Save Passamaquoddy Bay

Save Passamaquoddy Bay
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Alliance to Protect the Quoddy Region
from LNG Development

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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 October

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— LNG Imports on the Outs —



31 Oct 2008

Gas problem passes [Editorial] — Saint Croix Courier, St. Stephen, NB

Passamaquoddy Bay’s uncomfortable gas problem has passed...for now. While at times over the past few years there have been as many as three liquefied natural gas projects in the works on the Maine shore of the bay, there are currently zero.

Smith said he’ll file again at an undetermined date — a fitting sentiment on Halloween. Just when you thought it was dead... LNG is backfrom the beyond! It’s alive! [Red emphasis added.]

Webmaster's Comments: All humor aside, the truth is that there are still two remaining LNG projects in Passamaquoddy Bay — Downeast LNG and Calais LNG Project Co. Downeast LNG continues its formal permitting before FERC and Calais LNG is in the FERC pre-filing process (a required step prior to filing a formal application).

Downeast LNG's related takeaway pipeline company, Downeast Pipeline, has been warned by FERC to hold an "open season," hinting that if not done, FERC may suspend or dismiss Downeast's permits. Downeast Pipeline has since indicated it will be holding its open season in November, to see if there are any potential customers for its expensive LNG-source natural gas.

Regulator issues warning to pipeline builder — Saint Croix Courier, St. Stephen, NB

ROBBINSTON, Me. — The Federal Energy Regulatory Commission (FERC), which last week dismissed Quoddy Bay LNG from the federal permitting process for failing to provide answers to their questions, [has] also issued a warning letter to Downeast Pipeline.

“We are pleased that Downeast LNG project remains under active consideration by FERC,” said Girdis. “The open season is simply one more step on the road to project approval.” [Red emphasis added.]

Webmaster's Comments: Dean Girdis's remaining under FERC's active consideration appears to be "by a hair's breadth." FERC's warning was a serious indication of their displeasure and impatience at Downeast's companies' lack of progress.

In truth, Downeast LNG (and related companies) have no hope of success, for the following reasons:

  • The natural gas market has been turned upside down. There is so much available domestic natural gas (over 100 years' worth) that LNG can't compete financially. The US LNG bubble has burst, leaving Downeast LNG and Calais LNG in the dust.
  • There are already far too many LNG import projects that have been built and permitted than could survive the marketplace, even if LNG were affordable to the US market. Plus, three of those new LNG import terminals — either operational, or soon will be — along with the Deep Panuke gas well in Nova Scotia, are supplying this market area, providing more natural gas than the market requires.
  • Passamaquoddy Bay is unfit for LNG transit and infrastructure, according to the very LNG industry Dean Girdis would like to join (see LNG Terminal Siting Standards Organization and SIGTTO). Girdis made an inept, inappropriate terminal site selection.
  • The Maritimes & Northeast Pipeline cannot be expanded (beyond its current permit application to accommodate the Deep Panuke natural gas well off Nova Scotia). An entirely new pipeline — at a cost of around $2 billion — would be required in order to accommodate Downeast LNG's gas (or Calais LNG's, or Quoddy Bay LNG's gas). It's financially impractical.
  • Canada won't allow LNG ships to enter Passamaquoddy Bay, because Passamaquoddy Bay is unfit for LNG infrastructure and transit.

No Maine LNG applications pending — Saint Croix Courier, St. Stephen, NB

ST. ANDREWS — Opponents of liquefied natural gas developments in Passamaquoddy Bay are relishing the news this week that, as of now, there are no LNG facilities with any applications pending before State of Maine agencies.

The Federal Energy Regulatory Commission (FERC) has dismissed Quoddy Bay LNG from the federal permitting process, stating that they cannot proceed with their engineering review or with the preparation of the draft environmental impact statement due to the company’s incomplete responses.

Smith said the company still has not been able to firm up the likely BTU content of their LNG and has not been able to determine whether it will have to build a nitrogen mitigation facility. [Red emphasis added.]

Webmaster's Comments: Smith tries to obscure his failure's real cause by ignoring one basic reality of the LNG industry:

No LNG liquefaction facility is going to commit its supply to Quoddy Bay LNG, since Quoddy Bay LNG has no permit to construct.

Rather than the excuses Smith has been making to the public, it is his cockamamie project, irresponsible site selection, and technical ineptness that have caused Smith's Quoddy Bay LNG project failure.


30 Oct 2008

Quoddy Bay ducks out — MaineBiz, Portland, ME

Oklahoma-based Quoddy Bay LNG withdrew its request this week for state permits for an LNG terminal on the Passamaquoddy Indian reservation at Pleasant Point, according to the Associated Press. The company notified the state after the Federal Energy Regulatory Commission dismissed Quoddy Bay's application because the company hadn't provided the agency with required information. (Oct 29)

Firm's application withdrawn for Maine LNG project — Telegraph-Journal, Saint John, NB

Quoddy Bay LNG withdrew its applications this week from the Maine Board of Environmental Protection.

The decision follows a development last week, when energy regulators in the United States dismissed the company's application.

Quoddy Bay has now told the Maine board that, given global energy and economic trends that have emerged in the past month, it is not in a position to update its application. (Oct 29)

LNG opponents lobby Maine environmental agency to dismiss Quoddy Bay LNG application — Saint Croix Courier, St. Stephen, NB

ST. ANDREWS — Save Passamaquoddy Bay, the three nation alliance opposed to any LNG development in the bay, have filed a request with Maine’s Board of Environmental Protection (BEP) asking for an immediate affidavit from Quoddy Bay LNG addressing the question of whether their applications to the BEP should be dismissed.

Last week the Federal Energy Regulatory Commission (FERC) dismissed Quoddy Bay from the federal permitting process, which means that if they plan to continue with their LNG project at Split Rock they will have to re-apply.

They also point out that FERC had already suspended its review of the company’s application in April….

“Based on these developments at FERC and Quoddy Bay's conflicting statements as to whether it is or is not altering its project design and application, we respectfully request that Quoddy Bay be required to immediately submit an affidavit….” [Red & bold emphasis added.] (Oct 29)

Webmaster's Comments: As a result of SPB's and Nulankeyutomonen Nkihtahkomikumon's request, Quoddy Bay LNG withdrew its state applications on Oct 26, as was reported by numerous news media on Oct 28.

Quoddy Bay LNG is not dead, says company president — Saint Croix Courier, St. Stephen, NB

“Canadian political leaders have said they will not let ships through but have not produced any scientific information that says our ships would not be safe.” (Oct 29)

Webmaster's Comments: Canada doesn't need to come up with any separate scientific proof, since the world LNG industry, itself — in its publication, "Site Selection and Design for LNG Ports and Jetties" — indicates that Passamaquoddy Bay is an inappropriate location for LNG infrastructure. (See LNG Terminal Siting Standards Organization and Society of International Gas Tanker and Terminal Operators [SIGTTO].)

There is no ignoring that…

  • Don Smith's Quoddy Bay LNG;
  • Dean Girdis's & Rob Wyatt's Downeast LNG; and
  • Arthur Gelber's, Ian Emergy's, Jim Lewis's, and Carl Myers's Calais LNG Project Co. …

…all violate world LNG industry standards, and therefore, cannot be justified.

Business Digest — The Providence Journal, Providence, RI

LNG proposal withdrawn, for now, in Maine

The Oklahoma company notified the state last week following a decision by federal regulators to dismiss its application. Federal regulators said Quoddy Bay failed to provide information needed to move forward with an engineering review and environmental assessment. Company president Donald Smith said it still plans to pursue the project. (Oct 29)

Quoddy Bay withdraws Maine LNG permit request — (AP) The World, Coos Bay, OR

[This is the same AP story that has been reported by numerous international media outlets.]

The Oklahoma company notified the state this week following a decision by federal regulators to dismiss its application. Federal regulators said Quoddy Bay LNG failed to provide information needed to move forward with an engineering review and environmental assessment. (Oct 29)

FERC dismisses Quoddy Bay LNG application in Maine — (AP) KSWO-TV, Lawton, OK

The Federal Energy Regulatory Commission has dismissed an Oklahoma developer's application to build a liquefied natural gas terminal at the Passamaquoddy Indian reservation at eastern Maine's Pleasant Point. (Oct 18)

Stopping ship-whale collisions — Technology Review, MIT, Boston, MA

Ten whale detection buoys are now in place in the busy shipping lanes leading into Boston Harbor, a hot spot for ship strikes. When the buoys pick up the calls of North Atlantic right whales, warnings are sent to ships in the area so that they slow down. It's the first time that a listening system has been coupled with real-time warnings.

FERC encourages affected property owners to comment on Sparrows Point LNG project pipeline — Sutherland LNG Law Blog, Washington, DC

FERC has sent letters to property owners who may be affected by the construction of the proposed pipeline associated with the Sparrows Point LNG project. The letters encourage property owners to provide the Commission with comments, particularly about environmental concerns, on the natural gas pipeline proposal.

Jamaica goes for coal - Supply problems move LNG from top of energy mix — Jamaica Gleaner, Kingston, Jamaica, West Indies

"LNG (liquefied natural gas) is not an option now, " Mullings said. "... For LNG to become viable, international research has shown that you need 600 megawatts ... . We would have to switch the entire system to LNG."

Added Mullings: "We don't want to switch wholesale to one energy source because you are then tied to that and when that price moves, you have no options." (Oct 29)

FERC hears Connector concerns — The News-Review, Roseburg, OR

WINCHESTER — Opponents of the proposed liquefied natural gas terminal in Coos Bay and its 230-mile long pipeline across southwest Oregon and Douglas County packed the Umpqua Community College’s campus center Tuesday night to express dismay at the projects’ latest review by a federal agency.

Only three spoke in favor: a representative of Jordan Cove, an elected official and a director of a local economic development organization. (Oct 29)

LNG meeting held in Medford — KDRV-TV, Medford, OR

"There's been a good showing of people. Most people seem to be opposed to the project," says Lonnie Lister with FERC. (Oct 29)

US natural gas use to rise under next president —, Hangzhou, China

"Any introduction of greenhouse gas legislation is going to create demand for natural gas because there are very limited ways to meet the targets," said Dean Girdis, president of Downeast LNG. (Oct 29)

Webmaster's Comments: Unfortunately for Dean Girdis and Downeast LNG, there is plenty of domestic natural gas — over 100 years' worth — so his ill-sited, poorly-timed LNG project still has no future.

Ability of the United States to compete in the global LNG marketplace — American Gas Foundation, Washington, DC

[Details in the link below require downloading PDF documents.]

U.S. LNG imports in late 2007 and through mid-year 2008 have been less than 50% of year-earlier periods as a result of stronger year-on-year demand in Europe.

Webmaster's Comments: The American Gas Foundation goes through some interesting gyrations to justify its generalization that the US won't have sufficient domestic natural gas, that growing liquefaction capacity will make LNG affordable in the US compared to domestic natural gas, and the growing industrial development in China, India, and elsewhere — and thus their natural gas demand — won't grow as fast as US natural gas consumption.


28 Oct 2008

No FERC No BEP No LNG — We Take Care of Our Land, Sipayik

While it is a welcomed news, Quoddy Bay LLC's withdrawal from the BEP process was an inevitable outcome to an otherwise impossible proposal.

Quoddy Bay LNG withdraws from Maine permitting process — Energy Current, Houston, TX

EASTPORT, MAINE: Oklahoma City-based Quoddy Bay LLC has withdrawn its state permit application for a proposed liquefied natural gas (LNG) terminal from the Maine Board of Environmental Protection (BEP) process.

In a letter to Quoddy Bay, FERC said that its staff could not proceed with its engineering review or prepare the project's draft Environmental Impact Statement due to Quoddy Bay's incomplete responses.

FERC also dismissed Quoddy Bay Pipeline LLC's applications for the construction and operation of the Quoddy Bay pipeline. [Red & bold emphasis added.]

Quoddy Bay LNG withdraws Maine permit requests — Natural Gas Intelligence, Intelligence Press [Paid subscription required]

After receiving a devastating blow from FERC earlier in the month with relation to its proposal to build a liquefied natural gas (LNG) terminal in Washington County, ME, Quoddy Bay LNG LLC told Maine regulators over the weekend it is withdrawing its request for state permits to build the project, but expects to refile them in the future. [Red & bold emphasis added.]

Maine company withdraws request for permits to build LNG terminal — The Canadian Press

AUGUSTA, Maine — A U.S. company that planned to build a liquefied natural gas terminal in eastern Maine, not far from the New Brunswick border, has withdrawn its request for state permits.

Earlier this month, the U.S. Federal Energy Regulatory Commission said it had suspended its review of the project, saying the company didn't provided sufficient information for environmental and engineering reviews.

The Canadian government has said it would forbid tankers from entering the passage, [an] area Ottawa considers as internal waters.

Applications for LNG withdrawn — iStock Analysis, Salem, OR

[Source: Bangor Daily News]

…Smith said an economic analysis predicts that supply will outstrip demand in New England by 2013 or 2014. [Red emphasis added.]

