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Save Passamaquoddy Bay asks FERC to dismiss LNG application (Dec 30) — The Saint Croix Courier, St. Stephen, NB
[SPB 3-Nation Alliance attorney] Shems said [the Calais LNG] project has lacked financing for six months and essential property interest for three. For these reasons, he said, the Three Nation Alliance requests that FERC dismiss Calais LNG’s applications from FERC dockets since taxpayers’ funds should not be expended on a project without basis.
Ronald Rosenfeld, MD, has also written to FERC…. To claim there are “new” managing members and that this is a reason for delay, obscures the fact the “new” managing members have been involved with the project since its onset, he stated.
Calais LNG agents did not respond to interview requests. [Red, yellow & bold emphasis added.]
Newsmakers 2010 — Fighting tenaciously to survive on Maine’s working waterfront (Dec 30) — The Times Record, Brunswick, ME
Concerned about the potential loss of Harpswell’s prime Middle Bay lobstering grounds, Merryman and other fishermen formed Fishing Families for Harpswell to oppose the LNG terminal.
“It was like the David and Goliath story,” Merryman said Tuesday. “We were up against TransCanada and ConocoPhillips, two multi-billion dollar companies. They didn’t plan on a group of fishermen in this little community winning over the hearts of the community (but) we just had to get more votes than they did.”
According to the National Energy Policy 2009 -2030, the share of oil in Jamaica's energy supply mix could fall from the current 90% to as low as 30% — Poten & Partners
According to the National Energy Policy 2009 -2030, the share of oil in Jamaica's energy supply mix could fall from the current 90% to as low as 30%, with LNG accounting for as much as 42% of the mix and renewable for 20% by 2030.
Drill bits turning again despite uncertain outlook for 2011 — Canada.com
Companies such as Apache Canada are increasingly looking to export gas offshore by taking an ownership stake in the proposed Kitimat liquefied natural gas terminal. Talisman formed a $1.05-billion joint venture with South Africa's Sasol to explore gas to liquids technology which uses gas as a feedstock to make gasoline and diesel.
While the move is a recognition of the continuing bleak outlook for gas prices, it's also a recognition that new technologies have unlocked a long-term stable supply of gas. [Red bold emphasis added.]
Despite fires and cave-in, top stories in 2010 revealed a passion to build and renew — The Daily Astorian, Astoria, OR
LNG goes away ... almost
Liquefied natural gas developer NorthernStar Natural Gas Inc. filed for Chapter 7 bankruptcy in early May.
Bradwood Landing [LNG] ended up owing money to multiple businesses and agencies in Clatsop County. The county itself was owed close to $186,000, according to bankruptcy documents, and [Clatsop County] is still working to collect the money. [Red & bold emphasis added.]
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Canaport among North American sites to receive LNG shipments (Dec 29) — Bloomberg
The arriving tanker [January 12], Golar Grand, can carry as much as 142,962 cubic meters of LNG, or about 3.08 billion cubic feet of natural gas, equivalent to 5 percent of estimated daily U.S. gas production. The cargo is from Trinidad and Tobago, the data show.
Another ship, Zarga, is arriving at the port Dec. 31, according to the Saint John Port Authority. The cargo is from Qatar, according to the Bloomberg data.
Carcieri, Chafee sign resolution opposing LNG project — The Jamestown Press, Jamestown, RI
Governor Don Carcieri, Governor elect Lincoln Chafee, 15 municipalities, a native tribal chief, and several community groups contributed signed resolutions to the package which was assembled and submitted by the Rhode Island based citizen’s action group known as the LNG Working Group.
Jointly, these resolutions declare in no uncertain terms that the signatories believe that the proposed Hess project creates negative economic, environmental, and safety impacts on the waters of Narragansett and Mount Hope Bays and on land in Fall River.
Budget debates and a full agenda keep Town Council busy in 2010 — The Jamestown Press, Jamestown, RI
The Council established the LNG Threat Committee as one piece of its three-part plan to track LNG developments. The other two pieces were a “congress of councils” – the first of which was hosted by Jamestown on Sept. 9 – and an invitation to the LNG Working Group to provide background information to the fledgling committee.
