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Nulankeyutmonen Nkihtahkomikumon v. BIA dismissed [Blog] (Oct 30) — Turtle Talk, Indigenous Law and Policy Center, Michigan State University College of Law, East Lansing MI
[On October 28] the judge dismissed the case again and said the tribal members failed to exhaust their administrative appeals within the BIA. The 1st Circuit agreed but also noted the shift in the BIA’s position. [Red & yellow emphasis added.]
The Appeals Court indicated NN's argument in this appeal had not been made in its previous appeal; thus, without demonstrating the court's earlier decision as being plainly wrong, and without serious injustice, that argument was excluded by the court.
The court also indicated its decision was not influenced by FERC's [unprecedented] dismissal of Quoddy Bay LNG's terminal project application or the Passamaquoddy Tribal Government's cancelling its lease agreement with Quoddy Bay LNG.
Since FERC has dismissed Quoddy Bay LNG's project application, and since the Pleasant Point Passamaquoddy Tribal Government has terminated its lease to Quoddy Bay LNG, the Quoddy Bay LNG project is dead.
Nulankeyutomonen Nkihtahkomikumon's dedication and persistence has brought this issue to World attention. Hopefully, it will improve the Bureau of Indian Affairs' adherence to ethics and law in its trust responsibilities to indigenous peoples.
Note: NN is spelled two ways in court documents and on this website. The original spelling — used in the court documents — has since been standardized as "Nulankeyutomonen Nkihtahkomikumon".
Peterson: Make liquid fuels with Alaska's gas (Oct 30) — Alaska Journal of Commerce, Anchorage AK
An Anchorage-based development company says there are other ways to market North Slope natural gas rather than put it in a pipe and ship it to the Lower 48 or to a liquefied natural gas plant in Valdez.
If U.S. markets are too saturated with natural gas and world markets have a surplus of LNG, Alaska gas could instead be converted to high-quality liquid products like ultra-clean diesel or petrochemicals.
Port extends LNG land deal — The World, Coos Bay, OR
The parties previously extended the contract by a year twice, but developers need more time, said Bob Braddock, Jordan Cove’s project manager. The LNG company now intends to make a final investment decision in fall 2010. If it chooses to proceed, it would close on the land deal in late spring 2011 and start construction immediately.
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Clean up of corridor finished — Telegraph-Journal, Saint John, NB
The spokeswoman said the pipeline's construction was completed at the end of January. Gas from Canaport LNG began flowing on July 16. The pipeline eventually links with the Maritimes & Northeast pipeline north of St. Stephen and continues on to New England.
Mass. Attorney General, Fall River reply to Weaver's Cove LNG filing (Oct 26) — LNG Law Blog, Washington, DC
Massachusetts Attorney General Martha Coakley and the City of Fall River, Mass., have filed a reply to a recent Weaver's Cove Energy filing. The two parties from Massachusetts contend that FERC's recent determination that Weaver's Cove Energy has control over a parcel of land known as the "wedge lot" provides additional support for rehearing in this proceeding.
Appeals court upholds R.I. LNG ruling (Oct 28) — Wicked Local Fall River
The city’s [Fall River] legal representative, Holland & Knight attorney Dianne R. Phillips, said the U.S. Court of Appeals decision “was decided on the narrowest reason.
“It does not impact dredging in Massachusetts,” Phillips said.
First Circuit affirms lower court's decision presuming State concurrence under CZMA for Weaver's Cove LNG project (Oct 27) — LNG Law Blog, Washington, DC
The U.S. Court of Appeals for the First Circuit has affirmed a previous decision by a federal district court that interpreted the Coastal Zone Management Act (CZMA) to resolve a dispute between the Weaver's Cove LNG import project and the Rhode Island Coastal Management Council (RICMC).
US First Circuit Court of Appeals affirms decision in favor of Weaver's Cove Energy, LLC in suit against Rhode Island Coastal Resources Management Council (Oct 26) — Leagle.com
[The link below provides the complete court decision.]
The barriers, which CRMC has attempted to impose, are to necessary dredging by Weaver's Cove in Rhode Island navigable waters, in a federal navigation channel. The Federal Energy Regulatory Commission ("FERC") generally approved the project in 2005, subject to certain conditions. Until those conditions are met, Weaver's Cove cannot start construction. The Commonwealth of Massachusetts, joined by the City of Fall River, has filed a brief as amicus curiae in support of CRMC.
We address three main issues. The first is whether we have Article III jurisdiction to decide these matters. The second is whether the district court erred in holding that CRMC's failure to respond within six months to Weaver's Cove's application for federal consistency review requires there be a presumption of concurrence in the project, pursuant to 16 U.S.C. § 1456(c)(3)(A) of the Coastal Zone Management Act of 1972 ("CZMA"). The third is whether CRMC's use of its state law licensing program for alterations to the coast, 04-000-010 R.I. Code R. §§ 100.1, 300.1, to block the project is preempted by the Natural Gas Act ("NGA").
Central to this dispute are two federal statutes, the NGA [Natural Gas Act], 15 U.S.C. §§ 717-717z, and the CZMA [Coastal Zone Management Act], 16 U.S.C. §§ 1451-66. The NGA was originally passed in the 1930s to facilitate the growth of the energy-transportation industry and requires FERC authorization for the importing of natural gas. 15 U.S.C. § 717b(a). FERC's authority under the to NGA to regulate facilities engaged in the import of natural gas has long been interpreted as "plenary and elastic," Distrigas Corp. v. Federal Power Comm'n, 495 F.2d 1057, 1064 (D.C. Cir. 1974), and courts have interpreted the NGA to preempt state regulatory authority within the scope of FERC's jurisdiction, see, e.g., Schneidewind v. ANR Pipeline Co., 485 U.S. 293 (1988). Following a 2005 amendment, the NGA explicitly grants FERC "exclusive authority to approve or deny an application for the siting, construction, expansion, or operation of an LNG terminal." Id. § 717b(e)(1). Parties wishing to build an LNG terminal must file an extensive application with FERC, 18 C.F.R. § 157.6, which must then consult with states regarding safety and environmental questions, 15 U.S.C. § 717b-1(b).
Port Dolphin Energy reaches federal regulatory milestone; Record of Decision clears path for license to build deepwater LNG port [News release] (Oct 26) — SunHerald, Gulfport, MS
The Record of Decision paves the way to the awarding of a deepwater port license to be issued by the U.S. Maritime Administration [MARAD]. The signing marks the successful completion of a comprehensive Environmental Impact Statement [EIS] directed by the U.S. Coast Guard and formal approval last month by Florida Governor Charlie Crist.
Florida LNG port closer to reality (Oct 27) — UPI.com
The company said the completion paves the way for a license to develop the deepwater port. The port, located 28 miles off the coast of Tampa bay, would allow vessels to send LNG into the state pipeline system through an undersea network.
[Red, yellow & bold emphasis added.]
Obama Administration issues key approval for Florida LNG facility [News release] (Oct 27) — US Department of Transportation, Washington, DC
The Port Dolphin facility will be located in the Gulf of Mexico, approximately 28 miles southwest of Tampa Bay. Deepwater ports are offshore facilities used to transfer imported oil and natural gas from carrier vessels to shore via sub-sea pipelines. The apparatus is submerged most of the time, and is marked by a buoy. A tanker pulls the apparatus up, connects and offloads, and then, when the deepwater port is not being used, it submerges, which minimizes its environmental impact. When the Port Dolphin facility is operational, it is expected to deliver about 400 million cubic feet of natural gas per day to Florida facilities, with the ability to deliver up to 1,200 million cubic feet a day at peak capacity.
Construction is expected to begin in early 2013, and operations are expected to begin late that same year.
BP turns on taps at Savonette offshore Trinidad — Technology and Business, Rio de Janeiro, Brazil
Production from the platform is tied into BPTT's Mahogany B platform, via a 26-inch diameter 5.3 mile subsea pipeline, where the gas is processed and then exported into BPTT's existing infrastructure. Gas from Savonette will supply Atlantic LNG's liquefaction plant for export as LNG to international markets, as well as the domestic market.
BP starts gas work in Trinidad and Tobago — UPI.com
The Savonette field is located roughly 50 miles off the southeast coast of the island of Trinidad in 290 feet of water. Production is tied to an existing platform and connects to onshore infrastructure through a 5.3-mile underwater pipeline.
FERC approves design changes for storage tanks at Gulf LNG terminal (Oct 28) — LNG Law Blog, Washington, DC
Yesterday FERC approved a number of design changes to the storage tanks at the Gulf LNG import terminal in Pascagoula, Miss. FERC's letter order is available in the eLibrary under Docket No. CP06-12.
Qatari LNG en route to Sabine Pass LNG terminal (Oct 28) — LNG Law Blog, Washington, DC
Platts LNG Daily [subscription required] reports that a Q-Flex class LNG vessel, the Muraq, is en route to the Sabine Pass LNG terminal and is expected to arrive on November 3, 2009.
Separately, LNG Intelligence [subscription required] reports that Abdullah bin Hamed Al Attiyah, Qatar's oil minister, said that he expects Qatar to divert LNG cargos from U.S. destinations to China in order to take advantage of higher natural gas prices in the Chinese market. [Red & bold emphasis added.]