Webmaster's Comments: Domestic supply has already outstripped demand for natural gas in the US — which is precisely why Smith's Quoddy Bay LNG project has no economic future, now or ever.

There's so much domestic natural gas that seven US LNG export projects have already popped up.

Quoddy Bay withdraws request for Maine permits — (AP) Forbes

The Oklahoma company notified the state this week following a decision by federal regulators to dismiss its application. Federal regulators said Quoddy Bay LNG failed to provide information needed to move forward with an engineering review and environmental assessment. [Red emphasis added.]

Quoddy Bay withdraws request for state permits — (AP) The Boston Globe, Boston, MA

AUGUSTA, Maine—Quoddy Bay LNG has withdrawn its request for state permits to build a proposed liquefied natural gas terminal on the Passamaquoddy Indian reservation at Pleasant Point in eastern Maine.

Quoddy Bay withdraws request for state permits for LNG terminal in eastern Maine — (AP) Canadian Business Online

Linda Cross Godfrey from Save Passamaquoddy Bay said Smith made a prudent decision given the changing economic climate that's reducing demand for fossil fuels.

Maine company withdraws request for permits to build LNG terminal — (AP)

The following media all carried versions of the AP story referred to in the stories listed above.

CJAD-AM, Montreal, QC

Metro, Toronto, ON, Toronto, ON

Metro, Ottawa, ON

CJBK Radio, London, ON

Metro, Calgary, AB

Oilweek Magazine, Calgary, AB

660News Radio, Calgary, AB

Metro, Edmonton, AB

Lethbridge Herald, Lethbridge, AB

Medicine Hat News, Medicine Hat, AB

Metro, Vancouver, BC

CFTK-TV, Terrace, BC

KBS Radio, Trail, BC

The Guardian, London, Engliand, UK

Gas terminal terminated — WABI-TV, Bangor, ME

Plans to build a liquefied natural gas terminal in Eastern Maine are now off the table...

Quoddy Bay LLC has withdrawn its request for state permits.

It happened after federal regulators dismissed the company's application.

Members of Save Passamaquoddy Bay call it welcome news, saying the withdrawal was "an inevitable outcome to an otherwise impossible proposal." [Red emphasis added.]

Quoddy Bay LLC withdraws request for LNG terminal — (AP)

WMTW-TV, Portland, ME

WCSH-TV, Portland, ME

Dominion Transmission reports its portion of Cove Point expansion complete — Sutherland LNG Law Blog, Washington, DC

In a letter to FERC, Dominion Transmission, Inc. (DTI) states that construction of its portion of the Cove Point LNG facility expansion is complete and in accord with all applicable conditions set by the Commission.

Oregon LNG takes another step forward in approval process — BusinessWire

WARRENTON, Ore.--(BUSINESS WIRE)--The Federal Energy Regulatory Commission (FERC) has officially accepted Oregon LNG’s formal application. Oregon LNG is a proposed liquefied natural gas import facility located on the Skipanon Peninsula in Warrenton, Oregon.

Rally against LNG pipeline scheduled for tonight — KPIC-TV, Roseburg, OR

A rally against the pipeline is planned for Tuesday night at Umpqua Community College in the student center. The rally is planned for 5:30 p.m., and a meeting on the LNG pipeline is at 6:30 p.m. Public comments will be taken at the meeting.

Guest column: DEIS fails to mention many important facts about LNG [Op-ed column] — The News Review, Roseburg, OR

This DEIS is a 1,500-page, pre-cooked justification for approving the Jordan Cove/Pacific Connector project. Jordan Cove Energy Partners, a Canadian energy conglomerate, is proposing to send expensive natural gas from potentially unfriendly foreign countries through a 230-mile pipeline over the Cascade Mountains to the California border. After dismissing alternatives to this complicated scheme in two or three conclusory sentences each, the DEIS says the Jordan Cove/Pacific Connector project is just what we need.

Interestingly, that’s what FERC said about the competing proposed Bradwood Landing LNG project on the Columbia River. It’s what FERC likely will also say about the three current competing proposals to build pipelines from the Rockies into Oregon. That’s because FERC’s approach is to issue approvals regardless of the real needs and impacts and leave the actual decisions to the financial wizards of the marketplace. [Red emphasis added.]

Webmaster's Comments: There are numerous insightful observations regarding FERC's DEIS shortcomings contained in the above article.

Jordan Cove picks LNG facility contractors — The World, Coos Bay, OR

Black & Veatch, of Kansas City, Mo.; Kiewit Energy Co., of Omaha, Neb.; Vinci Construction Grands Projects, of Paris, France; and Entrepose Contracting S.A., of Paris, entered into a project development agreement with Jordan Cove last week, said the energy company’s project manager, Bob Braddock.

The project still requires federal approval before construction can begin. The Federal Energy Regulatory Commission is expected to issue a ruling on Jordan Cove’s LNG terminal application in May. [Red emphasis added.] (Oct 27)

FERC misses first LNG hearing — KCBY-TV, North Bend, OR

NORTH BEND, Ore. — In what was suppose to be the first formal public hearing in front of the Federal Energy Regulatory Commission, supporting LNG, turned out to be nothing more than a community debate.

Nearly 200 local residents who have a stake in the proposed Liquefied Natural Gas Terminal at Coos Bay's North Spit., came together Tuesday night at the North Bend Community Center to voice their comments and concerns to FERC, but [FERC] didn't show. [Red emphasis added.] (Oct 27)

U.S. able to compete in global LNG market in long-term — Energy Current, Houston, TX

The U.S. will need these increased LNG imports to supply growing gas demand for electricity generation in new U.S. power plants and to help the nation comply with climate change strategies.

Webmaster's Comments: But, that's not what other players in the natural gas industry are saying. They've indicated that there's so much domestic natural gas that there is no need for additional LNG import terminals for over 100 years.

US LNG imports seen at 13 BCF/D by 2016, flat in short term — CNN Money

Although massive new domestic discoveries in unconventional geological plays have boosted reserves, U.S. production won't be able to meet demand in the coming decade and will need to take advantage of the expansion in international LNG production in places such as South America, Algeria, Norway and West Africa.

But once environmental and lower-carbon energy policies expected from the Democratic-controlled Congress — and possibly the White House — begin to gather momentum in the early years of implementation, "U.S. domestic supplies aren't going to be able to keep up," Schlesinger said.

Recent discoveries in northern Louisiana and Texas, along with discoveries in an area that stretches from western New York to Virginia, are changing that, the industry argues. A recent report financed by The American Clean Skies Foundation — a group started and now chaired by Chesapeake Energy (CHK) Chief Executive Aubrey McClendon — said in July that the country has more natural gas than previously thought. U.S. reserves total some 2,247 trillion cubic feet, according to the study by Navigant Consulting Inc. The country consumed around 20 trillion cubic feet of gas last year.

The [American Gas Foundation-sponsored report] didn't take into account a new domestic natural gas reserves accounting published by the Energy Information Administration and the possibility of a major new natural gas pipeline that could come online late in the next decade, with supplies from Alaska, both of which combined could change the nature of LNG demand. [Red emphasis added.]


27 Oct 2008

Another Maine LNG project faces uncertain fate — Natural Gas Intelligence, Intelligence Press [Paid subscription required]

One week after FERC dismissed Quoddy Bay LNG LLC's application to build a liquefied natural gas (LNG) terminal in Maine, agency staff indicated Friday that the proposed pipeline that would serve rival Downeast LNG's terminal project in Maine also faces an uncertain future due to its failure to conduct an open season, which could put the entire LNG project in jeopardy. [Red & bold emphasis added.]

FERC dismisses LNG application but Quoddy Bay plans to refile — The Quoddy Tides, Eastport, ME

Donald Smith, commenting on the letter from FERC, says, "It's a little embarrassing."

On October 21, attorneys representing Save Passamaquoddy Bay 3-Nation Alliance and other intervenors, in a letter to the Maine Board of Environmental Protection (BEP), requested that the board require an immediate affidavit from Quoddy Bay LNG addressing if Quoddy Bay's BEP applications should be dismissed. [Red & bold emphasis added.] (Oct 24)

Politics, common sense, and right whales — Quoddy Google Group

The USA has finally stepped up to protect right whales.

Hopefully Canada can follow the US lead on this to ensure adequate protection as "Fundy Superport" and challenges arise from proposals that pop up continuously in coastal communities such as Passamaquoddy Bay. (Oct 25)

Whale still in Bay of Fundy — Quoddy Google Group

Humpbacks, finbacks and a right whale were also seen along the ferry route to Grand Manan. (Oct 25)

Suffolk County challenges FERC orders in Broadwater LNG proceeding — Sutherland LNG Law Blog, Washington, DC

Suffolk County (N.Y.) has filed a Petition for Review of two FERC orders in the Broadwater LNG proceeding with the Second Circuit Court of Appeals.

Labor scolds Wu on LNG — The Daily Astorian, Astoria, OR

Wu fired back a strong statement in response today. "I have been consistent and up-front about my position on LNG," Wu said. "There was a legitimate community choice to be made here, and my role is to back the community in the future that they chose. Those who know my record on fighting for working families know that I am a strong supporter of bringing living-wage, good-benefits jobs to all Oregonians. In fact, in 2007 I voted pro-labor 96 percent of the time, according to the AFL-CIO.

"However, the Bradwood Landing facility is only estimated to provide 50 to 70 on-site jobs in the long-term, and those may very well be filled by the company's existing non-union employees who relocate here."

Wu is running for re-election against Joe Haugen, an independent who won the Republican primary then changed his party affiliation. During the campaign, Haugen also changed his view on LNG - opposing proposed terminals on the Columbia River and saying that he became convinced that the gas was not needed. [Red emphasis added.] (Oct 24)

FERC gathers comments on LNG terminal — Mail Tribune, Medford, OR

"There is enough domestic natural gas available."

LNG study: Terminal safe from tsunamis — The World, Coos Bay, OR

Even in the worst-case scenario, the report said, the waves would only reach an elevation of 22 feet on the 55-foot elevation berms.

“With the current suite of earthquake scenarios it is found that tsunami waves do not inundate portions of the site founded above the proposed tank containment berm elevation of 55 feet ... during such an event,” a draft report of the study said. (Oct 25)

Add "unreliability' to LNG [Opinion column] — Press-Telegram, Long Beach, CA

The idea [in 2004] was that some domestic supplies would be replaced by LNG, which would arrive at prices guaranteed to be competitive with whatever might be the current price of domestic gas.

Oops. The Sempra contract with Tangguh gives that outfit the right to "divert a portion of the cargoes to another market so long as they continue to pay our costs as described in the contract," says Sempra spokesman Art Larson.

And even before Costa Azul could begin pumping gas into any part of California, that happened. Tangguh will send half the gas that previously was earmarked for Sempra's facility at Costa Azul for the years 2010-2012 to South Korea, which will pay about $4 per million British thermal units more for it than the Indonesians and their partners could get from Sempra. [Red emphasis added.]

Webmaster's Comments: Committing the same contractual mistake as was made by Tangguh — paying Sempra its costs, even when no LNG is shipped to them — is unlikely by potential suppliers to Downeast LNG or Calais LNG (Quoddy Bay LNG is out of the picture), since it is now obvious to foreign LNG liquefaction facilities that there is no growing market for LNG in the US.

Chesapeake Energy analyst day update: Company moves to resource conversion — Seeking Alpha

On previous calls, McClendon has brought up the possibility of LNG to export US nat gas.  Such a move would be a boon to the nat gas market, perhaps to the detriment of a country supposedly focused on “energy independence.”

Webmaster's Comments: If allowed by regulators to do so — and because Chesapeake owns such a large stake in domestic shale gas deposits — Chesapeake Energy is eminently positioned to make more money by exporting LNG to Asia than in selling their natural gas domestically. The above story's author is also correct that not exporting LNG would increase US energy independence.

Doomsday in an oil barrel — The Cutting Edge

Radical Islamist have emerged in South America (on Brazil’s southern border with Paraguay) and in Trinidad-Tobago, the latter posing a threat to the more than 80% of the liquefied natural gas (LNG) which we import to fuel our power plants and petrochemical industry. [Red emphasis added.]

"Gas OPEC": is it a good idea? [Opinion] — RNA NOVOSTI (Russia News & Information Agency)

[T]he very idea of establishing some sort of gas cartel is bound to raise concerns with European consumers, further complicating Gazprom's investments in Europe, as if European partners weren't already wary of dealing with the Russian monopoly.

The Russian government must certainly realize that "gas OPEC" is a harmful idea. (Oct 24)


24 Oct 2008

FERC to reassess its continued review of Downeast LNG — Sutherland LNG Law Blog, Washington, DC

This morning FERC issued a letter ordering Downeast LNG to provide the Commission with a schedule for conducting an open season for  the pipeline associated with its proposed LNG terminal. FERC's letter gives Downeast LNG 20 days to comply with this request or to explain why it does not need to conduct an open season before the Commission completes its Draft Environmental Impact Statement for this project. FERC noted that the lack of an open season and the uncertainty of the environmental analysis has forced FERC to "reassess whether Commission staff's continued efforts and analysis are appropriate under these circumstances." [Red emphasis added.]