LNG land deal sparks new objections — The World, Coos Bay, OR
McCaffree is asking where the port will pile all the dug-up muck if it decides to buy a smaller portion of the land.
Natural gas market at a crossroads on B.C.’s north coast — CTV News
It likely won’t happen until fall. But at a time of low North American gas prices and abundant new supply, the decision to construct a $3.5-billion liquefied natural gas (LNG) export terminal, the first of its kind in Canada, has nearly arrived.
In fact, the idea is so potent that Kitimat isn’t the only potential West Coast LNG facility. Several sources have confirmed that a consortium of companies that includes Royal Dutch Shell PLC, Mitsubishi Corp. and Korea Gas Corp., spent most of 2010 examining options and scouting potential locations for a second LNG export terminal. [Red bold emphasis added.]
Natural gas boom coming—but so are major obstacles (Dec 29) — CNBC
In the past three years, huge reserves of domestic natural gas have been brought to the surface with revolutionary breakthroughs in drilling technology to produce a 100-year supply of cheap, clean-burning fuel at current rates of consumption, experts say.
“This is a huge, huge breakthrough for U.S. energy security," says Pete Stark, vice president of industry relations for IHS Global Insight. "It’s the biggest gift we could have been given—a reliable domestic supply that creates jobs, increases the Gross National Product, offsets the balance of payments. It’s ours and it can be used."
“The reality is that in a world of abundant supply and increasing production, prices will likely stay very low,” says stock analyst Alan Brochstein.
[Red bold emphasis added.]
Energy investing: The global LNG market (Dec 28) — Investing Daily, Falls Church, VA
With all the fervor surrounding the US shale gas revolution--it’s not every day that a country transitions so quickly from a growing importer of natural gas to one with an oversupply--it’s easy to overlook the international implications of this domestic supply glut, particularly on the global market for liquefied natural gas (LNG).
Earlier this decade most analysts projected that US LNG imports would increase steadily, offsetting lower domestic production. Back in 2003 there were at least two dozen proposals to build new re-gasification terminals. But US LNG imports never reached the 812 bcf per year that the Energy Information Administration projected in its Annual Energy Outlook 2004 and have fallen off a cliff after peaking in 2007. [Red bold emphasis added.]
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Who wants to be a shale-onaire? — Baton Rouge Business Report, Baton Rouge, LA
Louisiana Economic Development Secretary Stephen Moret says the U.S. has moved from an expensive and volatile natural gas market to one with prices that are much lower and that are expected to stay reasonably low and stable for years—perhaps even decades. [Red bold emphasis added.]
Sabine Pass LNG responds to FERC's information requests — LNG Law Blog
Sabine Pass LNG, L.P. has submitted its responses to FERC's requests for engineering data. The company's responses are available in eLibrary under Docket No. CP11-32.
Freeport LNG requests FERC commence NEPA pre-filing review of liquefaction proposal — LNG Law Blog
Last week Freeport LNG Development, L.P. submitted a request that FERC commence its pre-filing review under the National Environmental Policy Act (NEPA). Freeport LNG also included other information in its request, including a draft schedule for the project, a project description, and site map.
Energy as the game-changer [Editorial] — The Gleaner, Kingston, Jamaica, West Indies
As it now stands, the Jamaican Government's energy policy, in the short to medium term, emphasises the use of gas, via liquefied natural gas (LNG). Indeed, under the request for proposals (RFP) for the new generating capacity, compliance with the Government's fuel choice carries 15 per cent weight in the bid evaluation.
Bidding will close in March and it is expected that construction would begin in January 2012. The first 360Mw of power is to be commissioned two years later.
Two things seem incongruous with those deadlines. While a consortium led by EXMAR Corporation is the Government's preferred bidder for LNG storage, regasification, and distribution facilities, there are as yet no offtakers for gas. It is difficult, therefore, for negotiations to be concluded, or for EXMAR to agree to financing with banks.
