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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 February

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29 February 2008

FERC to assess impact of new proposed LNG pipeline route — The Quoddy Tides, Eastport, ME

FERC is specifically requesting comments on the new proposed route, Option 6, which is a modification of the proposed natural gas sendout pipeline route to avoid crossing the Moosehorn National Wildlife Refuge. Comments concerning this notice of intent are requested by March 14. (Feb 22)

Webmaster's Comments: This new pipeline route has the same probability of happening as the previous five alternatives. Without an LNG terminal, there will be no pipeline.

U.S. Coast Guard releases Waterway Suitability Report for Sparrows Point LNG — LNG Law Blog, Washington, DC

The U.S. Coast Guard's Waterway Suitability Report for the proposed Sparrows Point LNG terminal was released earlier this week and is now available in FERC's eLibrary under Docket No. CP07-62.

Team Maryland calls on FERC to deny LNG application, cites Coast Guard report as further reason [News release] — US Senator Benjamin Cardin, Maryland

"I continue to strongly oppose building a LNG facility at Sparrows Point, and the U.S. Coast Guard report confirms that this location would present serious security problems.  In addition to the Coast Guard’s concerns, the LNG terminal lacks the support of the community and state and federal officials who are worried about the safety and security of area residents.  It is time for FERC to take action to ensure that the proposed LNG facility is not built at Sparrows Point," said Senator Cardin. (Feb 28)

Gulf Coast LNG terminals nearing opening; Capacity shakeout looms — Natural Gas Week, Energy Intelligence, New York, NY [Paid subscription required]

The US Gulf Coast's LNG terminals have been the focus of a lot of action in recent weeks on both the operational and financial fronts. The region's two merchant LNG receiving terminals, Freeport LNG and Cheniere Energy's Sabine Pass LNG, will be commissioning their facilities by mid-year, certainly ending worries about a lack of US regasification capacity that predominated earlier in the decade. Meanwhile, construction started this week on a terminal in Mississippi. [Bold and red emphasis added.] (Feb 25)

Webmaster's Comments: Yet another industry source indicates that Downeast LNG, Quoddy Bay LNG, and Calais LNG Import Co. are moot.

'Flaws' revealed in LNG report — The Daily Astorian, Astoria, OR

In a 23-page report released Wednesday, county staff cited problems with the findings, including qualitative judgments, conflicting numbers and unanswered questions.

In a letter sent last week, the county asked FERC for the second time whether the federal agency would require NorthernStar to follow the county's conditions of approval. So far, the county hasn't gotten an answer. (Feb 28)

LNG firm tells state: trust feds — The Daily Astorian, Astoria, OR

There are three LNG import terminals proposed for Oregon, only one of which can be supported by the Western states, according to the Oregon Department of Energy. Two natural gas pipelines proposed to deliver domestic gas from the Rockies to the West Coast might offset the need for LNG altogether.

[Oregon Governor] Kulongoski said FERC's approach to approving the projects — reviewing each one separately letting the market decide which ones get built — is unacceptable and puts unnecessary strain on the local and state government agencies required to review the proposals.

As FERC considers Kulongoski's request, U.S. Rep. David Wu, D-0re., is worried the state's concerns won't be heard in the federal approval process. (Feb 22)

Hydrocarbon-rich Middle East looks to imported coal-fed power — Industrial Info, Sugar Land, TX [Registration required]

Saudi Arabia's gas is being diverted to petrochemical production leaving a shortage for power generation.

A shortage of gas is forcing Dubai to plan for 4,000 MW of power to be generated from coal-fed power stations for which unidentified sites have been allocated. Fuel oil has been used to source power in the face of the gas shortage, but coal power feed is seen to be more cost-effective in the long term.

Eskimos file lawsuit against oil companies —

An Eskimo village that is melting into the sea off Alaska has launched a legal challenge against BP, Shell and more than 20 other oil and power companies, alleging that their contribution to global warming is threatening to destroy the tiny community. (Feb 28)


28 February 2008

Downeast LNG has new pipeline route — Telegraph-Journal, Saint John, NB

After several hearings with the Maine Board of Environmental Protection last summer, Downeast LNG withdrew its application when its pipeline route was denied. Girdis said now that a new route is on the table, the company will reapply to the state board this spring and start the process from scratch.

Webmaster's Comments: Since it was disclosed at last July's Board of Environmental Protection (BEP) hearings that a two-year lobster study is required, it will be interesting to see how Dean Girdis and company can provide the BEP with that study in less than a year.

Girdis promises to be all things to all people — now, even to Canadians. In spite of his previous Canada-bashing, he's now promising to hire New Brunswickers — not Mainers, and certainly not Texans — to build his project's pier.

Having discovered that nothing else works, Girdis apparently wants to believe that this new tactic can overcome Canada's well-founded objections regarding his innately inappropriate project.

Scientists blast feds on LNG plan — New Haven Register, New Haven, CT

Experts from the University of New Haven and the University of Connecticut told a state task force the federal study was filled with “information holes and missteps,” and federal officials had “misinterpreted their own data.”

“There is no robust, in-depth analysis” of major environmental issues involving the Broadwater LNG proposal, said Roman Zajac, professor of biology and environmental science at UNH. (Feb 26)

LNG security questioned by Coast Guard — Baltimore Sun, Baltimore, MD

A company that wants to build a liquefied natural gas terminal in eastern Baltimore County hasn't adequately addressed security concerns about importing LNG into the area, a U.S. Coast Guard report concluded yesterday. [Red emphasis added.] (Feb 27)

Report: Bay ‘unsuitable’ for LNG plant —

BALTIMORE — A U.S. Coast Guard report calling the Chesapeake Bay unsuitable for liquefied natural gas tankers should end an energy company’s quest to place an LNG facility in Baltimore County’s Sparrows Point, state and federal officials said Wednesday.

Md. delegation requests denial of LNG application — AP,

BALTIMORE — Five members of Maryland's congressional delegation are asking the Federal Energy Regulatory Commission to deny a Virginia company's application to build a liquefied natural gas terminal at the Port of Baltimore.

Webmaster's Comments: The same admirable quality of leadership cannot be identified with Maine's congressional delegation on this issue — Sen. Olympia Snowe, Sen. Susan Collins, Cong. Mike Michaud, and Cong. Tom Allen. They're more interested in sitting on the fence, not answering our questions for nearly 700 days, now, regarding their positions on the proposed Passamaquoddy Bay LNG projects.

On the other hand, here are some States whose congressional delegates have shows leadership in this regard:

  • Massachusetts
  • Maryland
  • Oregon

Costa Azul costs estimated at US$975 million — Energy Current, Houston, TX

Construction of Sempra's Cameron LNG facility in Louisiana is 75 percent complete, with commercial operations expected to begin in the first quarter of 2009.

The company decided to go ahead and seek expansions for its Costa Azul facility and Cameron LNG facility rather than move forward at this time with a proposed LNG facility at Port Arthur, Texas. However, Sempra is leaving open the possibility of developing an LNG plant at Port Arthur, but is waiting to see how the U.S. LNG market develops. (Feb 27)

Webmaster's Comments: This is another indication of too much LNG import infrastructure in the marketplace.

Hearing to compel environmental review of Sound Energy Solutions LNG proposal set for March — LNG Law Blog, Washington, DC

The filing also contains a brief in support of SES' Petition for Writ of Mandate, originally filed in the Superior Court of California in February 2007, to compel the Port of Long Beach and the Board of Harbor Commissioners to continue their review of the terminal proposal and to prepare a final Environmental Impact Report on the project. (Feb 26)

Natural gas prices increase, frigid temperatures —

LNG cargoes instead are heading to Europe and Asia, where buyers continue to purchase LNG at much higher prices than have prevailed in U.S. markets. … The reduction in U.S. LNG imports reflects changes in LNG supply and demand across the world. (Feb 21)

US House passes bill cutting tax breaks for oil and gas industry — Platts

The US House on Wednesday again passed a bill that would extend a series of tax credits for renewable energy and energy efficiency and pay for them by eliminating or scaling back oil and natural gas industry tax breaks. (Feb 27)


27 February 2008

LNG port undergoing final tests — WBUR, Boston, MA

Tests being done with an empty LNG tanker are expected to last several days.

If the testing goes well, Cook says fully loaded LNG tankers should begin to use the new off shore port soon. (Feb 22)

NATS: Repaired LNG vessel Catalunya Spirit back at sea — LNG Law Blog, Washington, DC

The Catalunya Spirit, the LNG vessel that lost propulsion off Massachusetts last week, discharged its cargo at the Everett LNG terminal over the weekend, and now is back at sea. (Feb 26)

NY State must kill Broadwater to benefit public [Opinion column] — Newsday, New York, NY

The question is not whether to build, but where. Common sense says we should construct these facilities where they cause the least environmental damage and pose the smallest risk to public safety. Unfortunately, when it comes to federal energy policy, the Bush administration has applied a mindless "if they come, we will let them build it" approach as a substitute for thoughtful balancing of environmental and energy priorities. (Feb 26)

Cheniere Energy may sell massive LNG terminal — Forbes

A number of liquefied natural gas-receiving terminal companies decided to add capacity for 2008, but now it's looking as if there is too much to go around. (Feb 25)

Webmaster's Comments: Another LNG industry member — with a terminal already in construction — is indicating that there's already too much LNG capacity!

The credibility of Dean Girdis and Rob Wyatt (Downeast LNG); of Don and Brian Smith (Quoddy Bay LNG); and of Ian Emery, Arthur Gelber, Carl Myers, and James Lewis (Calais LNG Import Co.) has sunk so low, it's now digging a hole. Are their investors paying attention?

LNG harmful energy choice, group says — Ventura County Star, Camarillo, CA

In a full-frontal attack on the dozen liquefied natural gas terminals proposed along the coast of California and Oregon, a Bay Area environmental group says the purported "clean energy" is as bad as coal and will harm the state's much-vaunted push to cut greenhouse gases in the coming decades.

Report: How imported liquefied natural gas will undermine clean energy in California — Pacific Environment, San Francisco, CA

LNG’s high lifecycle greenhouse gas emissions, severe environmental impacts, and staggering investment costs are at odds with California’s commitment to clean energy. Numerous studies demonstrate that investments in cleaner sources of energy, along with improving the efficiency with which we use it, can drive California towards a healthy, prosperous economy. Importing LNG, however, contradicts California’s environmental priorities and does not fit within this framework. California has enough financial resources to support either new fossil fuels or renewable energy, not both. Furthermore, California can choose either to burn more fossil fuels or reduce greenhouse gas emissions, but not both.