FERC reconsiders Downeast Pipeline assessment — Energy Current, Houston, TX

WASHINGTON, D.C.: The Federal Energy Regulatory Commission (FERC) told Downeast LNG that it will reconsider its ongoing efforts and analysis of the Downeast Pipeline project if the company does not submit to FERC a schedule for conducting open season on the project.

"Considering the uncertainty of the outcome of the environmental analysis, the fact that you have not attempted to garner the critical project information that you would obtain through holding an open season, and the passage of nearly two years since the filing of the application, we must reassess whether Commission staff's continued efforts and analysis are appropriate under these circumstances," FERC said in the Oct. 24 letter. [Red emphasis added.]

Brief prequel to discussion on FERC's dismissal of Quoddy Bay LNG application — WERU-FM, Blue Hill, ME

[The following link leads to an mp3 sound file.]

MP3 sound fileWe will follow up on this story in greater detail in the following weeks. We spoke briefly before air time with Robert Godfrey of the Save Passamquoddy Bay 3 Nation Alliance.

Rare whales latest obstacle to LNG terminal — Providence Business News, Providence, RI

It is the latest complication for Weaver’s Cove Energy’s proposal to build an LNG terminal in Fall River, which has encountered staunch community opposition in both Massachusetts and Rhode Island.

Sabine Pass LNG files application with FERC to re-export LNG — Sutherland LNG Law Blog, Washington, DC

Today Sabine Pass LNG filed an application with FERC to re-export foreign sourced LNG. Earlier this month, FERC determined that Sabine Pass LNG would not be required to follow the NEPA pre-filing process for its application to re-export LNG.

Webmaster's Comments: Unable to unload their expensive (relative to prolific supplies of domestic natural gas) foreign LNG-source natural gas, Sabine Pass LNG must re-export in order to keep from losing money.

Agencies ask for Bradwood re-hearing — The Hillsboro Argus, Hillsboro, OR

The governor said the state will take the issue to U.S. District Court if the commission does not re-hear Bradwood's application.

FERC denies request for comment period extension — Energy Current, Houston, TX

On Aug. 29, FERC issued a DEIS for the project. Wyden requested the 45-day extension beyond the 90-day comment period, saying the public had either limited time or no opportunity at all to review the National Environmental Policy Act (NEPA)-required information because it was either not yet available to the public and would not be available until shortly before or after Dec. 4 of this year, the deadline for the comment period.

This data includes the airspace review which will determine how flights out of North Bend, Ore. will be affected and what effect the project might have on currently tenuous air service to the area. This review has not been completed. Planes currently taking off from the North Bend airport's most frequently used runway typically fly directly over the site of the proposed LNG storage tanks; planes taking off from the other runway unavoidably cross the navigation channel LNG tankers would use. [Red emphasis added.]

Oregon labor leaders attack Wu for coming out against LNG — The Daily Astorian, Astoria, OR

Organized labor reacted strongly to Wednesday's statement by U.S. Rep. David Wu that he is against the Bradwood Landing liquefied natural gas terminal. (Oct 23)

Webmaster's Comments: Construction jobs don't justify unsafe terminal siting of unneeded LNG terminals.

Shale plays could offset decline in Canadian gas production: NEB — Platts

The report added that while Canada's gas potential remains high, the development of the resources still depends on North American natural gas markets. It warned that the current global economic situation could result in declining demand. Meanwhile, natural gas production in the US has increased by 8%, the report said, adding that declining production in Canada has also been the result of the high cost of production there and falling gas prices. [Red emphasis added.]

Industry Analyst: U.S. domestic gas production likely to soften short-term demand for LNG imports — Sutherland LNG Law Blog, Washington, DC

Porter Bennett, president and CEO of Bentek Energy, told an industry conference in Toronto that he believes that increased U.S. domestic natural gas production, particularly from shale gas plays, will continue to soften demand for both LNG imports and imports of Canadian natural gas. [Red emphasis added.]


23 Oct 2008

Canaport LNG nears completion — Telegraph-Journal, Saint John, NB

Energy Irving/Repsol partnership plans to send first natural gas down pipeline in March

It will take several weeks after the end of construction before the plant can begin steady deliveries to the 145-kilometre Brunswick Pipeline that will carry natural gas from Saint John almost to the American border to connect to the Maritimes & North East Pipeline before it crosses the St. Croix River north of St. Stephen.

Webmaster's Comments: In addition to the recent natural gas supply reversal — where industry players indicate the US has an over-100-year supply of natural gas reserves — Canaport is the second of three new LNG import terminals that will satisfy natural gas needs in the Northeast US. The other are: Northeast Gateway (offshore from Gloucester, MA), already in operation; and Neptune LNG (also olffshore from Gloucester), to be completed late in 2009. Also, the Deep Panuke natural gas well in Nova Scotia will be contributing to the Maritimes & Northeast Pipeline. The pipeline expansion permitting is currently underway to accept Deep Panuke gas.

FERC denies Wyden's request for comment extension on LNG terminal — The News-Review, Roseburg, OR

Douglas County-based Oregon Citizens Against The Pipeline said that FERC allows project applicants to withhold too much information during formulation of environmental impact statements, thus keeping the public unaware of later conclusions.

“This means the project proponents can provide that information at the very end of the comment period, thereby effectively preventing members of the public from having detailed substantive input,” Diane Phillips, director of the Oregon Citizens Against The Pipeline, wrote in an e-mail.

Appeals court sides with LNG developer in Coos Bay — (AP) KTVZ TV, Bend, OR

The appeals court affirmed a state Land Use Board of Appeals decision that validated a Coos County zoning policy.

Court strikes down LNG project appeal — The World, Coos Bay, OR

The land-use agency did find several faults with the LNG terminal application regarding wetland mapping and archaeological preservation. Once Prince’s legal question is resolved, the other issues will be remanded to Coos County.

Obama and McCain share energy goals — Ventura County Star, Camarillo, CA

Both voted in 2005 for an energy bill that pre-empted state authority for licensing of liquid natural gas terminals and gave it to the Federal Energy Regulatory Commission.

But Obama also supported a failed amendment to that bill that, had it passed, would have given states the sole authority over LNG siting. Obama also has backed other proposals that would return LNG siting authority to the states.

Gazprom considering additional options for expansion into North American LNG market — Sutherland LNG Law Blog, Washington, DC

A Gazprom official said earlier this week that his company is considering a number of options for expansion into the North American LNG market in addition to the Rabaska LNG regasification terminal in Canada. Platts LNG Daily [subscription required] also notes that Gazprom has cast doubts on recent reports that the company will take an equity position in the  Rabaska facility.

Natural Gas cartel is nothing to fear — Seeking Alpha, New York, NY

"…They can try and get more control over gas, but it's not OPEC."

European Commission attacks gas cartel — UPI [Free registration required]

Following news that Russia, Iran and Qatar were forming a joint commission on natural gas, European Commission officials voiced their opposition to the creation of what possibly could become a cartel.

Leaders in the commission voiced concern that the new natural gas group would become the OPEC of gas and end up in control of world prices, the European Voice reported. (Oct 22)


22 Oct 2008

FERC requests that Weaver's Cove address new right whale rule — Sutherland LNG Law Blog, Washington, DC

Yesterday FERC issued an Environmental Information Request to Weaver's Cove Energy LLC seeking information on how Weaver's Cove will address vessel speed restrictions and other operational aspects to reduce ship strikes of the endangered North Atlantic right whale that are contained in the recently issued final rule by NOAA.

Groups join forces to fight LNG terminal — The Daily News, Longview, WA

The state of Oregon, the Columbia River Inter-Tribal Fish Commission and a coalition of environmental groups all asked the Federal Energy Regulatory Commission to reconsider its Sept. 18 decision to permit NorthernStar’s $650 million LNG terminal on the Lower Columbia River.

The Washington State Department of Ecology made a similar request earlier this month and has threatened to sue the federal agency over its decision.

A coalition of LNG opponents, including Columbia Riverkeeper, the Oregon Chapter of the Sierra Club, Wahkiakum Friends of the River and the Cowlitz County-based Landowners and Citizens for a Safe Community, also announced Monday that they had filed to overturn FERC’s decision. (Oct 21)

Parties file for rehearing of FERC authorization of Bradwood Landing — Sutherland LNG Law Blog, Washington, DC

Parties that filed for rehearing include the State of Washington, the National Marine Fisheries Service and a coalition of interest groups, including Columbia Riverkeeper, and the Sierra Club. 

Oregon Rep. Wu stands against LNG — The Daily News, Longview, WA

ASTORIA, Ore. — U.S. Rep. David Wu says he’s opposed to liquefied natural gas terminals and pipelines in Oregon because the fuel won’t be used locally, and Oregon shouldn’t be an “energy farm” for California.

More LNG terminals may be equipped with export facilities - Executive — CNN

Webmaster's Comments: The following link no longer leads to the indicated story.

SINGAPORE -(Dow Jones)- More liquefied natural gas import terminals may be equipped with facilities to store and export gas as global spot trade grows, an industry executive said Wednesday.

Two terminals in the U.S. have approached the Department of Energy to operate as storage and export terminals, Gerard Schuppert Jr., manager of global LNG marketing and sales at ConocoPhillips (COP), said here at an LNG conference organized by Conference Connection.

"By 2015, up to a quarter of all contracted supplies may be diverted," said Schuppert.

Russia, Iran, Qatar talk of 'Gas OPEC' — The Globe and Mail, Toronto, ON

Yesterday, Russia, Iran and Qatar, the world's three leading natural gas producers, said that they were forming a "big gas troika" that could become a permanent body.

For years, industry observers have said gas markets will become more global as more LNG terminals are built. However, new extraction techniques are opening up new North American shale gas basins, driving U.S. output to all-time highs this year and potentially making LNG imports less necessary. [Red emphasis added.]

Natural gas cartel would fail in bid for OPEC-like impact — Calgary Herald, Calgary, AB

It's not enough that oil prices are subject to the vague inner workings of the Organization of Petroleum Exporting countries, but if things go according to plan, a natural gas-focused organization is in the process of being established.

Key energy officials from Qatar, Russia and Iran met Tuesday to discuss this very subject. This is significant because these countries are the three largest in the world in terms of natural gas reserves.


21 Oct 2008

Group welcomes nixing of LNG terminal permit — Telegraph-Journal, Saint John, NB

Young-Allen said during the federal process Quoddy Bay LNG was asked to submit information about its terminal plans and potential impact on the environment but did not submit the information needed.

"We had been processing this application for two years, which is generally the time it takes the commission to make a decision," said Young-Allen. "Because of lack of information we couldn't even get an environmental impact statement prepared and this is the first step we take. We felt we gave them adequate time to respond for data and it didn't appear to be forthcoming." [Red emphasis added.]

Webmaster's Comments: In the above article FERC External Affairs Director of Press Services Tamara Young-Allen refutes the claim that Quoddy Bay LNG was the first LNG terminal applicant to be dismissed by FERC. Save Passamaquoddy Bay today spoke with FERC External Affairs Assistant to General Council Mark Hershfield who initially made the same claim, saying that SES in Longbeach California had been previously dismissed; however, when he referred to FERC's SES docket, he discovered that — like Quoddy Bay LNG — FERC had suspended the SES application. However, unlike Quoddy Bay LNG, rather than FERC dismissing the SES application, SES withdrew their application.

Quoddy Bay LNG is the first LNG terminal applicant to have their application dismissed by FERC.

San Pedro de Atacama Chili — We Take Care of Our Land (Nulankeyutomonen Nkihtahkomikumon; "NN"), Sipayik

[NN member David Moses Bridges] is scheduled to talk with Mapuche and Atacameono leaders today in San Pedro, Chili.

Webmaster's Comments: Earlier this year, David Moses Bridges was a participant in the United Nations Permanent Forum on Indigenous Issues. He is the artist-craftsman who constructed and donated the Passamaquoddy birchbark canoe we are offering for sale.

Gazprom considering Alaska opportunities, including liquefaction facility — Sutherland LNG Law Blog, Washington, DC

Following his visit to Alaska last week, Gazprom CEO Alexei Miller told a Russian television station that his company has "received invitations to conduct exploration on the Alaska shelf." Platts LNG Daily reports that Miller also said that an LNG liquefaction facility could be built in either northern or southern Alaska. [Red emphasis added.]

Palin backs shipping Alaskan LNG to Japan — The Seattle Times, Seattle, WA

"If America is really so short of energy that we need to drill in national wildlife refuges and other sensitive areas, why should energy supplies, sitting in U.S. terminals, be sent back out of the country simply because these energy companies can get a higher price from a foreign buyer?" Sen. Ron Wyden, D-Ore., said.