Yedlin: Galveston impact to endure for years — Calgary Herald, Calgary, AB
"When he asked me what I was doing, I explained I was building a re-gas terminal in Kitimat and he said 'that's the stupidest idea I've ever heard'," said Sorenson.
Two thoughts came to Sorenson's mind: either the person he was speaking with was, in his words, "a jackass" or they knew something he didn't. That something was shale gas. [Red & bold emphasis added.]
US to gain competitive edge in global LNG market — PR-GB.com, Bulgaria
We have found that the US has been strengthening its domestic LNG market by investing huge amounts in various production plants and terminals. The country has been a major LNG consumer and importer with 452 Billion Cubic Feet of LNG imports in 2009. However, current developments indicate that the US is likely to reach the stage of self-sufficiency in coming future. Moreover, the country may achieve a competitive place in the global LNG export market. [Red bold emphasis added.]
Gas exporting countries get together — (Voice of Russia) Hellenic Shipping News Worldwide, Piraeus, Hellas (Greece)
Originally, the forum was planned as an analogue to the OPEC for price policy coordination. However, unlike the oil market, the gas market consists of segments, which are quite specific, says an expert at the Energy Strategy Institute, Alexei Gromov.
At present, it’s extremely difficult to say that Qatar, Trinidad-Tobago, Russia, Iran and some other countries that are member states of the forum or ready to join it can agree on a common price policy because their gas markets are in principle different.
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World's largest tanker comes to the city — Telegraph-Journal, Saint John, NB
The Q-Max tanker's cargo of nearly six trillion Btus of LNG is enough to heat 70,000 homes in North America for one year or 26 million homes in the UK for one day.
Calais LNG withdraws state application but plans to refile (Dec 24) — The Quoddy Tides, Eastport, ME
The project was scheduled for a BEP public hearing in July but has been on hold at the request of Calais LNG since just before the hearing was set to begin. In her recommendation, the BEP chair, Susan Lessard, wrote, "Since that time, Calais LNG has lost title, right or interest in a significant portion of the property proposed for development and has failed to resolve financing issues such that its applications are now devoid of any demonstration of financial capacity. Additionally, the applicant has not addressed the technical issues which were the basis for the first time extension request in July."
…Not only had the option agreement between Calais LNG and Steven Carothers and Gail Roberts lapsed, but the BEP found that the option on a 70-acre parcel owned by David Brown, which is also proposed for the Calais LNG terminal, expired on September 30, with no evidence of renewal. The two parcels make up the proposed site for the LNG terminal south of Devil's Head in Red Beach. [Red bold emphasis added.]
2010: In Recovery? [Editorial] — Mainebiz, ME
STABLE CONDITION
Patient: Energy projects
Liquefied natural gas projects continue to slide by on life support.
Prognosis: Financing remains the boogeyman thwarting investment in this industry. Higher natural gas prices will spur private investment in energy projects. [Red bold emphasis added.]
Baldacci's legacy still unwritten — Kennebec Journal, Augusta, ME
“For the average Mainer who loves the outdoors, he did a stand up job,” Pineau said. And, he added, Baldacci set an example by his work ethic.
…He worked to establish programs for winterizing homes and businesses, tried to bring liquefied natural gas to Maine, and pushed for wind power, both on land and in the ocean, she said.
The (shale) gas renaissance (Dec 24) — Energy Tribune, Houston, TX
In its latest update, U.S. Crude Oil, Natural Gas, and Natural Gas Liquids Reserves, a summary of its Annual Energy Outlook 2011, the EIA reports U.S. natural gas reserves, driven almost entirely by shale gas additions, increased by 11 percent in 2009 to 284 trillion cubic feet (Tcf). That’s the highest level since 1971. The EIA now projects technically recoverable unproven shale reserves standing at around 827 Tcf, 474 tcf above its 2009 projection – twice as much as previously estimated.