2010 start-up for Golden Pass (Oct 27) — Gulf Times, Doha, Qatar
The Golden Pass LNG receiving and regasification terminal will help Qatar become one of the largest suppliers of LNG to the growing American market.
Qatar is set of meeting the burgeoning demand for gas in the North American market.
Kenai gas field shows age but keeps producing (Oct 24) — Anchorage Daily News, Anchorage, AK
Still going: New drilling technology has resulted in surprising production jump.
Even a half century after its discovery, Kenai continues to be a major focus for Marathon. The company drilled at least three wells at the field in 2008 as part of a deal to get state backing of an extension of the Kenai LNG export license, and continued drilling at Kenai this year despite a scaled back drilling program in response to the troubled economy.
Port to discuss land deal for North Spit (Oct 28) — The World, Coos Bay, OR
The Oregon International Port of Coos Bay’s commissioners have two possible property transaction proposals to consider, said Martin Callery, director of communications and freight mobility.
Natural gas changes the energy map; New data show 90 years supply at current consumption (Oct 20) — Benzinga.com, Dover, DE
Even if we used natural gas to totally replace coal in generating electricity, domestic supplies would last for 50 years.
The availability of vast natural-gas resources in the Marcellus shale and similar sediments around the United States has changed energy calculations in a fundamental way. The discovery of this large and seemingly economical new source of fossil fuel has surprised even geologists who have spent their careers studying the shale. Little wonder, then, that policy makers and politicians are just beginning to try to figure out what the discoveries mean. [Red emphasis added.]
New natural-gas coalition created (Oct 27) — The Tibodaux Daily Comet, Tibodaux, LA
BATON ROUGE — The Congressional Natural Gas Caucus is the first association of its kind and includes two members from Louisiana: U.S. Rep. John Fleming, R-Minden, and U.S. Sen. Mary Landrieu, D-La.
“By conservative estimates, we have at least another century’s worth of supply,” Horvath said. “Natural gas is the key to our country’s energy future.”
Thanks to technological advances, the U.S. now has triple the amount of natural gas than estimated in 1966 and 40 percent more than previously believed just a couple of years ago. [Red, yellow & bold emphasis added.]
US reps worry ocean policy will block development (Oct 26) – The Seattle Times, Seattle, WA
Dozens of U.S. representatives sent a letter Monday to the head of the President's Interagency Ocean Policy Task Force with concerns that the policy will block offshore energy development and cost jobs to Americans.
The task force is working on a national policy for governance of the country's oceans, coasts and Great Lakes. Two dozen senior policy members from numerous agencies are working on the national policy.
Obama may face fight on treaties (Oct 25) — The Boston Globe, Boston, MA
International treaties are signed by the president, but under the Constitution must be ratified by the Senate to become law.
[O]n the Obama agenda is the UN Convention on the Law of the Sea, which took effect in 1996, but has not been joined by the United States because it has been repeatedly blocked by conservatives in Congress.
Conservatives maintain that an international bureaucracy would control the oceans, asserting that recent decisions by the treaty’s governing body would harm US economic interests. [Red, yellow & bold emphasis added.]
Since the Senate has repeatedly refused to ratify the UN Convention on the Law of the Sea (UNCLOS), Downeast LNG and Calais LNG have no right of innocent passage under that treaty.
Maine's Senator Susan Collins continues to falsely claim the US has rights under UNCLOS, even though, as a member of the Senate and the Senate Committee on Homeland Security & Intergovernmental Affairs, Senator Collins knows her claim is untrue.
Even if the US were to ratify UNCLOS, other matters would still prevent LNG transits into Passamaquoddy Bay…
- Congress requires the US Coast Guard to deny or approve LNG transits in Head Harbour Passage. Since the US claims to have the authority to deny transits in that waterway, and since sovereigns are equal, then Canada also has the right to deny or approve transits in that waterway. The US claiming a right that Canada does not have would not withstand court scrutiny;
- Canada could ignore the treaty — or even a world court decision — just like the US has ignored world court decisions in Canada's favor in the two-country dispute over softwood lumber.
Downeast LNG and Calais LNG have no hope of succeeding in Passamaquoddy Bay.
CRS: America's combined energy resources largest on Earth [News release] (Oct 27) — Media Newswire
(Media-Newswire.com) - Washington, D.C.-Sen. James M. Inhofe ( R-Okla. ), Ranking Member of the Senate Committee on Environment and Public Works, and Sen. Lisa Murkowski ( R-Alaska ), Ranking Member of the Senate Energy and Natural Resources Committee, released a preliminary government report today showing America's combined recoverable natural gas, oil, and coal endowment is the largest on Earth. America's recoverable resources, Congressional Research Service ( CRS ) shows, are far larger than those of Saudi Arabia ( 3rd ), China ( 4th ), and Canada ( 6th ) combined. And that's without including America's absolutely immense oil shale and methane hydrates deposits.
…CRS notes the 2009 assessment from the Potential Gas Committee, which estimates America's future supply of natural gas is 2,047 TCF-an increase of more than 25 percent just since the Committee's 2006 estimate. At today's rate of use, roughly 90 percent of which is produced domestically, this is enough natural gas to meet American demand for nearly 90 years. [Red, yellow & bold emphasis added.]
EVERYONE KNOWS IT. Downeast LNG and Calais LNG have no future.
One number you need to watch for natural gas (Oct 25) — Stockhouse, Vancouver, BC
The Energy Information Administration publishes how much working gas we have in storage. As of October 9, that was 3.7 trillion cubic feet. We only have 0.5 trillion cubic feet of storage left. In other words, we're at 94% capacity. Over the last six weeks, we added about 65 billion cubic feet per week. Unless demand changes quickly, we'll fill up the remaining space by early December.
Right now, we have too many liquefied natural gas (LNG) import terminals and almost no LNG export terminals. I'm waiting for some smart entrepreneur to buy out Cheniere Energy. The company owns five LNG import terminal projects in Texas and Louisiana. It is so deep in debt it should be in bankruptcy... but that is an opportunity for someone. [Red, yellow & bold emphasis added.]
What if there’s a dash to natural gas? (Oct 25) — The Natural Gas Supply Association, Washington, DC
[The following link will download a PDF file; 139 KB]
Our abundant, sustainable supply is the answer
Doing the math on natural gas-fired power generation (Oct 25) — The Natural Gas Supply Association, Washington, DC
[The following link will download a PDF file; 168 KB]
Peter Foster: No requiem for this pipeline (Oct 27) — National Post, Don Mills, ON
If a planned Alaskan pipeline is built, the Petroleum Age could be over before the Mackenzie line is reconsidered
[N]ew technologies have rendered vast amounts of natural gas from shale deposits accessible. This huge potential supply means that gas prices are likely to stay below the likely cost of transportation from the Arctic for an extended period. Maybe forever.
It was imagined not long ago that LNG would provide a significant element of U.S. energy imports. Now it appears that North America may be an LNG exporter. [Red emphasis added.]
U.S. natural gas now threatened by flood of imports (UNG) (Oct 27) — The Business Insider, New York, NY
The traditionally local U.S. natural gas market could be hit by a flood of imports this winter as new sources of overseas production ramp up.
WSJ: The flood of LNG imports to the U.S. that some industry watchers had predicted over the summer never materialized, held back by low U.S. gas prices relative to Europe and delays in starting up overseas export facilities. But projects in Qatar, Yemen, Russia and Indonesia are starting to come online, just as colder weather in the U.S. is sparking greater heating demand for gas and the difference between U.S. and overseas prices narrows. While the onset of winter means record-high, U.S. inventories of the fuel will soon start to be drawn down, the prospect of ready additional supplies over the horizon could limit price gains, even as demand rises.
The U.S. has long served as a "market of last resort" for LNG because the country has a much higher storage capacity than European or Asian countries. As storage facilities in those regions near capacity, LNG shippers are forced to send cargoes to the U.S., despite lower gas prices here.
Qatar diverts LNG from U.S. to China (Oct 27) — Maktoob Business, Amman, Jordan
DOHA - Qatar's oil minister said Tuesday that the Gulf sheikdom was diverting liquefied natural gas, or LNG, shipments to China from the U.S. as demand softens in North America.
China's economy is expected to grow by about 8% this year, while the U.S. is only hoping to emerge from recession.
Zawya Dow Jones, citing people familiar with the matter, reported earlier this month that GDF Suez is seeking to shift LNG cargoes from its Yemen LNG plant to India and away from the U.S. where demand has slowed.
Qatar eyes China as big new LNG volumes come online (Oct 26) — Alibaba.com
…Asia, led by China, was likely to be the target market as rising domestic gas supplies in the United States cap slow demand from the world's largest economy. The U.S. has seen energy consumption drop sharply due to the recession. In contrast, China posted the fastest rise in oil demand in over three years in September.
China Sept LNG imports at record -customs (Oct 26) — Alibaba.com
The import amount, up 144 percent from a year earlier, was in line with industry expectations as China recently started its second import terminal in Fujian and also began bringing in gas for its third terminal in Shanghai.
Floating LNG storage 'not viable' (Oct 27) — Fairplay Shipping News, Lloyd's Register, Surrey, England, UK [Paid registration required]
LNG TANKERS are unlikely to float around storing gas while waiting for a buyer as the costs of boil-off make this option economically unviable, Wilson Crook, ExxonMobil Gas & Power manager of global gas regulatory and legislative issues told Fairplay.