Webmaster's Comments: The fact is that the US is a-glut with domestic natural gas reserves (over 20 enormous shale gas fields) — enough to supply the country for over 100 years, according to some industry members. There's no need to drill for natural gas in previously-prohibited areas, and there's no need to import LNG.

FERC's LNG OK challenged — The Daily Astorian, Astoria, OR

World's top 3 gas holders launch 'Gas Opec' — Energy Intelligence [Paid subscription required]

Russia, Iran and Qatar, the world's three largest holders of natural gas reserves, have taken the initial steps in forming an organization that some are describing as an Opec for gas producers -- sparking fears in Europe and the US that Opec-style control over gas prices could be on the horizon.


20 Oct 2008

EKG and a Save Passamaquoddy Bay Trip! — Quoddy Link Marine, St. Andrews, NB

[This is a report on the Oct 18 boat trip in Head Harbour Passage donated by Quoddy Link Marine.]

Our afternoon trip was a regularly scheduled whale watch which turned out to be a Hat Trick! We saw EKG, a humpback whale we have been watching since 2006, 3 finback whales, all close to the entrance of Head Harbour Passage and a very young minke whale between White and Nubble Island. It was a great trip! Below is EKG, note the distinct upturned flukes. (Oct 19)

Canadian election continues resolve against LNG projects [Editorial] — Save Passamaquoddy Bay

Canada's recent election has continued Prime Minister Stephen Harper in office (see election results by party; results by party leader), as well as New Brunswick Southwest Member of Parliament Greg Thompson (see election results), who is also Minister of Foreign Affairs. PM Harper and MP Thompson have unwaiveringly and repeatedly stated that Canada will prohibit LNG ship transits into Passamaquoddy Bay, and they will use every legal and diplomatic means to enforce that prohibition. They are responsibly protecting Canadian lives, economy, and environment. (Oct 18)

U.S. regulator shoots down LNG terminal — Times & Transcript, Moncton, NB

FERC, the American body dealing with at least two proposed LNG facilities in the area, quashed the request because the company did not provided sufficient information for either an engineering or environmental impact review.

New Brunswick Premier Shawn Graham's office, in a released statement, said, "We feel that today's decision by FERC to dismiss the Quoddy Bay application is indicative that the review process, in this instance, has respected our interests," read the statement.

"We will continue to intervene in the review of another LNG terminal currently being considered by FERC and any other LNG proponent seeking permission to build facilities that may negatively impact the quality of life of the residents of southwestern Charlotte County." (Oct 18)

FERC dismisses Quoddy Bay LNG application in Maine — The Boston Globe, Boston, MA

"The project has been under suspension until today's announcement by FERC of complete dismissal from the federal permitting process -- FERC's first such dismissal in history. This is the logical -- if not late -- end to a poorly sited and ill-conceived project, clearly one that the developers themselves -- along with a host of consultants -- could not technically accomplish." [Red & bold emphasis added.] (Oct 18)

LNG Plans Delayed — MPBN Maine News

"The siting of any LNG terminal in Passamaquoddy Bay would be imprudent." (Oct 17)

Webmaster's Comments: In this news report, Quoddy Bay LNG's Don Smith claims that LNG will be less expensive for New England than domestic natural gas. Smith ignores the three LNG terminals that will be satisfying northern New England's additional need for natural gas: Northeast Gateway (off Gloucester, MA; completed), Canaport (Saint John, NB; to be complete later in 2008), and Neptune LNG (off Gloucester, MA; to be completed late in 2009), plus the Deep Panuke natural gas well in Nova Scotia that will be supplying the Maritimes & Northeast Pipeline (pipeline looping permitting currently in progress).

Pleasant Point Tribal Council member Ed Basset is reported to be "very optimistic the project will go forward." It should be noted that Quoddy Bay LNG has stopped making lease payments to the tribe, and according to our sources, hasn't paid the $1 million it agreed to pay the tribe for the 300 acres in Perry it bought.

FERC dismisses Quoddy Bay LNG application — Bangor Daily News, Bangor, ME

The Federal Energy Regulatory Commission has dismissed an application by Oklahoma-based Quoddy Bay LNG to build a liquefied natural gas terminal and pipeline in Perry.

FERC suspended review of Quoddy Bay’s application in April, requesting more information on the safety and reliability of the LNG transfer line at the proposed terminal and storage facility. The agency also requested additional information on the proposed vaporizer, which converts fuel from a liquid to a gas. [Red emphasis added.] (Oct 18)

Webmaster's Comments: This article is fraught with factual errors and omissions.

  • The Bangor Daily News refers to the Maritimes & Northeast Pipeline by writing about the "existing LNG pipeline in Baileyville that pipes LNG from Canada to Boston." The fact is, there is no existing LNG pipeline (liquefied natural gas pipeline) in Baileyville (or anywhere in the world, to our knowledge) — it's a natural gas pipeline. LNG runs through piping within the confines of LNG ship offloading facilities and LNG terminals only.
  • The article quoted Tribal councilor Fred Moore as if he were an impartial spokesperson regarding the Quoddy Bay LNG (QBLNG) project. The article failed to disclose personal business ties to QBLNG and to the Calais LNG project. Moore — along with Gov. John Baldacci and Maine attorney and lobbiest Jim Mitchell — brought QBLNG to Pleasant Point/Sipayik. Moore has been employed by QBLNG. Moore was also a business partner in "BP Consulting," one of the predecessors to what is now Calais LNG Project Co.
  • QBLNG's president Don Smith says in the article, "When we reapply we’re not going to change the project ... It is going to be the same project, the same engineering, the same everything." The article also reports that Don Smith "was uncertain whether Quoddy Bay would have to start over." Smith and the Bangor Daily News failed to quote FERC Office of Energy Projects Director J. Mark Robinson's letter of dismissal that clearly states, " accordance with the Commission’s regulations, it will be examined as a new proceeding."
  • Don Smith says, "…Now they’ve sent us a letter that they are dismissing the applications which operationally doesn’t change anything for me." And, "When we reapply we're not going to change the project ... It is going to be the same project, the same engineering, the same everything.…" The article failed to report that of the 47 terminal applications that have gone, or will be going, before FERC, QBLNG is the first and only one ever to be dismissed.
    The fact is, the project has been dismissed for poor site selection, poor planning, technical ineptness, and failure to respond to FERC's required application process. Don Smith doesn't want to publicly admit to the project's fatally-flawed nature — so flawed that FERC has made Smith's project an historic bad example in dismissing it.
  • Smith says, "I think if we get everything permitted in two years and then build it in three years it will come on line 2013-2014, when we see the need for LNG gas into New England." Again, Smith fails to grasp reality. The natural gas market has been turned on its head. There are vast, untapped domestic natural gas reserves in the US -- over 100 years' worth, according to the US natural gas industry. Domestic natural gas is cheap and available, compared to expensive imported LNG. Plus, there is a surplus of permitted LNG import terminals, with projects cancelling (Crown Landing LNG being the most recent one) due to the lack of market need. Already, six new North American LNG export projects (Freeport LNG -- re-export; Sabine Pass LNG -- re-export; Chesapeake Energy; Kitimat LNG, BC; LNG Partners, BC; Mitsubishi, Valdez, AK) have popped up recently. The leadership of QBLNG (president Don Smith and project manager Brian Smith) are attempting to revive and ride a dead dinosaur — the project failure is obvious.
    Smith's project website ( still contains the reckless prediction that QBLNG would begin construction by the fourth quarter of 2008 (now!), and be fully operational in 2012; The Smiths have even handed out terminal job applications — all pointing to QBLNG's irresponsible promises and their willingness to build false expectations.

Quoddy Bay LNG developer pledges to refile application — Sutherland LNG Law Blog, Washington, DC

[Donald] Smith noted that FERC suspended its review of the Quoddy Bay LNG application earlier this year and that the company would refile its application at some point in the future.

Webmaster's Comments: Smith also claims that he won't change his project one bit. The Smiths have made a lot of false claims in the past. Just add this one to the pile.

Virus threat at Quoddy Bay LNG's website — Fundy Whale, St. Andrews, NB

I just tried to access Quoddy Bay LNG's website and got a virus threat alert as it defaulted to (Oct 17)

Webmaster's Comments: The above writer has indicated to me that when going to the URL, that address forwards to, but prior to downloading the homepage, he receives a virus warning (he is using AVG — Windows-only anti-virus software) that downloading will infect his computer. This webmaster has not confirmed the problem.

Whales a little safer tonight as FERC dismisses Quoddy Bay LNG — Google Groups - Quoddy, St. Andrews, NB

Whales in the Bay of Fundy became a little safer today when FERC dismissed the application of Quoddy Bay LNG. Depending on which part of their application you reviewed, they planned on having as high as one LNG tanker transit a day into their proposed terminal at Sipayak near Eastport, Maine.

While Quoddy Bay LNG at Sipayak/Pleasant Point made little sense, the two remaining proposals make even less sense. The most frequent question around the Bay is "Why would they continue to waste money on a dead issue?" [Red emphasis added.] (Oct 17)

First phase of LNG project complete — Marblehead Reporter, Marblehead, MA

The second phase, scheduled to begin in early May 2009 and continue into September 2009, includes connecting the new pipeline to the HubLine and installing two off-loading buoys. Upon completion, the LNG facility will consist of a buoy system where specially designed vessels will moor and offload their natural gas, after which it will be delivered it to customers in Massachusetts and throughout New England.

Webmaster's Comments: This is one of four new projects supplying New England with natural gas. The other three are: Northeast Gateway (like the Neptune project, is off Gloucester, MA; already in operation), Canaport (Saint John, NB; to be online late in 2008), and the Deep Panuke natural gas mine in Nova Scotia (Maritimes & Northeast Pipeline expansion permitting is currently in prograss to accommodate this gas). These four projects — along with natural gas already coming by pipeline from the Gulf of Mexico — will satisfy all of northern New England's natural gas needs.

Governor seeks LNG permit hearing — Portland Business Journal, Portland, OR

The move to pursue a rehearing is the state’s last step before taking legal action.

“FERC’s decision to license the facility before the state has approved required water quality, air quality and coastal consistency permits, before the effects on fish have been studied and before environmental mitigation plans have been fully developed shows a complete disregard for the state’s role and our concerns with the project,” Kulongoski said in a statement. “By requesting a rehearing, FERC has one final opportunity to do this right. If Oregon is not afforded a rehearing, legal action is imminent.”

State of Oregon tells feds to put the brakes on LNG — The Daily Astorian, Astoria, OR

Meyers argues FERC should have waited for the state of Oregon to finish its permitting process before approving a license for Bradwood. In making the decision too soon, FERC failed to consider alternatives to the LNG facility, ignored public comments on the project, omitted environmental and safety impacts from its final review and wasn't clear about exactly what conditions NorthernStar would have to meet before the company can start construction, he said.

"More importantly, the evidence we've submitted clearly shows that relying on foreign LNG is more expensive and more volatile than homegrown renewable energy or domestic gas."

The Umatilla, Nez Perce, and Columbia River Inter-Tribal Fish Commission filed their own request for rehearing asserting that FERC violated its responsibility to the tribes by failing to analyze the project's effects on treaty-reserved rights. The tribes are worried the project will cause irreversible harm to the Columbia River's already fragile salmon populations. [Red emphasis added.]

Bradwood opponents jubilant after latest LNG news — The Daily Astorian, Astoria, OR

The National Marine Fisheries Service, a division of the National Oceanographic and Atmospheric Administration, criticized FERC's approval of the Bradwood project as "not consistent with the requirements of the Endangered Species Act."

Simultaneously, Washington's Department of Ecology has asked federal authorities to slow down the process, saying that FERC violated the law by "failing to take a hard look at the environmental impacts of the project."

"Unlike FERC, NMFS is doing its job in trying to evaluate this project more thoroughly." [Red emphasis added.] (Oct 18)

NOAA Fisheries says FERC violates species act in LNG approval — The Oregonian, Portland, OR

The nation's top fisheries agency on Friday told U.S. energy regulators that their Sept. 18 decision to issue conditional approval of the controversial Bradwood Landing liquefied natural gas terminal was illegal under the Endangered Species Act.

The National Oceanic and Atmospheric Administration Fisheries Service said the Federal Energy Regulatory Commission was out of line in issuing its license without necessary state and federal permits in hand. Before FERC can issue a license, NOAA Fisheries Service says it must be formally consulted on how to minimize the project's impact on endangered species.

The agency stopped short of asking FERC to withdraw or redo its decision, instead asking it to halt any proceedings on the project, proposed for 20 miles east of Astoria on the Columbia River. [Red emphasis added.] (Oct 17)

Webmaster's Comments: FERC already has multiple lawsuits against it for issuing LNG permits prior to state permits. States still hold the LNG terminal trump cards.


17 Oct 2008

FERC dismisses Quoddy Bay LNG — Federal Energy Regulatory Commission (FERC), Washington, DC

The link below leads to FERC's eLibrary download page for the Quoddy Bay LNG project.