Hearing to compel environmental review of Sound Energy Solutions LNG proposal set for March — LNG Law Blog, Washington, DC

The filing also contains a brief in support of SES' Petition for Writ of Mandate, originally filed in the Superior Court of California in February 2007, to compel the Port of Long Beach and the Board of Harbor Commissioners to continue their review of the terminal proposal and to prepare a final Environmental Impact Report on the project. (Feb 26)

Sempra delays Costa Azul LNG terminal by two months (Correct) —, New York, NY

Completion of the terminal in western Mexico, near the U.S. border, is now running 30 to 60 days late, after which initial imports to test the facility can start, he said.

San Diego-based Sempra Energy, owner of the largest U.S. natural-gas utility, has already bought the cargo it will use to commission the facility. ``It's on-board a ship waiting for the terminal to be ready to accept it,'' said Larson. ``We made arrangements for it last year.'' Today, he confirmed a second tanker of LNG had been bought, which is also a ``start-up cargo'' for the facility.

Riccardo Crivari, manager of LNG shipping at EA Gibson Shipbrokers Ltd., estimated the daily charter rate for a Q-Flex vessel at about $60,000. (Feb 26)


22 February 2008

Settlement proposed in gas quality proceeding — LNG Law Blog

According to Algonquin, the settlement, which would limit nitrogen in the gas stream to a maximum of 2.75%, has the support of its directly connected customers, as well as "several of the major [LNG] importers."

Webmaster's Comments: Algonquin Pipeline's limit on the amount of nitrogen* in the natural gas injected into the pipeline had been challenged by Statoil Natural Gas, an LNG importer at the Cove Point LNG terminal in Maryland. Statoil and BP had claimed that limiting the amount of nitrogen would significantly reduce the amount of LNG that could be imported into the US.

This is more evidence that LNG importers want to bring "hotter" (higher burning temperature, and more explosive‡) LNG into the US, and then dilute it with nitrogen. (See LNG importers challenge Algonquin Pipeline nitrogen limit on LNG Law Blog.)

FERC does not limit the hotness of LNG being imported into the US; however, it does regulate the hotness of the revaporized LNG being injected into the pipeline; the gas must meet the pipeline's tarrif, so that the pipeline customers' appliances can burn the gas safely. This also means that an LNG terminal must be permitted to deal with the hot LNG being imported, either by removing the hot hydrocarbons, or by diluting with nitrogen. (An existing LNG terminal could receive additional permits from FERC to process "hot" LNG.)

For more about hot LNG and industry philosophy and practices regarding it, see New process to help terminals handle rich LNG on Oil & Gas Journal.

* Nitrogen is "inert"; it won't burn.

Other hydrocarbons (such as ethane, propane, butane, and others) naturally occur in varying amounts in natural gas mined around the world. These other hydrocarbons burn more aggressively than pure methane, and may be explosive when unconfined. "Hotness" refers to the burning temperature (Btu) of a natural gas mixture, as compared with pure methane gas. The more non-methane hydrocarbons in the gas mixture, the "hotter" the gas.

First StatoilHydro LNG cargo arrives in U.S. — Reuters

OSLO, Feb 22 (Reuters) - StatoilHydro's first shipment of liquefied natural gas (LNG) to the United States arrived [from the Snoehvit complex on the Norwegian part of the Barents Sea] at the Cove Point terminal in Maryland, the Norwegian energy group said on Friday.

Hoegh calls U.S. and U.K. terminals "complementary" — LNG Law Blog, Washington, DC

Wisloff said that since the two terminals will have different peak demand periods (Port Dolphin's in the summer and Port Meridian's in the winter), an LNG supplier could arbitrage between the two access points. Wisloff said that both terminals could be operational by 2011.

Work starts on Angola-linked US LNG port - partner — Reuters

Clean LNG Energy LLC, in partnership with the Angolan national energy company Sonangol and El Paso Corp have begun work on a new terminal at Pascagoula, Mississippi, a spokesman for El Paso confirmed.

Targeted completion is in 2011 for the $450-million facility on the Bayou Casotte Ship Channel. Plans call for the plant to regasify and send out up to 1.5 billion cubic feet of gas per day. (Feb 21)

Wyden: Feds haven’t shown need for liquid natural gas terminals in Oregon — The Forest Grove News-Times, Forest Grove, OR

"This question about LNG and terminals reminds me of Dodge City before the marshal showed up,” Wyden quipped. “You’ve got all these applications proposing vastly more gas than anybody has said can be consumed and nobody has addressed the environmental impact.”

NorthernStar asks feds to keep working on LNG — The Oregonian, Portland, OR

NorthernStar's lawyers insist that the region's demand for more gas is already well established by independent studies. Moreover, they contend FERC's process of judging each project separately, and letting the free market determine which one gets built, is one that has served the nation well.

Webmaster's Comments: NorthernStar is claiming that needlessly pitting neighbors against each other over LNG terminal siting, instead of planning where the terminals actually need to be — if needed at all — "has served the nation well." If you or I were to go to the bank to get a business loan, using this same reasoning, we'd be sent home, empty handed.


21 February 2008

N.J.'s right to review LNG facility challenged — The Hub, Freehold NJ

On Feb. 15, the New Yorkbased investment group Atlantic Sea Island Group (ASIG) filed a lawsuit in U.S. District Court for the District of Columbia seeking a preliminary injunction on the basis that they believe MARAD did not have the authority to make the designation. Also, ASIG said the agency did not apply the standards that Congress required when it created the ACS statute in 1974, according to a Feb. 19 ASIG press release.

In his Feb. 8 letter, Connaughton said as the Maritime Administrator, he acted within his authority to make the decision and that there was no legal provision to allow an appeal.

Company seeks injunction against New Jersey veto in LNG project — Energy Current, Houston, TX

USA:  Atlantic Sea Island Group LLC filed a lawsuit in U.S. District Court for the District of Columbia seeking a preliminary injunction staying a November 2007 decision by the U.S. Maritime Administration (MARAD) that would grant New Jersey "adjacent coastal state" designation as part of the federal review process for the proposed Safe Harbor Energy liquefied natural gas (LNG) deepwater terminal.  The terminal has been proposed for siting on a 60.5-acre, man-made island some 23 miles (37 km) from New York Harbor and 19 miles (31 km) from New Jersey.

LNG developer sues to stop special designation for New Jersey — Platts

But last summer, New Jersey Governor Jon Corzine requested that MARAD and the US Coast Guard grant New Jersey an ACS designation, which would require the federal agencies to solicit the state's input on the project. Last fall, MARAD granted Corzine's request. (Feb 20)

Gas line review may give port authority plan new life — Daily News-Miner, Fairbanks, AK

Econ One reviewed the economics of an LNG project compared to a pipeline through Canada (as TransCanada is proposing) for a presentation to lawmakers in June 2006. The firm estimated that shipping costs would be significantly higher with LNG and assumed that market prices along the Pacific coast would be equal to or less than prices in Chicago at the end of a line across Canada.

US working gas in storage falls 172 Bcf to 1.77 Tcf: EIA — Platts

Inventories are now 52 Bcf above the five-year average of 900 Bcf in the East, 32 Bcf below the five-year average of 244 Bcf in the West, and 78 Bcf above the five-year average of 528 Bcf in the producing region.

Tight LNG market to last for 2-3 years - Shell, Total executives — NASDAQ, New York, NY

LONDON -(Dow Jones)- Tight supply on the global market for liquefied natural gas is likely to continue until 2010 or beyond, executives from Royal Dutch Shell PLC and Total SA said at an Energy Institute seminar Thursday.

Far East demand, prices, drawing LNG away from U.S. — Houston Chronicle, Houston, TX

"It's unusual but very high prices are currently being paid in the Far East," Riccardo Crivari, manager of LNG shipping at EA Gibson Shipbrokers Ltd., said today by phone from London, adding that a "huge difference" in prices between the U.S. and Asia "justifies the change of destination."

Based on "conservative" estimates, traders of LNG can make a profit of about $21 million per consignment for an average 138,000 cubic-meter cargo by shipping Trinidadian LNG to Asia rather than selling it to the U.S., Crivari said.

U.S. LNG prices are about $9 per million British thermal units and shipping costs are at a "maximum" of $2.25 per MMBtu to transport the fuel between the two regions. That's about $9 per MMBtu cheaper than LNG prices in Asia where the price is $20 per MMBtu, according to Crivari.


20 February 2008

Group submits new LNG plan — Bangor Daily News, Bangor, ME

"If they don’t have an LNG terminal, the pipeline issue is moot."

Webmaster's Comments: …and they don't have — and won't have — an LNG terminal. Their new pipeline route doesn't solve their terminal project's inherent violations of the LNG industry's own safety standards (see SIGTTO).

Downeast LNG submits new pipeline plan — Energy Current, Houston, TX

The new pipeline route is the sixth proposed route put foward by Downeast LNG…

Webmaster's Comments: Meanwhile, Downeast LNG can't solve their terminal problems.

Downeast Pipeline, LLC.; Supplemental Notice of Intent to Prepare an Environmental Impact Statement for the proposed Downeast LNG project and Request for Comments on environmental issues related to the modification of the proposed pipeline route — US Environmental Protection Agency, Federal Register, Washington, DC

Please note that comments for this NOI [Notice of Intent] are requested by March 14, 2008.

Webmaster's Comments: This Notice of Intent is a supplement to the original Notice of Intent published away back on 2006 March 13. There have been other subsequent supplemental notices related to this project.

While there is an "intent" to prepare and Environmental Impact Statement (EIS), FERC must actually first prepare a Draft EIS (DEIS), and to do that they must include a completed Coast Guard Waterway Suitability Report (WSR). The WSR cannot be completed, since it requires Canada's cooperation, and Canada will not provide the information. (Canada's opposition to LNG in Passamaquoddy Bay is perfectly consistent with SIGTTO world-class LNG standards.)

No WSR, no DEIS, no EIS, no pipeline, and no terminal. Downeast LNG is wasting everyone's time and money.