Elizabeth Campbell, associate policy fellow at the Americans for Energy Leadership project, suggests that this is, “enough to power every American household’s electricity consumption for over 73 years.” The US Geological Survey agrees. A spokesman for the USGS confirms, “Assuming one per cent recovery, these deposits [in U.S. territory] could meet the natural gas needs of the country [at current rates of consumption] for 100 years.” [Red bold emphasis added.]
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Repsol LNG shipment arrives in Canada — Upstream Online
Repsol has received a shipment of liquid natural gas from Qataras, the first in a multi-year supply deal for deliveries to the Spanish company's Canaport LNG terminal in Canada.
A Q-Max tanker carrying a full load of 5.6 billion cubic feet [158.6 million cubic meters] of natural gas equivalent arrived today at the Saint John, New Brunswick facility, one of the few terminals in the world with capacity to dock ships of such size.
Coalition informs Federal Energy Regulatory Commission of opposition to LNG terminal on Taunton River (Dec 22) — Taunton Daily Gazette, Taunton, Taunton, MA
A group consisting of 15 communities, elected officials and environmental advocacy groups has teamed up to inform the Federal Energy Regulatory Commission that it does not want Weaver’s Cove Energy’s proposed liquefied natural gas terminal to become a reality.
The communities stating their opposition to the project as part of the initiative include Fall River and Swansea, as well as the Rhode Island towns of Bristol, Barrington, Cranston, East Greenwich, Newport, New Shoreham/Block Island, North Kingstown, Portsmouth, Tiverton, Warren, Warwick, Jamestown and Middletown. The municipalities were joined by R.I. Gov. Donald Carcieri, R.I. Governor-elect Lincoln Chafee, all 2010 Rhode Island gubernatorial candidates, the Pokanoket Tribe of the Wampanoag Nation, the R.I. Statewide Coalition and the Taxpayers Association of Jamestown. [Red bold emphasis added.]
LNG language left out of spending bill, but lawmakers pledge to address it again (Dec 22) — The Herald News, Fall River, MA
An attempt to stop the review process related to Weaver’s Cove Energy’s proposed liquefied natural gas terminal has been delayed on Capitol Hill, though hope remains the action will be taken up in the new year.
Both the Senate and House on Tuesday approved a continuing resolution that will fund the federal government into March, but the passage did not include language sought by legislators in both branches of the legislature.
Pipeline project opposition could use boost from county [Opinion] (Dec 22) — MyCentralJersey.com, NJ
…[L]ocal leaders in several municipalities have responded by formally expressingopposition to the project, urging a redesign and a rerouting of the pipeline at the very least.
Perhaps Liberty Natural Gas will ultimately be able to address most, if not all, of the community concerns with some design tweaks and safety enhancements or other measures. But local officials have ample cause to raise warning flags and ask a lot of questions. County officials should join them in the fight
Norwegian LNG cargoes head for UK, US — (Argusmedia) LNG World News
Meanwhile, the 140,000m³ Arctic Discovere … set off from Hammerfest yesterday and set a course for Baltimore, where it is expected to arrive on 31 December. Chesapeake Bay and Baltimore both fall under the jurisdiction of the Maryland port authority, and the larger city’s heading is often used for deliveries to the Cove Point reception terminal on Chesapeake Bay.
Group seeks answers about LNG proposal (Dec 21) — WTOC-TV, Savannah, GA
SAVANNAH, GA (WTOC) - The city of Savannah is trying to get educated on hazardous materials in light of the recent request by El Paso Energy to start shipping liquefied natural gas.
That liquefied natural gas would be sent by the truckload through Savannah. Neighbors are now forming a group called Citizens for a Safe and Secure Savannah to get answers to their questions about LNG.
Jarrington said that 5 million gallons of liquefied natural gas would be going through the city a week if Savannah's petition is approved. He said it represents a post 9-11 decision that needs to look by citizens in a different way.
FERC grants extension to Cameron LNG for facility expansion (Dec 22) — LNG Law Blog
Yesterday, FERC granted a request submitted by Cameron LNG, LLC for an extension of time to complete construction for the expansion of its LNG import facility.