To date, Quoddy Bay has not provided the previously requested information; nor has Quoddy Bay provided any further information regarding the possible revisions to the project design disclosed in its February 29, 2008 filing. Therefore, I am dismissing your application for the construction and operation of an LNG import terminal in Docket No. CP07-38-000, in accordance with Section 157.8(c) of the Commission’s regulations. In addition, I am dismissing Quoddy Bay Pipeline LLC’s applications for the construction and operation of the Quoddy Bay pipeline, a blanket certificate to perform certain routine activities and operations, and a blanket certificate to provide open access firm transportation services in Docket Nos. CP07-35-000, CP07-36-000, and CP07-37-000, respectively, as they are dependent on the application in Docket No. CP07-38-000. [Red & bold emphasis added.]

Webmaster's Comments: Quoddy Bay LNG is the first LNG project FERC has ever dismissed from the permitting process.

FERC dismisses Quoddy Bay LNG applications — Sutherland LNG Law Blog, Washington, DC

Today FERC formally dismissed the applications  of Quoddy Bay LNG LLC to build and operate an LNG import terminal and associated pipelines. FERC cited Quoddy Bay LNG's failure to provide previously requested information and failure to offer further information regarding the possible changes to the project design. [Bold red emphasis added.]

Quoddy Bay LNG dismissed from Fed review — WQDY FM, Calais, ME

The feds got tired of waiting.

In a letter to Quoddy Bay LNG officials, dated Oct. 17, the Federal Energy Regulatory Commission [FERC] has dismissed their application for construction and operation of an LNG import terminal. [Red emphasis added.]

FERC dismisses Quoddy Bay LNG applications — Energy Current, Houston, TX

In a letter to Quoddy Bay, FERC said that its staff could not proceed with its engineering review or prepare the project's draft Environmental Impact Statement due to Quoddy Bay's incomplete responses.

In April of this year, FERC suspended its review of the project due to lack of information requested from Quoddy Bay concerning the terminal's proposed vaporizer revision as well as the safety and reliability of the proposed cryogenic transfer line.

Save Passamaquoddy Bay, an alliance of citizens from the U.S., Canada, and the Passamaquoddy Indian tribe who oppose the citing of LNG facilities in Passamaquoddy Bay, described Quoddy Bay's July announcement about the reconfigurement as its "long list of excuses about why they are asking the BEP to postpone or to allow withdrawing their application for a proposed LNG facility at Pleasant Point." [Red & bold emphasis added.]

Good move, Gov. Riley [Editorial] — The Anniston Star, Anniston, AL

Concerns already expressed by the governor had brought an offer of $30 million from TORP to offset any damage to sea life, but that was not enough. Last week, after again reviewing the plan and concluding that there were simply too many unknowns in the process, the governor announced that he believed "the potential benefits of the LNG terminal off our coast do not outweigh the consequences and the potentially negative effect this could have on our coastal environment."

Gulf LNG Energy to break ground — Your Oil and Gas News, Aberdeen, Scotland, UK

Gulf LNG Energy plans an official groundbreaking today at the Port of Pascagoula for its estimated $1.1 billion liquefied natural gas terminal, which it expects to have in service by September 2011.

Webmaster's Comments: With all the competition from prolific and low-priced domestic natural gas, how will Gulf LNG Energy keep from losing its shirt?

Sound off [Op-ed column] — The Mississippi Press, Pascagoula, MS

When the LNG company came into Pascagoula three years ago to propose this terminal, their frontline position was that they'd seek no tax reductions. Thursday's paper says the Board of Supervisors has given them a 10-year, 35 percent reduction. My property taxes just went up 40 percent this year. The Pascagoula and Jackson County citizens have gotten hosed again by the Board of Supervisors, who think it's a mandate and a right to reduce taxes for large companies.

US natural gas reserves increased by record 46.1 Tcf in 2007: EIA — Platts

US proved natural gas reserves increased by a record 46.1 Tcf in 2007, more than twice the 19.5 Tcf actually produced last year, according to the US Energy Information Administration.

The agency, in a report out late Thursday, said the additions left total gas reserves as of December 31 of 237.7 Tcf, 13% above year-end 2006 and the highest level in the 31 years EIA has published annual reserves data. [Red & bold emphasis added.]


16 Oct 2008

Suez LNG subsidiary completes pipeline construction for Neptune offshore LNG facility — The Earth Times, New York, NY

BOSTON - (Business Wire) SUEZ LNG NA LLC (GDF SUEZ Group) announced today that it has completed pipeline construction for its offshore LNG project, Neptune.

Pipeline installation activities for 2008 included: (1) laying the pipeline, consisting of both a natural gas transmission line and a flowline that connects the buoys, on the sea bottom; (2) plowing a sub-sea trench and placing the pipeline in the trench; and (3) backfilling the trench and hydrotesting to ensure pipeline integrity. Next year, the company will focus on installing the buoy system, which will connect the LNG vessels to the sub-sea pipeline, and the connection between the new pipeline to the existing Spectra Energy HubLineSM.

Bail out could help Jefferson County [Opinion column] — Hartselle Enquirer, Hartselle, AL

[Alabama Governor] Riley said he believes the potential benefits of the proposed liquefied natural gas (LNG) terminal do not outweigh the consequences such a facility could have on our coastal environment. The proposed terminal would have accepted natural gas chilled to minus 260 degrees, called LNG. With the open-loop technology, massive amounts of seawater would be used to convert the solid gas to liquid gas; a process fisheries experts say would devastate fragile sea life. The governor said he was not opposed to an LNG project in the Gulf, but not one with the "open-loop" technology." [Red emphasis added.]

Official start to LNG terminal — SunHerald TV, Gulfport, MS

The remote location for the Gulf LNG terminal was touted as ideal. It's 1.7 miles by water from the Singing River Yacht Club, at the end of a road lined with industry, near a web of existing gas pipelines.

It was John Howland, senior vice president of Crest Investment Company in Texas, who remembered the site from decades ago when he was in the rice business. The site was selected for a terminal in the 1980s but the market for natural gas went flat and the expensive LNG process wasn't cost-effective. [Red & bold emphasis added.]

Webmaster's Comments:

Satayana’s Aphorism on Repetitive Consequences*
“Those who cannot remember the past are condemned to repeat it.”

— George Santayana (1863–1952)
“The Life of Reason,” Volume 1: “Reason in Common Sense,” 1905

* We have coined this highfalutin title for Satayana’s astute observation.
Aphorism — A brief, sometimes whimsical or ironic, statement of truth.

Freeport LNG requests determination on Pre-Filing process for re-export proposal — Sutherland LNG Law Blog, Washington, DC

Earlier this week, Freeport LNG requested a determination from FERC whether the terminal must follow the pre-filing process applicable to LNG facilities as it seeks authorization for its LNG re-export proposal. FERC determined on October 8 that Sabine Pass LNG was not required to pursue the pre-filing process to obtain re-export authority. 

Webmaster's Comments: Both Freeport LNG and Sabine Pass LNG are among the six new proposals to export LNG from the US and Canada, instead of importing LNG, now that importing LNG can no longer compete with abundant domestic natural gas resources.

Item A-3: FERC staff presents the Winter Energy Market Assessment 2008 - 2009 — Federal Energy Regulatory Commission (FERC), Washington, DC

PDF fileThe following link will download a PDF document; 244 KB

…[T]he U.S. is in the midst of its second year of robust production growth. Production grew almost 9% through the first seven months of 2008 and EIA estimates that lower 48 gas production for the entire year will rise by 7% compared to 4% for 2007. … These supply gains have been partially offset by declines in imports of LNG and pipeline supplies from Canada. [Red emphasis added.]

Analysis: Future of North American LNG market uncertain — Sutherland LNG Law Blog, Washington, DC

Noting that some industry experts remain optimistic that LNG will be necessary to meet future North American natural gas demand, World Gas Intelligence offers an analysis of recent events in the North American LNG market and concludes that the future of the continent's natural gas market is uncertain. [Red & bold emphasis added.]

Webmaster's Comments: Below is the article summary for the above-referenced article from paid-subscription-only World Gas Intelligence:

While some still say North America will need LNG over the long term, challenges associated with importing large volumes of gas appear to be mounting. Tough competition for supply, rising project costs, growing US gas production, and low regional gas prices have brought a recent wave of cancellations and adjustments to East Coast import projects. Ironically, this is happening amid signs that cheap gas is deterring upstream spending and perhaps endangering the US production spurt. [Red & bold emphasis added.]

Webmaster's Comments: The message keeps getting hammered home: Downeast LNG, Calais LNG, and Quoddy Bay LNG are victims of a domestic natural gas market reversal that dictates against constructing additional LNG import facilities in the US.

US working gas in storage rises 79 Bcf to 3.277 Tcf: EIA — Platts

Inventories now are 84 Bcf above the five-year average of 1.861 Tcf in the East, 17 Bcf above the five-year average of 423 Bcf in the West, and 15 Bcf below the five-year average of 907 Bcf in the producing region.

Webmaster's Comments: Once again, the US Government is indicating that there is a surplus of natural gas — especially in the East. There is no justification for Downeast LNG, Calais LNG, or Quoddy Bay LNG.


15 Oct 2008

South Mississippi welcomes LNG terminal to help increase energy supply — WLOX TV, Pascagoula, MS

Governor Haley Barbour says the building of a new Liquefied Natural Gas Terminal is another big step toward more energy, especially during a time of increasing gas prices and a dwindling energy supply.

Webmaster's Comments: Energy industry news must not reach Mississippi Gov. Barbour. Domestic natural gas supply is prolific enough to provide the US for over 100 years, according to industry participants.

Gulf LNG Energy to break ground — The Mississippi Press, Pascagoula, MS

Gulf LNG Energy plans an official groundbreaking today at the Port of Pascagoula for its estimated $1.1 billion liquefied natural gas terminal, which it expects to have in service by September 2011.

Another LNG player emerges — Kitimat Northern Sentinel, Kitimat, BC

KLNG announced last month (Sentinel, September 24) it was reversing direction on its planned Kitimat plant, looking at exporting rather than importing.

Now an outfit called LNG Partners LLC is looking to do the same thing. [Red emphasis added.]

Webmaster's Comments: This is the sixth new LNG export project for North America.

KLNG says project timetable still intact — Kitimat Northern Sentinel, Kitimat, BC

The Kitimat LNG liquefaction terminal - a recent turnaround from the originally proposed regasification facility - is still on track for a late 2009 or early 2010 groundbreaking.

“Prices in Asia are quite a bit higher [for natural gas] than North America and we expect that to be a long term situation,” she said, noting Asia’s heavy reliance on imported fossil fuels because of their own lack of domestic supply.

…Schmaltz [stated] that her company has talked with oil sands producers which had been interested in KLNG’s import facility, and “with the changes in development of natural gas reserves not only in Canada but in the US, they are much more comfortable that there is going to be lots of natural gas for everybody.” [Red & bold emphasis added.]

LNG race gets hotter; Oregon LNG seeks approval — (AP) The Daily News, Longview, WA

The filing comes as the LNG market has cooled in North America and heated up in Asia.

Domestic gas is cheap and abundant, and Asian countries are willing to pay premiums for LNG cargoes. British Petroleum recently backed out of a proposed terminal on the Delaware River, while several [US and Canadian] terminals are applying for permission to export U.S. and Canadian gas to take advantage of the Asian bonanza. [Red & bold emphasis added.]

Oregon LNG is back in the race — The Daily Astorian, Astoria, OR

Oregon LNG's application comes as the U.S. market for gas appears to have … collapsed. Domestically produced gas is cheap and abundant. Asian countries are willing to pay such eye-popping premiums for LNG cargoes that many industry experts doubt it makes sense to import LNG to the United States. [Red & bold emphasis added.] (Oct 14)

Pipeline threatens landowner's livelihood — The Daily Astorian, Astoria, OR

If the project goes as planned, not only would Wahle have to pull out more than six acres of her 18-acre vineyard, she would be prohibited from replanting winegrapes over the pipeline.

"We depend on the vineyard to pay our bills," Wahle said.

The companies could face stumbling blocks when attempting to cross state lands. The Oregon State Land Board retains authority over the use of those lands, and to date, two members of the board - State Treasurer Randall Edwards and Secretary of State Bill Bradbury - have come out in opposition to the project. Gov. Ted Kulongoski, the third member of the board, also appears cool to the project and has called for a rehearing of the Bradwood Landing terminal approval. (Oct 14)

LNG opponents ready to fight — The Daily Astorian, Astoria, OR

"It's outrageous that Oregonians have to waste their time fighting terrible ideas like this one, proposals that put our public safety, our river, and our future in renewable energy at risk," she said. "Make no mistake, though - we will fight them every step of the way." (Oct 14)

Third company enters LNG race — The World, Coos Bay, OR

The Oregon LNG project initially was launched by Calpine in 2004, which went bankrupt. A New York-based holding company bought out Calpine.