No supply issues for Canaport LNG project, Repsol executive says — The Canadian Press, Canadian Business, Toronto, ON

Canaport LNG — a joint project between Spain's Repsol and New Brunswick-based Irving Oil Ltd. — will source its liquefied natural gas from Trinidad and Tobago, among other places, Repsol Energy Canada vice-president Denis Marcoux said in an interview.

"We're not in the same situation as Gros Cacouna because our project is certified, is under construction," Marcoux said. "We don't have any fear at this time. " (Feb 19)

Excelerate sends LNG vessel to Northeast Gateway — LNG Law Blog, Washington, DC

Excelerate's COO told Platts that the vessel would attach the submersible buoys to the vessel's onboard regasification apparatus as part of the commissioning process for the facility.

Webmaster's Comments: The Northeast Gateway LNG terminal is about to receive its first LNG cargo. That project, along with the Suez terminal off Gloucester, Massachusetts, that will be completed around the end of 2009, and the Canaport LNG terminal in Saint John, New Brunswick, that will be receiving LNG around the end of 2008, according to LNG industry experts, will satisfy the need for natural gas in northern New England.

Court asked to block NJ veto on gas facility — Newsday, New York, NY

The Atlantic Sea Island Group Llc, private investors hoping to construct the Safe Harbor Energy terminal 13.5 miles south of the Long Beach boardwalk and 19 miles east of the Jersey shore, is asking the U.S. District Court in Washington for an injunction to stay a November decision by the U.S. Maritime Administration granting New Jersey the status of "adjacent coastal state" - in effect, veto power.

LNG export extension license request sees less opposition — Peninsula Clarion, Kenai, AK

Opposition … centered on commercial issues.

Since that time, Tesoro and Enstar have withdrawn their opposition, Clark said. Another opponent Agrium has closed its fertilizer plant in Nikiski, and now Gov. Sarah Palin has announced her unconditional support of the extension.

"Right now, we don't have adequate markets for the (natural gas) supply we have past 2009," Clark said. "If we shut down the LNG plant, there is no need for our supply. [Red emphasis added.] (Feb 19)

Port Authority tells lawmakers it could build pipeline and LNG — Alaska Journal of Commerce

A key advantage of an LNG project, Walker said, is that it would require less gas than the TransCanada or ConocoPhillips plans, which would transport 4.5 billion cubic feet of gas daily. The smaller requirement for LNG would mean that state-owned royalty gas and gas from one producing company would be enough to supply the project. In contrast, it would take gas from all three North Slope producers, BP, ConocoPhillips and ExxonMobil, to secure gas for the larger all-land project. (Feb 17)

El Paso, DKRW in talks with LNG suppliers — Energy Current, Houston, TX

El Paso and DKRW in 2006 received a land use permit from Mexico's environment and natural resources ministry (Semarnat) and national forest commission for the terminal, as well as environmental authorizations from Semarnat for the terminal and connected pipeline system.

Greenwashing: Navigating the marketing claims (Part 2) — Sustainability Law Blog, Portland, OR

Enviromedia Social Marketing created “The Greenwashing Index,” the first online, interactive forum that allows consumers to evaluate the environmental claims made in advertisements.

Webmaster's Comments: Read the Greenwashing Index's explanation of greenwashing. Read Terrachoice's "Six Sins of Greenwashing."


19 February 2008

Northeast Gateway LNG receiving terminal preparing to receive first shipment, an Industrial Info News Alert — Market Wire, Yahoo Finance

SUGAR LAND, TX--(MARKET WIRE)--Feb 19, 2008 -- Researched by Industrial Info Resources (Sugar Land, Texas) -- Excelerate Energy LLC, a Texas-based LNG importer, has completed construction of its Northeast Gateway LNG receiving terminal off the coast of Massachusetts. The company is awaiting an operations permit from the U.S. Coast Guard.

Webmaster's Comments: This Northeast Gateway LNG terminal, plus the Suez terminal off Gloucester, Massachusetts, and the Canaport terminal in Saint John, New Brunswick, will satisfy all of northern New England's natural gas requirements, according to LNG industry experts.

Union criticizes Menino on LNG preparedness — The Boston Globe, Boston, MA

The Boston Firefighters Union yesterday seized on a recent mishap involving a liquefied natural gas tanker to blast Mayor Thomas M. Menino for what firefighters called the city's failure to create a response plan for a potential tanker accident or attack in Boston Harbor.

But Boston's director of emergency preparedness said officials have worked with the Coast Guard to make sure the city is "as prepared as possible" to mitigate the risks of LNG transport, while a specialist on the risks posed by LNG tankers said the city's ability to respond to an incident would be limited anyway.

"Hiring more firemen or getting more equipment doesn't help this because the equipment can't be used to help put out the fire. It would be a very bad incident if it happened, and there's not much that the city can do," [said retired gas hazard expert James Fay.] [Red emphasis added.] (Feb 17)

Humanity's 'footprint' hits oceans hard — Bangor Daily News, Bangor, ME

The resulting map shows that the coastal zones of New England and Canadian Maritimes are being hard hit by human activities.

Among the factors studied by the researchers were the effects of structures such as oil rigs, commercial shipping, species invasion, climate-change including acidification, ultraviolet radiation and sea temperature, various types of fishing and several types of human-related pollution. [Red emphasis added.]

Qatargas to route LNG to US through Elba terminal — Gulf Times, Doha, Qatar

"The facility is a critical link in the LNG value chain that we are working hard to complete. The event is a clear testament to the growing energy partnership between the United States and Qatar."

Webmaster's Comments: A similar or identical story, "Qatar, US strengthen energy partnership" was published in The Peninsula, Doha, Qatar.

Qatargas attends Elba Island ground-breaking ceremony [Press release] — AME Info, Dubai Media City, United Arab Emirates

The ceremony celebrated the commencement of construction of Phase III expansion of the Elba Island Terminal and was attended by representatives from all the major partners of the first phase of this expansion project, including El Paso, Shell and as well as representatives of the State of Georgia.

Construction activities on the Qatargas 4 Train 7 project are in full swing and on track for start-up around the end of the decade. (Feb 18)

What's the hurry? [Editorial] — The Daily Astorian, Astoria, OR

LNG siting process isn’t market-driven; it’s about rewarding regulatory lawyers

[Oregon Governor] Kulongoski has nailed the most obvious question. Why is the Federal Energy Regulatory Commission (FERC) siting an LNG terminal when the agency has done no strategic study linking demand with terminal location? It's clear that Oregon doesn't need the volume of natural gas the prospective plants would ship.

People at FERC and in the gas industry say the market will answer the question. But this process is not about the market. The process is about which proposal clears FERC first. Thus the process rewards lawyers who specialize in regulatory law. Like so many things created in our nation's capital, this is a full-employment act for blue-chip attorneys.

This is colonialism of the worst sort, written by oil-dollar-motivated lawmakers who like to call themselves states-rights advocates. [Red and bold emphasis added.]

Gov.: Stop LNG process now In letter, Kulongoski says FERC should halt until needs assessment, greenhouse gas analysis complete — The Hillsboro Argus, Hillsboro, Hillsboro, OR

[I]n his letter, Kulongoski says "the failure of the permitting process to address whether there is sufficient demand and need for LNG in this region is a serious shortcoming of the FERC permitting process."

In the letter, Kulongoski, a Democrat, writes that the Oregon Department of Energy's analysis concludes that the market in the western United States may support "at most, one LNG facility of the size of the three facilities proposed in Oregon. Yet, all three different sites remain under active consideration by FERC."

The letter's last point came from the governor's request for Oregon's congressional delegation to repeal Section 311 of the Energy Policy Act of 2005. That section overrode states' existing siting procedures and gave exclusive authority for natural gas terminal approval to the federal government.

LCDC staff pans pipeline project — News-Register, McMinnville, OR

Opponents of natural gas pipelines that would carve a path through the fields and forests of the Willamette Valley last week cheered Oregon Gov. Ted Kulongoski's turnaround on LNG. They exchanged further high-fives this week when the state's land-use agency weighed in with two pages of criticism.

The state Department of Land Conservation and Development's comments are directed at a series of resource reports the Federal Energy Regulatory Commission is reviewing as officials consider the Oregon LNG proposal, one of two that could affect Yamhill County.

LNG opponents to meet Wednesday in Oregon — LNG Law Blog, Washington, DC

LNG opposition groups will host an informational meeting in Astoria, Ore., on Wednesday, February 20. The meeting will focus on private landowner rights that may be affected by the gas pipelines proposed to connect the planned Bradwood Landing and Oregon LNG terminals to existing pipeline infrastructure.

Greenwashing: It's So Easy to Say You're Green (Part 1) — Sustainability Law Blog, Portland OR

Greenwashing — the little green lie. Apparently, the lies aren’t so little and they’re incredibly widespread. Or, maybe we’re all just confused about what it means to be green or sustainable.

A recent study by the environmental marketing firm TerraChoice found that 99% of over 1,000 randomly surveyed consumer products were guilty of greenwashing – a term the firm defines to mean “the act of misleading consumers regarding the environmental practices of a company or the environmental benefits of a product or service.” In other words: false advertising.

The problem appears so prevalent that the FTC is getting involved. Last month it opened hearings on green advertising claims. Although the Commission has environmental marketing guidelines, they haven’t been updated since 1998. (Feb 18)

Webmaster's Comments: LNG advocates are certainly guilty of greenwashing, calling LNG "clean" fuel.


17 February 2008

Cheap oil’s gone for good. Now what? — The Free Press, Rockland, ME

Energy Analysts and Business Leaders Discuss How to Keep Maine Running

[NOTE (2008 Feb 21): The link below leads to the current issue's cover story. There is no story archive online, so the link no longer links to the indicated story.]

LNG crucial, but new plants aren’t—

“There has been a lot of debate about power plants in Maine. In my view, we already have enough. We don’t need any … LNG plants in Maine,” said Bill Hastings, president of Nova Atlantic, an energy investment company specializing in natural-gas development and consulting.

“I say that because we already have the Northeast Gateway in Boston and the Canaport plant which is being built as we speak outside of St. John in New Brunswick. And [Maine is] not that big in terms of energy consumption and we don’t have that much pipeline space, so those two are enough,” he said. “That’s it. That’s enough.”

Hastings is a former executive of Marathon International oil company; his new company operates LNG ships that have production capacity on board. The ships sail to natural-gas sources around the world and liquefy the gas on site for transport by ship. To be off-loaded from the ship once it reaches its destination, the LNG must be converted back to gas, he said.