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INGAA study takes midstream look at long-term gas supply (Oct 23) — Oil & Gas Journal, Tulsa, OK
WASHINGTON, DC, Oct. 23 -- Projected growth in North American natural gas supplies and markets will require billions of dollars of additional investments in pipelines, storage, and other midstream infrastructure through 2030, a recent INGAA Foundation Inc. study concluded.
“The domestic supply picture for natural gas has been redrawn and experts agree we now have more than 100 years of technically recoverable gas in the US and Canada,” said INGAA Foundation Chairman Gary Sypolt. “This study spotlights what this sea change in domestic supplies will mean for investment in additional pipeline, storage, and midstream infrastructure.” [Red, yellow & bold emphasis added.]
House passes Coast Guard Authorization Bill (Oct 23) — Congressional Quarterly, Washington, DC
The House passed the bill, sponsored by James L. Oberstar , D-Minn., by a vote of 385-11 after adopting about a dozen amendments, including one that would clarify language regarding the enforcement of Coast Guard-imposed security zones around hazardous materials terminals and tankers, and require a study that surveys new technology for reducing emissions from cargo or passenger ships that operate in U.S. waterways.
The fate of the Coast Guard reauthorization now lies in the Senate, where it has run into a dead end in recent years. The agency was last authorized in 2006. [Red, yellow & bold emphasis added.]
North La. hot spot in U.S. for drilling — The News Star, Monroe, LA
The biggest losers to lower prices, Dismukes said, were the many liquefied natural gas terminals that were to be constructed along the coast.
“They were going to save our bacon,” he said, “but nobody’s talking about them much, and Chevron canceled its plans.”
Tobago set to export gas to region — Trinidad & Tobago Express, Trinidad and Tobago
[T]he natural gas exports from Tobago could be used for the proposed Eastern Caribbean Natural Gas Pipeline, which has been on the drawing board for several years now.
"And the gas line is expected to be completed by mid-2011. This (gas line), together with this new power plant, means that Tobago will no longer need to import LNG from Trinidad. It is, therefore, an important step in strengthening the autonomy that the island must enjoy within the unitary state of Trinidad and Tobago," Manning said.
Questions surface in Astoria LNG probe — The Daily Astorian, Astoria, OR
Some port leaders and many LNG opponents are looking to use the findings to get the port out of its unprofitable lease with Hansen and his new company, Oregon LNG. The company is pursuing the LNG development with a sublease of 92 acres of land in Warrenton, but the future of the lease depends on the outcome of two lawsuits.
If the lease were found to be fraudulent — possibly because Gearin withheld information from port commissioners — the port could have legal grounds to break the contract.
LNG property agreement extension comes to a halt — KCBY-TV, Coos Bay, OR
The port had an offer on the table to extend its agreement with Jordan Cove for the acquisition of the site for the proposed liquefied natural gas terminal, but when no one would present a motion to vote on, the commission chose to take no action on the proposal.
Port's LNG site negotiations stall (Oct 23) — The World, Coos Bay, OR
The commissioners also had been scheduled to consider a contract extension with the developers of a liquefied natural gas terminal, but the issue wasn’t discussed.
Chairman David Kronsteiner asked for a motion on the matter and everyone remained silent.
“Hearing no motion, it dies for lack of a motion,” he said.
Russians making U.S. gas moves (Oct 23) — Alaska Dispatch, Anchorage, AK
According to Bloomberg, Gazprom is considering acquiring a U.S. gas firm familiar with drilling in shale gas deposits in order to gain the expertise necessary to exploit Russia's "huge shale reserves." Specific acquisition targets weren't mentioned.
UK, Belgium LNG imports soar to record, PanEurasian says (Oct 25) — Tehran Times, Tehran, Iran
The U.S. may consume as much as 445 billion cubic feet of LNG this year, the lowest since 2004 barring 2008, as new LNG supplies went to Western Europe, according to the report.
Low natural gas prices in the U.S. compared with other developed areas such as Europe and Japan prompted suppliers to avoid the world’s biggest energy consumer. [Red emphasis added.]
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EUREKA! America's new natural gas — America's Natural Gas Alliance, Washington, DC
You must have heard how natural gas is changing the way we think about energy in America. How new technologies have unlocked a supply that will serve America for more than 100 years. And how that supply continues to grow. [Red, yellow & bold emphasis added.]
[Click the “Commercials” link at the top of the page linked above, and then click the image of the woman holding a child to see a Flash version of the new television commercial proclaiming 100 years’ worth of domestic natural gas in the US.]
It is getting more and more difficult for Downeast LNG and Calais LNG to hide the fact that their projects are not needed.
Secret relationships shaped LNG deal — The Daily Astorian, Astoria, OR
Justice Department - transcripts reveal details of Gearin-Trabucco-Hansen collaboration
"I picked them up at the airport, and there was a funny little thing there ... there was a look between them," Hansen said in an interview with state investigators in August of this year. "It was just for a split second, and then I didn't think any more of it."
Port Commission President Bill Hunsinger said he doesn't think the 2004 commission would have approved the lease if they had known all the facts.
"In my opinion, the commission was defrauded into something and they weren't told the truth," he said.
Hansen said his company would have paid more to lease the Port's land, and that Gearin never tried to negotiate for a higher price. [Red emphasis added.]
Confusion delays LNG hearing — The World, Coos Bay, OR
[FERC project manager Todd Ruhkamp] said in his letter that Jordan Cove’s filing contradicted previous information suggesting shippers had already reached agreements with the Coos Bay project.
“This seeming contradiction has caused some amount of confusion and this matter needs to be clarified prior to Commission consideration of the Project,” Ruhkamp wrote.
LNG Carriers and Terminals of the World - Online Database [News release] — PR Minds, Sophia-Antipolis, France
This unique database will feature all of the vessels built to date plus data on newbuilds, currently under construction or due for completion before 2010. Also featured in the database are details of all current and proposed import (regasification) and export (liquefaction) terminals.
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What's an injunction worth? (Oct 20) — Telegraph-Journal, Saint John, NB
Archibald says that people found in apparent breach of the order could be charged with contempt of court or sued in civil court for any torts they committed. In some instances, they could be charged with a criminal offence if the behaviour was deemed to violate the Criminal Code.
Weaver's Cove answers request for rehearing submitted by City of Fall River, Mass. Attorney General — LNG Law Blog, Washington, DC
Yesterday Weaver's Cove Energy, LLC and Mill River Pipeline, LLC filed a motion for leave to answer and an answer to a request for rehearing filed by the City of Fall River, Mass., and the Massachusetts attorney general. The answer addresses several of the requestors' arguments, including their contention that FERC acted improperly when it determined that Weaver's Cove has control over the activities within the thermal exclusion zone outside the property line (condition 40 of the order approving the project). [Red & yellow emphasis added.]
until Weaver's Cove has satisfied the EOEEA as to the appropriateness of the terminal siting and the need for the project. In other words, Massachusetts is requiring Weaver's Cove to abide by FERC's Condition 40, even if FERC will not.
FERC's Condition 40 requires Weaver's Cove to provide evidence it has the ability to exercise control over the activities in the Thermal Exclusion Zone outside Weaver's Cove's site property line — including the 4.2 miles of underwater cryogenic LNG pipeline in Mount Hope Bay and up the Taunton River to the Weaver's Cove LNG tank farm.
>>> Downeast LNG does not have control of its own Thermal Exclusion Zone that is outside its property line and that crosses highway US-1. <<<
Federal District Court grants Sparrows Point LNG's, Mid-Atlantic Express' motion to intervene in pending litigation — LNG Law Blog, Washington, DC
On Monday, Judge Richard D. Bennett of the U.S. District Court for the District of Maryland granted a motion filed by AES Sparrows Point LNG, LLC and Mid-Atlantic Express, L.L.C. to intervene in the ongoing litigation between the Maryland Department of the Environment and the U.S. Department of Commerce regarding the Department's decision overturning the State's rejection of the project under the Coastal Zone Management Act. According to the order granting this motion, the intervenors will be added as defendants in this case. [Red & bold emphasis added.]
Canadian exporters shift focus to Asia (Oct 20) — The Globe and Mail, Toronto, ON
[F]or Canada to really capitalize on the potentially massive gas fields in northeastern B.C., which face competition from equally large pools in Texas and Louisiana and a proposed gas pipeline from Alaska, a way to move product to Asia appears essential to the country's exporting future. [Red emphasis added.]
Louisiana officials, Sempra Energy dedicate new Cameron LNG terminal [Press release] — Earth Times
SAN DIEGO, CA — Louisiana Gov. Bobby Jindal, Donald E. Felsinger, chairman and chief executive of Sempra Energy, and other dignitaries today dedicated Sempra Energy's Cameron liquefied natural gas (LNG) receipt terminal near Lake Charles, La., the newest LNG receipt facility on the Gulf Coast of North America.
Cameron LNG's first cargoes of imported natural gas arrived in June and the project began commercial operations on July 30.
The natural gas processed at Cameron LNG will be used in the Gulf Coast, East Coast and Southeastern United States. [Red emphasis added.]