Barclays analyst cuts gas and oil price forecasts sharply — Platts

"Strong supply growth and a deteriorating demand outlook will likely weigh on gas prices," Driscoll said in a note to clients.

A slowing economy does little to add to demand for gas, while producers continue to outpace themselves producing gas for what has now become an oversupplied market, Driscoll said. [Bold red emphasis added.]

Webmaster's Comments: The message keeps repeating, ever-more frequently: there's a glut of domestic natural gas driving prices downward, killing chances for new LNG import projects.

Time for a U.S.-Iranian 'Grand Bargain' — CASMII (Campaign Against Sanctions and Military Intervention in Iran)

The lack of new European investment will …, among other things, delay Iran's emergence as an exporter of liquefied natural gas (LNG).

[L]imiting Iran's options for exporting natural gas to pipelines will help consolidate Russia's increasingly dominant supplier role in European energy markets and allow Moscow effectively to regulate Iran's emergence as a gas exporter.

Iran has the world's second-largest proven reserves of natural gas (after Russia). The Islamic Republic's proven gas reserves are currently estimated at 940 trillion cubic feet, and there is considerable upside potential for discoveries of more gas deposits.


14 Oct 2008

LNG plant's problems highlight complexity of the energy puzzle — Southern Political Report

October 14, 2008 — Last week, while the financial markets were imploding, there was a significant development in the energy sector. For the third time in five years, Alabama Gov. Bob Riley (R) gave thumbs down to a proposed liquefied natural gas terminal in the state’s coastal zone. [Red emphasis added.]

Groundbreaking set for Pascagoula LNG terminal — (AP) SunHerald, Gulfport, MS

PASCAGOULA, Miss. -- Gulf LNG Energy has announced the groundbreaking for its liquefied natural gas import facility at the Port of Pascagoula.

Webmaster's Comments: With the natural gas market as it is, how will Gulf LNG Energy keep from losing money?

Russia's Gazprom visits Alaska to discuss planned pipelines — Platts

"Our interests are not limited to the European continent only...Gazprom has unique experience, knowledge and modern technology and is the leading company in transporting gas by pipeline. That is why we are interested in such a large-scale project as construction of the gas pipeline from Alaska," he said in a speech at the St Petersburg International Economic Forum.

Mulva said at the time that ConocoPhillips would study Gazprom's proposal.

Webmaster's Comments: Does the US really want Russia involved in US energy infrastructure?

LNG opponents to intervene in Oregon LNG Project — The Hillsboro Argus, Hillsboro, OR

ASTORIA — The Oregon LNG project, a proposed liquefied natural gas and pipeline development that would involve a terminal in Warrenton and a 118-mile pipeline through the Willamette Valley, drew a swift reaction from its opponents after Oregon LNG filed its official application with FERC. A coalition of farmers, foresters, businesses and conservationists will intervene in the Federal Energy Regulatory Commission process to challenge the project.

"Oregon LNG's project is wrong for Oregon. They are proposing to tear up the Columbia River to import LNG at a time when North American LNG and gas companies are actively seeking to export LNG, and when global LNG prices are several times higher than domestic gas supplies. We will intervene to protect the Columbia River and to block this newly proposed foreign fossil fuel addiction." [Red emphasis added.]

Lineup for LNG project adds a competitor — The Oregonian, Portland, OR

Oregon LNG's application comes as the U.S. market for gas appears to have temporarily collapsed. Domestically produced gas is cheap and abundant. Asian countries are willing to pay such eye-popping premiums for LNG cargoes that many industry experts doubt it makes sense to import LNG to the United States.

Industry giants are sending the same message. British Petroleum [BP] recently backed out of a proposed terminal on the Delaware River, citing lousy industry conditions, while several terminals are applying for permission to export U.S. and Canadian gas to take advantage of the Asian bonanza. [Red & bold emphasis added.] (Oct 13)

Webmaster's Comments: Even Oregon LNG's CEO Peter Hansen says, "Why would you bring an LNG tanker under the Astoria bridge?" … "A pool fire is like a nuclear meltdown. The likelihood of such an accident is remote, but the consequence is enormous. ... It would burn Astoria."

Regulators resist environmental review of importing LNG — KPBS TV/FM, San Diego, CA

San Diego and most of Southern California already violate federal clean air standards. Agencies responsible for monitoring air quality fear Sempra’s plan to import liquefied natural gas from overseas will increase pollution and jeopardize public health. They want an environmental review but so far regulators have resisted.

The cost of importing liquefied natural gas — KPBS TV/FM, San Diego, CA

What it means is that the consumer would be paying considerably more for [LNG-source] natural gas than they would otherwise and that it would be a completely voluntary move.

[Energy consultant] Bill Powers: At this time in California, money is tight. We have ample domestic natural gas. It’s demonstrably cheaper and we have a private company that rolled the dice, built a huge terminal in Baja California under the presumption that in a few years when it was ready, lng would be less expensive than domestic gas. They bet wrong. In fact, they bet dramatically wrong.

Navigant Consulting Firm … put out a study this summer showing there is every reason to believe that the current price structure will continue….

[Chesapeake Energy’s Tom Price]: We believe we have about 120 years worth of natural gas reserves at the current consumption levels. It is a complete game changer. [Red & bold emphasis added.]

Webmaster's Comments: Downeast LNG, Calais LNG, and Quoddy Bay LNG also bet dramatically wrong — for some of the same reasons as indicated in the above story, but also because they selected exceedingly inappropriate locations for their terminal sites.

US gas producers likely to cut drilling 20% in 2009: analysts — Platts

…Rockies-area production "appears likely to again face regional takeaway constraints as early as next fall," the analysts said.

Industrial end-users, including chemicals, fertilizer, and primary metals producers, "are benefiting from reasonable product prices and cheap US natural gas prices," the analysts noted. [Red & bold emphasis added.] (Oct 13)

Webmaster's Comments: In other words, domestic natural gas production is outpacing the ability to transport all that natural gas, and domestic natural gas abundance has caused low natural gas prices — so low that importing LNG is unnecessary and too expensive.

US support for Lithuanian LNG plant indicative of frenetic attempts to reduce Russian gas dependence — iStockAnalyst, Salem, OR

[A] number of other European member states, most notably Poland and Germany, are also starting to look afresh at LNG options as a potential path to offset Russian dependence.

Webmaster's Comments: The US wants Lithuania to be natural gas-independent from Russia, but has actually invited Russia to own US energy infrastructure. Does the US Federal Government's right hand know what the left hand is doing?


13 Oct 2008

Gazprom may get 27 pct in Canadian LNG terminal — Yahoo Singapore News

MOSCOW, Oct 13 - Russian gas export monopoly Gazprom may get a 27 percent stake in Canada's Rabaska liquefied natural gas terminal, a top executive of France's GDF Suez was quoted as saying on Monday.

Webmaster's Comments: Russian ownership of North American energy supply should be setting off alarm bells all over Canada and the US.

Gazprom eyeing blocking stake in Canada's Rabaska Project — Russian News and Information Agency, RNA NOVOSTI

Maxim Shein from BrokerCreditService suggested Gazprom would have to pay as much as 300 million for the 27% in Rabaska, which would also include a "fee" for entering the American market, in addition to covering the construction proper.

Mikhail Korchemkin, director of the East European Gas Analysis consultancy, said gas prices in Canada had been 45% lower than in Europe last year. [Red & bold emphasis added.]

Webmaster's Comments: Even Canada has a surplus of domestic natural gas, as indicated by the Kitimat LNG project that has switched from importing to exporting LNG, as well as by the lower natural gas prices in Canada as compared to Europe.

LNG terminal on Delaware shelved — The News Journal, Wilmington, DE

Radically different world energy markets have forced energy giant BP to abandon plans for a $700 million natural gas import terminal along the Delaware River "for the foreseeable future," the company disclosed on Wednesday.

BP spokesman Tom Mueller said the company is in the process of folding up its remaining Crown Landing operation and notifying local government and emergency officials that planning work will cease. Demand and prices for LNG in other countries, Mueller said, left little short-term hope for the New Jersey operation. [Red emphasis added.] (Oct 9)

Webmaster's Comments: Energy giant BP can't make importing LNG into the US profitable — or even possible. Does anyone believe that Downeast LNG, Calais LNG, or Quoddy Bay LNG know something that BP doesn't? Quite the opposite is true: Downeast LNG, Calais LNG, and Quoddy Bay LNG are projects to nowhere, and will be leaving town after they've exhausted their investors' venture capital.

LNG -Too much too little too late — reEarth, Nassau, The Bahamas

The Government of the Bahamas needs to get serious about their rhetoric with regard to global warming and climate change. Why after 7 years of stalling the AES project are they continuing to “court” AES’ latest proposal to build a pipeline and re-outfit BEC at this very late stage of the game?

Earlier this year, reEarth suggested that the government create soft loans for Bahamians to purchase solar water heaters. 11 million dollars would purchase at least 6,000 water heaters, this would in turn create jobs for Bahamians that would need to be trained to install them. The government’s mantra is always about creating jobs — perhaps the government and the private sector should think about The Bahamas manufacturing solar panels or solar water heaters to supply the Bahamas and the Caribbean. Moving the country into the alternative energy field would create thousands of jobs, that produce clean energy from sources that are naturally abundant, solar, tidal, and wind. Just to name a few. [Red emphasis added.]

Let LNG company try cleaner approach [Editorial] — The Press-Register, Mobile, AL

With an open-loop system, an LNG terminal pumps millions of gallons of sea water, heats it and uses it to reheat the gas. The proposed TORP plant (TORP stands for Terminal Offshore Regas Plant) would have pulled in 150 million gallons of water from the Gulf each day.

The process can kill numerous small fish, plankton and other diminutive aquatic life essential for growth of marine life in the area. Opponents of the terminal say this could have decimated fish populations.

Oregon LNG files application to obtain permit approval for natural gas facility — Energy Business Review, London, England, UK

Oregon LNG is a proposed liquefied natural gas import facility located on the Skipanon Peninsula in Warrenton, Oregon.

LNG supporters catch up in making presence seen — The World, Coos Bay, OR

As president of Friends of New and Sustainable Industries, he has provided his support to Bishop and the Web site. He too has been trying to get more support behind the LNG terminal and sees the Web site as an opportunity to educate the public.

“The thing that becomes blatantly obvious as we talk to people is that they are only hearing one side of the story,” he said.

While Bishop doesn’t have any solid facts to support his insistence that most people like the idea, he said he has spoken with a many business owners and citizens who share his views. (Oct 11)

Webmaster's Comments: If Bishop were to be believed, Jordan Cove LNG developers haven't been providing any information to the Coos Bay community about their LNG project. The Friends of LNG website even assaults the LNG opposition because they have a paid organizer. Apparently, multi-millionaire Jordan Cove LNG's paid public relations effort pales in comparison to the money and effort coming from the LNG-opposition's single paid person, and otherwise all-volunteer effort.

Note: The Jordan Cove LNG site location violates best practices established by the world LNG industry, via the Society of International Gas Tanker and Terminal Operators (SIGTTO). (See also, LNG Terminal Siting Standards Organization.)

Part 2: Sempra's Plan to Import Liquefied Gas Raises Health Concerns — KPBS TV/FM, San Diego, CA

Southern California has some of the dirtiest air in the country. And air quality monitors say if San Diego-based Sempra Energy moves ahead with plans to import liquefied natural gas, the air will be even more polluted. They say public health and the environment are at risk. In the second of KPBS’s four-part series on the effects of Sempra’s push to bring in foreign natural gas, Reporter Amita Sharma has more.

Natural gas has been used in the Southland for decades because it is cleaner…it creates fewer smog forming and toxic emissions when burned than other fossil fuels. But not all natural gas is created equal. [Red emphasis added.]

Webmaster's Comments: As the article indicates, the imported LNG will contain hydrocarbons other than methane, causing more pollution than from purer domestic natural gas.

Sempra's LNG plant fuels controversy — KPBS TV/FM, San Diego, CA

The plant has fueled concern that Mexico and Sempra have gambled on LNG to the detriment of the region. KPBS Border Reporter Amy Isackson brings us the first report of four on liquefied natural gas.

Sempra will sell a fraction of the fuel to Mexico's power company.

Sempra plans to sell the rest across the border. Though, it doesn't have any customers yet.


10 Oct 2008

— LNG Imports on the Outs —

LNG firm looks to Ontario — The Chronicle Herald, Halifax, NS

Developers of a $700-million liquefied natural gas terminal in Goldboro [NS] are switching direction.

Instead of sending gas to markets in the U.S. northeast, MapleLNG Ltd. — the Canadian subsidiary of 4Gas, a Rotterdam company developing LNG terminals globally — wants to ship the gas to Ontario.

…Brian Dutton, a Canadian gas and oil equity analyst with Credit Suisse who works out of Toronto, predicted not as much liquefied gas will be needed in North America because unconventional forms of gas, such as that from shale, are making inroads. [Red & bold emphasis added.]