“LNG re-gasification plants really aren’t needed [in Maine],” said Hastings, noting that the Boston and New Brunswick sites will provide more than enough infrastructure to handle the supply. [Bold red emphasis added.]

Webmaster's Comments: LNG industry member Bill Hastings says Maine doesn't need LNG. The LNG speculators in Passamaquoddy Bay need to wise up, save their investors' money, and go home.

Firefighters: City not ready for LNG disaster — WCVB-TV, Boston, MA

Firefighters Union says explosion could be Boston's Katrina

[With video]

“The transport of LNG tankers through Boston Harbor poses an inherent risk to the city of Boston,” said a press release from Donald McGough, from the Office of Emergency Preparedness. “Mayor Menino has been outspoken about his opposition to this situation.” (Feb 16)

Webmaster's Comments: FERC claims that their primary concern is safety! How can FERC allow LNG tanker transits through Boston without sufficient safety assets and plans in place?

This points to FERC's hypocrisy regarding LNG safety being their primary interest. It impeaches FERC's claims to the public and municipal governments that Emergency Response Plans will be in place around LNG terminal communities.

Are Senator Olympia Snowe, Senator Susan Collins, Congressman Mike Michaud, Congressman Tom Allen, and Governor John Baldacci paying attention? Or, is it simply that they don't care?

Firefighter's Union upset about LNG tankers — Fox-TV, Boston, MA

[With video]

BOSTON (FOX25,  -- The Boston Firefighter's Union is outraged with the city, saying Boston is unprepared to deal with a disabled LNG Tanker. FOX25's Adam Pellerin has more. (Feb 16)

Webmaster's Comments: Boston fire official claims firefighting personnel haven't been trained to deal with an LNG disaster.

Give Palin credit for extending key LNG export license [Opinion column] — Anchorage Daily News, Anchorage, AK [Free registration required]

The agreement to buy gas from explorers is important because, surprisingly, an impediment to exploration for gas in the region is lack of a ready market. The LNG plant is supplied solely from Conoco's and Marathon's own gas wells, so the plant doesn't now buy gas from others.

LNG debate tests Oregon's 'green' mettle — The Oregonian, Portland, OR

The debate around LNG, they say, is a crucible of weighty issues -- among them, the state's energy reliability, environmental stewardship, acquiescence to free-market principles, protection of property rights, and willingness to stake its future on renewable power.

In short, they say, LNG is a litmus test of the state's character.

NorthernStar Natural Gas Inc., a Houston-based company backing the proposed Bradwood Landing Terminal on the Columbia River, denies any California connection. It released a study last fall asserting that nearly all of the imports would fuel Oregon and Washington.

But even Kulongoski -- who until now has taken a wait-and-see approach to the projects -- finds that notion preposterous.

"I don't think anyone believed that," he said. "When I heard it, I laughed."


16 February 2008

Stranded LNG tanker repaired and on the move — Cape Cod Times, Hyannis, MA

The tanker has been at the site of the future Neptune Offshore LNG facility off Eastern Point Light since Tuesday while technicians worked to complete repairs. [Red emphasis added.]

Webmaster's Comments: The Neptune offshore LNG import facility will finish the triad of terminals (along with Canaport and Northeast Gateway Energy Bridge) mooting the three late-comer LNG proposals in Passamaquoddy Bay.

Technicians completely repair LNG ship —

BOSTON — The Catalunya Spirit left its location off the coast of Gloucester, Mass., under its own power Friday night, after the Captain of the Port of Boston lifted the detention order placed when the LNG tanker lost propulsion 35 miles east of Chatham, Mass., early Monday morning.

At 8:40 p.m., Friday, the Captain of the Port of Boston, Coast Guard Capt. Gail Kulisch, reviewed and approved the final repair certification presented by Lloyd's Register, an internationally recognized classification society, and the ship's owner, Teekay Corporation, signaling approval for the LNG tanker to re-enter international service. (Feb 15)

LNG Tanker Adrift Off Boston Harbor! — Springbored's Springboard [Blog]

The Catalunya Spirit (ex Inigo Tapias) is a dog--a living embodiment of the problems facing a rapidly-expanding shipping sector that is, only now, starting to grapple with economies of scale (i.e. rather than being built, first and foremost, to move LNG safely, this boat was built to move LNG economically--a key difference).

Entering service in 2003, this vessel--a first of class for a European yard (Izar's Spanish yard)--has had problems with cargo containment and propulsion--namely, the screws. (And, just to provide some comparison, the displacement is 106000 tons--we're talking USS Nimitz size, here.)...Here's some raw info on what's been going on, in the reliability department:

"While in drydock, damage was discovered on certain of the side membrane walls within the cargo tanks and a latent defect was discovered in the propeller....

...We have reviewed the operating history of our other LNG carriers and we believe that the conditions that caused the damage to the cargo tanks on the Catalunya Spirit did not occur on the other vessels."

This is a problem ship, and, from the sound of things, it's going to continue being a troubled vessel over it's entire service life. [Red and bold emphasis added.] (Feb 11)

Webmaster's Comments: References in above item:

  1. Catalunya Spirit information provided by St. Croix Estuary Project.
  2. Inigo Tapias information provided by Ship Technology.
  3. Teekay LNG Partners SEC filing on the Catalunya Spirit provided by EDGAR Online.

Damage to the membrane walls within LNG cargo tanks is serious business!

Russians stymie Canadian LNG plan — Petroleum News, Anchorage, AK [Paid subscription required]

For the best part of four years, Petro-Canada has been the model negotiator, but in the end it seems like the Russians are not coming, throwing a large wrench into plans for a C$1 billion LNG terminal [Gros Cacouna plant on the St. Lawrence River] in Quebec. (Week of Feb 17)

Kulongoski does a turnaround on LNG — News-Register, McMinnville, OR

The Democrat, now in his second and final term, didn't rule LNG projects out entirely. But his new posture, outlined in an interview for a Friday story in The Oregonian, is considered by environmental activists to be a sharp turnaround his previously stated position.

Webmaster's Comments: A similar staff & wire story: Gov. Kulongoski puts pressure on LNG proposal — The Daily News, Longview, WA

Oregon governor asks FERC to halt LNG project reviews — Energy Current, Houston, TX

In a letter sent yesterday to [FERC Chairman] Kelliher, Kulongoski said he asked the state attorney general to examine Oregon's legal authority to refuse state permits for the projects until FERC complies with his request. (Feb 15)

Labor for LNG [Editorial] — Albany Democrat-Herald, Albany, OR

On this issue, some of Oregon’s Democratic politicians who oppose Bradwood Landing ought to listen to their supporters on the labor front. The labor leaders have as big a stake in a sound Oregon economy and reasonable energy prices as all the rest of us. Their strong endorsement of this project carries the weight of good sense. (Feb 15)

Webmaster's Comments: "Good sense"? Obviously, the editorial staff of the Albany Democrat-Herald are unfamiliar with the LNG industry's own world-class standards for LNG terminal siting (see SIGTTO). The Bradwood Landing project location fails the LNG industry's siting standards.


15 February 2008

LNG tanker's problem found, repairs under way — Cape Cod Times, Hyannis, MA

[With video]

Both boilers onboard the tanker that drifted off Chatham early this week are back on line, and equipment on the ship is being tested before the tanker engages its propulsion system, the Coast Guard said.

Replacement electrical relays have been ordered and are on the way to the tanker. The repair crew has bypassed the relays to test the ship's propulsion system and found that, in the event of an emergency, the vessel could move on its own power, according to the Coast Guard.

NJ maintains veto power in mega-offshore "no safe harbor" industrial island proposal — Atlantic Herald, Atlantic Highlands, NJ

Sandy Hook, NJ – Despite fierce efforts by Atlantic Sea Island Group, US Maritime Administrator Sean T. Connaughton affirmed New Jersey’s right to review and vote on the application to build a man-made island for an industrial complex off its coast.

By being designated as an adjacent coastal state, Governor Corzine has the right to review and approve, approve with conditions, or disapprove the application, and is granted the opportunity for at least one public hearing to be held in the state on the project.  (Feb 11)

Oral argument set for March in appeal of order authorizing Crown Landing LNG terminal — LNG Law Blog, Washington, DC

The U.S. Court of Appeals for the D.C. Circuit has scheduled oral arguments in Delaware Department of Natural Resources and Environmental Control (DNREC) v. FERC (Case No. 07-1007), DNREC's appeal of the FERC order that conditionally authorized the Crown Landing LNG project. DNREC is asserting that FERC violated the Coastal Zone Management Act (CZMA) and Clean Air Act (CAA)…

City’s notice on LNG deal enough, court says — The Galveston County Daily News, Galveston, TX

The opinion reverses a January 2006 ruling by Judge John Ellisor, of the 122nd State District Court, who said notice of the Sept. 23, 2004, workshop and regular meeting during which the city council voted to back the lease was insufficient.

“Missing from the appeals court opinion is any reference to an LNG processing facility,” said Stevens, who argues that the city’s meeting notice never hinted that Galveston could have a potentially dangerous terminal on Pelican Island.

Much of the fight became moot in August 2006 when BP, citing market conditions, scrapped plans to build what would have been a $650 million terminal. The London-based company blamed the change of heart on a flood of competing terminals.

Port authority suggests parallel process — Petroleum News, Anchorage, AK [Paid subscription required]

The Alaska Gasline Port Authority, whose LNG project is not being considered under AGIA, is urging the Alaska Legislature to hire its own experts and consider a liquefied natural gas project — in addition to the highway pipeline project by TransCanada that the administration is considering…. (Week of Feb 17)

ConocoPhillips 'reassessing' Alaska gas line plan, will press on — Platts

ConocoPhillips has proposed to build a 48-inch-diameter pipeline from the North Slope to Alberta and ship gas onward through existing pipelines, but it also will consider the option of building a new pipeline on to the US Midwest.

In the meantime, Palin is considering a TransCanada Corp. application made under a solicitation for proposals the state initiated last summer. The state hasn't yet fully endorsed TransCanada's plan, which also calls for a 48-inch pipeline, but Palin said ConocoPhillips' proposal fails to meet certain goals that the state seeks. (Feb 14)

Scraps co-generation — Powell River Peak, Powell River, BC

Because the province considered the facility would have net emissions, there was no benefit to design the plant as a co-generation facility, Leson added. "It's better for us to simply design this as a peaking facility, where the power plant will only run when there is a true need for the power and the LNG facility will only run when there is a need for the LNG or natural gas," he said. "That's the transition from our original concept to where we are today."