Sempra Energy to delay US LNG terminal expansion on low gas imports (Dec 22) — Platts
Sempra Energy's LNG subsidiary has postponed by at least a year a planned expansion of its Cameron LNG import terminal, as robust US gas production is expected to hold imports at anemic levels.
The US Federal Energy Regulatory Commission on Tuesday gave the firm until January 2012 to complete the expansion, which the agency approved a year earlier. The delay falls short of Sempra's request for a four-year extension.
"There must be a market outlet for the additional supply and the US, with its vast interstate pipeline and storage network, is one of the few markets, if not the only one, able to absorb significant incremental supplies," it said. "Expansion of an existing facility ... provides a far more economical approach than construction of an entirely new terminal." [Red bold emphasis added.]
Licence wanted to export gas (Dec 21) — Terrace Standard, Terrace, BC
Apache Canada has 51 per cent of the plan to liquefy natural gas at Bish Cove on Haisla First Nations territory near Kitimat where it will then be piped to waiting ships.
Haisla sell KLNG option (Dec 22) — Northern Sentinel, Kitimat, BC
The Haisla Nation has sold their option to purchase a portion of the Kitimat LNG (KLNG) project back to KLNG for $50 million.
Apache doesn’t yet have customers for the natural gas it expects to export, but Poole-Moffatt is optimistic, “We are in ongoing discussions, and we are confident that we should be in good stead by the time the plant opens in 2015.”
Port gains flexibility on North Spit land deal with Weyerhaeuser & Jordan Cove — KCBY-TV, Coos Bay, OR
NORTH BEND, Ore. -With the LNG Project still up in the air, and a vital land agreement about to run out, the Oregon International Port of Coos Bay renegotiates an extension to property purchase options, with Jordan Cove and Weyerhaeuser.
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NOAA receives Neptune LNG's filing on impacts to marine mammals — LNG Law Blog
The National Oceanic and Atmospheric Administration (NOAA) has received a filing submitted by Neptune LNG that outlines the expected impacts of the company's activities at its LNG deepwater port on marine mammals.
Gas is key, but energy needs broader [Opinion] (Dec 20) — National Journal, Washington, DC
A few years ago, all the best energy minds had concluded that natural gas production here and in eastern Canada had peaked and our needs for natural gas would be met by imports of LNG. That picture has completely changed because of advances in technology that allow shale gas to be produced at a cost that will make it competitive. The rapid and radical change in the outlook for natural gas should be a lesson in humility when it comes to forecasting our energy future. [Red bold emphasis added.]
What if the U.S. became a net exporter of liquefied natural gas? [Opinion] — Stockhouse
US producers of Natural Gas, Liquefied Natural Gas LNG, and Oil like Chesapeake Energy continue to drill the Eagle Ford Shale and other unconventional plays when natural gas prices are at depressed levels. The US rig count has increased from 750 rigs at the beginning of 2010 to currently 964 rigs despite lower gas prices. The price of natural gas in the US is less than $4.25 per million British thermal units (mBtu) and many analysts are predicting it will stay at these levels for the foreseeable future.The US is awash with natural gas from the shale gas plays of Texas, Arkansas, and Pennsylvania to name a few.
The fact that the US may be on its way to becoming a significant exporter of natural gas rather than a significant importer is amazing and seems inevitable. If shale gas development and extraction continues on its current pace this will become a lucrative new business. The US could soon be competing to supply the world with natural gas. If the US exported just a small percentage of its natural gas, it would become one of the largest exporters of LNG in the world. The US can compete with any country regarding natural gas costs and reserves. China and Great Britain have become net importers rather than net exporters of natural gas along with a number of other countries. The global demand for LNG is evident. The US supply is abundant and cost effective. ... [Red bold emphasis added.]
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Calais LNG withdraws application (Dec 17) — The Saint Croix Courier, St. Stephen, NB
The company had submitted a fifth request for a continuance of their applications, but board chair Susan Lessard recommended in a draft order that the applications be returned at a hearing scheduled for Thursday.