Webmaster's Comments: Even Canadian LNG import projects are dmonstrating there's no market for their LNG-source natural gas in the US. This is the second Canadian LNG project to change direction. The other is Kitimat LNG in British Columbia that is now proposing to export LNG to Asia.

BP freezes plans for LNG terminal — The Oregonian, Portland, OR

BP PLC, Europe's second-largest oil company, suspended plans to build a $500 million liquefied-natural-gas terminal on the Delaware River in New Jersey, saying it doesn't make economic sense.

"The market conditions for such an LNG terminal just aren't right," London-based spokesman David Nicholas said Thursday. [Red & bold emphasis added.]

Dominion expansion of Cove Point LNG Pipeline resumes — The Bay Net, California, MD

[N]o one has addressed the fact that local farmers’ incomes are reduced until after the pipeline construction is complete. [Red & bold emphasis added.]

Alabama Gov. rejects proposed open-loop offshore liquefied natural gas terminal — All Headline News, Wellington, FL

Mobile, AL (AHN) - Alabama Gov. Bob Riley has rejected a proposed project by a Texas company to build an offshore liquefied natural gas terminal in the Gulf of Mexico about 63 miles south of Mobile.

In a statement Thursday, Riley said that his decision incorporated concerns about the potential adverse environmental impact on marine life.

Webmaster's Comments: This is Alabama's third failed LNG terminal attempt.

Governor Riley notifies company of opposition to LNG application, company withdraws application — WAAY TV, Huntsville, AL

"I continue to be extremely concerned about the potential environmental impact of the proposed terminal on our marine resources," said Governor Riley.  "I believe the potential benefits of the LNG terminal off our coast do not outweigh the consequences and the potentially negative effect this could have on our coastal environment."

Governor Riley opposed a proposal from ConocoPhillips Corp. in 2006 to use an open loop system for a different LNG facility off Dauphin Island.  When Governor Riley informed officials with ConocoPhillips of his opposition, the company withdrew its open loop application.

TORP withdraws LNG application — Energy Current, Houston, TX

MONTGOMERY, ALA.:Houston-based TORP Technology has withdrawn its application for the Bienville liquefied natural gas (LNG) project after Alabama Gov. Bob Riley told TORP officials he had concerns about the company's application.

Late last month, the National Marine Fisheries Service (NMFS) recommended that the U.S. Coast Guard deny TORP's application to build and operate the proposed Bienville LNG terminal. NFMS said the proposed project posed a threat to marine life in the area.

Reaction comes to decision on LNG facility — WKRG TV, Mobile, AL

Plenty of people are talking about a Texas company's decision to withdraw its proposal to build a Liquefied Natural Gas or LNG facility off Dauphin Island.

The decision by Torp Technology comes two days after Alabama Governor Bob Riley told the company he had problems with the plan. (Oct 9)

Guest column: Why someone needs to listen to the people's clear, loud voice on LNG [Op-ed column] — The Daily Astorian, Astoria, OR

If proponents think [the landslide vote against "pipelines in parks"] only a narrow vote…, what question do they think would have received a majority "yes" vote?

Pipelines within 25 feet of homes? Pipelines across farms? Pipelines near schools? Clean energy, good jobs? The latter being exactly the argument Bradwood tried to make and which people didn't buy. Proponents had ample resources to make their case, spending more than double that of opponents, and they lost. With LNG, the more people know the more they want to say no.

The time has come for our local elected officials to stop stubbornly supporting what they perceive to be in the people's best interest and defend what the people themselves perceive to be in their best interest. And we have no interest in LNG. [Red emphasis added.]

For Oregon, California or Asia? Prices, market conditions make observers wonder if terminals will import or export gas — The Hillsboro Argus, Hillsboro, OR

[C]hanging market conditions have prompted the developer of at least one planned West Coast LNG terminal to switch from plans of importing LNG to exporting it.

That's led opponents of the controversial gas projects on the Columbia River to question whether the LNG terminals are designed to help California, as they initially asserted, or Korea and Japan.

"The supply of natural gas in the U.S. market has been increasing, and that trend is expected to continue," said Ilene Schmaltz, vice president of supply marketing for Kitimat LNG Inc. "We also expect natural gas supplies from Western Canada to increase. Therefore, Canada must find alternative markets for its natural gas as demand from the U.S. relaxes." [Red & bold emphasis added.]

Oregon LNG files FERC application — Energy Current, Houston, TX

WARRENTON, ORE.: Oregon LNG today filed its formal application with the Federal Energy Regulatory Commission (FERC) for the proposed Oregon liquefied natural gas (LNG) project.

The site is located near the mouth of the Columbia River, which means tankers will not have to pass by Astoria or go under the Astoria-Megler Bridge to serve the facility -- a significant advantage compared to upriver locations. "The Oregon LNG site is ideal from a safety and security standpoint because the project site and the tanker route are distant from population centers, bridges and other major infrastructure." The site also has far lower impacts on salmon than any other site on the Columbia River.

Natural gas pipeline approved (sic) — Indian Country Today, Canastota, NY

PORTLAND, Ore. – Despite opposition from Oregon’s governor, tribes and environmental groups, the Federal Energy Regulatory Commission voted 4 – 1 in favor of the construction of a liquefied natural gas terminal at the Bradwood site on the Columbia River Sept. 18.

Plans also entail the construction of a 36-mile pipeline that connects Bradwood with the natural gas system of the Northwest Pipeline Corp., near Kelso, Wash.

The Yakama, Nez Pearce, Warm Springs and Umatilla tribes collaborated more than 30 years ago to create CRITFC in order to establish authority over fisheries management and legislation affecting the salmon and other fish species in the Columbia River.

The CRITFC, Columbia Riverkeeper, and supporting tribes and organizations have requested that FERC hold a new hearing on the Bradwood project. [Red emphasis added.]

Growers fear pipeline impact — Capital Press, Salem, OR

CARLTON, Ore. - Each year about this time, Betty Wahle worries whether she'll get her Pinot noir winegrapes harvested before fall rains arrive.

This year, Wahle has an additional worry.

Wahle is worried a pipeline is about to change her future and the future of her family. (Oct 9)


9 Oct 2008

Head Harbour Passage trip offered — Telegraph-Journal, Saint John, NB

ST. ANDREWS — Those who haven't had a chance to travel by boat through Head Harbour Passage or would like to get another look will have an opportunity on Oct. 18.

Save Passamaquoddy Bay/Canada is arranging a trip through the waterway that LNG tankers would have to use to reach proposed LNG terminals on the Maine side of Passamaquoddy Bay.

US sets ship speed limit to protect right whales — WQDY FM, Calais, ME

The National Oceanic and Atmospheric Administration [Wednesday] issued an 11-knot speed limit for ships 65 feet or longer that travel within 23 miles of major mid-Atlantic ports, as well as areas where the North Atlantic right whale breeds, feeds and migrates.

LNG terminal on Delaware shelved — The News-Journal, Wilmington, DE

Radically different world energy markets have forced energy giant BP to abandon plans for a $700 million natural gas import terminal along the Delaware River "for the foreseeable future," the company disclosed on Wednesday.

The two newest LNG terminals on the Gulf Coast, in Texas and Louisiana, already have sought approval to begin re-exporting LNG, instead of selling into already well-supplied North American markets.

Another brand new import terminal on Canada's Pacific Coast last month proposed a switch to full export operations, with new equipment to liquefy North American gas for shipment and sale to other countries. [Red & bold emphasis added.]

BP suspends plan for a liquefied gas plant in S. Jersey — The Philadelphia Inquirer, Philadelphia, PA

"The global economics of LNG have caught up with us," he said. [Red & bold emphasis added.]

Supreme Court declines to hear county's LNG case — The Dundalk Eagle, Dundalk, MD

Letting a lower court panel ruling stand, the U.S. Supreme Court declined a petition brought by Baltimore County in part of an effort to stop the construction of a liquefied natural gas facility on Sparrows Point, the court announced Monday.

Update 1 - U.S. allows Cove Point LNG expansion to continue — Reuters

The Federal Energy Regulatory Commission decided to reissue its authorization of the expansion of Dominion Resources' (D.N: Quote, Profile, Research, Stock Buzz) Cove Point LNG terminal, but limit the amount of supply shipped to a local distribution company.

[T]he court ultimately sided with Washington Gas, saying FERC failed to show that the company could address these safety concerns before the November completion of the project. The case was sent back to the FERC to better address the potential for unsafe leaks. (Oct 7)

Webmaster's Comments: It took the court to get FERC to take the appropriate safety action. FERC's claim that they are primarily a safety agency rings hollow.

LNG is no certainty [Editorial] — The Baltimore Sun, Baltimore, MD

Deciding where LNG terminals can be built shouldn't be up to FERC alone. The Bush administration has a poor record in regulatory matters, particularly involving the energy industry.

Opponents have legitimate concerns about Sparrows Point from the impact of local dredging to the security implications of having large LNG tankers so far up the Chesapeake Bay. The former requires finding a site to dispose of millions of cubic yards of contaminated soil, and the latter may mean disrupting marine traffic to give the ships a wide berth. [Red emphasis added.]

Ala. governor's decision near on LNG terminal — (AP)

The proposal for the TORP Bienville terminal would require an average of about 127 million gallons of seawater per day.

The fisheries service warned the Coast Guard last month that the open-loop system could kill millions of fish eggs and billions of other microscopic marine organisms that would be swept up by the powerful inflow and shocked on exposure to extreme cold. The report said the loss of marine life would set back efforts to rebuild populations of red drum, snapper and other fish, a blow to commercial and recreational fishing.

Under the Deepwater Port Act, Alabama's governor could block the project or approve it with some restrictions. (Oct 8)

FERC determines no Pre-Filing process required for Sabine Pass LNG re-export request — Sutherland LNG Law Blog, Washington, DC

FERC said that the re-export request did not involve significant safety considerations that have not already been addressed, and noted that Sabine Pass filed a letter from the U.S. Coast Guard stating that the modifications to the project will not change or exceed the impacts considered in the March 2006 Waterway Suitability Report for the existing facility.

Webmaster's Comments: This is one of FIVE NEW NORTH AMERICAN LNG EXPORT projects, due to the great abundance of North American natural gas that moots proposed LNG import projects, as well as some existing import terminals.

State threatens to sue FERC over Bradwood Landing decision — The Daily News, Longview, WA

State officials said that FERC approved the Bradwood Landing terminal last month without considering all environmental and safety risks, and should have waited for the state to issue a clean-water permit.

“FERC just screwed up,” assistant attorney general Joan Marchioro said. The state, she said, is telling the federal agency, “We’re going to give you a chance to fix it, and then we’re going to the principal’s office.” (Oct 8)

LNG opponents rally at Washington State Capitol, ask Gregoire to veto Bradwood — The Hillsboro Argus, Hillsboro, OR

"It is a relief to see Gov. Gregoire taking this action," said Gayle Kiser, president of pipeline opponent Landowners and citizens for a Safe Community. "It is absurd for the company to be given the right of eminent domain without first having to show that they comply with our laws, and it is completely reckless to think of committing Washington to more global warming emissions and more foreign fossil fuels." (Oct 7)

LNG is becoming a buyer's market as oil drops, says RBS Sempra — Bloomberg, New York, NY

There are already "stranded'' cargoes of the super-cooled fuel that have no destination and were bought when LNG spot prices peaked at about $25 a million British thermal units.

The U.S. gas market is "loaded'' with domestic production while nuclear power disruptions in Japan, which boosted LNG imports by 8 billion cubic meters to the world's biggest market for the fuel, may soon be solved. [Red & bold emphasis added.]

LNG prices may fall on new supplies, Goldman says (Update1) — Bloomberg, New York, NY

Asian LNG demand may increase by 830 million cubic feet a day (6.4 million tons a year) next year while North West Europe, led by Spain, may boost LNG purchases by 970 million cubic feet a day, according to the report. New LNG buyers including Brazil, Argentina, Chile, Kuwait and Pakistan may import 430 million next year from zero in 2008. (Oct 7)

Webmaster's Comments: Even if LNG prices were to drop, LNG prices would remain above domestic US natural gas prices, due to the abundance of domestic natural gas compared to the costs of liquefaction, shipping, and regasification.

North American gas production pushes LNG away, for now — Clearing Up, Seattle, WA [Paid subscription required]

[The following link will expire soon.]

Four years ago the outlook for North American natural gas production was grim. LNG developers took note and rushed to fill the void, with three in development in Oregon. But times have changed, and at least one LNG import terminal planned for the West Coast now plans to export gas. [Red emphasis added.] (Oct 6)

US working gas in storage rises 88 Bcf to 3.198 Tcf: EIA — Platts

Inventories now are 76 Bcf above the five-year average of 1.823 Tcf in the East, 16 Bcf above the five-year average of 416 Bcf in the West, and 23 Bcf below the five-year average of 890 Bcf in the producing region. [Red emphasis added.]

Webmaster's Comments: There's plenty of natural gas in storage and there's plenty of available domestic supply.

EIA lowers estimate of U.S. LNG imports for 2008 — Sutherland LNG Law Blog, Washington, DC

In its Short-Term Energy Outlook released yesterday, the U.S. Energy Information Administration (EIA) lowered its projection for LNG imports to the United States to 350 Bcf for 2008. The revised import level is down from the EIA's previous estimate of 390 Bcf. [Red emphasis added.] (Oct 8)

Webmaster's Comments: The Energy Information Agency (EIA) has been consistently reporting a downward spiral of LNG imports.

Report: Increased North American shale gas production may limit U.S. LNG imports — Sutherland LNG Law Blog, Washington, DC

Canadian energy consulting firm Tristone Capital released a report this week predicting that increased natural gas production from North American shale plays could limit the volume of U.S. LNG imports over the next several years.

Webmaster's Comments: Everyone seems to be in agreement — LNG imports aren't needed. Downeast LNG, Calais LNG, and Quoddy Bay LNG are simply continuing to waste time and money.

SIGGTO survey reveals recruitment challenge — Maritime Reporter, New York, NY

Vacancy levels in the shore-based LNG sector are at a record high and we forecast them to continue growing. Employers face competition for talent not only from direct competitors, but also banks and power companies who need people with specialist marine engineering know-how.” [Red emphasis added.]

Webmaster's Comments: This represents an additional challenge to LNG import developers in the US — especially since the marketplace has defined additional US LNG imports as unnecessary.


6 Oct 2008

Broadwater's plan not dead yet — Newsday, New York, NY

The company's senior vice president in charge of the project, John Hritcko Jr., said in an interview recently that its appeal of New York's decision, to the U.S. Department of Commerce, is pending, with the federal agency expected to cut off comments by mid-December and make a decision next year.

"Shame on us if we can't develop a responsible energy policy without sacrificing one of our greatest natural and economic resources," [New York Governor David A. Patterson] said.

Balto. Co. natural gas facility can move forward — The Baltimore Sun, Baltimore, MD

Supreme Court refuses to hear county's appeal

The U.S. Supreme Court today eliminated what could be one of the last legal hurdles to construction of a natural-gas import facility at a former shipyard near Dundalk.

Last year, the Baltimore County Council passed an amendment to its Coastal Zone Management plan that prohibited LNG plants and other facilities, such as oil refineries, in environmentally sensitive coastal areas. The law had been seen as giving opponents of the Sparrows Point project their best chance of stopping it.

Making no sense [Letter to the editor] — The Daily Astorian, Astoria, OR

Two new [U.S.] liquefied natural gas import terminals now want to export LNG, instead. With a total of five new LNG export projects in North America, along with LNG costing 50 to 100 percent more than domestic natural gas, the rush to build LNG import terminals in Oregon and the rest of the U.S. makes no economic sense for consumers or for U.S. energy security. [Red & bold emphasis added.]

LNG market set for production delays - research — (Reuters)

NEW YORK, Oct 6 (Reuters) - Delays in liquefied natural gas (LNG) production projects in the coming years will keep the market tight for the next 15 years, according to a report from Bernstein Research.

'Beyond 2009, the outlook over the next decade and a half appears to be of an increasingly tight global LNG market,' the report said. [Red emphasis added.]

Webmaster's Comments: The marketplace keeps repeating its message: Downeast LNG, Calais LNG, and Quoddy Bay LNG have no hope of success.


3 Oct 2008

Voices of the Bay sing out again — Saint Croix Courier, St. Stephen, NB

This Sunday, the Voices of the Bay choir will perform a concert in Grand Manan, making up for the event cancelled last Sunday due to weather warnings.

New!! Chamber boosts pipelines, oil tankers —, Terrace, BC

A Haida leader from the Queen Charlotte Islands said no one should assume that Pond speaks for all north coast residents when it comes to coastal oil tanker traffic.

"We have a position against gas and oil and we are saying 'no' and I want to make it very clear that the Haida Nation is not represented by Herb Pond — we speak for ourselves," said Arnie Bellis, vice president for the Council of Haida Nation.

Extra!! Extra!! Terrace chamber backs Kitimat projects —, Kitimat, BC

The Terrace and District Chamber of Commerce is urging that community's municipal leaders to support mayors Rick Wozney from Kitimat, Colin Kinsley from Prince George and Herb Pond from Prince Rupert on their firm stance supporting pipeline and port expansion projects in the North.

Webmaster's Comments: Kitimat LNG has recently reversed direction from an LNG import project to an LNG export project, due to the vast abundance of domestic natural gas in Canada.

Natural gas company reverses plans on facility — (CP) Business Edge, Calgary, AB

Kitimat LNG said last month that "fundamental changes" in the global natural gas market have made it more viable to export liquefied natural gas than to import it at the planned Bish Cove terminal near Kitimat, B.C.

"The growing economies of the Pacific Rim and rapidly increasing demand for LNG make Asia a natural market for B.C.'s plentiful and expanding supplies of natural gas," said Rosemary Boulton, president of Kitimat LNG.

"Regasification terminals in North America are underutilized," Schmaltz said. [Red emphasis added.]

Webmaster's Comments: With the great abundance of domestic natural gas in Canada and the US, and with LNG import terminals sitting idle, it makes no economic sense to construct additional domestic LNG import facilities.

LNG companies in dustup on site — The Oregonian, Portland, OR

NorthernStar, through shell company Pinnacle Long LLC, says it has established an ownership interest in Oregon LNG's site on Warrenton's Skipanon Peninsula, just west of Astoria. The company says it bought the deed from property owner George Warren and has also leased another property adjacent to the Oregon LNG site.

Pinnacle said in a letter dated last week to the Federal Energy Regulatory Commission that as a tenant on the project site, it objects to a new access road, as well as the removal of a dike, wetlands and a pond. The issues, it said, were "irresolvable." Consequently, Pinnacle said, Oregon LNG would never be able to establish site control, and FERC should stop wasting its time with the application.If true, that could be a sticky problem for Oregon LNG. But Peter Hansen, one of the partners in the Oregon LNG team, says it's all nonsense. The property is owned by the Oregon Department of State Lands, leased to the Port of Astoria, and subleased to Oregon LNG, he said. (Oct 2)


2 Oct 2008

Agencies say shipbuilder is eyeing point — The Dundalk Eagle, Dundalk, MD

“Currently there is a major shipbuilding entity that must remain confidential that has seriously professed interest in developing the shipyard into an active state-of-the-art operating fully functional shipyard,” wrote David W. Edgerley, Secretary of the Maryland Department of Business and Economic Development in a Sept. 4 letter to the Federal Energy Regulatory Commission.

Edgerley wrote that a liquefied natural gas facility proposed by AES Corp. for the area would not offer the same economic input to the state and would render the graving dock unusable for shipbuilding use. [Red emphasis added.]

Webmaster's Comments: A shipyard also wouldn't present the hazards to public safety that the proposed Sparrow's Point LNG terminal would present.

Court may hear AES LNG case — The Dundalk Eagle, Dundalk, MD

In June 2007, U.S. District Court Judge Richard D. Bennett upheld a Baltimore County law that would ban the construction of liquefied natural gas plants along the critical areas of the Chesapeake Bay.

In May, a pannel of three 4th U.S. Circuit Court of Appeals reversed Judge Bennett’s decision.

NorthernStar says it owns Oregon LNG land — The Hillsboro Argus, Hillsboro, OR

[A]ccording to the filing, Pinnacle Long is a tenant in common with the Oregon LNG developers, which had hoped to build the terminal on land leased from the Port of Astoria.

Here's the real rub: Pinnacle Long is an entity created by Houston-based NorthernStar Natural Gas, developers of the Bradwood Landing proposal, which also could send compressed gas through a different pipeline under Washington County.

Pinnacle was created when NorthernStar was looking at developing its LNG terminal in Warrenton. Spokesman Joe Desmond said the site had too many problems, including seismic stability and tsunami risk, and the company moved onto the Bradwood site, 20 miles east of Astoria.

Webmaster's Comments: Quoddy Bay LNG has a similar problem — their president, Don Smith, sent a letter to the Passamaquoddy Tribe at Sibayik stating that, (for the same reason that Nulankeyutomonen Nkihtahkomikumon is suing the Bureau of Indian Affairs [BIA]) since the BIA didn't follow the law in approving the ground lease between the tribe and the company, the lease isn't valid, so Quoddy Bay LNG doesn't have to make any more lease payments to the tribe. On the other hand, Quoddy Bay LNG is filing with that the lease is valid, so that Quoddy Bay LNG can stay in the FERC permitting process.

US natural gas output expected to stablize winter prices: NGSA — Platts

Natural gas prices are expected to remain stable this winter heating season, driven by a projected 8% increase in US production compared with last winter, a flagging economy, adequate storage and flat demand, according to a trade group representing gas producers.

"In response to what continues to be a tight energy market, natural gas producers have responded to market signals, resulting in a forecast for gas production to reach the highest levels since the early to mid-1970s," said Patrick Kuntz, chairman of the Natural Gas Supply Association. [Red & bold emphasis added.]

Webmaster's Comments: The industry keeps repeating the message: There is plenty of domestic natural gas, with no need for additional LNG import terminals. It should be clear by now to Downeast LNG, Calais LNG, and Quoddy Bay LNG that their projects are beyond salvation.


1 Oct 2008

FERC issues data request for Sparrows Point LNG project — Sutherland LNG Law Blog, Washington, DC

This week FERC requested additional environmental information regarding the pipeline routes associated with the proposed Sparrows Point LNG project. The data request is available in the FERC eLibrary under Docket No. CP07-62.

FERC authorizes Sabine Pass LNG terminal to commence service — Sutherland LNG Law Blog, Washington, DC

Yesterday FERC issued a letter order authorizing the Sabine Pass LNG terminal to commence service. The order is available in the FERC eLibrary under Docket No. CP04-47.

Webmaster's Comments: Even prior to FERC's authorization to import LNG, Sabine Pass LNG requested from FERC a permit to export to Asia the LNG it has imported. The US mad rush to import LNG has been knocked on its head by the 100-year domestic supply of shale gas, mooting the new LNG import projects.

Downeast LNG, Calais LNG, and Quoddy Bay LNG developers are either blind to the new economic realities in the LNG marketplace — or they are simply exhausting their venture-capitalist investors' money while paying themselves handsomely before they close their projects down.

FERC greenlights Sabine Pass LNG service — Energy Current, Houston, TX

Cheniere opened the Sabine Pass LNG terminal and interconnecting Creole Trail Pipeline on April 21 of this year at an on site ceremony.

Webmaster's Comments: If Sabine Pass LNG and the other newly-operational Freeport LNG import terminals (both of which have applied to FERC to export their imported LNG to Asia, since there is no US market for their LNG-source natural gas) were to actually end up regasifying their LNG and injecting it into the US natural gas pipeline network, then those facilities will be contributing to the over-abundance of natural gas in the US, further mooting the would-be Downeast LNG, Calais LNG, and Quoddy Bay LNG import projects.

LNG opponents offer tour of proposed pipelines in Yamhill County — Oregon Public Broadcasting, Portland, OR

“One of the vineyards they are going to go through, the grapes were planted 34 years ago.  These are some of the oldest grapes in Oregon.  One pipeline goes through their property, it will take out 120 feet of their grapes.” (Sep 30)

Port Commissioners extend land agreement with Jordan Cove Energy — KCBY TV, Coos Bay, OR

COOS BAY — The Oregon International Port of Coos Bay's Board of Commissioner's decided to extend an agreement with Jordon Cove Energy over a piece of land on the North Spit that would house a potential LNG terminal.

Coos Bay gives LNG project in Ore. an extra year — (AP) The Oregonian, Portland, OR

The International Port of Coos Bay decided to extend its land sale agreements with Jordan Cove Energy Project and Weyerhaeuser Company on Monday.

The port now has until December 2009 to execute a contract with Weyerhaeuser to purchase 1,300 acres on the North Spit.

Russian daily says Gazprom targets US energy market —, Washington, DC

Moscow is trying to take control of energy resource deliveries not only to Europe, but also to the US.

While politicians and analysts in the European capitals and Washington are unsuccessfully wracking their brains about how to reduce Europe's growing dependence on energy resource deliveries from Russia, Moscow has begun an expansion into America — including to countries on which US energy security depends. On Friday [26 September] in the course of a visit by Venezuelan President Hugo Chavez to the Russian Federation, a memorandum was signed on creating a Russian-Venezuelan oil and gas consortium. Experts believe that what is concealed behind the agreement with Venezuela and a number of other steps are not so much economic interests as political interests of Moscow, which will be able to use the increasing US energy dependence to exert pressure on Washington. [Red & bold emphasis added.] (Sep 29)

Webmaster's Comments: The US Department of State actually invited Russia to invest in US energy infrastructure!!! Exactly how does that enhance US energy security?


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