That transition has led to different explanations from company officials.

"If, and it's a big if, what Westpac is now saying is true, then the project would not be economically viable," Childress said. "In a mailout to Texadans, Westpac stated '. . .the project would not be economically viable without both the LNG import and the power generation components.' Does anyone really believe that someone is willing to spend $2 billion on a plant that would run 30 to 60 days a year?"

LNG is far from being a "green" fuel, Childress also said, and is a much greater polluter than domestic natural gas because of the tremendous amount of energy wasted in cooling, transporting and regasifying it. "Westpac's proposal isn't a bridge to the future," he said. "It's tunnel vision to the past." (Feb 14)

Island Faces: Islander ardent about lifestyle — Powell River Peak, Powell River, BC

With both experience and ability to his credit, last fall Childress called a community meeting together to discuss the current LNG proposal and the decision was made to reactivate TAN, with Childress as spokesman. But modestly, Chuck admits collective action is a team effort. "Battles aren't won by one or two, or even a handful of people, but rather by the whole community working together." (Feb 14)

LNG: Where's the need? Gov. demands — The Daily Astorian, Astoria, OR

‘The people of Oregon deserve better,’ Gov. Kulongoski writes to Federal Energy Regulatory Commission

SALEM — Gov. Ted Kulongoski insisted Thursday that federal regulators halt all reviews of proposals to build liquefied-natural-gas terminals in Oregon until they study all alternatives for supplying natural gas to the region.

Kulongoski told Kelliher he wasn't "unalterably opposed" to LNG being part of Oregon's energy mix. But he said FERC's "approach to the licensing of plants and pipelines has created a crisis of confidence with Oregonians."

"The approach of approving far more facilities than will ever be built is unacceptable to me," the governor wrote. "The people of Oregon deserve better."

Webmaster's Comments: Unfortunately, Maine's Governor Baldacci doesn't have the same sensibility and leadership as does Oregon's Governor Kulongoski.

Governor ups ante against LNG sites — The Oregonian, Portland, OR

The governor's new stance puts Oregon in league with states across the country that have raised objections to FERC's permitting approach and its preemption of state licensing authority.

"Ultimately, we may end up in court over this," Kulongoski said in the Thursday interview. "We're not exactly clawless. . . . The state doesn't have all the tools, but we are a critical piece. You're going to have to meet the state concerns."

Ore. governor insists regulators look at alternatives to LNG — AP, The Oregonian, Portland, OR

Kulongoski also told Chairman Joseph Kelliher that he had asked Oregon's congressional delegation to push for legislation that would wrest back state control for licensing LNG facilities. State authority was pre-empted by the federal government as part of the Energy Policy Act of 2005.

Kulongoski slams feds’ gas pipeline review — Portland Tribune, Portland, OR

“I have a growing concern that the Federal Energy Regulatory Commission's approach to the licensing of plants and pipelines has created a crisis of confidence with Oregonians,” the governor wrote. “It is essential that FERC conduct a process for a regional review of alternative means of meeting future demands for natural gas that is fair to the citizens of Oregon and our neighboring states.” (Feb 14)

'Beware, guys!' is word to county commissioners on FERC's permitting stance for LNG plant — The Daily Astorian, Astoria, OR

Commissioner Sam Patrick, the lone vote in opposition during the tentative approval decision, expressed his doubt that FERC would hold NorthernStar to the letter of the county's conditions.

Patrick said he had spoken to representatives of FERC, who said "FERC may, or may not require conditions from other agencies."

"FERC said any new conditions we put on them, they will not agree to that," Chairwoman Patricia Roberts said. "Beware, guys!"

Foes urge state to oppose LNG on Columbia — AP, The World, Coos Bay, OR

ASTORIA (AP) — Opponents of a liquefied natural gas terminal near Astoria complained at a public hearing about the number of state and federal agencies involved in the project, saying none has responsibility for a complete project review.

Webmaster's Comments: This AP wire story was also carried by Forbes.

Opponents of Bradwood Landing LNG terminal press agencies to deny permits — The Daily Astorian, Astoria, OR

"Oregon can stop this project," Brent Foster, executive director of Columbia Riverkeeper, told officials Wednesday. "You have the power not to serve as a rubber stamp. Protect Oregon's water and air and hold these agencies responsible for enforcing Oregon law. ... None of these projects have been built where the state has been opposed."

"How much information do you need?" he asked. "You know what's good for the Columbia. You know what's bad for the Columbia. ... You don't need more information. This project is not good for the Columbia River. I don't think we need to have any more meetings. We're meeting to death." (Feb 14)

Thomas Elias: Another LNG ruse from state PUC? [Opinion Column] — Press-Telegram, Long Beach, CA

The agency, designed early in the last century to protect consumers against rapacious utility companies, used deception to reach the 2004 decision that sparked the current round of plans to bring hyper-expensive LNG to the state in the face of federal forecasts indicating there is no need for it in the foreseeable future.

There was no sworn testimony in the 2004 proceeding, only consideration of a report from Sempra Energy, which is about to open an LNG plant in Baja California that will provide some fuel for its big utility subsidiaries, Southern California Gas and San Diego Gas & Electric. Most gas from Oregon LNG plants would likely go to Pacific Gas and Electric customers in Northern California.

"The Sempra report inflated future demand estimates and deflated supply estimates," says Loretta Lynch, the former PUC president who voted against that 2004 decision. Lynch, now an executive fellow at the University of California, Berkeley, predicts the new PUC proceeding will be a "ruse." (Feb 13)

US will again turn to gas for generation fuel: US FERC Chairman — Platts

Speaking in Houston at Cambridge Energy Research Associates' CERAWeek meeting in Houston, [FERC Chairman] Kelliher said the use of natural gas is "the only option" and allowed that the US will rely "more than we probably should" on natural gas over the next 10 years. [Red emphasis added.]

No Baltic LNG, fewer Canadian terminals — World Gas Intelligence [Paid subscription required]

Tried and true European markets won out over the supply-short Atlantic Basin LNG trade with Gazprom's decision last week to drop the planned Baltic LNG project to feed 5 million tons per year of LNG to the US, UK and Continental Europe by 2012-13 -- well ahead of slated 2014 or later completion of a Shtokman LNG plant. Some Canadian and US LNG terminals are likely to fall by the wayside as a result, and those that survive will have even fewer supply options. [Red and bold emphasis added.] (Feb 13)

Experts at CERA Conference do not expect global LNG pricing over next two years — LNG Law Blog, Washington, DC

[A] single global price for LNG will not be in place over the next two years. (Feb 14)

Asian spot LNG prices down despite colder-than-usual weather — Platts

Buyers in north Asia, where temperatures are described as lower than usual, were holding their ground and refusing to pay above $13-$14/MMBtu for March delivery cargoes, down from $18-$20/MMBtu which was the highest paid for several January/February shipments, traders said. (Feb 14)

Webmaster's Comments: Compare the above Asian spot prices for LNG to the Henry Hub prices published by the US Department of Energy's Energy Information Agency: "Since Wednesday, February 6, natural gas spot prices increased at virtually all markets in the Lower 48 States.  Prices at the Henry Hub rose 41 cents per million Btu (MMBtu), or about 5 percent, to $8.35 per MMBtu." That's around a $5-per-million Btu differential between Asian and US prices; Asia is willing to pay a lot more than is the US. That's why LNG availability to the US is lean, and just another reason why the proposed LNG projects in Passamaquoddy Bay have no probability of success.


14 February 2008

Disabled LNG tanker's power back — Portland Press Herald, Portland, ME

The incident is watched closely in Maine, where at least two companies want to build terminals.

The proposals are controversial in part because ships would have to move through a narrow passage in New Brunswick waters, Head Harbour Passage. The Canadian and provincial governments oppose LNG tankers making that journey to reach terminals in eastern Maine, noting safety risks associated with navigation, harsh weather and fog.

LNG opponents in Maine were highlighting the Cape Cod incident Wednesday on the Internet, providing links to developing stories at

Disabled LNG tanker gets power restored — Cape Cod Times, Hyannis, MA

Yesterday afternoon, the 932-foot-long disabled ship was off Eastern Point Light at the future site of the Neptune Offshore LNG facility, about seven miles off the coast of Gloucester, according to a joint statement from the Coast Guard, the ship's owner, and the state Department of Environmental Protection.

RWE acquires stake in U.S. LNG business — Energy Current, Houston, TX

GERMANY/USA: Germany-based RWE Group will acquire a 50 percent stake in the Texas-based liquefied natural gas (LNG) business Excelerate Energy for approximately US$500 million.

Excelerate owner George B. Kaiser will continue to own the remaining 50 percent of Excelerate.

Foes urge Oregon officials to turn down Bradwood LNG plant — AP, The Daily News, Longview, WA

Breaking News

“It would appear to me we’re in the midst of a shell game,” said Astoria resident Jean Dominey. “You never know which shell the pea is supposed to be under.”

NorthernStar rebuts criticism of LNG proposal — The Daily News, Longview, WA

In a Dec. 13 letter to FERC summarizing the state's concerns, Oregon Gov. Ted Kulongoski said that "many conclusions in the (draft environmental study) are founded on assertions and promises, not on sound science, comprehensive analysis and empirical facts."

Webmaster's Comments: This project, like the ones in Passamaquoddy Bay, violate SIGTTO LNG terminal siting standards.


13 February 2008

Power restored on floundering LNG tanker — The Boston Globe, Boston, MA

[Including a US Coast Guard aerial video]

Full electrical power has been restored to the floundering liquefied natural gas tanker that broke down off Cape Cod, and crews are working today to repair the ship's propulsion system.

It was corraled [sic] Tuesday by four tugboats after drifting for hours at sea

Tugs tend LNG tanker as repairs made off Cape Cod — The Boston Globe, Boston, MA

After hours drifting at sea, the 5-year-old vessel was corraled [sic, "corralled"] by four tugboats about 25 miles east of Provincetown, where technicians were working last evening to fix it under Coast Guard oversight.

Webmaster's Comments: This event brings up another, more serious, potential problem: What might happen if the tractor tugs, while escorting an LNG tanker into a harbor, were to break down? Assurances by the industry, pilots, and Coast Guard might not be so comforting.