[Calais LNG development manager Ian Emery] goes on to state that this was being done now “as a result of a significant force majeure event that has impacted all of America – the meltdown of financial markets.”
[Bold emphasis added.]
Calais LNG project shelved — Down East, Rockport, ME
The company that had hoped to build a liquified natural gas terminal near Calais has called a halt to the project.
[Red bold emphasis added.]
Calais LNG asks FERC to suspend review of application — LNG Law Blog
Responding to a request for a project statute update, Calais LNG asked FERC for a "reasonable temporal accommodation – during which time [FERC] staff's application processing would be in hiatus." According to Calais LNG's filing, which is available in the eLibrary under Docket No. CP10-32, the company needs time to secure additional financing and access to the proposed site.
[Bold and red brown emphasis added.]
Plan for LNG site has new hurdles (Dec 19) — The Boston Globe, Boston, MA
“We want to put a stake through this vampire’s heart,’’ said Representative Barney Frank, Democrat of Newton, who first inserted the spending prohibition into a House bill this year with Representative James P. McGovern, Democrat of Worcester, which Senate colleagues then picked up.
Seven years ago, as the natural gas supply waned in the United States, a flurry of LNG projects were proposed across the country and in New England, from on a Boston Harbor Island to Harpswell, Maine. Most died out after an LNG terminal was built in St. John, New Brunswick, or because of public opposition.
An LNG port was built 10 miles off Gloucester, however, and another proposal remains viable in northern (sic) Maine. While new natural gas deposits have been found across the country, Shearer said an LNG port in New England is still needed because there is little gas storage here. He says the LNG terminal can help lower and stabilize gas prices. [Bold brown emphasis added.]
2010 gives lobstermen reasons to be thankful (Dec 18) — Gloucester Times, Gloucester, MA
The season further treated many lobstermen, whose incomes were adversely affected by the Neptune LNG terminal off Cape Ann that took lobster grounds, to a nice surprise in the mail this fall. They received compensatory checks from that company's trust.
Freeholders back off from taking stand on proposed natural-gas pipeline (Dec 19) — MyCentralNewJersey.com, NJ
NEW BRUNSWICK [NJ]— Middlesex County freeholders have backed away from urging reconsideration of plans to run a a liquefied-natural-gas pipeline through some of the county's most densely populated areas.
Governor Chris Christie does not want it, having said, “I will not subject our state's
shore and economy to the environmental risks that are inseparable from such a project.”
FERC comments on Resource Reports submitted by Sabine Pass LNG — LNG Law Blog
FERC staff has provided detailed comments on the resource reports submitted to the Commission by Sabine Pass Liquefaction, LLC.
Freeport applies to export LNG, predicts minor US price impacts — Platts
"The United States has developed a massive natural gas resource base that is sufficient to supply domestic demand for a century, even with significant exports of LNG," Freeport said. "The liquefaction project will not adversely affect US energy security."
The report predicted LNG exports from the Texas terminal would raise Henry Hub prices by 3 cents/MMBtu and gas at the Houston Ship Channel pricing hub by 9 cents/MMBtu. The project would draw shale gas from the Barnett, Haynesville, Eagle Ford and Marcellus basins.
[Red bold emphasis added.]
Enstar doesn't have contracts for all the gas it needs — Anchorage Daily News, Anchorage, AK
A study done earlier this year by Petrotechnical Resources of Alaska for Enstar, Chugach Electric Association and Municipal Light & Power -- all big natural gas buyers -- concluded that gas producers would have to drill an average of 13.6 successful new gas wells per year in the Cook Inlet basin at a cost of some $2 billion, to extend adequate gas supplies through 2018.
While the gap in the company's supply is significant in 2013, "it's probably not realistic to get LNG here in 2013," Sims said, because Federal Energy Regulatory Commission approval is needed, and that's a six-month pre- application process and then an 18-month process once the application is submitted.