Lower Neches makes case for more water — The Rusk Cherokeean Herald, Rusk, TX
NACOGDOCHES – Water issues simmered near the boiling point last Wednesday as members of the East Texas Regional Water Planning Group (Region I) debated whether to accept the Lower Neches Valley Authority’s (LNRA) request to supply more water to manufacturing customers.
[T]he Region I meeting became a battleground in an upper basin vs. lower basin power struggle that involves billion dollar manufacturing plants storing [liquefied] natural gas (LNG) on the Texas coast.
[Scott Hall, LNVA general manager] distributed copies of a letter he received from the director of commercial Development at Sempra, regarding the company’s interest in constructing [an] LNG and crude oil terminal. Marvin L. Ivey wrote, “The availability of LNVAsupplied water is part of the attraction to develop theses projects in SE Texas. We would encourage LNVA to preserve industry’s access to quality water resources in the region.”
LNVA proposed increased water allocation to these facilities as a heat transfer fluid for warming the LNG.
A Sept. 21 memorandum which served as a public notice of demand revisions, discussed Jefferson County’s 151,672 acre-feet of water usage for 2010. After the first LNG plant goes on-line, the 2020 water needs increase to 423,258 acre-feet. [Red & bold emphasis added.]
88.5 billion gallons of freshwater every year.
>> How much freshwater would Downeast LNG and Calais LNG use, in the off chance their projects were built? <<
Is it good for business? [Opinion column] — The Daily Astorian, Astoria, OR
The U.S. Chamber of Commerce is primarily a lobbying organization. "We assume that lobbies always recognize what's best for their members, writes Surowiecki. "But they don't, and, in the case of climate change, they may very well be missing what the companies that have resigned in protest have seen: global warming isn't just bad for the planet; it's bad for business."
[Bold red emphasis added.]
Port of Astoria ex-director used influence to help girlfriend, state says — The Oregonian, Portland, OR
The Port of Astoria's former director improperly used his position to secure work for his girlfriend in 2004 with a company seeking to build a liquefied natural gas terminal near Astoria, the Oregon attorney general's office said today.
Weeks later, Peter Gearin, the executive director, advocated leasing 92 acres to the company without telling Port commissioners about the connection between his girlfriend, who was also working for the Port, and Calpine, the company seeking to build the terminal, investigation documents show.
The findings could affect lawsuits the Port and Oregon LNG have filed against each other over a 30-year lease extension, which the company needs to continue its pursuit of an LNG terminal in Warrenton. If the lease were deemed fraudulent, the Port could have legal grounds to break it. [Red emphasis added.]
State finds 'misconduct' in LNG lease (Oct 20) — The Daily Astorian, Astoria, OR
An Oregon Department of Justice investigation has found evidence of corruption in former Port of Astoria Director Peter Gearin's arrangement of the Port's 2004 lease agreement with the liquefied natural gas developer Calpine Corp.
While Gearin's alleged misdeeds cannot be prosecuted because of a two-year statute of limitations, some are hoping evidence uncovered by the state will give the Port enough leverage to break its lease with Calpine Corp.'s successor, Oregon LNG.
Rumors about why the Port signed the dubious LNG lease have been festering for years. As opposition against LNG development has grown, so have suspicions about the Port's dealings with former Calpine executive Peter Hansen, now CEO of Oregon LNG.
Because of the delay in renewing the company's lease, the Port is currently fending off a breach of contract lawsuit from Oregon LNG in federal court while simultaneously suing the company in Clatsop County Circuit Court.
Time is ticking on LNG deal — The World, Coos Bay, OR
The existing agreement involves the port, Jordan Cove, Weyerhaeuser Co., the state of Oregon and Umpqua Bank. The port has until Dec. 1 to execute a contract with Weyerhaeuser to purchase 1,300 acres of property on the North Spit. It has a similar amount of time to sell about 150 acres of that land to Jordan Cove so the company can build an LNG terminal.
Gazprom to sell as much as 90% of Shtokman LNG in North America (Oct 20) — Bloomberg News
The Moscow-based company plans to sign 20-year contracts in 2010’s first half to use gas-import terminals on the U.S. Gulf and East coasts, said John Hattenberger, head of Gazprom’s energy-trading unit in Houston.
U.S. gas futures traded as low as $2.41 per million British thermal units last month, down from 2008’s high of $13.69, as demand for the fuel slumped. Some U.S. LNG terminals stood idle much of this year as higher prices in other markets attracted cargoes.
Gazprom US representative John Hattenberger reveals to Reuters a bit of a different story than in the Bloomberg News story — Gazprom LNG will go to the highest-paying market, and the US price is lower than elsewhere. See the Reuters video report, "Video: Gazprom Enters US trading" — Business Report, Johannesburg, South Africa.
In any case, for the US to become dependent on importing LNG — not to mention 10% of the US natural gas requirement — from Russia would be potential energy-security suicide.
Gazprom Marketing & Trading and EDF Trading announce trans-Atlantic gas swap five-year agreement will expand geographies and sourcing for both companies (Oct 20) — CNBC
Under this agreement, EDF Trading will deliver to Gazprom in the U.S. a quantity of 0.5 billion cubic meters of natural gas per year (about 50 million cubic feet per day) for the next five years. Gazprom will deliver to EDF Trading the same quantity of natural gas per year in the UK within the same time period.
Eni CEO: Natural gas prices to remain depressed (Oct 20) — Morningstar
"[I]f there is competition in gas, the loser is LNG (liquedfied-natural-gas). [Red bold emphasis added.]
The amazing shale race (Oct 20) — The Motley Fool, Alexandria, VA
The biggest loser
The success of American shale plays ought to keep the flow of liquefied natural gas cargos heading toward higher-priced markets across the Atlantic. A steep change in European domestic gas supplies, such as the one we've experienced in the U.S., would really shift the market balance dramatically. [Red and bold emphasis added.]
Gas industry hopes offshore terminal improves security and diversification in tough times (Oct 20) — The Washington Examiner, Washington, DC
Placing the regassification plants offshore "is a new trend," said [Muhammad-Ali Zainy, a senior energy analyst at the Center for Global Energy Studies]. "When you have it offshore, it is to avoid resistance or objections [from] inhabitants on shore."
ABB electric propulsion concept proven in carrier applications (Oct 20) — Control Engineering, Oak Brook, IL
This development from ABB is part of a dual-fuel electric propulsion concept that uses a 4-stroke engine (fueled by either natural gas or diesel) to generate electricity, which is then used to power a carrier's electric propulsion system and meet its overall need for electric power.
The system also increases the cargo capacity of a standard LNG carrier by 6% without altering the ships' external dimensions. This revenue-enhancing capability is made possible by the modularity, space-efficiency and flexibility of the propulsion system concept. The required capacity for the ABB system, in particular, is said to be 10% smaller than traditional propulsion systems.
Other key benefits of the electric propulsion system include improved maneuverability, faster stopping times (seven minutes versus the 20-30 minutes of mechanical propulsion systems) and blackout prevention.
[S]ince 2003, the majority of all new orders for large-size LNG ([liquified] natural gas) carriers with cargo capacities of between 145,000 and 170,000 cubic meters have been for dual-fuel electric propulsion systems.
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Maritimes & Northeast Pipeline withdraws Phase V expansion from FERC (2009 Mar 2) — FERC eLibrary
[The following link opens the FERC eLibrary page containing a link to M&NE Pipeline's withdrawal notice (
20 KB).]
Maritimes & Northeast Pipeline, L.L.C. (“Maritimes”) hereby provides written notice to
the Federal Energy Regulatory Commission (“Commission”) that Maritimes will not be
proceeding with the pre-filing process or with filing the certificate application for the Phase V
Project at this time. Following discussions initiated by its Phase V shipper, it was resolved that
the Phase V shipper would not need the proposed Phase V Project facilities to transport its
production to markets in the U.S. Northeast.
Doty asks regulators to halt trucking plans — The Facts, Clute, TX
Town Councilman Harold Doty wrote in a letter sent Tuesday to the Federal Energy Regulatory Commission that the energy giant does not need to bring gas onto the island by truck anymore because its twin storage tanks are full and has a functional boil-off gas reliquefication facility. The terminal has received two ships since June 25, and the boil-off gas facility catches escaping gas and returns it to the tanks.
Doty said a bolstered emergency plan filed by Freeport LNG this month was subpar because none of the evacuation procedures to protect residents if a truck carrying LNG was to get in an accident have been tested. [Red & yellow emphasis added.]
Tokyo utilities re-up with Kenai LNG — Alaska Dispatch, Fairbanks, AK
According to Down Jones Newswire (via The Wall Street Journal), Tokyo Electrical Power Co.(TEPCO) and Tokyo Gas Co. have renewed contracts [through March 2011] to purchase liquid natural gas from the Kenai LNG facility owned by ConocoPhillips and Marathon Oil.
Abraham Energy Report: House Coast Guard Reauthorization Bill may limit new LNG construction — EarthTimes
The article reports that, "The language was proposed by U.S. Rep. Elijah Cummings, D-Md., who has expressed reservations about the security of LNG tankers and terminals along urban waterfronts. Cummings's district includes part of the Baltimore waterfront.
"The latest Cummings amendment would require the Coast Guard to guarantee the security of vessels and facilities handling LNG and agricultural resources before any such facility is even built. Like all shore-side U.S. facilities, these terminals are already required to operate in strict compliance with current safety standards, including local and state regulations, before tankers carrying hazardous materials can use a facility. The rule, if enacted, would prevent terminals from being used if the Coast Guard says it doesn't have enough resources to guarantee the security of a facility. [Red, yellow & bold emphasis added.]
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Deal struck to end labour strife— Telegraph-Journal, Saint John, NB
"It's a patched up, duct-taped, Band-Aid thing, but it's holding water today," Dawson said.
If affidavits could talk — Telegraph-Journal, Saint John, NB
The protest appeared peaceful to people passing by. Court documents tell a different story, raising questions about how police handled the affair. Eight affidavits describe aggressive acts of intimidation and physical assault.
Integral Energy brought its own workers from across Canada to the work site. Protesters said they were upset that out-of-province workers were brought into the area while local people were out of work.
Growth leaves Station Freeport short of room — The Facts, Clute, TX
[W]ith the construction of Freeport LNG, a liquefied natural gas terminal on Quintana Island, and increased vessel traffic in the Freeport Ship Channel, the station built to house about 27 people now has 63 inhabitants.
With the heightened manpower it takes to shutdown the waterways when a massive LNG tanker is chugging into the harbor, Garris expects to get probably a couple more people, but no more. [Red, yellow & bold emphasis added.]
Port, Jordan Cove pressure FERC — The World, Coos Bay, OR
FERC officials remain mum about why Jordan Cove and the Pacific Connector Gas Pipeline haven’t had their day before the commission.
Agency Chairman Jon Wellinghoff sets the FERC meeting agenda. A receptionist in Wellinghoff’s office referred questions to the FERC press office, which declined to comment why the local project hasn’t received a hearing.
In its latest submission, Jordan Cove argues FERC is contradicting one of its strategic goals of handling each case in “an expeditious manner.” FERC issued a final environmental impact statement for the project in May. If the commission decides to hear the case in November, six months would have passed since the EIS was prepared. In comparison, the Bradwood Landing LNG project got approval to build on the Columbia River after a little more than three months by a 4-1 vote, with Wellinghoff in dissent.
President Barack Obama nominated Commissioner Suedeen Kelly for a second-full term in July, but she declined. She has said she will step down at the end of Congress’ session in December or January, a FERC spokeswoman said. [Red & yellow emphasis added.]
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Tentative deal reached in LNG labour dispute — CBC News
Tradespeople in Saint John have reached a tentative deal with contractors at the Canaport liquefied natural gas terminal, and individual workers are being told it's time to put an end to their escalating protests.
Expanded natural gas pipeline provides more Mainers option — Bangor Daily News, Bangor, ME
The company’s $300 million Phase IV expansion project went on line in January and has made it possible to deliver approximately 800 million cubic feet of natural gas daily to markets in Maine, New Hampshire, Massachusetts and Atlantic Canada.
The LNG is re-gasified at the Saint John terminal and shipped through the Maritimes & Northeast gas pipeline, a process that began in July, according to its Web site.
Port, Jordan Cove pressure FERC to decide on LNG — The World, Coos Bay, OR
The port’s lawyers submitted a letter to the Federal Energy Regulatory Commission and so did Jordan Cove Energy Project. Both called on FERC to put its application on the agenda in November.
LNG pipeline section approved by Douglas County planning group — The News-Review, Roseburg, OR
“I would hate to see them condemn my property and then turn around and then export the gas afterward,” Eatherington said.
It took three votes before the commission eventually approved the application.
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Work resumes after protests disrupt LNG terminal — Telegraph-Journal, Saint John, NB
The protesters are upset that workers were brought into the province for the job while local trades people are out of work.
Development of Casotte Landing LNG terminal terminated by Chevron — LNG Law Blog, Washington, DC
Platts LNG Daily [subscription required] reports that Chevron has informed FERC that it has stopped development of the Casotte Landing LNG terminal project planned for the Mississippi Gulf Coast. According to Platts, Chevron cited changing dynamics in the international LNG trade as well as sufficient LNG regasification capacity in the U.S. Gulf of Mexico region as the reasons for halting development of the project. [Red, yellow & bold emphasis added.]
Get real [Editorial] — The Daily Astorian, Astoria, OR
U.S. natural gas inventory has been enlarged – terminals are for export
The biggest misconception about liquefied natural gas (LNG) is that America's natural gas inventory is approaching empty. [Red, bold & yellow emphasis added.]
Grant could add cargo dock to LNG project — The World, Coos Bay, OR
Even if the port gets the grant, it might have to turn it down if Jordan Cove doesn’t build the terminal. The LNG developer still is waiting for approval from the Federal Energy Regulatory Commission. It also has other permits to complete, pushing out the start of construction to at least late 2010.
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'Not thugs and hooligans' — Telegraph-Journal, Saint John, NB
"Integral Energy continues to bully their way into our community and continue to threaten the livelihood of the taxpayers who call Saint John and New Brunswick their home," said Mike Duncan, an electrician who lives on Pugsley Avenue, as he addressed the politicians.
Maine must not cede its rights [Guest opinion column] — Telegraph-Journal, Saint John, NB
[NOTE: This is the same column by Maine Governor Baldacci that appeared in the Oct 10 Bangor Daily News, below.]
Whether LNG terminals are developed in Washington County or not, we cannot cede control of commerce in Maine to another country, no matter how well we are able to cooperate on other issues.
- Shouldn't Governor Baldacci — an attorney — know that the treaty he cites does not apply to countries that are not parties to the treaty?
- Hasn't attorney and Governor Baldacci even read the treaty — especially the part explaining that the treaty's rights apply only to participating sovereigns?
- Hasn't Governor Baldacci read the LNG industry terminal siting best practices that clearly indicate Passamaquoddy Bay is unfit for LNG facilities — even after Save Passamaquoddy Bay encouraged him in person to do so?
- Isn't Baldacci aware that there is no market for the Downeast LNG and Calais LNG projects?
- Isn't Baldacci aware that there are many other locations along — or offshore from — the Maine coast that are eminently more suitable for LNG projects?
- Why wasn't Baldacci lobbying for LNG projects when they were being developed closer to the natural gas market, where it would not have required permission from a neighboring country?
- Isn't Gov. Baldacci concerned that transiting LNG ships would engulf thousands of Maine citizens, unnecessarily and against their will, within Federally-defined Hazard Zones?
Oregon LNG files report on habitats of two endangered species potentially impacted by LNG project — LNG Law Blog, Washington, DC
Yesterday the developers of the Oregon LNG import project filed a report with FERC regarding two endangered species of bird whose habitat may be affected by the planned LNG project.
One more thing not to worry about — Business Mirror, Makati City,
Philippines
[N]ewly developed technology to extract natural gas from shale and methane beds will unlock the energy equivalent of 1.2 trillion barrels of oil, a 60-year world supply. The US is using this technology to such an extent that US imports of liquefied natural gas (LNG) from Trinidad and Qatar have almost stopped. Spot prices for some LNG deliveries have dropped to 50 percent of pipeline contracts. From the UK newspaper the Daily Telegraph: “The US energy department expects shale to meet half of US gas demand within 20 years, if not earlier. [Red emphasis added.]
Shale gas: not a miracle drug? — Platts
Along come the contrarians. As shale gas is hailed as the resource that will enable natural gas to be our long bridge to a low-carbon future, two people in one day call the thought a bubble that needs to be burst.
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Canaport LNG Flaring Incident — News 88.9, Saint John, NB
No site wide evacuation was necessary and there were no injuries as a result of the incident.
Battle of ports goes before 3rd Circuit — KPLC-TV, Lake Charles, LA
The ongoing dispute between the Ports of Lake Charles and West Cameron over the land upon which Sempra LNGis located was hashed out this morning before the Third Circuit Court of Appeal.
Technology has ended the U.S. energy — EthioPlanet.com, Ethiopia
Thanks to technology, America need not fear energy dependence on foreign powers.
The US Department of Energy expects shale to provide the U.S. with 50% of its natural gas needs within twenty years. [Red, yellow & bold emphasis added.]
The gospel of shale gas being sung overseas — Platts
In almost breathless prose, the New York Times discovered Sunday that there's shale gas out there.
American drilling technology very much in demand — MetalMiner
Only in recent years, have techniques been developed in Texas, Oklahoma and Pennsylvania to successfully exploit these vast reserves. The resulting increase in natural gas supplies has contributed to the current glut in the US market and low prices.
The Telegraph newspaper today made an extraordinary statement that illustrates the excitement in the industry “..As for the US, we may soon be looking at an era when shale gas, wind and solar power, combined with a smarter grid and a switch to electric cars returns the country to near energy self-sufficiency. … LNG imports from Qatar and Trinidad have dropped to virtually zero this year. [Red, yellow & bold emphasis added.]
UPDATE: Shell CEO: UK fears over gas supply security overdone — (Dow Jones Newswire) Capital.gr
The U.K. is likely to become the first port of call for ships carrying LNG from places like Qatar or Nigeria, particularly because the U.S. will need less of the fuel as domestic gas production booms, he said. By 2020 LNG could provide 25% of the U.K.'s gas needs, he said. [Red & bold emphasis added.]
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Firefighters respond to flaring at Canaport — Telegraph-Journal, Saint John, NB
"This resulted in liquid (sic) natural gas erupting out and over the flare stack tip and liquid product cascading down the flare stack while it was igniting, causing a large flame and vapour cloud," Oickle said. [Red, yellow & bold emphasis added.]
LNG standoff — Telegraph-Journal, Saint John, NB
In a strongly worded commentary, Maine Governor John Baldacci says it is wrong of Canada and New Brunswick to insist that Ottawa has the right to control all shipping in Passamaquoddy Bay, including future LNG traffic.
Cops stepping up protest patrols — Telegraph-Journal, Saint John, NB
This weekend, Staff Sgt. Robert Buck said there were 60 police officers at the early-morning protests.
Trinidad's LNG exports to U.S. decline — Reuters
PORT OF SPAIN, Oct 12 (Reuters) - Trinidad and Tobago's LNG exports to the United States, its major market, declined during the first seven months of the last fiscal year, while increased shipments went to higher priced markets in Europe and Asia.
Last week, a government official said that expansion of Trinidad and Tobago's LNG production may not go ahead because there is currently not enough extra gas. [Red emphasis added.]
FERC snubs Jordan Cove — The World, Coos Bay, OR
This is the third meeting that Jordan Cove has been snubbed since the company requested a hearing.
Energy crisis postponed: New gas to the rescue; U.S. may return to near energy self-sufficiency? — iStockAnalyst
"There has been a revolution in the gas fields of North America. Reserve estimates are rising sharply as technology unlocks unconventional resources," he said. This is almost unknown to the public.
As for the U.S., we may soon be looking at an era when gas, wind and solar power, combined with a smarter grid and a switch to electric cars returns the country to near energy self-sufficiency. [Red & yellow emphasis added.]
LNG supply will exceed demand by 2013 (Oct 11) — New Europe
The global economic crisis has temporarily depressed natural-gas demand at a time when many new LNG production projects have begun production, Brufau said.
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Maine must not cede rights to maritime transit [Op-ed column] — Bangor Daily News, Bangor, ME
According to international law, treaties between the U.S. and Canada and current practice, ships headed to port in Maine have as much right to use the passage as ships headed to Canada. The U.S. State Department has taken a strong and consistent position that all vessels enjoy a nonsuspendable right of innocent passage into and out of Passamaquoddy Bay through Head Harbor Passage. This is guaranteed by the International Law of the Sea Convention. [Red emphasis added.]
Flare problems force evacuation of [Canaport] LNG site — CBC News
Emergency crews responded to a report of a fire at the terminal, located on Red Head Road.
Workers at the scene told CBC News the flare appeared to have gotten out of control and it created a great deal of heat. They were forced off the job for about an hour.
Laid-off LNG workers stage another protest — CBC News
Most of the protesters, who started to gather at 5 a.m., are union members who were laid off after building the first two enormous liquified natural gas containment tanks at the terminal owned by Irving-Repsol, he said.
Mayor wants cooler heads to prevail in labour issue at Canaport LNG site — Telegraph-Journal, Saint John, NB
On Sept. 14, union members began protesting at a city hotel in a bid to stop buses carrying out-of-province workers destined for the LNG plant. Just days later, the protest ended when the workers were relocated to an undisclosed location. Trouble began to brew again on Oct. 2, but this time along Red Head Road near Canaport LNG with as many as 300 protestors being watched by dozens of police.
Railbelt crossroads (Week of Oct 11) — Petroleum News, Anchorage, AK
[A]t current trends of Cook Inlet gas decline, North Slope-sourced gas would be unlikely to become available in Southcentral before Cook Inlet gas supplies fall short of demand. That raises the specter of possibly having to import foreign LNG through the Nikiski LNG plant, to boost utility gas supplies. The import of LNG, although straightforward to arrange, would require Alaskans to swallow copious quantities of their pride in a state that boasts major oil and gas resources.
New way to tap gas may expand global supplies — Ocala.com, Ocala, FL
Over the last five years, production of gas from shale has spread across wide swaths of Texas, Louisiana and Pennsylvania. All the new production has produced a glut of gas in the United States, helping to drive down gas prices and utility costs. [Red emphasis added.]
ANALYSIS-Natgas giants still reeling from U.S. shale shock (Oct 9) — (Reuters) Forbes
The world's energy titans are only starting to get a grip on the surge in the unconventional production of shale gas that has postponed for years the United States' expected emergence as major natural gas importer.
"The United States is now a virtual liquefied natural gas exporter because all the LNG that was supposed to be going there is now going somewhere else," said Ian Cronshaw of the International Energy Agency.
The massive increase in production from places like the Barnett Shale has sent gas prices plunging and has forced LNG producers to scale back production or put cargoes into storage. [Red, yellow & bold emphasis added.]
Sonangol may seek other LNG markets following U.S. natural gas price decline (Oct 9) — LNG Law Blog, Washington, DC
An official with Sonangol SA, Angola's state-run oil and gas company, told Bloomberg that, due to the decline in U.S. natural gas prices, the company may change its plans to supply the U.S. market with output from the Angola LNG liquefaction project. [Red emphasis added.]
Natural Gas: The Russians are coming! (Oct 9) — Forbes
Unconventional shale gas plays, like the Haynesville in northern Louisiana and the Marcellus in the Northeast, are showing monstrous production rates….
The Houston office booked long-term contracts in May to receive and regasify some of the Sakhalin-2 LNG in northwest Mexico, then move it by pipeline to markets in Southern California.
"Anytime we get a new entrant into the market, that's good. They will help globalize the natural gas markets," he says, adding Gazprom is "representative of a new breed of global LNG supplier who will find and eventually begin to really dominate our domestic markets for natural gas."
Gazprom eyes US market (Oct 9) — The Straits Times, Singapore
The Russian giant plans to use liquefied natural gas from its Sakhalin-2 project to supply US customers and is also looking at swapping pipeline gas in Europe to obtain supplies for the United States.
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Repsol's indomitable confidence in natural gas — Telegraph-Journal, Saint John, NB
With demand down and oversupply in the marketplace, Denis Marcoux, the vice-president of Repsol Energy Canada, concedes this is not the ideal time to put a lot of natural gas into the marketplace.
Canaport came online in July 2009 and its average production per day is about 150,000 MMBtu's, says Marcoux, who is responsible for gas marketing activities in the Maritimes and Eastern Canada for the re-gassified LNG produced from Canaport.
The facility is capable of processing over one million MMBtu's per day, meaning it's only processing roughly 15 per cent of what it can handle. [Red, yellow & bold emphasis added.]
Protesters slow down vehicles — Telegraph-Journal, Saint John, NB
SAINT JOHN - School buses were delayed and traffic slowed on Black River Road Wednesday morning as protesters waited for buses carrying out-of-province workers to pass on their way to Canaport LNG, police say.
Local official reacts to Freeport LNG's proposed Emergency Response Plan — LNG Law Blog, Washington, DC
Quintana, Texas, Councilman Jerry Masters, who also serves as the town's emergency management coordinator, told The Facts that he believes the emergency response plan recently filed by Freeport LNG is "a starting point" but "needs some more work."
Freeport LNG emergency response plan — The Facts, Clute, TX
The contingency plan states alarms at the LNG Quintana terminal will sound, local police will be notified, and Brazosport Industrial Community Awareness & Emergency Response will be called.
Quintana leaders have expressed fears that, were a truck to overturn or get into an automobile accident, the gas could leak from its tanks and endanger islanders. [Red emphasis added.]
Guest column: Is now the time to lease Tongue Point? (Oct 7) — The Daily Astorian, Astoria, OR
The Port's recent entanglement in a lawsuit with Oregon LNG is another factor that may need consideration in the viability equation.
U. S. LNG imports may leap in 2010 — Calgary Herald, Calgary, AB
Natural Gas - U. S. imports of liquefied-natural-gas may rise 50 per cent next year as international production increases and U. S. and Canadian production of the fuel falls, Societe Generale said.
Gazprom wants 10 pct of US natgas market in 5 yrs — (Reuters) Forbes
The Russian giant plans to use liquefied natural gas from its Sakhalin-2 project to supply U.S. customers and is also looking at swapping pipeline gas in Europe to obtain supplies for the United States.
In the longer term, Gazprom could send LNG from its giant Shtokman field to the United States. The field, which is being developed with France's Total and Norway's StatoilHydro should begin production in 2015, Medvedev said.
Disputes between Russia and its neighbors, like Ukraine that host the giant pipelines that connect Gazprom with its western European customers, have led to significant disruptions of gas supplies in recent years, pushing the issue of gas supply security up the agenda for European energy importers. [Red emphasis added.]
2008
US Total NG Consumption |
2008
US Total NG Imports
(via pipeline & LNG)
|
2014
Russia's LNG to US Goal
(10% of US NG Consumption)
|
23.2 trillion cubic feet |
3.98 trillion cubic feet |
2.32 trillion cubic feet |
Russia's LNG Goal in % of Total U.S. NG Imports = 58.29% |
NG = Natural Gas
Global natural gas demand has declined but will revive in 2010 says new report — PRLog.com
[E]xpected increase in demand for natural gas in Asia-Pacific in 2010-11 will propel demand growth in the global natural gas industry. Natural gas is expected to play an increased role as a primary fuel worldwide, especially in the Asia Pacific region.
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Demonstrations resume against LNG contractors — News 88.9, Saint John, NB
The demonstrators believe the company is hiring workers from places like Alberta, and they say there are qualified unemployed workers in New Brunswick that could do the jobs.
UPDATE 2-Repsol bullish on LNG but sees gas glut to 2013 (Oct 6) — Reuters
"Up until 2013 there will be a situation of excess supply. Thereafter demand will exceed supply unless new LNG projects that are currently awaiting the final investment decision are approved," Brufau said.
Weaver's Cove responds to City of Fall River's letter to PHMSA — LNG Law Blog, Washington, DC
Earlier this week Weaver's Cove Energy LLC submitted a letter to the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) in response to a letter filed with the agency by the City of Fall River, Mass.
Separately, Weaver's Cove Energy also filed its response to a letter from the Rhode Island Department of Environmental Management to FERC regarding a number of concerns with the project's impacts on fisheries in Mt. Hope Bay.
Louisiana Governor's Office meets with ports to discuss dispute over Cameron LNG terminal site (Oct 6) — LNG Law Blog, Washington, DC
KPLC TV reports that members of Gov. Bobby Jindal's (R-La.) executive council met with representatives of the Lake Charles Port Board last week to discuss the ongoing land dispute between the Lake Charles Port and the Port of West Cameron related to ownership of the Cameron LNG terminal site.
Freeport LNG submits engineering information to FERC — LNG Law Blog, Washington, DC
Freeport LNG submitted additional information regarding its planned boil-off gas recapture and truck delivery systems yesterday
LNG expansion may not go ahead-Trinidad official — Reuters UK
Expansion of Trinidad and Tabago's liquefied natural gas production may not go ahead because there is currently not enough gas for the expansion, said David Small, director of policy at the Ministry of Energy, said on Wednesday.
Bright future for Trinidad and Tobago shipbuilding envisaged — Breaking News, Trinidad & Tobago
With the ongoing world economic crisis, a recent article published in a local newspaper correctly stated that this has negatively affected the shipbuilding sector. This is simply because of the existing demand and supply imbalance which is the case primarily for the large ships over 5,000 DWT. Looking back, the original recommendation made to the foreign consultants by the Shipbuilding and Repair Cluster in 2007 is correct. Luckily, for all concerned this recommendation was accepted. Nevertheless, as in the old saying “with crisis there is opportunity”, as a result of the current downturn, there is an enormous glut in the worldwide oversupply of these large ships including LNG Carriers, Bulk Ore Carriers and Very Large Crude Carriers (VLCCs) chasing a small number of cargoes. This has created a new market for the Shipbuilding and Repair Cluster and our country, as thousands of these ships that were ordered in 2007 and recently launched by foreign shipyards located mainly in South Korea, Japan and the People’s Republic of China have to be “laid-up”, some without ever having transported a single shipment of cargo. [Red & bold emphasis added.]
Enbridge considers pipeline expansion for shale gas. — (Canwest News Service) Kelowna.com, Kelowna, BC
Enbridge Inc. said Tuesday it could expand the Alliance pipeline to take advantage of new unconventional gas fields in northeastern British Columbia and northwest Alberta that are expected to become major supply sources.
Producers like EnCana Corp., Nexen, EOG Resources and Apache Corp. are evaluating Horn River wells that some estimates say could hold more than 60 trillion cubic feet of potential reserve.
Pipeline companies are racing to provide outlets for Horn River gas to find its way to markets in Asia, the U.S. and oilsands production in Alberta. Kitimat LNG is proposing a liquefied natural gas terminal on the West Coast while TransCanada is considering a tie-in to its Nova gathering system in Alberta, which moves about a fifth of the gas produced in North America onto its main line pipes that run to Ontario and the U.S.
Energy infrastructure: Time to walk the line [Guest column] — BlueOregon
What is needed is some honest introspection and subsequent dialogue among environmentalists, developers, utilities, consumer groups, and local regulators on what is truly acceptable and what isn’t for large infrastructure siting. That doesn’t just mean choosing what habitat to protect, but also what the alternatives are in an era of laptops, flat-screens, server farms, and electric vehicles. More nuclear? More coal? More hydro? Dare I say as an Oregonian, more LNG? One clear result will be that everyone at the table will have to give something up to balance the need for habitat and clean electrons.
A systemic approach to determining which impacts are “acceptable” and which are not cannot be avoided.
EIA forecasts record gas storage levels as heating season begins (Oct 6) — Oil & Gas Journal, Tulsa, OK
WASHINGTON, DC, Oct. 6 -- US natural gas inventories are expected to reach a record peak of 3.85 tcf when storage injections end on Oct. 31, the US Energy Information Administration said in its latest short-term energy outlook.
“The startup of several large LNG supply projects in 2010 will lead to an increase in US LNG imports, although previous supply additions abroad have been slowed by construction delays and feed-gas shortages that contribute to EIA’s uncertainty about the future of current projects,” it said. [Red emphasis added.]
MARKET WATCH: Falling dollar pulls up oil prices — Oil & Gas Journal, Tulsa, OK
LNG imports are expected to increase to about 471 bcf in 2009, from 352 bcf in 2008, and rise to about 660 bcf in 2010.
LNG market could stay slack (Oct 6) — Calgary Herald, Calgary, AB
The global liquefied natural gas market should stay slack for some time due to increased production and weak demand, StatoilHydro's executive vice-president for natural gas, Rune Bjornson, told Reuters in an interview.
LNG supplies to tighten from 2015, says Qatar — AMEinfo.com, Dubai, United Arab Emirates
Faisal Al-Suwaidi, the chief executive of Qatargas, has said that postponing planned natural gas liquefaction facilities amid the current global slump in natural gas prices will lead to tight supplies by 2015, Reuters has reported. LNG consuming nations must prepare for the coming tight supply situation, he said. [Red emphasis added.]
European markets close higher, firm Euro (Oct 5) — Ticker Magazine
GDF Suez SA added 0.3% to €29.49 after the natural gas and electricity supplier said is seeking to divert liquefied natural gas, or LNG, cargoes from its new Yemen LNG plant to India and away from the U.S. where demand has slowed, according to a report by Bloomberg News. [Red & bold emphasis added.]
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Bangor Daily News: Premier Graham's concerns regarding LNG "not without foundation" — LNG Law Blog, Washington, DC
An editorial carried by the Bangor Daily News recognizes that New Brunswick "Premier Graham's concerns about the safety from LNG tankers ... are not without foundation" and expresses concern over Maine Governor Baldacci's approach to LNG siting. The paper notes that Maine's next governor should work to "identify[] sites where LNG or some other fuel might be safely imported," and advises that Maine should "continue to extend a hand of partnership to New Brunswick" despite disagreement over LNG vessel traffic issues. [Red & yellow emphasis added.]
Who calls the shots? — Mainebiz, Portland, ME
In an otherwise conciliatory relationship, Maine and Canada duke out the rights to LNG passage
Canadian officials, including Veterans Minister Thompson and other conservatives, have voiced opposition to LNG projects since 2005, but the Canadian government didn’t formally announce its opposition until 2007, after the election of Prime Minister Harper and the government’s shift from a liberal to conservative leading party. After FERC’s favorable draft environmental review of the Downeast LNG project this May, New Brunswick Premier Shawn Graham sent a letter to FERC, saying passage of LNG tankers would threaten public safety, damage the environment and cause “potentially significant economic harm in a region of New Brunswick that is fundamentally dependent on the pristine ecosystem of the Passamaquoddy Bay region for its economic well-being.”
At issue is whether Canada has the legal right to bar LNG tankers from Head Harbour Passage. [Consul for political and economic relations at the consulate general of Canada in Boston, Neal Burnham] says the United Nations Convention on the Law of the Sea, or UNCLOS, as well as “historic maritime law” considers that passage “internal waters” to Canada, meaning Canada has a right to restrict access. Maine representatives argue, however, that Head Harbour Passage is considered territorial sea, through which, according to UNCLOS, a “right of innocent passage” exists. A 2007 study commissioned by Downeast LNG done by Ted McDorman, a law professor at the University of Victoria in British Columbia, supports the claim that innocent passage exists.
One sticking point: While the United States is a signatory to UNCLOS, it has not ratified the convention as Canada has, which irks some Canadian officials. “They’re using a provision in UNCLOS while at the same time not ratifying it,” Burnham says. He adds, though, that ratification would not change Canada’s position. “Basically, we’re at a stalemate,” says Burnham. “In terms of how this will be resolved, it remains to be seen.”
New York State energy plan supports LNG — LNG Law Blog, Washington, DC
The plan does not endorse any of the proposed LNG projects proposed off the Mid-Atlantic United States. [Red, yellow & bold emphasis added.]
State report says NY may need offshore gas terminals — Newsday, Long Island, NY
The plan was prepared on orders from Gov. David A. Paterson in April as he shot down a Broadwater Energy proposal for a floating liquefied natural gas processing plant in Long Island Sound.
Buying natural gas — International Business Times, New York, NY
[D]omestic supply and demand don't dictate that the US import natural gas; domestic production could be more than sufficient to make the country energy independent, at least when it comes to natural gas.
But the emergence of nonconventional gas plays in the US scuttled the predicted boom in LNG imports. [Red & yellow emphasis added.]
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NMFS concurs with FERC: No significant negative impacts from Cove Point LNG pier reinforcement project (Oct 2) — LNG Law Blog, Washington, DC
The National Marine Fisheries Service (NMFS) informed FERC last week that it concurs with the Commission's determination that no threatened or endangered species will be adversely affected by the planned Cove Point LNG terminal pier reinforcement project.
Push for LNG pipeline from Oregon's Coos Bay— San Francisco Chronicle, San Francisco, CA
About 17,000 people live within a 3-mile radius of the proposed terminal, called Jordan Cove.
[T]he natural gas market has changed radically since [five years ago]. Improved technology helped energy companies tap gas that had been locked in shale rock in places like Arkansas, Louisiana and Texas. Domestic production boomed. Prices fell. And interest in LNG - at least in America - fizzled.
GDF Suez seeks Yemen LNG cargo diversion amid slow US demand (Oct 1) — Wall Street Journal [Paid subscription required]
DUBAI (Zawya Dow Jones)--GDF Suez SA (GSZ.FR) is seeking to divert liquefied natural gas, or LNG, cargoes from its new Yemen LNG plant to India and away from the U.S., where demand has slowed, a person familiar with the situation said. [Red bold emphasis added.]
The Strategic Plan: FY 2009–2014 — Federal Energy Regulatory Commission (FERC), Washington, DC
The following links will download a file from FERC (PDF; 3.1 MB)
FERC Responsibilities
Ensures the safe operation and reliability of proposed and operating LNG terminals
Timeliness
The Commission’s goal is to reach an appropriate resolution of each proceeding in an expeditious manner. Toward that end, the Commission has steadily decreased the time it takes to act on projects, such as LNG import terminals, gas storage facilities and interstate natural gas pipelines. It has done so without compromising its environmental protection and public participation responsibilities. [Red & yellow emphasis added.]
DOE to unveil new online database of oil and natural gas research results (Oct 2) — U.S. Department of Energy, Washington, DC
Washington, D.C. — The U.S. Department of Energy plans to introduce a new, user-friendly online repository of oil and natural gas research results at the Society of Petroleum Engineers' Annual Technical Conference and Exhibition, to be held in New Orleans, La., October 4–7, 2009. By providing easy access to the results of nearly four decades of research supported by the Office of Fossil Energy’s Oil and Natural Gas Program, the knowledge management database could ultimately help boost recovery of the nation’s oil and gas resources.
Signs of life in floating LNG (Oct) — Petroleum Economist, London, England, UK [Paid subscription required]
[Webmaster's Note: For yet another story on floating LNG liquefaction facilities: Analyst: Shell could be first to liquefy gas offshore]
FLNG's attractions include the potential make remote offshore fields economically viable and to reduce security risks by cutting down on the need for onshore infrastructure. [Red & yellow emphasis added.]
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LNG Long Haul [Editorial] — Bangor Daily News, Bangor, ME
Other deep-water ports in Maine are probably better suited for LNG terminals.
Whether an LNG facility is permitted in eastern Washington County in the next few years or not, the state must continue to extend a hand of partnership to New Brunswick while keeping an eye on how agreements serve Maine. [Red & yellow emphasis added.]
the Bangor Daily News has continued to ignore that LNG industry best practices consider the conditions in Passamaquoddy Bay not merely “probably less suitable,” but are eminently inappropriate for LNG facilities.
If the projects were located elsewhere in Washington County outside of Passamaquoddy Bay, or farther down the coast, then New Brunswick and Canada would have no objections — as Canada and New Brunswick have repeatedly stated.
The Baldacci Energy Policy is being ignored, even by Gov. Baldacci.
Canada’s offshore oil patch skirts storm (Week of Oct 4) — Petroleum News, Anchorage, AK
Until last summer, Newfoundland LNG Ltd. seemed sure about erecting a liquefied natural gas terminal. Turner, who is company president, said the recession crippled the $1.5 billion project. In preparation mode since 2001, Newfoundland LNG received federal environmental approval last fall for the three marine jetties and eight storage tanks it proposes to build at Grassy Point, Placentia Bay. The province had already come onboard, environmentally. Development was expected, but financing fell through.
Protesters return — Telegraph-Journal, Saint John, NB
Sgt. Pat Bonner, with the Saint John Police Force, said at about 6 a.m. on Friday at the intersection of Union and St. Patrick streets about 40 people protested the hiring of out-of-province workers at Canaport LNG.
Dawson said he has requested meetings and met with the contractors throughout the week to suggest ways to work through the issues. The labour leader said that after every meeting the company says it will get back to him but it never does.
Gazprom starts U.S. trading operations in Houston — Houston Chronicle, Houston, TX
Gazprom Marketing & Trading USA, the U.S. arm of the world's largest natural gas producer — which is majority owned by the Russian government — is ramping up operations in Houston in a big way.
Gazprom's timing isn't ideal, said Amy Myers Jaffe, a fellow in energy studies at Rice University's Baker Institute.
[P]rices are down because of the economic downturn and a surge in U.S. production, prompted mostly by new technology for producing natural gas locked in shale formations. Natural gas closed at $4.72 on Friday. [Red bold emphasis added.]
Will shale gas, LNG 'eat our lunch?' State officials say no (Oct 2) — Alaska Journal of Commerce, Anchorage AK
In terms of near-term markets, the combination of a severe recession and explosion in production of unconventional gas, the bulk of it from shale, has resulted in glutted gas markets and rock-bottom prices.
"We're swimming in gas supply, and the price is too low to encourage new drilling," he said.
"There's a lot of this gas very close to major population centers, and the resource estimates are staggering, even if just a fraction of this is developed, it's huge," he said.
The world has LNG surplus, but the U.S. has seen little growth in LNG imports in recent years despite the spike in gas prices last year, which should have made increased LNG sales to the U.S. attractive.
"Alaska has 36 percent of the remaining undiscovered conventional gas resources of the U.S.," and there's huge potential for adding to the known reserves, he said. [Red & yellow emphasis added.]
How stupid do they think we are? [Editorial] (Oct 1) — The Daily Astorian, Astoria, OR
The Oregonian tells Clatsop County voters: Shut up and eat it
If you read The Oregonian's admonition to Clatsop County voters last Sunday ("Recall misused in LNG fight," Sept. 27) you easily detected who commissioned the editorial. Northwest Natural's hand was apparent. The real message of The O's Sunday directive is not that we keep Jeff Hazen, Ann Samuelson and Patricia Roberts in office. The real message is that we should shut up and accept a liquefied natural gas terminal at Bradwood or on the Skipanon. Why? Because the big-money boys at Northwest Natural have told The O's editorial writers that an LNG terminal is essential to our regional well-being.
Opposition to LNG featured at SPFS (Sep 30) — WillametteLive.com, Willamette, OR
Schmidt speaks at the Salem Progressive Film Series screening of “Crossroads at the Columbia” on Oct. 8. The documentary begins at 7 p.m. with speakers to follow.
The film documents local activism to stop the installation of liquefied natural gas terminals and their associated pipelines along the Columbia River near Astoria.
Port to hire new adviser (Oct 2) — The World, Coos Bay, OR
COOS BAY — Port officials plan to hire a Georgia consulting firm to identify businesses that might be interested in the area if a liquefied natural gas terminal is built on Coos Bay’s North Spit.
The Oregon International Port of Coos Bay commissioners authorized executive director Jeffrey Bishop to sign a contract limited to $40,000 with Bruce Facility Planning Consultants of Norcross, Ga. The company will consider the area’s general strengths as weaknesses, as well as what industries might find it convenient to build next to an LNG terminal, Bishop said.
Credit crunch not over for gas (Oct) — Petroleum Economist, London, England, UK [Paid subscription required]
With industrial production around the world slowing to a virtual standstill, the US Energy Information Administration (EIA) expects domestic gas consumption in 2009 to fall by 2.4% from 2008. Gas prices fell to seven-year lows in September – below $3/m Btu and down by almost 80% from last summer's high. [Red emphasis added.]
Climate change, energy and manufacturing (Oct 1) — KCI Investing, Falls Church, VA
[T]he flood of liquefied natural gas (LNG) imports that many pundits predicted just hasn’t materialized; in July, US LNG imports were still more than 50 percent below their 2007 highs.
The Russians are coming….at a very bad time [Blog] (Oct 1) — Financial Times
[T]hat a major competing nation has set up shop in the US to began [sic] expanding into its natural gas market is going to rankle the many small US natural gas companies now struggling with US natural gas prices recently falling to a 7.5-year low. These companies already have had to lay off staff, curtail drilling, and put off expansions with low gas prices, tight credit markets and the poor economy.
The timing could not be worse for the Russians now come in and say they have only just begun profiting off the US market.
RPT-Russia's Gazprom starts trading natural gas in U.S. (Oct 1) — Interactive Investor, London, England, UK
MOSCOW, Oct 1 (Reuters) - A unit of Russia's energy giant Gazprom said on Thursday it had begun trading and marketing of natural gas in North America in a first foray into the United States by a Gazprom Group's company.
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