ConocoPhillips swaps access to LNG facilities — Tulsa World, Tulsa, OK

Houston-based ConocoPhillips also said Tuesday that it will provide Suez market access through its Freeport LNG terminal in Texas.

Exxon natural gas headed for Fairbanks — Anchorage Daily News, Anchorage, AK

The Fairbanks company plans to build a plant at the Prudhoe Bay field to supercool the gas into a liquid that would then be trucked nearly 500 miles down the Dalton Highway for distribution to customers such as hotels, large retailers, a Fairbanks hospital and homeowners.

The volume of gas is small, with a year's supply to Fairbanks amounting to barely more that two days worth of gas that would move through a proposed North Slope natural gas pipeline.

Under the deal, the Exxon Mobil Gas & Power Marketing Co. will sell gas at an undisclosed price to Fairbanks Natural Gas, an affiliate of which will build a liquefaction plant on a 6-acre gravel pad at Deadhorse at a cost of $20 million to $45 million, said Dan Britton, president of the Fairbanks comp

Size of LNG facility shocks Warrenton leaders — The Daily Astorian, Astoria, AK

City officials tour plant in Boston; mayor surprised that homes, condos were located so close to the terminal

Carol Parker, Warrenton's planning director, said she was "shocked" at the amount of industrialization they saw. "I didn't know how populated and dense that area is," Parker said, noting there were houses just a half mile away from the plant and $400,000 condominiums under construction nearby. "That community has industrial, commercial and residential packed together in one mile," she said. She added that the plant, though very small by today's standards, could not be built under today's zoning laws and environmental regulations.

LNG meeting moved to a larger location — The Daily Astorian, Astoria, AK

"There's a lot of momentum after the rally in Salem last week," she said. "Because of the response that we had to the meeting notice, we realized we're going to be bursting at the seams." (Feb 12)

Duncombe—Govt must say "no" to LNG — The Nassau Guardian, Nassau, Bahamas

Duncombe's comments came on the heels of Prime Minister Hubert Ingraham announcing almost two weeks ago that LNG was still not a priority for his newly elected Free National Movement government. "We will look at the situation and make some judgments but [LNG] is not a matter that we came to office giving a very high priority to," the Prime Minister said at the time. His comments, however, have not thwarted the efforts of Virginia-based Applied Energy Services (AES) which is seeking to construct an LNG pipeline and re-gasification facility on the man-made Ocean Cay.

Webmaster's Comments: This appears to be an example of US energy colonialism, not exactly an attractive trait.

EIA revises 2008 LNG import projection — LNG Law Blog, Washington, DC

In its Short Term Energy Outlook, the U.S. Energy Information Administration (EIA) revised its projection of LNG imports to the United States downward to 788 Bcf in 2008, a modest 1.8% increase over 2007 import levels. The EIA cited continuing strength in the Western European and Asian markets as well as supply uncertainty as reasons for its downward revision. [Red and bold emphasis added.]

'Potential of LNG in North American Markets' analyzes natural gas and liquefied natural gas in the United States, Canada, and Mexico [Press release] — BusinessWire Yahoo Finance

LNG infrastructure such as liquefaction facilities, tankers and terminals, pipelines, and an analysis the prominent LNG facilities and terminals in North America is explored in the research report. The major factor affecting the natural gas and LNG industry at the moment is the issue of cost and pricing and Synergyst’s report takes an in-depth view of these major issues in the form of an entire dedicated section to LNG Pricing and Cost Analysis, as well as LNG Investment and Financing.

The Report on LNG Infrastructure Security analyzes the growing concerns and the many factors associated with the same — Centre Daily Times, State College, PA

DUBLIN, Ireland — Research and Markets ( has announced the addition of LNG Infrastructure Security to their offering.

Experts debate the likelihood and possible impacts from LNG attacks, but recent studies have concluded that such risks, while significant, are not as serious as is popularly believed.

Webmaster's Comments: Report cost (PDF download): €803.00. The statement, "risks, while serious, are not as serious as is popularly believed," dismisses the LNG industry's own terminal siting standards that require LNG terminals to be located where they cannot affect civilians (see SIGTTO). Such prejudicial summaries released by Research and Markets are difficult for the public to counter, since it requires paying them nearly $1,200 to read the report.


12 February 2008

Collaborating across the Canadian line — Bangor Daily News, Bangor, ME

Both parties discussed the progress that already has been made regarding energy, tourism and transportation, and talked about plans for the future.

"We probably should have been doing a lot of this stuff much earlier," Baldacci said. "[But] if we can both be working hard to benefit our people together, it will be so much greater." [Red emphasis added.]

Webmaster's Comments: This sounds a lot more like level-headed government cooperation between Maine and New Brunswick than the cries to bully Canada coming from the local LNG speculators' camps.

Disabled LNG tanker secured off P'town — Cape Cod Times, Hyannis, MA

In a telephone conference call this afternoon, Commander Howard Shaw, the commander of the Coast Guard Cutter Escanaba, said the vessel remained disabled, but was making good progress toward the destination off Provincetown.

Kousch said the spot was chosen because of its distance from land, the tides, distance from important fishing grounds, and anticipated weather. He said it would take at least 12 hours to refire the boiler after the problem had been fixed.

LNG tanker adrift off Cape raises concerns — The Boston Herald, Boston, MA

“What happens if this happens inside the Harbor or under the bridge? It could be a sitting target,” said a source close to Boston Mayor Thomas M. Menino.

The source’s concerns come weeks after a federal report highlighted how LNG tankers are particularly vulnerable to terror attacks. [Red emphasis added.]

LNG tanker off Cape Cod no longer adrift — AP,

The Coast Guard says a tugboat reached the 933-foot Catalunya (kah-tah-LOON'-yah) Spirit late Monday night and moved it to a spot about 46 miles west of Chatham where it can safely sit while it's being repaired.

LNG tanker off Cape Cod no longer adrift — AP, WBZ-Radio, Boston, MA

The Coast Guard said Tuesday that the 933-foot Catalunya Spirit was being towed by tug to an area about 20 miles east of Provincetown where it can safely sit while being repaired.

It's expected to arrive there about 6 p.m.

Disabled LNG tanker update: Lookout Boston!!! — Springbored's Springboard [Blog]

An armada of tugs and other equipment got dispatched in the early hours -- Aside from Freedom, Liberty and the Coast Guard Cutter Escanaba, the tug Iona McAllister is standing by, the Atlantic Salvor is en route, and the Spill response vessels Maine Responder, New Jersey Responder and the Delaware Responder are on the way as well. As are a whole buch (sic; "bunch") of tech reps, inspectors and security people:

Coast Guard marine inspector and two contracted technical representatives are on the Catalunya Spirit and an additional Coast Guard marine inspector is aboard the tug Liberty, which is on scene with the tanker. Today, an aircrew from Air Station Cape Cod is scheduled to transport a class society representative from Lloyds, and an additional technical representative, and additional Coast Guard personnel.

Taking Broadwater's LI gas barge plan to the public — Newsday, New York, NY

Although federal energy officials have primary responsibility for approval of the terminal, the proposed site in New York waters allows state officials to block it. The state Department of State has until Tuesday to announce a decision. Spitzer has said he would not state his own position before then. (Feb 6)

MARAD reaffirms New Jersey's adjacent coastal state status in Safe Harbor Energy proceeding — LNG Law Blog, Washington, DC

MARAD noted that although the proposed site of the Safe Harbor Energy LNG terminal is 19 miles from the New Jersey coast and outside the 15-mile limit specified by statute, the risks posed by the proposed facility affect both New York and New Jersey equally. [Red emphasis added.]

Saga of LNG terminal at Sparrows Point rolls on —, TX

The Federal Energy Regulatory Commission said it will release a draft report on April 11 on the environmental impact of a proposed liquefied natural gas terminal at Sparrows Point. (Feb 11)

Scrapping Gazprom project will delay, but may not kill Quebec LNG venture: analysts — Canadian Business, Toronto, ON

Calgary-based Petro-Canada and TransCanada were hoping they would get a steady supply of Baltic LNG for their joint $1-billion Gros Cacouna plant on the St. Lawrence River. (Feb 8)

Petro-Canada says to weigh 'options' for Gros Cacouna LNG — Platts

Gazprom's decision Thursday to abandon plans to build a liquefied natural gas export plant on Russia's Baltic Sea coast, slated to be the primary supply source for the proposed Gros Cacouna LNG terminal in Quebec, means co-developers Petro-Canada and TransCanada will have to "reconsider [their] options" for the project, a Petro-Canada spokesman said. (Feb 7)

FERC announces limited scoping for Port Dolphin LNG proposal — LNG Law Blog, Washington, DC

FERC announced the scoping period for the Port Dolphin LNG deepwater port proposal limited to the onshore pipeline and other facilities under FERC's jurisdiction. The scoping period will close on March 5, 2008. (Feb 5)

King & Spalding advises on significant non-recourse project financing for Gulf LNG Energy [Press release] — King & Spalding, Washington, DC

PASCAGOULA, Mississippi, February 12, 2008 — King & Spalding, a leading international law firm, advised Gulf LNG Energy, LLC on its non-recourse project financing of a liquefied natural gas (LNG) regasification terminal known as the Gulf LNG Clear Energy Project. Total financing for the project will exceed $800 million.

King & Spalding is a leader in the international and domestic liquefied natural gas industries and has been described by Chambers Global as "probably the premier firm for broad-based LNG support in the USA." In the past five years alone, the firm has handled the closing transactions for three of the five domestic new-construction LNG terminals currently being built in the United States and half of the expansions to existing U.S. LNG terminals. These transactions have an aggregate value of more than $4.1 billion.

Webmaster's Comments: King & Spalding represents the Province of New Brunswick in their interventions in the Passamaquoddy Bay LNG projects. The lawfirm also operates LNG Law Blog.

El Paso secures 50% stake in Gulf LNG project — LNG Law Blog, Washington, DC

Platts LNG Daily [subscription required] reports that El Paso has closed on its acquisition of a 50% stake in the Gulf LNG project. (Feb 11)

Alaska group wants state investment in pipeline, LNG project — Platts

An Alaska group promoting an LNG project as an alternative to an all-land pipeline from the North Slope to Canada has proposed that the state own and finance 51% of an 800-mile pipeline part of the LNG project.

[General manager of the Alaska Gasline Port Authority Bill Walker's] group, owned by three Alaska municipalities, is working toward a pipeline built parallel to the trans-Alaska oil pipeline to Valdez, in southern Alaska, where an LNG plant would be built. The plan would be to transport 2 to 2.7 Bcf/d through the pipeline and export LNG to Asian markets, where the assumption is that revenues will be higher because LNG is sold at prices linked to crude oil. [Red emphasis added.]

Fisheries service flip-flops on LNG — The Daily Astorian, Astoria, OR

While the Dec. 17 letter recommends NorthernStar's application be withdrawn and resubmitted, Lohn said, "it would also be acceptable to us for the applicant to amend or supplement the original application, so long as the requested information is brought into the record." (Feb 5)

Officials begin to look at LNG Sec. of State Bradbury, A.G. candidate Kroger among those against gas projects — The Hillsboro Argus, Hillsboro, OR

Bradbury's opposition, while not surprising, is pronounced in both him being the state's No. 2 constitutional officer, and in its direct opposition to Gov. Ted Kulongoski's stance on the gas terminals. (Feb 5)

Coalition questions need for LNG in California — LNG Law Blog, Washington, DC

Ratepayers for Affordable Clean Energy [RACE] and other environmental groups filed comments with the California Public Utilities Commission (CPUC) questioning the need for LNG imports to California. RACE asserted that LNG imports to the state are unnecessary due to plentiful U.S. domestic natural gas supplies and relatively static demand. (Feb 7)

Start-up of Costa Azul LNG project delayed — LNG Law Blog, Washington, DC

Platts LNG Daily [subscription required] reports that, as construction of Sempra Energy's Energia Costa Azul LNG terminal remains behind schedule, a commissioning cargo waits idly in the Gulf of Oman. (Feb 7)

Shell to recruit U.S. seafarers for international LNG fleet for the first time [News release] — PR Newswire, Fox Business

LONDON and HOUSTON, Feb 08, 2008 /PRNewswire via COMTEX/ -- Shell International Trading and Shipping Company Ltd. today announced it will begin recruiting U.S. seafarers for the company's growing portfolio of managed international liquefied natural gas vessels. (Feb 8)

NATS releases analysis of 2007 U.S. LNG imports — LNG Law Blog, Washington, DC

NATS reports that the BG Group was the largest importer of LNG to the U.S. market, holding a 54.7% market share. (Feb 11)

DOE changes reporting requirements for LNG importers and exporters — LNG Law Blog, Washington, DC

Submission of quarterly reports is no longer required and monthly reports now must include the information previously captured in quarterly reports. (Feb 6)

On LNG, officials should get in touch with reality — National Association of Manufacturers (NAM)

North American supplies of natural gas will be flat or declining in coming years, according to the Energy Information Administration. The United States already has high natural gas prices, a problem for homeowners and many industries, like chemical and fertilizer producers. Some experts fear a boom in gas demand for electricity generation will send prices even higher. (Feb 5)

$9.3B request comes with tales of aging fleet — Navy Times, Springfield, VA

The Coast Guard sent Congress a record $9.3 billion budget request for fiscal 2009 on Feb. 4, and soon after, service officials set out to make their case for how much they need that money by unleashing a series of maritime horror stories — tales of hull cracks, broken gear and lost propellers.

First West Coast LNG-receiving terminal prepares to begin operation, an Industrial Info News Alert —

[Preparations are being made] to start up the Energia Costa Azul LNG-receiving terminal. The project is a 50-50 joint venture … and is the first new LNG project on North America's West Coast. (Feb 5)

Gas version of OPEC fails to ignite — The Australian, Sydney, NSW, Australia

A RUSSIAN move to establish an international LNG cartel similar to OPEC is set to be rejected by the new Australian Government.

Russia, Iran and Nigeria are understood to be keen on the proposed grouping, which also has backing from Algeria.

Venezuela, a political ally of Iran, has also backed a gas version of OPEC and, together with another South American energy producer, Bolivia, is striving to set up a regional cartel. (Feb 4)

Webmaster's Comments: Previous predictions that a natural gas OPEC wouldn't occur are being challenged by this current attempt and support by several large natural gas producers.


11 February 2008

LNG tanker disabled and adrift 35 miles off Cape Cod [News Release] — United States Coast Guard

"As part of our response plan, we've notified our National Strike Team, and we're coordinating salvage and pollution response assets," said Capt. Gail Kulisch, Captain of the port of Boston. "A very comprehensive safety system has been developed by the Coast Guard in conjunction with port partners and the shipping company to minimize the risk to the marine environment and public safety."

Webmaster's Comments: View a photograph of the distressed ship, Cataluya Spirit.

CG assists LNG tanker adrift off Cape Cod — Navy Times, Springfield, VA

Coast Guard vessels and aircraft were assisting a liquefied natural gas tanker adrift 35 miles off Cape Cod on Monday after the mammoth vessel lost power on its way into Boston Harbor.

A January report from the Government Accountability Office criticized the Coast Guard’s capacity to provide security for the growing number of LNG tankers servicing U.S. gas terminals, which marine security analysts fear are a prime target for terrorists. The Coast Guard did not dispute that it now has too few boats and personnel to keep pace with the growing LNG tanker traffic.

LNG tanker loses power off Cape — AP, Boston Herald, Boston, MA

Tug boats are racing to help a stricken Liquified Natural Gas tanker which lost power 35 miles off Cape Cod, leaving it at the mercy of powerful winds and 12-foot high waves.

The fully laden, 933-foot long tanker Catalunya Spirit, with 29 listed aboard, was en route to Boston from Trinidad and Tobago when it lost propulsion at about 3 a.m. today, according to the U.S. Coast Guard in Boston.

Two tugs from the tanker’s operating company Teekay Corp. are heading for the vessel and are expected to reach it by 11:30 p.m. tonight.

LNG tanker disabled off Cape Cod — WJAR, NBC 10, Providence, RI

The Coast Guard said Monday that it is monitoring and assisting a liquefied natural gas tanker that lost power and is drifting roughly 35 miles east of Chatham, Mass.

The Coast Guard Cutter Escanaba is at the scene aiding communications.

State postpones Broadwater decision — Newsday, New York, NY

Broadwater Energy and New York State have agreed on a two-month postponement of the Tuesday deadline for a state ruling on whether the proposed site of Broadwater's liquefied natural gas terminal in the middle of Long Island Sound is environmentally appropriate. (Feb 7)

Most of Qatargas 4 LNG set for US East Coast — Gulf Times, Doha, Qatar

DOHA: The majority of LNG produced by the 7.8mn tonnes per year Qatargas 4 will be exported to Elba Island on the US East Coast from where the natural gas will flow into the American national gas grid, Shell said in its latest newsletter. (Feb 8)

LNG likely to run short in 2010 — Daily Yomiuri, Japan

Indonesia has decided to reduce LNG exports to secure the gas for its own use in the face of a worldwide shortage and the rising cost of energy resources.

LNG development projects are slowing down worldwide due to the difficulty of turning a profit from the product due to the associated cost of building LNG plants. [Red emphasis added.]

Duke of York visits LNG facility — Energy Current, Houston, TX

The Duke was scheduled to be given a demonstration on the characteristics of LNG and a tour of the import facility.

Webmaster's Comments: Let's hope that the demonstration wasn't an a la Jim Lewis demonstration — LNG on Cheerios, etc. — an insult to the Duke of York's intelligence.


10 February 2008

Electricity action needed [Editorial] — Bangor Daily News, Bangor, ME

A loose coalition of large electricity users, calling itself Energy Matters to Maine, is working to nudge the Legislature toward action. One of its members, Keith Van Scotter, president and CEO of Lincoln Paper and Tissue, said recently that in three years the mill’s electric bills have doubled, from $500,000 to $1 million each month. Electricity rates in New England are higher than anywhere else in the U.S., so Mr. Van Scotter believes his business and others in the state are at a competitive disadvantage to mills and other high electricity users located in other states.

The Energy Matters group also wants the state to actively work to site an LNG terminal in Maine. Two-thirds of electricity generated in New England comes from natural gas-fired plants. Asking the state to intervene in a complex regulatory battle among three would-be LNG developers is a problem, but the lobbying group’s point is well taken: The state needs to be aggressive in determining Maine’s energy future because it is so closely tied to its economic future. (Feb 8)

Webmaster's Comments: What has been missing for at least the past six years is a state energy plan!

What the Bangor Daily News editorial staff overlooks, though, is that the problem is already being solved with the three LNG import facilities in Massachusetts and Canada: Canaport and the two terminals off Gloucester, Massachusetts. The proposed terminals for Passamaquoddy Bay were already too late when they began their projects, and Maine's legislature would be wasting its time and effort on an already-solved problem.

Supporting Information:

Awaiting first cargo
Excelerate Energy's Northeast Gateway Energy Bridge deepwater port facility off Gloucester, Massachusetts, is now ready to accept and process its first LNG cargo. It has two submerged buoys to accommodate two ships, and will deliver over 400 million cubic feet of natural gas per day. It is awaiting its final Coast Guard approval. Excelerate Energy is a member of SIGTTO.

Ready near end of 2008
As of January, the Canaport project was 67% complete, and expects to go online near the end of 2008. The facility's initial output will be 1 billion cubic feet of natural gas per day. Canaport is a member of SIGTTO.

Ready near end of 2009
Suez LNG NA's Neptune LNG deepwater port project off the Massachusetts coast has completed its state permitting as well as its federal MARAD license (the offshore license equivalent to a FERC shoreside license). Neptune LNG's submerged-buoy system will accommodate two ships, and will deliver from 400–700 million cubic feet of natural gas per day. Suez LNG NA is a member of SIGTTO.

Local LNG projects are SIGTTO-challenged
All three proposed projects in Passamaquoddy Bay violate SIGTTO's LNG terminal siting standards for dozens of reasons, due to inherent problems with the Passamaquoddy Bay location.

Maritimes Phase V: $240M for compression and loop — Natural Gas Intelligence [Paid subscription required]

From NGI's Daily Gas Price Index February 06, 2008
Maritimes & Northeast Pipeline is proposing to increase the capacity of the U.S. portion of its pipeline system
to transport new gas supplies from EnCana Corp.'s planned Deep Panuke project, located off the coast of Nova Scotia, to markets in Atlantic Canada and the Northeast United States, the company said Tuesday [Red emphasis added.] (Feb 6)

Webmaster's Comments: The above has already rotated off the NGI headlines page, so no link is provided. The actual article requires a paid subscription to NGI's Daily Gas Price Index.