The case against natural gas — Wyatt Investment Research, Williston, VT
…Horizontal drilling techniques, high-pressure fraccing and even massive discoveries in North Dakota, South Dakota, Wyoming, Pennsylvania, New York, Texas, Oklahoma and Louisiana (to name a few) mean that there’s no shortage of natural gas coming to market.
According to the US Energy Information Administration (a part of the Dept. of Energy) the United States currently has just about as much natural gas in underground storage as it’s ever had.
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LNG survival in Maine hinges on sole proposal — Maine Sunday Telegram, Portland, ME
Opponents of a liquefied natural gas terminal say the same forces that stymied Calais LNG will stop Downeast LNG, too.
"LNG terminals in Passamaquoddy Bay just don't have a future," said Sean Mahoney, vice president of the Conservation Law Foundation in Maine.
Ronald Shems, a lawyer for Save Passamaquoddy Bay, said the experience of the bay's other two LNG proposals suggests that energy projects aimed for the wrong locations die for reasons other than pure opposition. "We may not have to put the nail in the coffin," Shems said. "The market, FERC and state regulators may do it for us."
[Red, yellow & bold emphasis added.]
Our view: Maine is in danger of losing its LNG option [Editorial] — Maine Sunday Telegram, Portland, ME
The argument for LNG is a strong one. Maine is the most oil-dependent state in the union and, for historical and geographical reasons, Maine consumers have only limited access to natural gas. What gas we do have is restricted by a pipeline system that does not lend itself to easy expansion.
[Brown emphasis added.]
Power-Gen: Planned U.S. LNG export terminals face daunting competitive challenges, an Industrial Info news alert [News release] (Dec 17) — Marketwire
ORLANDO, FL--(Marketwire - December 17, 2010) - Written by John Egan for Industrial Info Resources (Sugar Land, Texas) -- Developers have filed plans to build about a dozen new liquefied natural gas (LNG) terminals in the U.S., but the terminals with the best chance of being built will be devoted to exporting LNG from the U.S., Arthur Ransome, vice president and general manager at CH-IV International (Hanover, Maryland), told a standing-room-only conference session at POWER-GEN International 2010 on Tuesday, December 14. [Red bold emphasis added.]
Exporting US LNG would hurt manufacturers: trade group (Dec 17) — Platts
A proposal to export US natural gas on the global LNG market would hurt domestic customers and jeopardize low prices and energy security, the president of the Industrial Energy Consumers of America said Friday.
"It is not enough to know that the US has significant reserves of natural gas," Paul Cicio said. "The question remains what portion of those reserves can be produced at affordable prices and especially at prices that allow the manufacturing sector to flourish."
"A lot can happen in 20 years, and exporting without any consumer safeguards could increase the price of natural gas and electricity," Cicio said in a December 13 letter to the agency. [Red bold emphasis added.]
Haisla sell off stake in Kitimat LNG project (Dec 17) — Opinion 250, BC
The First Nation has sold its option to purchase a major stake in the Kitimat Liquefied Natural Gas Project for $50 million U.S. The equity option was bought up by KMLNG, leaving Apache Canada and EOG Resources as the sole owners of the North Coast LNG terminal project.
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Reaction to Calais LNG withdrawal — WABI-TV 5, Bangor, ME
Calais LNG had recently asked for another extension, its fifth, to get the application turned it. But state environmental regulators say that nearly a year in the process the company has actually lost ground in its bid to secure land and investors for the project.
BEP asked to return Calais LNG application (Dec 14) — Saint Croix Courier, St. Stephen, NB
The draft order concludes that applications by Calais LNG and Calais LNG Pipeline Company will be returned without prejudice Dec. 17 if they are not first withdrawn by the applicant.
A voicemail recording at the Calais LNG office suggests callers contact Ian Emery but numerous calls to Emery for comment have so far not been returned. [Red emphasis added.]
Massachusetts, Rhode Island US senators put restrictions in bill to keep federal funds from LNG project — The Herald News, Fall River, MA
The four senators representing Massachusetts and Rhode Island have proved successful in getting language that would restrict federal funds from being used in the permitting process related to the proposed liquefied natural gas terminal in Fall River, according to Whitney Smith, a spokeswoman for Sen. John Kerry.
“None of the funds made available in this title may be used to take any action to authorize the construction of any liquefied natural gas terminal or its infrastructure to be located within 5 miles of the City of Fall River, Massachusetts, or to authorize vessels carrying liquefied natural gas to serve such terminal,” the provision says.
Comments addressing Sabine Pass LNG export proposal filed with DOE — LNG Law Blog
A number of entities have filed comments with the U.S. Department of Energy (DOE) addressing issues raised by the Sabine Pass LNG export proposal.
PM names committee and sets targets for LNG project — Office of the Prime Minister, Jamaica, West Indies
Cabinet has approved the new arrangements for the Liquefied Natural Gas (LNG) Project for which Prime Minister Bruce Golding has assumed responsibility.
Golding takes control of LNG project — Go-Jamaica, Kingston, Jamaica, West Indies
Prime Minister Bruce Golding has named two high-powered teams to lead the country’s push towards the introduction of liquefied natural gas (LNG) by December 2012.
The Steering Committee will be responsible for financial investment decisions, development of a project value chain, project commercial structure, and execution of contracts, among other things.
Shale gas destroys US LNG demand (Apr 20) — Energy Tribune, Houston, TX
“Shale gas renders US LNG imports nearly unnecessary over the next five to 10 years,” the report stated.
“We have a lot of capacity out there that is under-utilised,” Pursell said, adding therefore that it is “highly unlikely” any new regasification terminals will be built in North America. [Red, yellow & bold emphasis added.]
Natural gas and the Gulf hiatus — Energy Tribune, Houston, TX
…It's almost irrelevant whether the ongoing US offshore hiatus is the result of the complexity of new rules and regulations, inadequate staffing of the reorganized Bureau of Ocean Energy Management, Regulation and Enforcement, or what some believe is a tacit, unofficial moratorium on the part of the administration. Together with the recent withdrawal of plans to lease portions of the Eastern Gulf of Mexico, where significant gas resources had already been discovered, the hiatus threatens to return the US to our previous situation of increasing reliance on LNG imports, in spite of growing shale gas output.
Canadian shale-to-LNG project advances — Petroleum Economist [Paid subscription required]
THE final building blocks are being put in place for Canada's first gas exports to the Pacific basin. The liquefied natural gas (LNG) project, which will tap an expected tripling of British Columbia's (BC) unconventional-gas production over the next decade, is gearing up to compete with planned export projects on the US Gulf Coast.
[Red bold emphasis added.]
Natural gas weekly update — U.S. Energy Information Administration
U.S. imports were significantly higher during the report week in comparison with the prior week, resulting in part from increased withdrawals from storage in Canada to meet heating demand in the United States. U.S pipeline imports from Canada during the report week increased 5.2 percent relative to the prior week to about 8.6 Bcf per day. Liquefied natural gas (LNG) imports (as measured by sendout from regasification terminals) also increased to an average of 1.2 Bcf per day, or 13 percent more than the prior week. While Canadian imports were about 14 percent higher than last year at this time, LNG supplies were still almost 21 percent lower than last year during the comparable week. [Red bold emphasis added.]
Lawsuit against Sempra dismissed — Signon San Diego.com, San Diego, CA
U.S. District Court Judge Janis Sammartino said the plaintiff, Ramon Eugenio Sanchez Ritchie, wrongly singled out Sempra for actions taken by the Mexican government.
Kirk Hulett, the lawyer representing Sanchez Ritchie, called the ruling technical and vowed to file an amended complaint “to remedy the perceived deficiency.”
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Calais LNG withdraws from Maine review — SNL Financial
"Calais LNG's current problems have been brought on by the company itself," Godfrey said. "Even the LNG industry's own best practices indicate Calais LNG's proposed terminal site is inappropriate. