of an LNG terminal. 

Company official: Cheniere may sell entire company — LNG Law Blog, Washington, DC

Platts LNG Daily reports that a company official from Cheniere Energy, speaking on the condition of anonymity, said that the firm is contemplating selling all or parts of the company.

LNG foes fear 'bait and switch' changes — The Daily Astorian, Astoria, OR

In a March filing with the Federal Energy Regulatory Commission - which has the final say in the project's approval - NorthernStar representatives suggested changing their proposed method of reheating the imported gas from one that relies on burning natural gas to one that also requires a large helping of Columbia River water.

However, according to the documents, the company said it wouldn't request the change until after the current design is approved by FERC. [Red emphasis added.]

Coast Guard's misgivings are real [Editorial] — The Daily Astorian, Astoria, OR

The $8.4 billion Coast Guard bill that overwhelmingly passed the U.S. House last week contains much of local relevance, most notably a requirement that the USCG must enforce security zones around liquefied natural gas terminals and arriving tankers.

It will come as a surprise to many here that there previously was no such rule. Although the Coast Guard provides some security for LNG sites and ships, USCG Commandant Adm. Thad Allen strenuously objected last week to having LNG duties written into law, something he said robs the Coast Guard of "necessary discretion and flexibility to meet our mission demands in an often-changing, dangerous operating environment."

If the Coast Guard is nervous about its ability to protect LNG while also performing all its other vital missions, we all should share those misgivings. [Red emphasis added.]

Clinton targets rural Oregon — StatesmanJournal, Salem, OR

He said the bill "stripped from Oregon the authority to make decisions about the siting of liquid natural gas facilities." Three LNG facilities are proposed for Oregon.

"You may want them, but you ought to have a say in them, don't you think?" Clinton asked the crowd.

The LNG controversy [Op-ed column] — The Oregonian, Portland, OR

As the state's largest natural gas provider, we think it's important to describe what we see ahead, the choices our state must make -- and the impact on all Oregonians.

Nine LNG terminals will be fully operational in the East and Gulf Coast states by 2009.

Natural gas will be critical in our efforts to combat climate change and support renewable development. But as your local provider, we see tighter gas supplies and higher energy prices ahead. We believe it's going to take ingenuity and investment in a variety of energy resources, including LNG, for us to meet both our goals in greenhouse gas reduction and our economic aspirations. [Red emphasis added.] (Apr 27)

Webmaster's Comments: What Gregg Kantor says might be true -- or what he says might just be more of the same over-selling of natural gas that we've learned to expect from industry members. A more credible assessment should come from a source without an interest in either side of the issue.

Do conflicts of interest infect LNG proposals? [Opinion column] — The Union, Grass Valley, CA

Take a good look at the leading advocates of the three major proposals to build multi-billion-dollar liquefied natural gas receiving facilities in California and you can't help wondering about state agency decisions that make those plans seem feasible.

That's because some of the same people who made or recommended key LNG reports and rulings by the state Energy and Public Utilities commissions are now leading players in bids enabled by those decisions.

Even under the federal law forcing former government officials to wait three years before lobbying their ex-colleagues, former members of Congress are exempt and there are no rules at all against regulators going to work for companies after making decisions that give them millions or even billions of dollars in profits.

It's wrong, and it makes suspect every decision these ex-officials ever had a hand in. [Red emphasis added.]

FERC denies request for rehearing in North Baja gas pipeline proceeding — LNG Law Blog, Washington, DC

The decision, available in FERC's eLibrary under Docket No. CP06-61, states that FERC could not know how much gas imported from the Costa Azul LNG terminal would be consumed and that the California Public Utilities Commission is the proper authority to set restrictions on emissions by end-users.


26 April 2008

Quoddy Bay LNG: FERC suspension no surprise — WQDY FM, Calais, ME

The Federal Energy Regulatory Commission [FERC] notified Quoddy Bay LNG that they are suspending their review of the firm's LNG import project.

But Adam Wilson, Quoddy Bay LNG's deputy project manager told WQDY News late Friday afternoon it didn't come as any surprise. (Apr 25)

Quoddy Bay LNG review halted — Bangor Daily News, Bangor, ME

"Without complete responses to these requests, we cannot proceed with our engineering review or with the preparation of the draft environmental impact statement," reads the letter from J. Mark Robinson, director of FERC’s Office of Energy Projects.

Linda Godfrey with the group Save Passamaquoddy Bay interpreted the suspension as another sign that Quoddy Bay’s application isn’t feasible.

FERC suspends Quoddy Bay LNG review — Energy Current, Houston, TX

J. Mark Robinson, director of FERC's Office of Energy Projects, said FERC could not complete its review or prepare the project's draft Environmental Impact Statement without information requested from Quoddy Bay concerning the terminal's proposed vaporizer revision as well as the safety and reliability of the proposed cryogenic transfer line. (Apr 25)

FERC suspends its review of proposed Quoddy Bay LNG terminal —

The letter notifying Quoddy Bay LNG of this action is available in FERC’s eLibrary under Docket No. CP07-35.

FERC drops Quoddy LNG consideration for lack of data — Intelligence Press [Paid subscription required]

FERC has suspended review of the Quoddy Bay LNG Import Project, a proposed liquefied natural gas (LNG) terminal in Washington County, ME, because project backers have said they are unable to provide requested information, the Commission said Friday.

LNG companies not deterred by Coast Guard security role — The Salem News, Salem, MA

With the stepped-up role in enforcement, the bill also gives the Coast Guard greater authority to review the security plans made by LNG companies to make sure the agency has the resources needed to enforce them.

The bill says LNG operators cannot assume to receive security assistance from state and local authorities, unless those state and local authorities have signed agreements promising assistance.

Bill adds extra approval for LNG plan — The Standard Times, New Bedford, MA

PROVIDENCE — Any state emergency response plan for transporting liquefied natural gas across Rhode Island waters would require additional levels of approval under a bill passed by the House.

The bill sponsored by Rep. Raymond Gallison would require cities and towns along Narragansett and Mount Hope bays to sign off on the plan before it could take effect.

Proposal for LNG terminal advances — The Baltimore Sun, Baltimore, MD

Federal officials are recommending conditional approval for a liquefied natural gas terminal at Sparrows Point, over the objections of community leaders and elected officials.

The project has been criticized by elected officials at every level. They say the facility is too close to homes in the Dundalk area, especially to the historically black neighborhood of Turners Station, if there were an accident or a terrorist attack on the LNG tankers or facility. [Red emphasis added.]

Emergency responders tour LNG plants — The World, Coos Bay, OR

They visited the Cove Point LNG terminal in Cove Point, Md.; Trunkline LNG terminal in Lake Charles, La.; as well as a terminal in Hackberry, La., that is under construction.

If the LNG terminal is approved, North Bay and other agencies will enter into contractual agreements with Jordan Cove Energy Project. For now, the only financial assistance the agencies received was getting transportation to Louisiana.

Webmaster's Comments: The problem is, emergency response plans aren't developed until after terminal approval. Then, communities no longer have bargaining power with developers for emergency response requirement cost sharing.


25 April 2008

FERC suspends review of Quoddy Bay LNG project — NASDAQ, Dow Jones, Wall Street Journal, New York, NY

The agency acted in response to company filings that it isn't able to respond to staff questions related to safety and reliability.

FERC suspends its review of proposed Quoddy Bay LNG terminal — LNG Law Blog, Washington, DC

FERC Staff cited the developer's inability to provide information regarding "proposed vaporizer revision as well as the safety and reliability of the proposed cryogenic transfer line."

U.S. House passes Coast Guard Reauthorization Bill with amendment to LNG security provision — LNG Law Blog, Washington, DC

The bill includes an amendment that will allow the Coast Guard to consider state and local security resources when determining whether resources are available to protect LNG terminals and vessels only if the state or local government "has entered into a contract, cooperative agreement, or other arrangement to provide the services." The previous version of the bill would have prohibited the Coast Guard from considering any state and local security resources.

House approves Gallison plan on LNG — The Providence Journal, Providence, RI

PROVIDENCE — In a near-unanimous vote Wednesday, the state House of Representatives approved legislation that would require a slew of additional approvals for any emergency response plan developed for the transportation of liquefied natural gas through Rhode Island waters.

Webmaster's Comments: Local communities and states are taking back their rights regarding their own safety and destiny.

R.I. House OKs bill on LNG emergency response plans — The Herald News, Fall River, MA

Gallison’s House colleagues Wednesday voted in favor of the Bristol representative’s bill that would require General Assembly and municipal approval for any emergency response plan developed in regards to LNG. In the matter of the Weaver’s Cove Energy proposal that would mean the Rhode Island towns of Newport, Jamestown, Middletown, Portsmouth, Tiverton, Bristol and Warren would have to join the Assembly in ratifying any Rhode Island Emergency Management Agency response plan.

Every city and town along the bay is potentially put at risk by LNG tankers traveling toward Fall River in the bay,” Gallison said. “If there were an emergency, cities and towns affected by it would have to be a part of the response plan." [Red emphasis added.] (Apr 24)

FERC releases DEIS for proposed Sparrows Point LNG terminal — LNG Law Blog, Washington, DC

FERC Staff concluded that, if constructed and operated in accordance with the mitigation measures proposed by the developer and those recommended by Staff, and in accordance with U.S. Coast Guard safety and security measures, "construction and operation of the proposed facilities and the related LNG marine traffic would have limited adverse environmental impact and would be an environmentally acceptable action."

FERC staff issues Draft Environmental Impact Statement on Sparrows Point LNG and Mid-Atlantic Express Pipeline Project — Federal Energy Regulatory Commission (FERC), Washington, DC

FERC staff prepared a draft environmental impact statement (EIS) for the AES Sparrows Point LNG, LLC and Mid-Atlantic Express, L.L.C. (collectively, AES) Sparrows Point LNG and Mid-Atlantic Express Pipeline Project. The liquefied natural gas (LNG) terminal is proposed for an industrial port setting on Sparrows Point, in Baltimore County, Maryland, and consist of facilities capable of unloading LNG ships, storing up to 480,000 cubic meters (m3) of LNG, vaporizing the LNG, and sending out natural gas at a baseload rate of 1.5 billion cubic feet per day (Bcfd). The pipeline would include about 88 miles of 30-inch-diameter natural gas pipeline (about 48 miles in Maryland and 40 miles in Pennsylvania), ending in Eagle, Pennsylvania.

Webmaster's Comments: This is another case of LNG industry terminal siting standards being ignored. (See LNG Terminal Siting Standards Organization.)

House passes bill requiring LNG security — The Facts, Clute, TX

WASHINGTON, D.C. — Defying President Bush’s threatened veto, the House overwhelmingly approved a bill Thursday making the Coast Guard enforce security zones around eight liquefied natural gas terminals, including Quintana’s Freeport LNG, and any arriving tankers — all potential terrorism targets.

Alaska declines to approve Exxon's Point Thomson gas field plan — Energy Business Review, London, England, UK

According to Alaska's Department of Natural Resources, Exxon's disability to develop the field under 22 previously submitted development plans has led to the rejection of the latest proposal. (Apr 24)

LNG security bill moves forward — The Daily Astorian, Astoria, OR

[NOTE: This same story was published by The Daily Astorian under the headline, "House passes Coast Guard LNG safety bill despite Bush veto threat".]

Last September, as officials fielded questions about another proposed LNG facility, in Warrenton, state Sen. Betsy Johnson asked, "Will the Coast Guard use Coast Guard assets for escorting for-profit ships to the site, and if that is, in fact, what occurs, how does that affect your Homeland Security or humanitarian missions?"

Capt. Patrick Gerrity, then Captain of the Port in Portland and the Coast Guard's local authority on LNG's maritime security, responded: Although a 2005 energy law requires companies to offset the costs to local authorities protecting LNG facilities, it does not require a shared payment plan with the Coast Guard. "It would be a federal burden," he said.

Emotions run high at forum on LNG pipeline — Mail-Tribune, Medford, OR

The pipeline representatives were scattered throughout the crowd trying to answer questions, but finding little satisfaction in their increasingly dissatisfied audience.

House defies Bush on Coast Guard Act ... sort of — Marine Log, New York NY

The House sort of defied a threatened Bush veto by by passing the $8.4 billion Coast Guard Authorization Act by a veto-proof 395 to 7. However, the bill as-passed now includes a Republican-backed amendment that allows the Coast Guard take into account agency, state and local government security resources when deciding on security needs for LNG terminals and vessels--the issue that prompted the veto threat.

Environmentalists praise natural gas, block imports of it [Opinion column] — Belleville News-Democrat, Belleville, IL

Here's where the love-hate stuff comes in. At the same time environmental policy drove up the demand for natural gas, it has also constrained the supply.

The reasons for opposition - usually safety and environmental concerns - are belied by the excellent record LNG has amassed in this country. To be sure, these concerns, including the overhyped claim that LNG facilities would be easy terror targets, should be addressed through strong safeguards. But overblown fears are hardly a valid reason to stop these projects.

Webmaster's Comments: The author of the above column ignores the LNG industry's own safe practices standards (see SIGTTO) regarding LNG terminal siting.

SIGTTO states that LNG terminals should not be sited where the vapor from an LNG release could affect civilians. It is the industry, itself, expressing safety concerns about inappropriate terminal siting that could result in the demise of the LNG industry and of US energy security. (See LNG Terminal Siting Standards Organization.)

Russia to present toned-down version of gas cartel charter — Energy Business Review, London, England, UK

Industry sources are of the opinion that, it will be difficult for potential members to reach a consensus over the role of the organization. Russia reportedly does not favor a cartel-like arrangement due to the potential political fallout. (Apr 24)


24 April 2008

US House passes Coast Guard bill despite Bush veto threat — AP,

WASHINGTON (AP) — Defying President George W. Bush's threatened veto, the House of Representatives on Thursday overwhelmingly approved a bill making the U.S. Coast Guard enforce security zones around eight liquefied natural gas terminals and any arriving tankers — all potential terrorism targets.

The White House has complained that the requirement would divert the Coast Guard from other high-priority missions and provide an unwarranted subsidy for LNG owners.

The 395-7 vote margin on the $8.4 billion … Coast Guard bill was well beyond the two-thirds needed to override a presidential veto.

Under the bill, security plans for LNG sites cannot be approved unless the Coast Guard determines there are adequate agency, state and local government resources to handle security risks, Cummings said.

GAO auditors also say the Coast Guard is already stretched too thin to meet its own standards for protecting arriving LNG tankers from attack. [Red & bold emphasis added.]

Webmaster's Comments: This means lower probability of LNG terminal approval — more bad news for Downeast LNG, Quoddy Bay LNG, and Calais LNG.

Weaver’s Cove Energy CEO seeks docking facility to offload LNG — The Providence Journal, Providence, RI

When Selectman Lorne Lawless questioned whether the pipes represented untried technology, especially for transporting LNG four miles, Shearer said similar pipes “have been in service for 40 to 50 years.”The pipe being contemplated for this project, the CEO said, “is certified for up to eight miles” at a pressure of 100 pounds per square inch. [Red emphasis added.]

Webmaster's Comments: We challenge Shearer to identify where undersea cryogenic LNG pipes have been in service for 40 to 50 years.

Shearer outlines offshore (sic) LNG plan — Wicked Local Somerset, Fall River, MA

“It’s a tested, safe, tried, true and proven way of delivering natural gas,” he said, adding that there have been “no accidents that have created any injury to the public.” [Red emphasis added.] (Apr 23)

[NOTE: This same story appears in the Herald News, Fall River, MA, published April 24.]

Webmaster's Comments: Perhaps Weaver's Cove CEO Shearer would like to inform government officials and the public exactly where his "tested, safe, tried, true and proven" underwater cryogenic LNG pipeline is in use and "proven" to be safe.

"Offshore" LNG terminals — by US government definition — are more than three miles offshore, outside of the state's limits, but within the US limits. MARAD (Maritime Administration, principally the US Coast Guard), rather than FERC, has authority over offshore terminal siting. The Weaver's Cove goofy new plan is well within state limits, still falls under FERC authority, and "offshore" doesn't apply.

Weaver's Cove Energy initiates FERC pre-filing process for new project concept — LNG Law Blog, Washington, DC

Last week Weaver's Cove Energy filed a request that FERC initiate its National Environmental Policy Act ("NEPA") pre-filing review of the developer's revised offshore unloading concept.

Webmaster's Comments: The Weaver's Cove LNG project was permitted by FERC, but denied by the US Coast Guard. The developer thinks that by moving the proposed LNG tanker berth just one mile from thousands of people in several communities and two states (MA and RI) — along with a goofball 4-mile underwater cryogenic LNG pipeline — will make the plan more acceptable.

Not in my water — LI Biz Blog, Long Island, NY

How do the folks in the Garden State feel about that [New York's rejection of Broadwater]? Glad you asked.

LNG pipeline officials, opponents debate natural gas development plan — The News Review, Roseburg, OR

CANYONVILLE — Despite the potential for a clash between placard-waving opponents of a natural gas pipeline through Western Oregon and its hopeful developers, dueling meetings Tuesday night in two adjacent rooms at Seven Feathers Hotel & Casino Resort were muted and eventually became one. (Apr 23)

Tempers flare at LNG meeting — KDRV TV, Medford, OR

Residents are concerned that the pipeline, which would pass through the city and send most of it's material to facilities in California, will not benefit the local economy. (Apr 23)

Sempra commences commissioning activities at Energia Costa Azul — LNG Law Blog, Washington, DC

Speaking on the sidelines of the CWC Group LNG 2008 conference, Sempra LNG's V.P. of commercial development, Octavio Simoes, told Platts LNG Daily [subscription required] that his company has initiated commissioning activities at its Energia Costa Azul LNG terminal in northwestern Mexico.

Second test cargo to arrive at new LNG terminal in Mexico — Platts

A second start-up liquefied natural gas cargo is set to arrive around May at Sempra LNG's Costa Azul LNG import terminal in Baja California, Mexico, the first such facility on Mexico's western coast, officials said at a San Antonio energy conference this week.

The first cargo arrived three weeks ago at the 1-Bcf/d terminal, he said. The second cargo will also be used for the 45- to 60-day commissioning period and not for commercial delivery. Sempra has said that commercial operations will begin in the second quarter.

Industry officials expect U.S. LNG imports to increase next year — LNG Law Blog, Washington, DC

Speaking at the CWC Group LNG 2008 conference held this week in San Antonio, Texas, a number of industry officials predicted that LNG imports to the United States are likely to increase next year.

LNG cargoes to US could increase by 2009: market watchers — Platts

"We think 2008 is going to be a lean year in terms of cargoes coming to the US," Octavio Simoes, Sempra LNG's vice president of commercial development, said at the CWC Group's LNG 2008 conference.

Dean Girdis, president of Downeast LNG, agreed that the US may attract more cargoes in the next year [2009].

Webmaster's Comments: Unfortunately for Dean Girdis, Downeast LNG won't be in any position to accept any LNG cargo under any conditions.

Atlantic LNG slakes US thirst — Newsday, Port-of-Spain, Trinidad & Tobago

The US continued to be the major market for Atlantic LNG, with sixty-five percent of its cargoes being shipped there, while 17% went to Europe. Fifty-eight percent of the LNG imported by the United States in 2007 was shipped from Trinidad, according to Atlantic CEO Oscar Prieto.

Webmaster's Comments: Atlantic LNG is a member of SIGTTO, the LNG industry's standards-development organization. Downeast LNG, Quoddy Bay LNG, and Calais LNG all violate SIGTTO LNG industry terminal siting standards. For more about the standards, see LNG Terminal Siting Standards Organization.

Gazprom to spend $45B on LNG — Calgary Herald, Calgary, AB

Russia, which already supplies a quarter of Europe's gas needs via pipelines, produces no LNG of its own. Gazprom's entry into Royal Dutch Shell PLC's Sakahlin-2 project in the Pacific Ocean will give it its first experience in LNG, which is gas chilled to a liquid.


23 April 2008

Bush warns he'll veto Coast Guard bill if agency is required to protect LNG terminals — AP, KXL Radio, Portland, OR

WASHINGTON (AP) -- President Bush on Wednesday threatened to veto an $8.4 billion Coast Guard bill because it would make the agency enforce security zones around liquefied natural gas, or LNG, terminals.

The White House said the requirement would "divert finite Coast Guard assets from other high-priority missions" and "provide an unwarranted and unnecessary subsidy" to the LNG owners.

Bush threatens veto of Coast Guard bill over LNG security — Congressional Quarterly, Washington, DC

Under a substitute amendment offered by Transportation and Infrastructure Committee Chairman James L. Oberstar , D-Minn., the Coast Guard could not make security arrangements for LNG terminals based on a state or local government’s assessment unless that government has entered into a contract or other arrangement with the LNG terminal operator.

The Coast Guard also would have to certify that waterborne patrols operated as part of that arrangement have the necessary training, resources, personnel, equipment and experience to deter a security incident.

Canada hopes new regulatory office will streamline review process for energy projects — LNG Law Blog, Washington, DC

Platts LNG Daily reports that, on Monday, the Canadian Natural Resources Minister, Gary Lunn, announced the establishment of a Major Projects Management Office (MPMO), which will  help coordinate the regulatory processes related to energy projects, including LNG import terminals.

Webmaster's Comments: In “US ‘FERC’ English,” Canada's use of the terms “coordinate” and “streamline” would translate into meaning “rubber stamp.”

Activists oppose offshore LNG facility — Asbury Park Press, Neptune, NJ

"You're essentially industrializing the coast off of New Jersey," following years of fighting and then ending ocean dumping there, said Rep. Frank J. Pallone Jr., D-N.J.

1 death after accident at LNG plant — KATC TV, Lafayette, LA

"Chase was cutting the cap off a brand-new pipe that LNG workers had said was depressurized," Owens said. "LNG capped the pipe, and over the weekend LNG workers pressure-tested the pipe for leaks."

The accident blew his grandson "and the scaffolding away and disintegrated the pipe," he said.

Trunkline LNG accident kills one — American Press, Lake Charles, LA

The south Lake Charles facility has not explained the accident or the cause of Christman's death.

"Chase's boss told us that LNG workers signed papers to the fact there was no pressure in the pipe," said Owens, who was with Christman's parents and telling the story for them.

"It had 2,300 pounds of air pressure in it when Chase cut into it."

Family of Trunkline LNG victim says accident "preventable" — KPLC TV, Lake Charles, LA

"Monday they told Team Industries they needed 4 cuts, and they told them where to cut. Chase started cutting the first cut," said Owens.  

But Owens says the pipe had not been depressurized. As his grandson cut deeper and deeper, Owens says he was hit by a violent blast.

"It disintegrated the pipe and everything. It knocked him, his scaffolding and everything off. We understand he was three stories high," explained Owens. "He was knocked to the ground and he landed on his head and broke his neck, crushed his skull and broke his arms."

Lake Charles LNG facility shut-in schedule — Energy Current, Houston, TX

USA: Trunkline LNG Company LLC will shut in operations beginning May 22 at its Lake Charles liquefied natural gas (LNG) facility in Louisiana to conduct its Infrastructure Enhancement Project tie-in work.

Cheniere still upbeat about LNG — International Oil Daily, Energy Intelligence, UK [Paid subscription required]

Cheniere Energy Chairman and Chief Executive Charif Souki is retaining his optimism about the prospects of the US LNG business in general and his company in particular despite import volumes less than half those of a year ago and a stock price that has dropped into single digits.... [Red emphasis added.]

NY, NJ environmental groups oppose offshore LNG terminals —, Philadelphia, PA

"For 20 years we have worked hard to turn our ocean from `Ocean Dumping Capital of the World' to the `Clean Ocean Zone,'" said Cindy Zipf, executive director of Clean Ocean Action. "We are enjoying the benefits and our coastal economy is thriving. Now Big Oil has set its greedy eyes on our ocean and threatens our quality of life."

Among the groups attending the rally were the Fishermen's Dock Co-Op in Point Pleasant Beach; the Fishermen's Conservation Association; the Surfers' Environmental Alliance; the Jersey Coast Anglers Association; the Audubon Society, and the Recreational Fishing Alliance

LNG terminal faces opposition — KDRV TV, Medford, OR

[O]pponents are holding a rally at La Grange in Shady Cove Wednesday night at 6 p.m. (Apr 22)

Supervisors oppose LNG transfer site near Mugu — Ventura County Star, Camarillo, CA

The board voted 5-0 to oppose Woodside Energy's plan to use the Point Mugu area for ship-to-ship transfers of LNG. The company's plans call for three possible transfer sites, and the Navy says that the company's preferred site would interfere with testing operations.


22 April 2008

Mayoral candidates are political veterans — Saint Croix Courier, St. Stephen, NB

St. Andrews mayoral candidates pledge to keep fighting Maine LNG developers

“…I am also definitely against LNG and we will continue to do whatever is necessary to lobby government because nobody wants LNG,” [former town councillor Mary Dowling] said.

[Incumbent John Craig] said the major issue for the town continues to be the threat of liquefied natural gas in Passamaquoddy Bay. He said the people of not only St. Andrews but the entire bay need a strong, unwavering and committed voice to stand up and fight this major threat.

Secretary Bodman, Boustany tour new LNG facility in Cameron Parish — The Daily Advertiser, Lafayette, LA

Boustany, a longtime supporter of liquefied natural gas, toured the new receiving terminal, which will significantly increase LNG access for much of the nation. Southwest Louisiana is committed to providing the nation access to the world’s supply of natural gas.

Total: USA: Inauguration of the Sabine Pass LNG regasification terminal — Total, Business Wire

Total has entered into agreements to obtain long-term access to LNG regasification capacity on the three continents that are the largest consumers of natural gas: North America (United States and Mexico), Europe (France and the UK) and Asia (India), and is studying a plan for a terminal in Croatia. (Apr 21)

LNG treads market lightly — Beaumont Enterprise, Beaumont, TX

CAMERON, La. - Cheniere Energy's Sabine Pass Liquefied Natural Gas terminal welcomed its first delivery this month.

But it will have to wait for the right market conditions before greeting another.Cheniere Chief Executive Officer Charif Souki, who celebrated the opening of the LNG terminal Monday, said his company will wait until prices are reasonable before making additional cargo purchases. [Red emphasis added.]

LNG proponents tout minimal impacts — The World, Coos Bay, OR

For whatever reason, the atmosphere was fairly benign as Jordan Cove Energy Project and Pacific Connector Pipeline hosted an open house at The Mill Casino-Hotel on Monday to discuss the proposed liquefied natural gas terminal and pipeline.

Unlike previous meetings, there were no speakers or formal presentations. Instead, the Salmon Room was lined with poster boards detailing how the two companies will deal with the environment, safety concerns and seismic events.

LNG pipeline open house brings out public on both sides of the issue — KCBY TV, Coos Bay, OR

NORTH BEND - The controversial issue over the proposed liquefied natural gas terminal on the North Spit, turns to talk of a key component of the project facing a lot of opposition from the public. (Apr 21)

Analyst: U.S. LNG price likely to be linked to oil price in five years — LNG Law Blog, Washington, DC

…Kelly predicted that as the United States becomes more reliant on imported LNG, it will have to compete for supply in markets where LNG prices are linked already to oil.

Webmaster's Comments: Supply versus demand, alone, does not determine natural gas prices, as this story indicates. Speculators and artificial price structuring — like linking natural gas prices to oil — are prominent influences. Regardless of what some LNG terminal developers claim, importing more LNG won't necessarily lower natural gas prices.

US gas prices to relink with crude in next five years: analyst — Platts

"Under current market conditions with oil pricing over $100/barrel, a relinkage, would mean gas prices of as much as $13 to $14," he said. (Apr 21)


21 April 2008

Trunkline LNG terminal to shutdown for upgrades — LNG Law Blog, Washington, DC

Platts LNG Daily [subscription required] reports that the shutdown is expected to last until mid-June and is unlikely to substantially affect the U.S. LNG market.

Total says Sabine Pass LNG terminal in Louisana inaugurated today — Sharewatch, Glasgow, Scotland, UK

The terminal, built by Cheniere Energy Inc., has a capacity of 26 billion cubic meters per year, which will be increased in a second phase development to 40 billion, making it the largest LNG terminal in the U.S., Total said.

Cheniere opens Sabine Pass LNG terminal — Houston Business Journal, Houston, TX

Cheniere Energy Inc. has officially announced the opening of its Sabine Pass LNG receiving terminal and interconnecting Creole Trail Pipeline in Cameron Parish, La.

The first phase, which was recently completed, has 2.6 billion cubic feet per day of send-out capacity and 10 Bcf of storage capacity. Once the second phase comes on line in the second quarter of 2009, Sabine Pass will have 4 Bcf/d of send-out and 16.8 Bcf of storage.

They don't want us to vote [Editorial] — The Daily Astorian, Astoria, OR

As the LNG site selection process becomes more visible, the worse it looks

The county commission's rejection of the county planning staff's lengthy LNG analysis and recommendation was a jaw dropper. The biggest joke was commissioners' judgment that the proposed LNG terminal was a small to medium facility.

In other words, this commission decision was an insult to the intelligence of Clatsop County citizens. It was part of a pathology of subterfuge and hidden agenda.

Webmaster's Comments: LNG developer and FERC logic: If communities support a proposed LNG terminal, then the community opinion counts in FERC's decision-making. But, if they don't support it, then the opinion is irrelevant, and the community needs to be "educated."

Less gas in storage expected at end of injection season: Lehman — Platts

Part of the supply problem is sharp drops in expected LNG cargoes to the US, as the global market--primarily Spain and Japan--are taking surplus cargoes that had been expected for delivery at US terminals. LNG imports have averaged 0.86 Bcf/d this year, instead of the predicted 2 Bcf/d, Lehman said.

"The DOE [Department of Energy] projects that US natural gas in storage will rise to within 110 Bcf of last year's record level and will be a comfortable 125 Bcf above the five-year average. That assumption is questionable, even with a recession factored into the situation," Lehman's analysts said.

Analyst sees strong US natural gas prices this summer — Platts

Record-high oil prices are likely to keep a strong level of support underneath natural gas prices this summer, according to a new report by the consultant Strategic Energy and Economic Research.

Webmaster's Comments: More import terminals, yet higher prices.

Russia to present draft charter of 'Gas OPEC' on April 28 — Platts

Moves to coordinate the policy of the GECF [ Gas Exporting Countries Forum], whose members control two-thirds of global gas reserves, have raised fears about the possible emergence of a cartel-type organization.

Webmaster's Comments: This is more indication that natural gas may become an economic weapon used by countries unfriendly with the US. More LNG importing means more dependence on these countries — not lower natural gas prices.


20 April 2008

No floating gas plant; states weigh options — New York Times, New York, NY [Free registration required]

NOW that New York has rejected Broadwater Energy’s floating natural gas plant in Long Island Sound, New York and Connecticut will rely on gas pipelines, conservation and renewable energy sources to meet emerging power needs, officials and others in both states said.

Several officials said that turning away Broadwater opened the way for regional energy planning involving the two states as well as New Jersey, Pennsylvania, Massachusetts and even Maryland to overcome what they said was an absence of coherent federal energy planning.

L.N.G. projects proposed or under construction in Canada, Massachusetts and in the Atlantic off New Jersey and Long Island could meet regional demand, they said.

Adrienne Esposito, executive director of Citizens Campaign for the Environment in Farmingdale, said it was a myth that Long Island needed Broadwater’s gas supply and could not afford to wait. “Just because it was the first project didn’t make it the right project,” she said. “We need to assess our energy needs and plan them appropriately, not have corporations dictate our energy policy based on their corporate needs.” [Bold red emphasis added.]

Webmaster's Comments: FERC's anything-big-energy-gets-approved misbehavior has gone on far too long, and states are taking back control. Are Maine's Governor Baldacci and Maine's federal delegates — Sen. Olympia Snowe, Sen. Susan Collins, Rep. Mike Michaud, and Rep. Tom Allen — paying attention?

When will Sen. Snowe and Sen. Collins join as co-sponsors to Wyden's bill?

Ask them now.

U.S. Senator Olympia Snowe

Email Webform

One Cumberland Place, Suite 306
Bangor, ME 04401
(207)945-0432 / Fax: (207)941-9525
U.S. Senator Susan Collins

Email Webform

202 Harlow Street, Room 204
PO Box 655
Bangor, ME 04402

19 April 2008

A little good news [Opinion] — Telegraph-Journal, Saint John, NB

In case you missed it (and most people did, it seems), just over two weeks ago the "brethren" of the U.S. Supreme Court issued a ruling concerning the siting of a liquefied natural gas terminal on the Delaware River, which forms the boundary between New Jersey and Delaware.

If this issue sounds familiar, it should - the issues confronting New Jersey (the project proponent) and Delaware (the opposing state) are quite similar to those between New Brunswick and Maine over the proposed construction of LNG terminals along the Maine shore of Passamaquoddy Bay.

For LNG opponents in Charlotte County, this finding is more relevant, as it essentially affirms the role of precedent as a guiding principle in administrative decision-making. In finding that Delaware had acted consistent with past practice, the U.S. Supreme Court essentially affirmed the position put forth by the Government of Canada regarding Passamaquoddy Bay.

In 1976, the Canadian government ruled that oil tankers would not be allowed to transit Head Harbour Passage (Canadian waters) because of safety and environmental concerns regarding the dangerous nature of their cargos.

In affirming Delaware's position, the Court effectively gave the back of its hand to the FERC for ignoring the sovereignty of the state. [Red and bold emphasis added.] (Apr 18)

Webmaster's Comments: Canada has rejected LNG ships from entering Passamaquoddy Bay. Canada's position is consistent with the world LNG terminal siting safety standards (see SIGTTO). The proposed LNG projects in Passamaquoddy Bay violate the LNG industry's own standards, and ignore Canada's sovereign rights — and will ultimately result in even greater losses to the projects' investors.

LNG persistance becomes arrogant [Op-ed column] — The Herald News, Fall River, MA

One has to wonder whether Weaver’s Cove has a conscience. Why would a company continue to press a project on a community that does not want it unless it was for the sake of financial profit? Now they offer us an alternative to their insane project because they claim to be listening to the community’s concerns on how to best provide a safe and secure supply of natural gas to the area.

But I don’t believe Weaver’s Cove suddenly acquired a conscience. Instead, a "conscience" has been forced on them by the Coast Guard’s decision that the transportation route of the LNG vessels is unsuitable. All the perceived "good things" for Fall River that Shearer speaks about are not driven by the company’s desire to improve the quality of life for the local community; it is driven by the bottom line. [Red emphasis added.] (Apr 18)

Webmaster's Comments: And, FERC's conscience is lacking, since they issued a permit without taking into account the Coast Guard's opinion regarding safety and suitability of the waterway for LNG transport. FERC is supposedly a "cooperating agency" with the Coast Guard, according to the memorandum of understanding between the two agencies. Clearly, FERC's "cooperation" is a one-way street. It's time FERC's own arrogance gets straightened out, as proposed by Wyden's bill before the Senate.

Attorney General, in formal filing, says FERC must reconsider Broadwater in light of New York denial — Stamford Plus magazine, Stamford, CT

In light of New York’s decision, Blumenthal said FERC reconsideration is imperative because FERC may not approve a project without a consistency determination under CZMA and New York’s decision demonstrates conclusively that the Federal Environmental Impact Study for Broadwater is fundamentally flawed.

“FERC is mindlessly adrift and completely alone in lawlessly supporting Broadwater,” Blumenthal said. “We’re asking FERC to heed New York and halt Broadwater. New York’s rejection requires FERC’s reversal. FERC’s illogical and illegal approval must be abandoned after New York’s responsible recognition that alternatives to Broadwater are better, safer and saner. [Red emphasis added.] (Apr 17)

Cheniere Energy sees the triple whammy (LNG, CQP) — 24/7 Wall Street, New York, NY

The problem is two-fold. First, Cheniere has bet it's entire existence on demand for LNG. It will own all or part of three Gulf Coast LNG terminals, the first of which to come online is Sabine Pass, which received its first tanker load from Nigeria on April 11. Natural gas prices are high enough to support LNG imports, but domestic pipeline expansion projects have managed so far to limit the demand for imported gas. This could change by next year, but that's potentially another one of Cheniere's problem. [Red emphasis added.] (Apr 18)

LNG terminal still a bad idea [Opinion] — The Seattle Times, Seattle, WA

Impressively, Wyden has recruited several other influential members of Congress in this effort. He says the FERC's almost unilateral approval process is flawed because "it's not going to address the issue of supply; it doesn't address the environmental issues. ... We have a huge array of proposals pending, bringing in far more gas than we could ever use, yet the federal agency won't even address the threshold questions." (Apr 18)

Webmaster's Comments: Maine Senators Olympia Snowe and Susan Collins — both of whom have claimed to oppose the Energy Policy Act of 2005 provision that reduced state authority over LNG terminals, in favor of FERC super-authority — need to step up now and join Wyden's non-partisan bill to revoke FERC's authority.

Tell US Sen. Snowe and US Sen. Collins that you want them to join Wyden's bill as co-sponsors.

Contact them now.

U.S. Senator Olympia Snowe

Email Webform

One Cumberland Place, Suite 306
Bangor, ME 04401
(207)945-0432 / Fax: (207)941-9525
U.S. Senator Susan Collins

Email Webform

202 Harlow Street, Room 204
PO Box 655
Bangor, ME 04402

County LNG ballot title language is nailed down — The Daily Astorian, Astoria, OR

Before the commission approved the Bradwood Landing land-use application, paving the way for a $600 million LNG terminal and pipeline 20 miles east of Astoria, county law prohibited pipelines, sewer lines and cables in areas zoned OPR (open space, parks and recreation lands). (Apr 18)

Transformation time for the LNG industry — Financial Times, London, England, UK

Qatar is similar to Trinidad and Tobago [and BG's strategy], in that Shell originally expected its cargoes from there to head to the US. Instead, they will be following BG's spot cargoes to Asia, the new engine of the world's economic growth. [Red emphasis added.]

Abundant clean energy in your backyard — CNN Money

New technologies and higher prices are leading to big new natural gas discoveries in the United States.

Over the last few months, big gas discoveries have been announced in the Northeast, Louisiana, and British Columbia. Together, they could boost natural gas reserves in the United States and Canada by up to 10%.

Output from the three new finds could boost production by six billion cubic feet a day over the next three to five years, according to Christopher Ruppel, an energy analyst at Execution LLC, a broker and research firm for institutional investors like hedge and mutual funds. That's about 9% more than the current U.S. output.

Fewer imports, less pollution

In the short run, it could surprise the people who planned on building big terminals to import liquefied natural gas (LNG), mostly from places like Russia and Qatar.

"A lot of the companies that planned on importing LNG into the U.S. are looking at other options now," said Speaker. (Apr 18)

Webmaster's Comments: The message keeps getting louder and clearer: Downeast LNG, Quoddy Bay LNG, and Calais LNG are financial trainwrecks.


18 April 2008

Weaver’s Cove officials to present LNG offloading plan to Somerset — The Providence Journal, Providence, RI

The company will be facing a hostile audience.

All three selectmen have expressed strong opposition to the revised plan, which continues to call for a storage tank in Fall River but moves the offloading facility from the Taunton River about four miles southwest to Mount Hope Bay.

The new location is almost exactly one mile south of Brayton Point and one mile west of Fall River.

Webmaster's Comments: Some LNG developers in trouble seem to have an inability to think reasonably. Perhaps it's because they weren't thinking reasonably to begin with.

Paterson kills LNG Broadwater proposal — The Chronicle, Hofstra University, Hempstead, NY

SMITHTOWN, N.Y. — Calm seas and motor boats will be the aural stimuli on Long Island Sound this summer, instead of the clanging of dredging and construction. (Apr 17)

Meeting about LNG terminal is planned — The Baltimore Sun, Baltimore, MD

Richard Muth, director of the county's Office of Homeland Security, is scheduled to speak at a community meeting Tuesday about safety and security issues associated with the proposed liquefied natural gas terminal on Sparrows Point.X

Cheniere drops on concern it can't meet obligations — Houston Chronicle, Houston, TX

Cheniere Energy, a liquefied-natural-gas company set to open a terminal next week, plummeted 16 percent, its third day of declines, on concern that it won't be able to meet debt obligations.

Cheniere would need 60 cargoes a year to be able to finance its debt and currently isn't seeing anywhere near that, he said.

"The skepticism is due to a shift in LNG imports away from U.S. shores, driven by strong demand in Europe and Asia," Carl Blake, a high yield bond analyst with Gimme Credit in Washington, said in a note to investors. [Red emphasis added.] (Apr 17)

Environmental assessments are big LNG hurdle — The World, Coos Bay, OR

The idea of siting a liquefied natural gas terminal on Coos Bay’s North Spit was first broached in the fall of 2004. For the project to break ground, it must obtain approval from various agencies under the umbrella of the Federal Energy Regulatory Commission. These include the U.S. Coast Guard, National Marine Fishery Service, and the U.S. Fish and Wildlife Service.

Webmaster's Comments: The proposed Coos Bay terminal location — on the outside edge of a curve in the waterway, a serious violation of the LNG industry's terminal siting standards (see SIGTTO), since all other passing vessels would at one time or another be aimed directly at the berthed LNG ship — directly across a narrow waterway from an airport, and with a shipping route too close to the cities of North Bend and Coos Bay, poses a significan Human Environment problem.

LNG Lowdown: New York rejects Broadwater; British Columbia may hold advantage over Oregon — SNL Financial, New York, NY

New York state on April 10 rejected Broadwater Energy LLC's controversial project, which would place an LNG regasification terminal in Long Island Sound.

Connecticut Gov. M. Jodi Rell said she strongly supports federal legislation that would strip FERC of its authority to site onshore LNG terminals and give greater siting powers to the states.

Given the intense opposition to the siting of LNG import terminals in California and Oregon, the LNG trade in western North America ultimately may center on facilities located in Baja California, Mexico and British Columbia.

Canadian Superior Energy Inc. has begun pursuing the development of a U.S. LNG import terminal and plans to seek supply contracts and begin the FERC application process this year.

In an April 10 letter to the editor of The (Gaithersburg, Md.) Gazette, Delegate Jolene Ivey explained that she introduced a bill that would require the Maryland Public Service Commission to use U.S. Department of Housing and Urban Development safety standards when reviewing sites for LNG facilities. One such standard is keeping the facility at an "acceptable separation distance" from a residential area. (Apr 16)

Gazprom unlikely to meet aim of 25% of global LNG market by 2030 — Energy Business Review, London, England, UK

[A]s with many resource-rich countries, it is often political decisions that drive scarcity, rather than the physical availability of resources. Russia needs to make sure that it remains an exception to this general rule, particularly if its LNG plans are to gain traction. Nevertheless, even if new fields come on-stream over the coming years, Russia could still find itself sticking to what it knows best, namely, using pipelines to cover potential supply gaps, rather than jumping too heavily into a liquefied world. (Apr 17)


17 April 2008

Calais promoters look to Trinidad and Tobago for gas supply — Well maybe? — Quoddy GoogleGroups, St. Andrews, NB

The following article casts serious doubt on the long-term availability of gas from [Trinidad & Tobago]. Not to mention the current intense competition from companies that are already in the gas game.

Excelerate confirms US Northeast LNG cargo delay — Reuters

NEW YORK, April 16 (Reuters) — Excelerate Energy said Wednesday it delayed for "scheduling reasons" the first liquefied natural gas delivery into the new Northeast Gateway LNG site off the coast of Massachusetts until sometime in May.

"The schedule for the delivery of the portion of the cargo destined for South America will require the ship-to-ship transfer of part of that cargo prior to the NEG commissioning activities. This is necessary to maintain fleet and terminal schedules and coincides with the start of South American heating season," the statement said. (Apr 16)

DEIS available for Port Dolphin LNG deepwater port — LNG Law Blog, Washington, DC

In today's Federal Register, the Maritime Administration and the U.S. Coast Guard announced the availability of the Draft Environmental Impact Statement (DEIS) for the Port Dolphin LNG deepwater port. 

Native chief seeks help of Venezuela's Chavez — The Globe and Mail, Toronto, ON

WINNIPEG — An outspoken Canadian native leader is urging Venezuelan President Hugo Chavez to throw his weight behind an attempt to block two multibillion-dollar pipelines that will transport oil from Alberta to the United States.

"We're fighting big oil. We have two pipelines going through that [are] going to bring $47-billion a year in crude oil sales to the U.S., and we're saying the [federal] government is not sitting down with us. They're not following the law.

Webmaster's Comments: This looks very similar to Downeast LNG's pipeline abuse of Passamaquoddy-owned islands in the St. Croix River. The white man — in the name of Big Energy — continues to claim the right to Take from the First Nations/Native Americans.

Perhaps Venezuela will provide assistance to the Passamaquoddy in fighting the Downeast LNG injustice.

CB&I unit inks $150M LNG project — Houston Business Journal, Houston, TX

Horton CBI will work on a liquefied natural gas project on Vancouver Island in British Columbia, Canada.

The facility will be owned and operated by Terasen Gas, a subsidiary of Canada-based Terasen Inc., and will be used to provide seasonal natural gas power to residents on the island and mainland areas of British Columbia. (Apr 16)

LNG firm to fight ballot petition — The Daily Astorian, Astoria, OR

Project developer NorthernStar Natural Gas Inc. filed a motion in Clatsop County Circuit Court Tuesday for a preliminary injunction that would stop Interim Clatsop County Clerk Fred Neal from processing the ballot referendum proposed by project opponents last week.

One of the court cases cited by the company, Dan Gile and Associates, Inc. v. McIver, was addressed by Junkin in his legal opinion. Junkin took a different view of the case from the plaintiffs and concluded the county's decision on pipelines in OPR zones is a proper subject for a referendum. (Apr 16)

LNG considered vital, but concerns remain — Daily News, Los Angeles, CA

What's more, given the dozens of new LNG terminals either under construction or proposed, a potential glut of terminal capacity also has become an issue. The three new U.S. terminals will join five others that import LNG in Massachusetts, Maryland, Georgia, Louisiana and in the Gulf of Mexico.

For Cheniere in particular, overcapacity concerns have contributed to a significant decline in its share price. (Apr 16)


16 April 2008

Candidates agree: LNG deal closed, but debate continues — Telegraph-Journal, Saint John, NB

"We have to learn from what happened and make sure it never happens again," mayoralty candidate and Deputy Mayor Michelle Hooton said recently.

The March 2005 agreement sees the Canaport liquefied natural gas terminal in Mispec pay only $500,000 a year in municipal taxes over 25 years. Critics have said the deal will cost the city more than $100 million in potential lost revenue by the time it expires.

Too much of the deal happened behind closed doors, Ferguson said, which meant people couldn't see how council came to its decision.

First cargo at U.S. Northeast LNG site delayed — Reuters

"The cargo has not arrived. It was scheduled to arrive this Sunday, I believe. It's been postponed until May," said Lt. John Kousch of the U.S. Coast Guard in Boston.

Earlier on Tuesday, the first load of LNG arrived at the Freeport terminal on the Texas Gulf Coast, while the Sabine Pass LNG terminal in Louisiana received its first cargo on Saturday. (Apr 15)

Mikulski, Cardin fight to strip federal govt of authority to determine liquified natural gas sites [News release] — US Senator Barbara A. Mikulski (MD), Washington, DC

WASHINGTON, D.C. – Senators Barbara A. Mikulski and Benjamin L. Cardin (both D-Md.) today joined the Senate effort, led by Senator Ron Wyden (D-Ore.), to rescind the Federal Energy Regulatory Commission’s (FERC) authority to permit liquefied natural gas (LNG) terminals. Senators Mikulski and Cardin have been outspoken critics of the proposed LNG facility at Sparrows Point in Baltimore.

“I have always opposed a new LNG facility in Sparrows Point, but today there is even more evidence that a new site is unsafe and unwise. Yet, federal agencies are all too quick to rubberstamp these facilities,” said Senator Mikulski. “I am deeply concerned for the safety of communities surrounding LNG sites and the potential environmental impact of these facilities. We need to put the decision-making back in the hands of the state and local governments who have a better understanding of the resources available to adequately protect potential LNG tankers and new facilities.” [Red emphasis added.]

Tanker's arrival at new terminal the second such arrival along Gulf Coast in past week — Houston Chronicle, Houston, TX

The 900-foot-long liquefied natural gas tanker brought its inaugural cargo of the super-chilled fuel to the new Freeport LNG terminal on [Quintana Island] Tuesday, docking less than a mile from spots prized by birders and a county park popular for camping and fishing.

Michael Jewell, a birder from Houston visiting the Quintana Neotropical Bird Sanctuary, located a few hundred yards from the terminal, said he'd prefer if it were somewhere else. [Red emphasis added.] (Apr 15)

Webmaster's Comments: In other words, the LNG terminal ships' Hazard Zones ("Zones of Concern" that extend 2.2 miles around each LNG ship) violate the LNG industry's own SIGTTO safety standards by endangering the public on Quintana Island and at Surfside Beach.

Also, the first LNG ship has arrived without an adequate Emergency Response Plan for Quintana Island being in place!

Cheniere Energy to outsource LNG handling at Sabine Pass LNG; to cut about 200 jobs; President Stan Horton to leave — RTTNews, Amherst NY

Commenting on the proposed arrangement, chairman and chief executive officer, Charif Souki said, “It has become evident to us that the capital markets are currently very difficult. This proposed strategic arrangement will allow us to receive large quantities of LNG without putting strain on our balance sheet. In addition, this proposed arrangement will allow us to reduce our overhead considerably, conserve our liquidity, and focus on maximizing the value of our terminal and pipeline.”

Council joins opposition to proposed LNG site — Ventura County Star, Camarillo, CA

The Oxnard City Council has joined the list of Ventura County groups following the Navy's lead and is opposing the proposed site of a liquefied natural gas transfer station.

Conference attendees call for increased natural gas storage to accommodate LNG imports — LNG Law Blog, Washington, DC

Speaking at Interchange Energy's LDC Forum in Atlanta, several industry experts argued that increased natural gas storage capacity is needed in the U.S. Southeast to accommodate rising LNG imports.

GDF and Technip complete tests on flexible hose LNG system — Energy Business Review, London, England, UK

French energy major Gaz de France has successfully completed the final phase of certification testing under industrial conditions for a new liquefied natural gas deep-sea flexible hose unloading system. [Red emphasis added.] (Apr 15)


15 April 2008

Md. senators try to rescind agency's authority in naming LNG sites — Baltimore Sun, Baltimore, MD

Sens. Barbara A. Mikulski and Benjamin L. Cardin oppose plans to build an LNG terminal in Sparrows Point.

First LNG cargoes at Gulf Coast terminals — Energy Current, Houston, TX

The Sabine Pass LNG terminal is the largest LNG receiving terminal in North America by regasification capacity at 4 Bcf/d.  Once fully operational, the terminal will have 16.8 Bcf of LNG storage capacity and two berths capable of handling the largest LNG vessels.  It is located in Cameron Parish, Louisiana, on 853 acres of land remote from dense population centers and only 3.7 miles (5.9 km) from the open waters of the Gulf of Mexico.

Freeport LNG also expects to receive its first LNG cargo this week, according to media reports. Freeport LNG is a storage and regasification facility located on Quintana Island, about 70 miles (112 km) south of Houston, Texas. The terminal will have send-out capacity of 1.5 Bcf/d of gas.

Webmaster's Comments: Although not near dense population centers, the Sabine Pass LNG ship route and terminal still place the towns of Sabine and Sabine Pass well within the federally-defined Hazard Zones ("Zones of Concern") from an LNG release -- counter to the LNG industry's own terminal siting standards.

The Freeport LNG terminal makes the same standards-violations regarding the communities of Surfside Beach and Quintana Island.

First land-based LNG terminals in decades opening on Gulf Coast — Houston Chronicle, Houston, TX

Cheniere Energy Inc. said its new terminal in southwest Louisiana received its first cargo of liquefied natural gas Friday, and Freeport LNG Development LP is set to get its first shipment on the Texas Gulf Coast this week.

In addition, Excelerate Energy LLC's Northeast Gateway off the coast of Boston also is preparing for its first cargo, according to Waterborne Energy Inc., a Houston firm that tracks the LNG industry.

[G]iven the dozens of new LNG terminals either under construction or proposed, a potential glut of terminal capacity also has become an issue. The three new U.S. terminals will join five others that import LNG in Massachusetts, Maryland, Georgia, Louisiana and in the Gulf of Mexico. (Apr 14)

The road to LNG approved by county — The Daily Astorian, Astoria, OR

Against staff recommendations, the Planning Commission passed the variance with conditions Jan. 16. The Board held a public hearing on the variance March 12. Engineers for NorthernStar said they were unable to acquire the necessary land from Matoaka Forest LLC to improve the road so its turns met a minimum radius of 275 feet.

LNG opponents launch challenge — The Daily Astorian, Astoria, OR

Columbia River Business Alliance, Columbia Riverkeeper, and Northwest Property Rights Coalition submitted a petition for a ballot referendum Friday on the county's recently passed ordinance allowing gas pipelines to run through county parks and open space. They've also sent out a notice of appeal detailing their intentions to challenge the county board's approval of the entire Bradwood land-use application before the Land Use Board of Appeals.

A legal opinion from county counsel John Junkin confirmed the referendum is a proper challenge to two sections of the entire county ordinance approving the Bradwood land-use application. The county board passed the ordinance March 20 by a 4-1 vote, clearing the way for a $600 million LNG terminal and sendout pipeline to be constructed 20 miles east of Astoria on the Columbia River. (Apr 14)


14 April 2008

LNG terminal projects depend on complicated global factors — The Quoddy Tides, Eastport, ME

Quoddy Bay LNG's deputy project manager Adam Wilson recently stated that besides the LNG import terminal at Everett, Mass., New England needs only two additional terminals. Wilson says the overbuild for LNG terminals is true in the Gulf area of the U.S., but there are not a sufficient number of import terminals on the East Coast or West Coast.

Save Passamaquoddy Bay spokesperson Robert Godfrey observed, "It's refreshing that Wilson recognizes only two additional LNG terminals are needed in New England." Godfrey is surprised that Wilson doesn't know about the three new terminals that are all about to go into service supplying New England — Excelerate Energy's new Northeast Gateway LNG terminal offshore from Gloucester, Mass., is ready right now to accept its first cargo; the Suez Neptune terminal off Gloucester — already permitted — will be accepting its first cargo near the end of 2009; and the Canaport terminal at Saint John, N.B., that is over 60% complete and will be accepting its first cargo — most of which will be piped to the Northeast U.S. — near the end of 2008. These are three new terminals that will already be supplying New England. [Red and bold emphasis added.] (Apr 11)

Webmaster's Comments: Quoddy Bay LNG's Adam Wilson said it, himself: Only two new terminals are needed to supply New England. There are already three new terminals — all permitted, one completed, another under construction, and the third to be constructed soon.

We salute Adam Wilson's candid admission that his QBLNG project is unneeded.

Bill would give states LNG siting role — The Quoddy Tides, Eastport, ME

XFour U.S. senators introduced legislation on April 7 that would repeal portions of the federal Energy Policy Act of 2005 that took away states' regulatory role in siting liquefied natural gas (LNG) terminals. (Apr 11)

Calais LNG partners meet with city officials to discuss project — The Quoddy Tides, Eastport, ME

Gelber says Calais LNG holding tanks would be on both sides of Route 1. (Apr 11)

Webmaster's Comments: Another proposed cockamamie cryogenic LNG pipeline under US-1, just as unlikely as Quoddy Bay LNG's plan.

Coast Guard to establish navigation areas around Northeast Gateway — Energy Current, Houston, TX

USA: The U.S. Coast Guard proposes to establish regulated navigation areas around the recently constructed Northeast Gateway liquefied natural gas (LNG) facility, located in the Atlantic Ocean near the entrance to Boston Harbor, to establish safety and security zones around LNG carriers calling on the facility.

LNG in talks with Freeport police for patrols — The Facts, Clute, TX

There is no municipal law enforcement in Quintana, only frequent patrols by Brazoria County Sheriff’s Office deputies or other state law enforcement, such as Department of Public Safety troopers. The main reason details on the street patrols have not been settled is because Quintana might hire a town marshal, Pynes said. But a single marshal cannot provide the 24/7 off-site security Freeport LNG is looking for during high-security periods, he said.

Pynes said the easiest solution would be for Quintana to contract with Freeport for police along with fire and emergency medical response. Freeport police already cross the nearby bridge for patrols on Bryan Beach, he said. [Red emphasis added.]

Webmaster's Comments: FERC's requirement for an Emergency Response Plan has not been adequately met! How much money is LNG emergency response going to cost Quintana?

Coast Guard preparing for port shutdowns — The Facts, Clute, TX

Each time a ship crawls into the harbor, water-borne authorities like the Coast Guard will shut down all boat traffic in a 1,000-meter radius. Petty Officer Second Class Richard Ahlers said it probably will take up to three hours for the boat and its security perimeter to pass through in the first arrivals. As ship captains and Coast Guard sailors become more accustomed to the process, it will be quicker, he said.

When the facility is at capacity, a ship will arrive every three to four days, Freeport LNG terminal manager Steven Arbelovsky said. But that kind of frequency is unlikely in the foreseeable future because LNG ships are going to greener pastures such as Asia, where the price of LNG is double what it is in the United States, Arbelovsky said.

“This used to be a pretty popular fishing spot,” Ahlers said as the patrol boat cruised past the towering blue pipes which will draw precious cargo into the site’s tanks. “Not anymore.” [Red emphasis added.]

Safety concerns in Freeport gas terminal — KHOU-TV, Houston, TX

Freeport LNG wants officers to help provide security for a new natural gas terminal.

Forget FERC, can states rule on LNG? — The Daily News, Longview, WA

[L]ast week, New York Gov. David Paterson preempted the Federal Energy Regulatory Commission and blocked plans for an LNG plant in the Long Island Sound.

The move signals that states can flex their muscles in deciding whether to allow the facilities into their waters, said Gayle Kiser, the president of a Cowlitz County anti-LNG group. On Friday, she said Paterson’s move is a model for how Oregon authorities could handle plans for NorthernStar Natural Gas’s terminal. [Red emphasis added.]

Petition would reverse planners' OK of LNG plant — The World, Coos Bay, OR

ASTORIA (AP) — Opponents of a proposed liquefied natural gas terminal on the Columbia River above Astoria are gathering petition signatures for a ballot measure to reverse the Clatsop County Planning Commission’s approval for the project.

LNG proponents plan public meeting — The World, Coos Bay, OR

The proponents of a liquefied natural gas terminal and its pipeline have scheduled an open house Monday, April 21 at The Mill Casino-Hotel in North Bend to discuss various aspects of the projects.

Representatives from Pacific Connector Pipeline and Jordan Cove Energy Project will be available from 6 to 9 p.m. to answer questions about the LNG import terminal that would be located on Coos Bay’s North Spit, as well as the pipeline that would connect the terminal with a pipeline junction in Malin.


12 April 2008

Is LNG flame burning out? — Toronto Star, Toronto, ON

The LNG ship isn't arriving on continental shores as first hoped, and initial enthusiasm over the prospect of LNG is, in some corners, beginning to fade. Critics say the fuel is difficult to secure, expensive to get, and in some circumstances not much cleaner than generating power from coal.

Even Mike Cleland, head of the Canadian Gas Association, said LNG has yet to deliver on earlier promises.

"If you go back a couple of years, people were saying LNG is going to get 10 per cent of the market. That seems unlikely in the foreseeable future."

In fact, LNG imports are shrinking when they're supposed to be growing. Figures released Thursday by the U.S. Energy Information Administration revealed imports in the first quarter of 2008 were less than half the volume compared with a year ago. Over the year, the agency expects a 12-per-cent drop compared with 2007.

[Michael Griffin, a professor of environmental engineering at Carnegie Mellon University, and two colleagues from Canegie Mellon] found that natural gas, while it has nearly half the carbon dioxide emissions of coal when burned, is far less climate-friendly in LNG form. Liquefying, transporting and regasifying natural gas uses tremendous amounts of energy and some of the gas is lost as "fugitive emissions" along the way. [Red and bold emphasis added.]

Excelerate set to pump LNG from buoy off Gloucester — The Boston Herald, Boston, MA

Excelerate Energy will be pumping natural gas from its new LNG buoy system off the coast of Gloucester by the end of the month, a spokesman said. [Red emphasis added.] (Apr 11)

Webmaster's Comments: This LNG terminal, plus Canaport (Saint John, NB) and Suez Neptune (also off Gloucester) are all permitted, and will be coming online years before the proposed projects in Passamaquoddy Bay (Canaport around the end of 2008, and Neptune around the end of 2009).

As Quoddy Bay LNG's deputy project manager Adam Wilson previously remarked to The Quoddy Tides newspaper, there is room for two LNG terminals in New England besides the one at Everett, Massachusetts. Well, not two, but three new terminals are already going to satisfy that need, making Quoddy Bay LNG, Downeast LNG, and Calais LNG particularly bad investments that even Quoddy Bay LNG has acknowledged.

Coast Guard proposes safety regulations for area surrounding Northeast Gateway LNG Deepwater Port — LNG Law Blog, Washington, DC

The proposed zone will prohibit unauthorized vessels from entering within 500 meters of the offloading buoys or the LNG carriers, and from deploying any equipment that could become entangled with the submerged buoy equipment within 1000 meters of the submerged infrastructure. (Apr 11)

With 2 LNG setbacks, TransCanada could look to Gulf of Mexico next: analysts (TransCanada-LNG-Futur) — Oilweek, Calgary, AB

"The Quebec plant bit the dust because of lack of contracted supply while in Broadwater bit the dust because of political risk." (Apr 10)

Paterson outlines initial steps to meet downstate energy needs [News release] — New York State Governor Paterson, Albany, NY

Governor opposes Broadwater, outlines steps to meet growing energy demand cites several environmental and safety concerns with Broadwater

The Governor cited several concerns with the proposal:

Gas plant in L.I. Sound is rejected — New York Times, New York, NY

In his first major policy decision on the environment, Gov. David A. Paterson on Thursday blocked the nation’s first floating liquefied natural gas plant, which had been proposed for Long Island Sound. Moving ahead on the $700 million plant, he said, would put a large section of the Sound off limits to boaters and would not guarantee low-cost gas for Long Island.

Mr. Paterson said the region could find other, more responsible ways to ensure sufficient energy supplies and he outlined a series of initial steps to meet growing energy demand. They include a new state energy plan and a $1 billion, 10-year program by the Long Island Power Authority to increase efficiency and to reduce energy consumption on Long Island. [Red emphasis added.] (Apr 11)

Broadwater not ready to give up on plans — Newsday, New York, NY

[John Hritcko, senior vice president and regional project director of Houston-based Broadwater Energy] said, company officials don't consider viable an option preferred by environmentalists and suggested by state officials: to relocate the proposed faciilty to the Atlantic Ocean south of Long Island. "We'd have to start from scratch," he said, contending that pipelines connecting such a facility to the mainland would present thorny environmental issues of their own. (Apr 10)

Webmaster's Comments: They'd have to start from scratch because they selected an inappropriate location in the first place.

Appeal expected after gas platform nixed — Connecticut Post, Bridgeport, CT

Rell and Attorney General Richard Blumenthal said that there are at least two other proposals for natural gas that would be located in safer spots off New York's Atlantic coast.

"It is truly an example of citizen advocacy at its best," Blumenthal said, detailing a Thursday phone call from Paterson to talk about the rejection of the Broadwater proposal.

"We can and should encourage a considerate and thoughtful discussion about how best to meet regional energy needs without exacting an unacceptable toll on our environment," [Leah Schmalz, director of legislative and legal affairs for Save the Sound] said. "Broadwater was simply not the answer to the energy question." [Red emphasis added.] (Apr 11)

We still need a deal [Editorial] — Newsday, New York, NY

Broadwater couldn't promise what we really need: more, cheaper natural gas

In reality, Paterson, as his predecessor Eliot Spitzer did in the weeks before his resignation, came to the realization that he didn't have the political clout to overcome the strong opposition, led by the Citizens Campaign for the Environment, unless he could prove two things. First, that there were no alternative sources for more gas, and second, that Broadwater would reduce the cost of electricity here.

The Long Island Power Authority wanted a long-term contract for a steady supply of gas at a 10 percent discount, to power the generators that produce our electricity. Shell never put it on the table. Without such a deal, especially when alternative sources of gas were identified, the project was doomed - despite the millions Broadwater spread around to local organizations to provide a human backdrop for its press conferences. (Apr 11)

Zeldin calls for LNG platform in ocean, dedicated to Long Island [News release] — Lee Zeldin for Congress, Shirley, NY

"This week, the Governor took the bold step of opposing Broadwater for reasons aligned with my stance and the stance of many concerned Long Islanders.

"If a future proposal calls for repositioning an LNG project in the Ocean and directing all energy produced to Long Island, I will consider fully supporting the measure."

First cargo arrives at new U.S. LNG terminal — Reuters

The Celestine River, loaded in Nigeria, docked on Friday with a cargo that will be used to "cool down" the facility for commercial operation by the end of June, officials said.

The terminal, one of three new U.S. LNG import facilities set to receive their first cargoes within the next week, is owned by Cheniere Energy.

The other two new terminals are at Freeport, Texas, and offshore of Boston, Massachusetts. [Red and bold emphasis added.]

Webmaster's Comments: This is more proof that Downeast LNG, Quoddy Bay LNG, and Calais LNG are years behind the curve — they've already lost the race.

LNG's not lifting all boats — The Motly Fool, Alexandria, VA

[Cheniere] will soon start up America's largest LNG receiving terminal on the Gulf Coast. But perhaps counterintuitively, as long as Asian and Western European demand for LNG outstrips that of our own country, LNG carriers won't necessarily be storming our shores. The success of domestic drillers such as XTO Energy and Chesapeake Energy also diminishes the desirability of natural gas imports.

Cheniere's stock has been so battered that the company recently hired a banker to review strategic alternatives, which is Wall Street code for "sell all or part of the business." [Red and bold emphasis added.] (Apr 11)

Cold cargo is cool with residents as tanker brings LNG — Houston Chronicle, Houston, TX

A terminal in Freeport is scheduled to receive its commissioning shipment later this month, while a project Exxon Mobil Corp. is building just north of Sabine Pass could open in 2009.

First LNG shipment arrives in southeast Texas — KFDM-TV, Beaumont, TX

It is a first for one of the liquified natural gas terminals going up near Sabine Lake. The first LNG ship arrived at the Cheniere terminal and then made its way to the Coast Guard Station Sabine. The first of thousands of shipments of liquefied natural gas made its way into Southeast Texas Friday.

A government report last month said the U.S. Coast Guard lacks the resources to meet its own self-imposed security standards, such as escorting tankers carrying crude oil or Liquified Natural Gas.

This LNG shipment came from Nigeria. [Red emphasis added.] (Apr 11)

Webmaster's Comments: The LNG industry is concerned about Nigeria nationalizing its LNG facilities. Read the story, below: "LNG supply to U.S. could come under pressure."

Massive tanker ushers in new wave of LNG supplies — The Beaumont Enterprise, Beaumont, TX

Security was tight along the channel as boats and crews from the Coast Guard Marine Safety Unit in Port Arthur and Station Sabine set up a "safety and security zone," which means that no vessels are allowed in the zone without permission, Byron T. Inagaki, assistant chief of the prevention department for the U.S. Coast Guard Marine Safety Unit in Port Arthur said. (Apr 11)

LNG terminal still a bad idea [Editorial] — The Columbian, Vancouver, WA

The term “Not In My Back Yard” often is used in the pejorative sense, to denote provincialism or selfishness. Sometimes, though, the philosophy is rock solid. For nine months now, The Columbian has been unabashedly and unapologetically NIMBY in our opposition to the liquefied natural gas terminal that NorthernStar Natural Gas has proposed for Bradwood Landing, 60 miles northwest of Vancouver and 20 miles east of Astoria.

The Register-Guard correctly concluded: “Whether Oregon and the Northwest need more natural gas, and how it should be obtained, shouldn’t be decided solely by the companies that are proposing the terminals and pipelines. Federal regulators, working closely with the states, should play a central role.” [Red emphasis added.] (Apr 11)

LNG opponents seek referendum on Columbia River proposal — The Daily News, Longview, WA

Clatsop County’s commissioners recently ratified a series of land-use decisions that cleared the way for the terminal, which would be built across the river from Puget Island. Among them was a decision that effectively opened all land zoned for parks, recreation and open space to major gas pipeline construction, the opposition groups said.

The proposed referendum would ask voters if they support that decision. If voters say they don’t want pipelines running through parks, the groups said, Clatsop County’s LNG approval would be overturned.

LNG terminal opponents move to put the issue on fall ballot — The Oregonian, Portland, OR

The groups also filed an appeal of the county's Bradwood approval with the Oregon Land Use Board of Appeals. The appeal, they said, would be based on numerous violations of county and state zoning laws.

New York governor blocks LNG plan; will Kulongoski follow? — The Daily News, Longview, WA

Like New York, Oregon is charged with protecting its waterways and coastlines under the federal Coastal Zone Management Act, or CZMA. Oregon must decide whether NorthernStar Natural Gas’s proposed LNG terminal at Bradwood Landing complies with the act. (Apr 11)

Cities line up to join Forest Grove’s LNG opposition — News-Times, Forest Grove, OR

Molalla adopts anti-LNG resolution, Gaston, Yamhill will vote this month

All the city measures are based on the language Forest Grove adopted on March 10 opposing the projects. That resolution cited environmental and economic concerns as well as expressing concern that the pipelines could undermine the city’s watershed, which it will traverse. (Apr 11)

State candidates campaign in Astoria — The Daily Astorian, Astoria, OR

The candidates came prepared to rally against siting a Liquefied Natural Gas terminal on the Columbia River. (Apr 11)

LNG opponents file Bradwood ballot measure referendum and appeal — The Daily Astorian, Astoria, OR

The LUBA [Land Use Board of Appeals] case is based on allegations that the county's land-use approval violates numerous county and state zoning laws. County law limits developments at the Bradwood site to small- to medium-sized facilities. The opponents argue the Bradwood LNG project should be considered large in part because of its two 17-story storage tanks and extensive dredging in the Columbia River. (Apr 11)

FERC to Oregon: Fuggedaboutit! [Editorial] — The Daily Astorian, Astoria, OR

The backwards nature of the LNG siting process is all too apparent. Instead of doing a national look at fuel needs and safety, FERC will reward the first terminal that gets there.

That's not the marketplace at work. That's a process that rewards the high-priced regulatory lawyers who inhabit the Beltway. (Apr 7)

Camarillo council opposes Malibu LNG site — Ventura County Star, Camarillo, CA

"There are two other sites that are being considered as well for the project," Councilman Mike Morgan said. "We're just opposed to the preferred site because it would interfere with naval operations and ultimately could affect jobs, security and people out there." (Apr 11)

LNG program planned for LBCC — Press-Telegram, Long Beach, CA

LONG BEACH — Long Beach City College has received $1.2 million in grants to start a new program training students and professionals on liquefied natural gas technology used to fuel "green" trucks.

The use of LNG to fuel trucks will increase because the ports of Long Beach and Los Angeles are phasing out all pre-2007 trucks over the next four years.

Port authorities hope that at least 50 percent of trucks at the ports will be using LNG or other low-polluting fuel as part of the two ports' joint Clean Air Action Plan. (Apr 11)

Even the whales have their predators: ships — The New York Times, New York, NY

A 2005 study showed that 95 percent of ships notified of whale sightings failed to slow down or skirt the area. [Red emphasis added.]

LNG supply to U.S. could come under pressure — Resource Investor, St. Louis, MO

The attempt by the Nigerian House of Representatives (at the instigation of the Niger-Delta Development Commission) to repeal the 1990 NLNG (Fiscal Incentives, Guarantees and Assurances) Act, Cap N89, Laws of the Federal Republic of Nigeria, 2004, is seen even by some Nigerian analysts as an attempt to expropriate and nationalize the investments of the foreign investors.

A change in the operators' framework could severely hamper or even stop the interest in these very capital intensive LNG projects in the country.

Investors should realize that some of the multimillion tank farms in the Gulf of Mexico or North Sea Europe could be hit by drought for a long time. [Red & bold emphasis added.] (Apr 11)

Webmaster's Comments: More bad news for LNG speculators.


10 April 2008

New York rejects Broadwater gas plant for Sound — Hartford Courant, Hartford, CT

[New York Secretary of State Lorraine Cortés-Vázquez] had faced a Friday deadline to rule on whether Broadwater fits in with her state's policies on the use and protection of coastal areas.

She found the project inconsistent with six of 13 criteria under New York's coastal zone management plan, [Connecticut Secretary of the State Susan Bysiewicz] said.

Cortés-Vázquez told Bysiewicz that any appeal of her decision would go first to the New York Department of Environmental Conservation. However, an appeal could also go to the U.S. secretary of commerce. [Red emphasis added.]

N.Y. governor: State won't approve LI Sound gas terminal — AP, The Boston Globe, Boston, MA

NORTHPORT, N.Y.—New York won't approve putting a $700 million liquefied natural gas terminal the size of the Queen Mary 2 in Long Island Sound, Gov. David Paterson said Thursday.

Paterson joins Connecticut Gov. Jodi Rell and nearly every elected official on both sides of the sound who oppose the project, known as Broadwater.

Governor Rell supports federal legislation to strip FERC of siting authority for LNG projects [News release] — Governor M. Jodi Rell, Hartford, CT

“It is that sort of fractured logic that has prompted this legislation. No state – and no environmental treasure – is safe from energy industry whim unless FERC is somehow reined in and the powers that rightfully belong to the states are returned to them through passage of this bill.

“Put simply, FERC needs an overhaul,” the Governor said. [Red emphasis added.] (Apr 9)

LNG storage must be in safe place for all [Letter to the editor] — The Gazette, Gaithersburg, MD

[HUD] standards would not allow such [LNG] facilities to be located in residential areas, which does not meet HUD’s ‘‘Acceptable Separation Distance” from a hazardous substance. These standards are fair and objective, and consider the needs and limitations of average citizens.

We support natural gas and LNG storage where it is safe, nothing less. [Red emphasis added.]

Webmaster's Comments: Here are two conflicting federal safety rules: FERC thinks it's okay to put people in harm's way, but HUD doesn't. This exemplifies FERC's disingenuous "safety agency" claim.

BP and ConocoPhillips to jointly develop Denali Alaska gas pipeline — Energy Business Review, London, England, UK

Integrated energy majors BP and ConocoPhillips have combined resources to begin the construction of the Denali Alaska gas pipeline, which is expected to move approximately four billion cubic feet of natural gas per day to North American markets. [Red & bold emphasis added.]

Webmaster's Comments: This is a whopping amount of natural gas per day, further mooting the need for additional LNG import terminals.

County left out of LNG pipeline decisions — Mail Tribune, Medford, OR

With growing concern over a proposed liquefied natural gas pipeline, Jackson County commissioners Wednesday expressed frustration that they don't have any say over a project that would traverse this region.

"Right now we have absolutely no authority," said Commissioner C.W. Smith.

Wyden bill: Return LNG siting power to the states — The World, Coos Bay, OR

[Senator Wyden] noted the three proposed LNG terminals in Oregon, including one in Coos County, would have a combined capacity of 3.3 billion cubic feet of gas per day. Oregon and Washington alone only use 1.33 BCF per day, he said.

“Yet FERC categorically refuses to address the basic question of whether the three proposed facilities are even needed to serve our market,” he said.

“It’s time to restore the local and state role in these critical decisions about in whose backyard a pipeline or LNG plant will be built.” (Apr 9)

What's behind LNG proposals — Press-Telegram, Long Beach, CA

Take a good look at the leading advocates of the three major proposals to build multibillion-dollar liquefied natural gas receiving facilities in California and you can't help wondering about state agency decisions that make those plans seem feasible.

That's because some of the same people who made or recommended key LNG reports and rulings by the state Energy and Public Utilities commissions are now leading players in bids enabled by those decisions.

[Joseph Desmond, Schwarzenegger's deputy resources secretary for energy] is now senior vice president for external affairs of NorthernStar Natural Gas, which seeks to build something called the Clearwater Port to import LNG through Ventura County and also wants to build a receiving facility at the mouth of the Columbia River near Astoria, Ore., with most gas arriving there likely to end up in California.

[T]here may be an artificially created need for LNG. That could be thanks, in part, to Steve Larson, now president of the American wing of Australian-owned Woodside Natural Gas. While Larson was executive director of the [California] Public Utilities Commission, the agency approved new rules allowing California utilities to give up as much as one-fourth of the pipeline space they now use to bring gas from Texas, Oklahoma, Colorado and other states.

Then there's David Maul, manager of the Energy Commission's natural gas office during Desmond's tenure as chairman and before. Under Maul, that office produced the only California state government report that has ever indicated the state needs LNG, which would add billions of dollars to consumer gas bills for decades to come, merely to repay energy companies for building ships, receiving plants and liquefying facilities.

Maul now runs his own consulting firm and serves as prime consultant to Esperanza Energy LLC, a subsidiary of Tidelands Oil and Gas Corp. that seeks to build yet another LNG receiving plant off the shores of Long Beach. [Red & bold emphasis added.]


9 April 2008

Calais officials hear from Calais LNG officials — WQDY-FM, Calais, ME

As to the question about the Canadian opposition to LNG tanker passage through Head Harbour Passage, Gelber told WQDY News following the workshop, "we're hopeful the Canadians will be good neighbors. They have desires to be an energy hub in New Brunswick creating opportunities in New Brunswick. We hope that as neighbors in the spirit of cooperation, that we can find common ground between what we're doing and what they're doing. We have interests, they have interests. There are things that they want to do that involve us as there are things we want to do that involve them."

Calais LNG's key investor is Goldman Sachs LLC.

TransCanada, Petro-Canada shelve $979.5M Gros-Cacouna LNG project — All Headline News, Wellington, FL

Brossard, Quebec (AHN) — Canadian companies involved in the development of the $979.5 million Gros-Cacouna Energy LNG (liquefied natural gas) Terminal have announced the termination of the project citing a lack of secure gas supply to feed the plant. (Mar 30)

Webmaster's Comments: The find of a 20-year supply of natural gas beneath Quebec soil, as reported on April 8, may also have had a dampening effect on this project.

Weaver's Cove Energy updates vessel transit plan — LNG Law Blog, Washington, DC

Weaver's Cove Energy has filed a "Change of Information" to update the U.S. Coast Guard and FERC on new details regarding the project's vessel transit plan.

R.I. attorney general skeptical of newest LNG proposal — The Boston Globe, Boston, MA

Lynch said the new proposal isn't really an offshore project. He said it is as problematic as an existing proposal by Weaver's Cove Energy to build an LNG terminal that would require tankers to make their way up the Taunton River. (Apr 6)

New plan shifts LNG battle — The Providence Journal, Providence, RI

The new proposal to offload LNG supertankers in the bay just northeast of the border raises the stakes for Rhode Islanders opposed to the project because it would limit access to the bay.

[Former Fall River Mayor Edward M. Lambert Jr.], who spent years leading the fight against the project, said so many serious objections remain that the plan still isn’t viable. Affected communities are expected to fight the new plan as vehemently as they did the original.

One thing is certain: The long, expensive battle against the project — begun in July 2003 — is going to start all over again because the company must file a new proposal with the Federal Energy Regulatory Commission, which has the authority to bypass local roadblocks. (Apr 6)

Canadian Superior announces plan for LNG terminal in the New York metropolitan area — LNG Law Blog, Washington, DC

Speaking at an event hosted by the Independent Petroleum Association of America (IPAA), Canadian Superior Energy announced yesterday that it is exploring the possibility of an LNG import terminal in the New York City metropolitan area.

Broadwater releases favorable poll, but others attack survey — Newsday, New York, NY

But Philip Meyer, a professor at the University of North Carolina at Chapel Hill's School of Journalism and Mass Communication and the Institute for Research in Social Science, said after reviewing the poll material Broadwater released that it was improperly done because it did not present both sides of the issue. "It shows that two in three New Yorkers support Broadwater as an energy solution after they listened to a one-sided explanation of it," he said. [Red emphasis added.] (Apr 7)

Wyden looks to give states say over LNG siting — KATU-TV, Portland, OR

Wyden said, "A measure we warned about has gone into effect, and the harmful consequences are even greater than imagined. Senators are seeing that this is a byproduct of a Bush energy bill that has many flaws."

Most of Oregon's political leaders say FERC hasn't met two requirements of the National Environmental Policy Act: demonstrating a public need for the facility and fully analyzing alternatives.

"It's not going to address the issue of supply; it doesn't address the environmental issues. ... We have a huge array of proposals pending, bringing in far more gas than we could ever use, yet the federal agency won't even address the threshold questions," Wyden said. [Red emphasis added.] (Apr 8)

Clinton, Obama support LNG states-rights bill — The Daily News, Longview, WA

Hillary Clinton and Barack Obama, facing off in the Oregon primary in May, lent their support this week to a bill that would return the power to approve liquefied natural gas terminals to the states.

The Energy Policy Act of 2005 granted FERC vast authority in choosing where LNG terminals are built. The legislation introduced Monday would reverse that policy and restore most of the power to the states.

The office of Oregon Gov. Ted Kulongoski applauded Monday's developments. In fact, Kulongoski has all but declared war on FERC over the way it has handled applications for three proposed Oregon LNG terminals, including NorthernStar's.

Clinton claims greater devotion on Ore. gas terminals — USA Today

GRANTS PASS, Ore. (AP) — Sen. Hillary Clinton is trying to use opposition to siting liquid natural gas terminals in Oregon to narrow Sen. Barack Obama's apparent lead in the Democratic presidential primary.

Clinton domestic policy director Catherine Brown said in a conference call with reporters that this shows the New York senator has a far greater commitment to the issue than Obama, despite his lending support as a co-sponsor to a bill introduced by Sen. Ron Wyden, D-Ore., to restore state control. (Apr 8)

Liquefied natural gas [Commentary] — The Oregonian, Portland, OR

There are some things Americans, and Oregonians in particular, should consider as they weigh the possibility of liquefied natural gas as a "bridge" energy source. The industry is quick to paint a rosy picture of LNG as a "green" and "available" source of energy. But there are many things they're not telling you.

Short-term energy and summer fuels outlook — US Energy Information Administration, Washington, DC

Imports of liquefied natural gas (LNG) are projected to reach about 680 billion cubic feet (Bcf) for 2008, representing a 12-percent decline from the record volume received in 2007.  Strong demand in Asia and Western Europe, which compete with the United States for LNG supplies, has greatly reduced the number of U.S.-bound LNG cargoes so far this year. [Red emphasis added.] (Apr 8)

US LNG reverses gains — Fairplay Shipping News, Surrey, England, UK [Registration required]

US imports of LNG finally revved up last year, but 2008 volumes are being ‘greatly reduced’ by intense competition for cargoes. (Apr 8)

U.S., Europe LNG demand to surpass Asia by 2015-Exxon — Reuters, Yahoo News, Singapore

PERTH, April 8 - Demand for liquefied natural gas in America and Europe will surpass Asian consumption by as early as 2015, while global LNG demand is set to triple between now and 2030, U.S. oil major ExxonMobil Corp said on Tuesday.


8 April 2008

Canada, U.S. bicker over waterway — The Chronicle Herald, Halifax, NS

The first major test will come as early as this spring when the U.S. Federal Energy Regulatory Commission makes public its initial environmental review — the first step in the review process. (Apr 6)

Webmaster's Comments: This article by Peter Morton is so full of incorrect, outdated, and fabricated information, it's tiresome to address its flaws:

  1. The name of Downeast LNG's location is "Mill Cove, Robbinston, Maine," not "Mill Creek, Maine."
  2. The "first major test" mentioned in the article — the Environmental Impact Statement (EIS) — is unlikely to come this spring, summer, or fall — or ever. It requires Canada's cooperation for the US Coast Guard to complete its Waterway Suitability Report (WSR), essential for the required Draft EIS. Without the Draft EIS, the FERC process cannot continue.
  3. The writer states that Downeast LNG plans to construct a single LNG storage tank. In fact, the plan includes two storage tanks.
  4. The story claims that the resulting natural gas would be fed into the Maritimes & Northeast Pipeline. Doing so would require an expansion to the pipeline — an expansion that may not be possible, due to the number of expansions that have already taken place; it's possible that there's no longer any room for more loops or added pressure in the pipeline. It might actually require constructing an entirely new pipeline, at US$2 million/mile — a $400–500 million project, equivalent to the cost of an LNG terminal. The economics of such a project make it improbable.
  5. Dean Girdis and Kestrel Energy "are going to extraordinary lengths to ensure the LNG tankers pass safely through Head Harbour [Passage]." Girdis, Kestrel Energy, and the article's author fail to mention that the proposed waterway and terminal sites simply cannot pass the LNG industry's own world safety standards, and that there's no "mitigation" that can reverse that truth.
  6. The author calls Pleasant Point Passamaquoddy Reservation (Sipayik), "Quoddy Bay." Perhaps he is confusing the community with the LNG speculator at that community, Quoddy Bay LNG.
  7. The writer claims that LNG is "the best way for the United States to wean itself from Middle East oil." That's exchanging a noose for a poison pill; the bad result remains the same.
  8. The author failed to contact "" (Save Passamaquoddy Bay 3-Nation Alliance) in any manner at all, so his story is less than balanced.
  9. Author Peter Morton states that Captain Stephen Garrity is the "commander of the U.S. Coast Guard in Northern New England." Perhaps if Morton had attempted to contact Captain Garrity for comment, he would have learned that Garrity retired in 2007.
  10. The article makes claims that Canada is unrealistic regarding the United Nations Convention on the Law of the Sea (UNCLOS, or law of the sea treaty). Morton fails to mention that the United States has never ratified its membership in that treaty and, therefore, has no rights or protections under it. The innocent passage provisions of the treaty don't apply to the United States.

The Chronicle Herald may want to consider using a more professional freelance journalist than Mr. Morton in the future. (Note: Peter Morton is the same author who has written several flawed, one-sided pro-Downeast LNG articles in the Financial Post of Ontario, Canada.)

Girdis and Morton strike again - It must be Spring — Quoddy Google Group, Passamaquoddy Bay area, NB

Peter Morton is recycling very old news ... again. For 3 years now we have been fighting the efforts of the US LNG companies (3 of them.... not just one) to screw up a very rich and special place that has gross annual revenues of over $500 million from the three key resource industries, fisheries, tourism, and aquaculture. (Apr 7)

CT sends plea across the Sound — New Haven Independent, New Haven, CT

Under chilly, overcast April skies, two Connecticut U.S. reps., the state’s attorney general and other elected officials made a united plea to New York’s governor Monday to reject the Broadwater LNG facility in Long Island Sound.

Blumenthal, who is the state’s chief legal officer, said he sent a second letter to Paterson, urging him to reject the project in the interests of both states or face an intense legal and public battle. He held the letter high, saying, “Broadwater is an act of futility, irresponsibility and illegality that will never happen. So disapprove it now so we can work together for better alternatives.”

Courtney said FERC had approved an additional 22 LNG sites and there are more pending before the body. He said “the agency is out of control and it has a policy that at this point is incoherent and does not come close to advancing this country’s ability to have a workable energy policy.” [Red emphasis added.] (Apr 7)

There’s gas in those hills — The New York Times, New York, NY

[A] frenzy unlike any seen in decades is unfolding here in rural Pennsylvania, and it eventually could encompass a huge chunk of the East, stretching from upstate New York to eastern Ohio and as far south as West Virginia. Companies are risking big money on a bet that this area could produce billions of dollars worth of natural gas.

If all goes well, the Marcellus could help moderate the steep climb in natural gas prices and reduce possible future dependence on natural gas from the Middle East, which is beginning to arrive at coastal terminals in liquefied form. [Red emphasis added.]

Webmaster's Comments: Here's one more significant reason why Downeast LNG, Quoddy Bay LNG, and Calais LNG have no hope of economic success.

Utica may fill Quebec's needs — The Gazette, Montreal, QC

Junex sees Rabaska supplying U.S. market

The discovery of approximately 4 trillion cubic feet of natural gas in Quebec, enough to supply the province's needs for 20 years, could make two proposed liquefied natural gas ports redundant for the Quebec market. [Red emphasis added.]

Webmaster's Comments: New sources of domestic natural gas are popping up like spring flowers — all bad news for proposed LNG import terminal projects.

Alaska legislature wants to expand June session on gas pipeline — Platts

The Alaska Legislature Monday asked Governor Sarah Palin to expand the scope of a special session planned for June to discuss a proposed pipeline intended to bring North Slope natural gas to the Lower 48 to include a smaller pipeline to bring gas to Alaska communities and to a liquefied natural gas export project.

Wyden, Clinton back leaving LNG decision to state — The Daily News, Longview, WA

A coalition of U.S. senators, including presidential contender Hillary Clinton, introduced legislation Monday that would snatch the power to site liquefied natural gas terminals away from federal officials and give it back to the states.

“FERC may still have a role of some sort, but they would not have the authority to issue a license,” Towslee said. “The states would do that.”

The bill’s introduction amounted to a rebuke of the way FERC has handled the concerns of local agencies in siting LNG terminals.

Wyden, Clinton, Lieberman, Dodd seek repeal of federal control over LNG terminal siting [News release] — US Senator Ron Wyden of Oregon, Washington, DC

The end result [of the Energy Policy Act of 2005] is a public process in which the public has no due process and no assurance that their concerns will be heard, much less addressed. (Apr 7)

Wyden co-sponsors LNG site bill — The Daily News, Longview, WA

A coalition of Democratic U.S. senators, including presidential contender Sen. Hillary Clinton, D-N.Y., today introduced legislation to snatch power to site liquefied natural gas terminals away from federal officials and give it back to the states. (Apr 7)

Webmaster's Comments: The LNG Terminal Siting Standards Organization backs this proposed legislation.

Senators try to repeal LNG siting rules, giving power back to states — The Forest Grove News-Times, Forest Grove, OR

No grandfather clause

According to Tom Towslee, a Wyden spokesman, the legislation doesn't include a "grandfather clause," meaning that any facilities that don't have a permit would have to shift to the new process if the legislation passes.

While the legislation's passage could create headaches for LNG developers, Towslee was careful to point out that the legislation should be read as a condemnation of FERC's public involvement process, not LNG.

"Every state has its own culture of public involvement," Towslee said, "but I could hazard a guess that no state has a culture of public involvement that matches what FERC does, which is none." [Red emphasis added.] (Apr 7)

Wyden, Clinton, Dodd, Lieberman seek repeal of federal control over LNG terminal siting —

(WASHINGTON, D.C.) -- Working to restore local control over liquefied natural gas (LNG) terminal placement, U.S. Senators Ron Wyden (D-OR), Hillary Clinton (D-NY), Joe Lieberman (ID-CT), and Chris Dodd (D-CT) introduced legislation today to repeal portions of the Energy Policy Act of 2005, which gave that authority to the Federal Energy Regulatory Commission (FERC). Such decisions had historically been decided by state siting agencies.

At every turn, FERC’s LNG siting process in Oregon has defied common sense and public accountability. It is a process divorced from the real world questions that need to be answered. And, the situation in other parts of the country is no different.

It’s time to restore the local and state role in these critical decisions about in whose backyard a pipeline or LNG plant will be built. It’s time to reverse the ill-considered decision Congress made in 2005 when it overrode state and local decision-making to put a Federal bureaucracy in charge of LNG siting authority. This bill would do exactly that." [Red emphasis added.] (Apr 7)

Webmaster's Comments: Maine's federal delegation doesn't have the guts to even declare their positions regarding the proposed LNG projects in Passamaquoddy Bay (implying that they support them) — although they fall all over themselves to declare that they opposed the Energy Policy Act's provision giving FERC superior authority over states.

Please contact Maine Senators Olympia Snowe and Susan Collins, asking them to support the Wyden legislation (bill number: S. 2822) to return LNG siting authority to the states.

U.S. Senator Olympia Snowe

Email Webform

One Cumberland Place, Suite 306
Bangor, ME 04401
(207)945-0432 / Fax: (207)941-9525
U.S. Senator Susan Collins

Email Webform

202 Harlow Street, Room 204
PO Box 655
Bangor, ME 04402

BP joins ConocoPhillips in natural gas pipeline plan — KMTR-TV, Springfield, OR

JUNEAU, Alaska (AP) — Two of the world's largest oil companies announced plans Tuesday to jointly develop a multibillion dollar natural gas pipeline to move North Slope natural gas to market.

Gov. Sarah Palin had earlier rejected the proposal by ConocoPhillips to build a natural gas pipeline linking the state's energy rich North Slope to Midwestern states, opting to stick with a plan by pipeline company TransCanada. That company's plan for a pipeline remains under review.

Webmaster's Comments: Even more domestic natural gas will be coming to market, reducing the need for LNG imports.

Kulongoski willing to sue if LNG ports not good for Oregon — KMTR-TV, Springfield, OR

EUGENE, Ore. (AP) — Gov. Ted Kulongoski says he is ready to go to court to make sure any liquefied natural gas facilities slated for Oregon are needed and safe.

FERC rejected the governor's suggestion to conduct a regional review of LNG projects, saying once it has determined they meet environmental and public safety standards it will let the market decide which projects are built. (Apr 7)

Investment bank hikes 2008 US gas price forecast 18% to $8.25/Mcf — Platts

LNG imports will fall 30%, Jefferies said, as Europe and Asia outbid the US for cargoes this summer on soaring demand. [Red and bold emphasis added.] (Apr 4)

Webmaster's Comments: It's bad news, everywhere, for LNG speculators in the US — like Downeast LNG, Quoddy Bay LNG, and Calais LNG; bad investments with tragic futures.

Global LNG demand seen outstripping supply: industry panelists — Platts

The EIA conference "traditionally looks at the demand side of things and assumes that supply will fill the gap, I'd like to suggest that in LNG, at least in the next five to 10 years, that's not necessarily the case," Eisbrenner added.

But consultant Andy Flower of Andy Flower LNG Associates said he believes estimates of an 8% to 10% annual growth in LNG demand "unsustainable" and said we are more likely to see a 3% to 4% growth in annual demand, with most of the increase centered on Asia and Pacific markets.


6 April 2008

Excelerate may have secured first LNG cargo for Northeast Gateway LNG terminal — LNG Law Blog, Washington, DC

Platts LNG Daily [subscription required] reports that Excelerate Energy has secured an initial LNG cargo from Trinidad & Tobago for its Northeast Gateway LNG deepwater port. (Apr 2)

Webmaster's Comments: Northeast Gateway, Suez Neptune, and Canaport will more than satisfy the additional natural gas needs of New England, according to LNG experts and former FERC Chairman Wood — clearly indicating that Downeast LNG, Quoddy Bay LNG, and Calais LNG are unneeded wasted money and effort. Are their investors paying attention?

LNG helps meet SouthCoast's needs [Op-ed] — The Herald News, Fall River, MA

Despite these significant economic benefits, opponents of our project cling to the argument that it poses a safety risk.

Over the past 40 years, our industry has delivered over 50,000 cargoes of LNG to terminals around the world without incident.

The project already approved by the Federal Energy Regulatory Commission is designed to meet or exceed all federal safety standards. (Apr 1)

Webmaster's Comments: This article by Weaver's Cove Energy CEO Gordon Shearer attempts to disguise his project's multitude of problems. He states that it is the opponents who argue the project is a safety risk. Even FERC agrees that it's a safety risk; they simply believe the risks are worth taking. Shearer's allusion that the project presents no risks is simply false.

In truth, the Weaver's Cove project violates even the world LNG industry's own safety standards, as developed and published by SIGTTO. And, the reason that the LNG industry's safety record stands as it currently is, is because the industry — for the most part — abides by those safety standards.

Remarkably and ironically, FERC's own LNG terminal siting safety standards are weaker than SIGTTO's. FERC, by its industry-defying safety standards, creates a greater probability that there will be a catastrophic release of LNG, threatening the very existence of the LNG industry, the lives and health of civilians, and this nation's energy security. Shearer's argument is hollow and unworthy of consideration.

Sabine plant waits on LNG shipment — AP, KXAN-TV, Austin, TX

The Sabine Pass LNG terminal, four miles inland from the Gulf on 853 acres, will be the largest regasification facility in the U.S. It's expected to have a daily regasification capacity of 4 billion cubic feet and storage for nearly 17 billion cubic feet.

It's 1 of 3 LNG receiving terminals Cheniere is developing. (Mar 31)

Connectict asks US FERC to reconsider Broadwater LNG approval — Platts

"Connecticut is sending a signal -- and sending it loud and clear -- that we will fight to prevent the flawed Broadwater concept from becoming a disastrous reality," Rell said in a statement. "We are fully prepared to take whatever steps necessary to ensure this environmental injustice never comes to be. We are exercising our state's right to request a rehearing. If that request is met with indifference, as has been FERC's response to all of our previous requests on Broadwater, we will move on to the next venue -- a federal courtroom."

"FERC can gracefully retreat or face furious legal conflict and likely defeat. FERC must sink this project or sink itself with Broadwater." [Bold red emphasis added.] (Apr 4)

Webmaster's Comments: Environmental Justice is also a significant problem with the Passamaquoddy Bay LNG proposals.

Connecticut officials seek Broadwater LNG rehearing — Energy Current, Houston, TX

"FERC's irrational refusal to weigh safety and environmental impacts of proposals is illegal and illogical," Blumenthal said. (Apr 4)

Scandal ends project’s life (or not) — The New York Times, New York, NY

The law of unintended consequences invariably plays out in its own capricious ways, but here’s another that would have been impossible to predict. Could the fate of one of the most bitterly opposed development proposals in the history of Long Island Sound depend on former Gov. Eliot Spitzer’s unexpected exit from the ranks of the employed? (Apr 3)

Pols: FERC's Broadwater approval is no surprise — Suffolk Life, Riverhead, NY

"It comes as no surprise that a commission hand-picked by the President [George W. Bush] to clear the path for more and more LNG platforms has chosen to ignore hard evidence," stated US Congressman Tim Bishop (D-Coram). "With no stake in the health of our environment or the future of our economy, the Broadwater consortium does not share our priorities for either. Long Island's safety and the strength of our economy rely on a healthy Sound." (Apr 2)

If not Broadwater? [Editorial] — Cablevision Editorials, Norwalk, CT

It's not enough to say no to Broadwater, however, without saying yes to other ideas. Like, perhaps, an ocean-sited LNG. (Apr 2)

Webmaster's Comments: Even FERC doesn't seem to appreciate the advantages of true off-shore (open ocean) LNG facilities. Here are some of the advantages:

Saying no to Broadwater [Editorial] — The New York Times, New York, NY

Here is our position on Broadwater, the quarter-mile-long floating energy barge in Long Island Sound that could supply New York and Connecticut with a billion cubic feet of natural gas a day — provided it wins regulatory approval, is built as planned and doesn’t get blown up by terrorists or sunk by market forces:

Let’s not.

It is not necessarily the most obvious call. But the benefit that Broadwater promises — convenient satisfaction of the region’s ravening energy appetite — is overcome by more pressing long-range concerns, like finally curbing the addiction to fossil fuels and preventing another industrial incursion into Long Island Sound. (Mar 31)

Supreme Court backs Del. in river dispute, says state can block N.J. LNG pier — Delaware Online

The U.S. Supreme Court tidied up part of a messy, centuries-old Delaware River border squabble Monday with a ruling that gave Delaware a clear veto over energy giant BP's proposed liquefied natural gas pier opposite Claymont. (Apr 1)

BP firm on LNG project plans — Bridgeton News, Bridgeton, NJ

BP officials say the company is committed to moving forward with a $1 billion liquefied natural gas project proposed for Logan Township, despite a U.S. Supreme Court ruling Monday that would allow Delaware to block construction of a 2,200-foot pier necessary to the project. (Apr 1)

Webmaster's Comments: As seems consistent with LNG development mindset, BP is living by the principle, "Damn the expenses to everyone, and damn public safety!"

BP has faith project will move ahead — Delaware Online

Despite ruling, company says 'other options' than N.J. site will be explored

Although BP's original plan calls for tankers to stop south of the Pennsylvania line, BP earlier this month notified the Federal Energy Regulatory Commission that it had given security briefings on the project to officials with Delaware County, Pa., and the Sunoco Marcus Hook Refinery, north of the Crown Landing site.

Hughes said that advances have changed LNG shipping technologies since BP proposed its Logan Township project in 2003, with new ships now able to regasify liquid fuel without transferring it to a land-based plant.

Officials in Pennsylvania and New Jersey said Monday they were unaware of any locations north of the Delaware border that might be under consideration as an alternative to Logan Township. [Red emphasis added.] (Apr 1)

BP: LNG plan still a go in Logan — Gloucester County Times, Gloucester County, NJ

"The real fight wasn't on where New Jersey and Delaware is, it's whether the Coastal Zone Act had validity in Delaware as defined," Hughes said. "The most encouraging part of the decision isn't reassurance that Delaware's line is all the way over there. It's that our Coastal Zone Act has validity everywhere inside Delaware. From our standpoint, we could not yield the point under any circumstances." [Red emphasis added.] (Apr 1)

Webmaster's Comments: The Coastal Zone Management Act provides states with the authority to prevent LNG terminal projects that violate states' coastal zone rules, regardless of FERC approval.

NJ Delaware Bay LNG project denied by Supreme Court — MarEx Newsletter, Fort Lauderdale, FL

In New York, like California, Delaware, Maine and New Jersey, one rule for the permitting of LNG marine terminals is holding firm: “With LNG, all politics are local.”

Delaware prevails in LNG clash — AP, Houston Chronicle, Houston, TX

WASHINGTON — Delaware won a Supreme Court fight with New Jersey on Monday, likely killing a proposed liquefied natural gas terminal on the Delaware River.

The justices, in a 6-2 decision, said Delaware can block the project, even though it was proposed by BP for New Jersey's side of the river. (Mar 31)

FERC grants approval to Sabine Pass LNG and Freeport LNG to receive larger LNG vessels — LNG Law Blog, Washington, DC

Last week FERC granted approval to Sabine Pass LNG for the terminal to receive LNG vessels with cargo capacities up to 266,000 m3. The same day, FERC also authorized Freeport LNG to receive LNG vessels with cargo capacities up to 217,000 m3. (Apr 2)

U.S.' LNG projects in doubt after court ruling — The Oregonian, Portland, OR

Safety — Delaware can block a liquefied natural gas terminal in New Jersey, which could affect LNG proposals for Oregon. (Apr 1)

Congressman says feds 'blew off' state concerns over LNG — The Daily Astorian, Astoria, OR

"I am not satisfied with FERC's assessment of Oregon's ability to participate in the LNG siting process," said Wu. "I will continue to fight for increased state and local authority, and meaningful input from the affected communities. FERC's narrow focus ignores the larger compounding impact of these facilities on the local community, industry, and public services."

DeFazio's reaction was even stronger.

"FERC basically blew off the concerns expressed in our letter. Now, the state of Oregon is going to waste a huge amount of time investigating several plans, at great cost to state taxpayers, most of which will not even come to fruition," DeFazio said. "I don't believe Oregonians should have their concerns railroaded by a deregulated market, unchallenged by an ideological laissez-faire FERC." [Red emphasis added.] (Apr 4)

Feds snub Oregon on need for LNG — The Daily Astorian, Astoria, OR

Kulongoski thinks FERC's market-based approach to approving the projects is unacceptable and puts unnecessary strain on the local and state government agencies required to review the proposals.

Before construction can begin at Bradwood Landing, the company will still need air and water quality permits from the state of Oregon. [Red emphasis added.] (Apr 4)

Webmaster's Comments: No matter what FERC decides, the state can deny air and water quality permits, essentially preventing construction of the projects. See the LNG Terminal Siting Standards Organization white paper, "LNG safety & need: NEPA & states trump FERC."

LNG opponents want to light new fire — The Daily Astorian, Astoria, OR

The referendum would ask voters if they approve of the county board's decision to allow natural gas pipelines to run through land zoned for open space, parks and recreation (OPR) with a conditional-use permit. Before the Bradwood Landing decision, pipelines were not a permitted use in OPR zones. (Apr 2)

High court LNG ruling gives 'ammo' to opponents — The Daily Astorian, Astoria, OR

Opponents of the Bradwood Landing LNG project, proposed for a site 20 miles east of Astoria, are hoping to use the decision to bring Washington Gov. Chris Gregoire into the debate over LNG in Oregon. (Apr 1)

Local emergency officials tour other LNG facilities — KCBY-TV, Coos Bay, OR

In early March, eight emergency response representatives from the bay area took a week long visit to the LNG facilities in Baltimore, Maryland and Lake Charles, Louisiana. (Mar 31)

Webmaster's Comments: Comparing the Lake Charles LNG terminal with the proposed terminal at Coos Bay, Oregon, is like comparing apples to oranges.

The Lake Charles facility is in a cul de sac well away from the shipping fairway, making it safe from collision and wake from other vessels. The proposed Coos Bay facility is nearly within the fairway. Even worse, the proposed Coos Bay site is on an outside turn in the river, meaning that every ship passing by is at one time or another pointed directly at the berthed LNG vessel, providing an allision opportunity — a specific violation of world-class LNG terminal siting standards, as established and published by SIGTTO.


[nautical term; compare with "collision"] A moving vessel striking a stationary object or stationary vessel.
Two moving vessels striking each other.

A taste of LNG — The Facts, Clute, TX

Adam Wine, with the U.S. Coast Guard’s public affairs detachment, examines a graham cracker dipped in liquefied natural gas Tuesday at Freeport LNG. Wine took a bite of the cracker in a demonstration of the safety of LNG. (Apr 2)

Webmaster's Comments: This is an example of US Coast Guard lack of professionalism. The demonstration — dipping a graham cracker into LNG and then eating the cracker — proves nothing about what would happen in an actual LNG release. It demeans genuine concern for safety, and — perhaps against USCG regulations — uses US Coast Guard personnel to promote the project.

The Coast Guard is supposedly a neutral body that determines whether or not LNG projects can go forward, by issuing its Waterway Suitability Assessment Letter of Recommendation. Adam Wine's participation in the above "safety" demonstration taints the Coast Guard's reputation and the federal LNG regulatory process.

LNG in the zone — The Facts, Clute, TX

QUINTANA — Though Freeport LNG is not expecting its first shipment of liquefied natural gas until later in the month, the U.S. Coast Guard already is making the area around the terminal secure.

At 12:01 a.m. Tuesday, officials enacted a fixed security zone at the terminal, banning unauthorized watercraft from entering the area, officials said.

“That means you can’t go in at any time,” said Adam Wine, a public affairs officer for the Coast Guard in Houston.

The area inside the new zone once was a popular fishing spot, said Jeanne Masters, a Quintana resident whose home is adjacent to the fenceline of the Freeport LNG property. (Apr 2)

Webmaster's Comments: USCG public affairs officer Adam Wine mentioned in this article is the same USCG officer who ate the LNG-laced graham cracker in the story just preceding this one.

This article is further evidence that — contrary to statements made by Passamaquoddy Bay-area LNG promoters — non-LNG traffic must wait when LNG vessels are in the waterway.

Supreme Court LNG ruling not likely to have bearing in Oregon — The Hillsboro Argus, Hillsboro, OR

"Although the specifics of the case dealt with an agreement between Delaware and New Jersey, the decision did re-confirm for us that Oregon can use its authority to regulate these structures which the Supreme Court considered 'extraordinary' and worth special attention from the states." (Apr 4)

Webmaster's Comments: The Supreme Court ruling confirms states' authority over LNG terminal projects. As pointed out in the LNG Terminal Siting Standards Organization white paper, "LNG safety & need: NEPA & states trump FERC," states have regulatory authority to prevent LNG terminals, even when FERC approves them.

Court supports city on end of LNG EIR — Grunion Gazette, Long Beach, CA

A proposal to build a Liquid Natural Gas (LNG) terminal in the Port of Long Beach appears to be dead.

Superior Court Judge James Chalfant ruled Monday that port officials had no obligation to complete an Environmental Impact Report on the project proposed by Sound Energy Solutions. Further, the judge ruled that the Long Beach Harbor Commission was within its rights in January 2007 when it declared it had no intention of leasing property to SES. (Mar 20)

Papers shed light on day of SF bay spill — AP, The Raw Story

The master captain of the freighter that hit a bridge and spilled oil into San Francisco Bay told investigators the fog was so thick he could not see the ship's bow and that the pilot ordered a sharp turn before the crash, according to court documents. (Apr 4)

Webmaster's Comments: This story demonstrates that even harbor pilots are not immune from making errors that can result in serious consequences.

Lenders likely to tighten LNG project financing —

Despite such a recent golden age for the borrowing parties in LNG project finance deals, recent events seem to be conspiring to mark a turnaround in financing conditions. (Mar 27)

Gazprom eyes quarter of global LNG market by 2030 — Reuters, Yahoo News Singapore

Gazprom, the world's largest gas producer, will add some 90 million tonnes of the super-cooled fuel to its production by 2030, Gazprom's deputy head Valery Golubev told reporters at an energy forum in Moscow.

Gazprom already supplies a quarter of Europe's gas needs via major pipelines but has no LNG production of its own.

It will get the first volumes next year when it launches its Sakhalin-2 project together with Royal Dutch Shell and Japanese firms. The project in the Pacific waters will ultimately produce 9.6 million tonnes, entitling Gazprom to 4.8 million tonnes of LNG per year. (Apr 2)

Webmaster's Comments: Is anyone concerned?

FLEX LNG ups ship size — MarineLog, New York, NY

Last week the company signed contracts with Samsung Heavy Industries (SHI) for three 170,000 cu.m SPB LNG Producer hulls. These replaced three previous orders for three 90,000 cu.m SPB Panamax LNG Carriers.

The maximum production capacity the LNGP Hulls can support has been increased from 1 mtpa to about 1.7 mtpa. (Mar 11)


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