As ad campaign gears up, LI Sound LNG decision postponed — am New York, New York, NY

GARDEN CITY, N.Y. — An oil company that wants to put a liquefied natural gas terminal in Long Island Sound launched a public relations campaign this week to counter widespread opposition on both sides of the massive waterway between New York and Connecticut.

[Gov. Eliot] Spitzer is one of the last remaining politicians to weigh in on the project, which is opposed by most elected officials on both sides of the sound, including Connecticut Gov. M. Jodi Rell and all four of the states' U.S. senators. Spitzer is waiting until after the Department of State rules before announcing his position. (Feb 8)

FERC expects decision on Sparrows Point LNG by year's end — Natural Gas Intelligence [Paid subscription required]

From NGI's Daily Gas Price Index  February 08, 2008
FERC could act on the application for AES Corp.'s controversial liquefied natural gas (LNG) terminal project in Baltimore County, MD, by the end of the year, it said Thursday.
(Feb 8)

Webmaster's Comments: The above link goes to the NGI Headlines page, and the article will eventually rotate off the page. The actual article requires a paid subscription.

Gazprom cancellation puts Gros Cacouna back in LNG hunt — Natural Gas Intelligence [Paid subscription required]

From NGI's Daily Gas Price Index  February 08, 2008
The future of the Gros Cacouna liquefied natural gas (LNG) terminal in Quebec has been cast into doubt by a decision by OAO Gazprom to cancel what would have been the terminal's key source of LNG.
[Red emphasis added.] (Feb 8)

Webmaster's Comments: The above link goes to the NGI Headlines page, and the article will eventually rotate off the page. The actual article requires a paid subscription.

Clean power bridge — Powell River Peak, Powell River, BC

"Every time we turn around this issue of how they are going to establish this cap-and-trade system, it becomes more complicated," said Leson. (Feb 7)

Democrats differ over proposed LNG terminals — KGW-TV, Portland, OR

At a rally Wednesday in Salem, Oregon House Speaker Jeff Merkley, who is hoping to be his party's U.S. Senate candidate in November, came out against the proposed terminals, which would turn imported hyper-cooled fuel into natural gas. He is the second high-profile Democrat in the last week to publicly oppose the plan, joining Secretary of State Bill Bradbury.

Portland lawyer Steve Novick, another U.S. Senate candidate, also attended the rally and railed against the terminals. (Feb 6)

Shell seeks U.S. seafarers for international LNG vessels — Natural Gas Intelligence [Paid subscription required]

Breaking News from NGI's Daily Gas Price Index  posted Feb 8, 2:15 PM
Shell International Trading and Shipping Co. Ltd. will begin recruiting U.S. seafarers for the company's growing portfolio of managed international liquefied natural gas (LNG) vessels, the company said on Friday.
(Feb 8)

Webmaster's Comments: The above link goes to the NGI Headlines page, and the article will eventually rotate off the page. The actual article requires a paid subscription.

Analyst: Tighter world LNG market points to stronger U.S. prices — Natural Gas Intelligence [Paid subscription required]

From NGI's Daily Gas Price Index  February 08, 2008
A FirstEnergy Capital analyst has spun the globe and found that
there may not be enough liquefied natural gas (LNG) sloshing around world markets to make any more available to the United States in 2008 than came ashore in 2007. Diminished LNG expectations and Canadian gas export declines paint a bullish price picture, the firm said in a Wednesday note.
[Red emphasis added.] (Feb 8)

Webmaster's Comments: The above link goes to the NGI Headlines page, and the article will eventually rotate off the page. The actual article requires a paid subscription.

LNG could tighten North American natural gas markets, report says — CBC News

Up until now, LNG has been dumped into the already saturated North American markets. But now it can be more easily stored and transported to places like Asia and Europe, where it can get up to $2 more per thousand cubic feet. [Red emphasis added.] (Feb 6)

US FERC fiscal 2009 budget focuses on infrastructure, enforcement — Platts

"The commission placed increased emphasis on plant security measures and improvements in conducting biennial inspections of [liquefied natural gas] facilities," the budget said of FERC's efforts last year to address public concern about safety at LNG import terminals proposed for sites up and down the US coasts. (Feb 4)


5 February 2008

Sarah Miller: Deciding Maine's energy fate [Op-ed] — Bangor Daily News, Bangor, ME

[D]id those of you intensely committed to either opposing or supporting a liquefied natural gas terminal in Maine know that, whether it’s licensed or not, such a facility won’t be built and can’t be used before 2012 — and probably not until much later — because there’s no LNG to put in it? Because all stable supply worldwide through that date is already tied up under long-term contracts?

So is fighting — or supporting — such terminals how policy-makers and community activists should be spending so much of their time? Or do we need first to step back and take a more studied, broader view of what our longer-term energy future should be and how can we establish a more secure and diverse energy mix? [Red emphasis added.]

Webmaster's Comments: The answer to Sarah Miller's question is, of course, that Maine needs to actually have a plan — based on several realities, the first of which is, "Does the terminal location pass LNG industry standards?" (See SIGTTO.) The three proposals for Passamaquoddy Bay cannot pass those standards, due to the features of Passamaquoddy Bay.

US FERC fiscal 2009 budget focuses on infrastructure, enforcement — Platts

"The commission placed increased emphasis on plant security measures and improvements in conducting biennial inspections of [liquefied natural gas] facilities," the budget said of FERC's efforts last year to address public concern about safety at LNG import terminals proposed for sites up and down the US coasts. (Feb 4)


4 February 2008

Gas pipe vs. barge? No deal — Newsday, New York, NY

Suffolk County Executive Steve Levy proposed a deal yesterday in which Gov. Eliot Spitzer would reject the proposed Long Island Sound site for the Broadwater liquid natural gas terminal if Connecticut drops its opposition to the proposed Islander East natural gas line from that state to Long Island.

Spitzer's office declined comment, but Connecticut quickly rejected the idea.

[A] spokesman for Connecticut Gov. M. Jodi Rell, Richard Harris, said in an e-mail, "Gov. Rell has no interest in trading one project with a severe negative impact on the Long Island Sound for another." (Feb 2)

Export license among LNG hurdles — Anchorage Daily News, Anchorage, AK

A proposal to export natural gas carries significant political risks, but according to Keane, shipping Alaska LNG only makes financial sense if it is exported to Asia, where it is more valuable. There are no West Coast terminals -- nor are there likely to be any -- and it would be cost-prohibitive to ship LNG to the Gulf Coast, Keane said. (Feb 3)

Webmaster's Comments: Here's one of the world's largest LNG suppliers stating that there probably will be no new LNG terminals on the US west coast.

Local LNG foes get boost from major environmental watchdog — Malibu Surfside News, Malibu, CA

An environmental watchdog group with a history of filing and winning green lawsuits has surfaced to challenge the proposed Woodside liquefied natural gas terminal proposed for half way between Malibu and Catalina Island.

The Center for Biological Diversity has been a frequent thorn in the side of developers and government agencies in the Southwest, challenging Bush administration policies that have left many environmental laws under-enforced. Two weeks ago it gave notice it will sue the federal government over a plan to sweep aside environmental protection laws to pave the way for new high-voltage electric lines across California. (Feb 3)

LNG industry opens to new competition as entrepreneurs downscale liquefaction [News release] — Market Wire, Yahoo Finance

Twelve of the developers in the survey are publicly traded; nine are pureplays with equity worth a combined $3.5 billion.


2 February 2008

Bradbury opposes LNG terminals — The World, Coos Bay, OR

FOREST GROVE (AP) — Secretary of State Bill Bradbury opposes the building of liquefied natural-gas terminals in Oregon, saying they would take the state “180 degrees in the wrong direction.”

Bradbury, who is in his last year of office because of term limits, said such projects would increase Oregon’s dependence on fossil fuels just as it’s attempting to increase its use of wind and solar energy.

“LNG is a dirty fuel that adds to the greenhouse gases we’re putting into the environment,” Bradbury said.

Sempra to receive 1st LNG shipment end-Mar - Mexico — Business News Americas, Santiago, Chile

California-based Sempra Energy plans for the first shipment of LNG to arrive at its Costa Azul LNG regasification terminal in Baja California, Mexico at the end of this quarter.

Slightly more than half of the gas that is imported will stay in Mexico with the remainder exported to the US, the president of the Mexican division of Anglo-Dutch oil major Shell (NYSE: RDS-B), Cornelis Van Der Born, told reporters. (Jan 31)

Expert's fireball demo shown at LNG hearing — The Kerryman, Tralee, Co Kerry, Ireland

Most notably, it was his presentation of the previously-unreleased footage of a test accident carried out by him and colleagues in the States some years ago that made, perhaps, the biggest impact.

Watching as the gas “vapour cloud” spread laterally out on all sides, the assembly was dramatically taken aback when it suddenly caught fire and exploded several times over a large area — culminating in a fireball sent straight up into the sky.

In the vapour cloud’s lateral expansion, viewers also saw inarguable evidence that LNG is not lighter than air — the notion that it is lighter than air had been promoted around the landbank, Dr Havens said. While true at “ambient” temperatures (the methane simply rises and disperses), it is far from the case with LNG transportation. [Bold red emphasis added.] (Jan 30)

Webmaster's Comments: This is incontrovertible documentation of unconfined LNG vapor explosion. It also proves that Brian Smith lied to the public at Quoddy Bay LNG's first public "information session" in Perry, where he claimed that LNG vapors simply harmlessly rise into the atmosphere.

Dr. Jerry Havens is the scientist who developed LNG vapor dispersion modeling for the US Coast Guard while he was a member of that branch of government. His model is used by the US Government and industry in risk management and facility design.

U.S. January imports lowest in five years — LNG Law Blog, Washington, DC

NATS [subscription required] comments that the United States is set to end the month with the lowest January imports of LNG in five years. (Feb 1)

U.S. energy security [Editorial] — The Washington Times, Washington, DC

What should concern the West is that Moscow and Tehran control 42 percent of total worldwide reserves of natural gas. Furthermore, Presidents Vladimir Putin of Russia and Mahmoud Ahmadinejad of Iran have not hesitated to use energy supplies as a political weapon. (Feb 1)


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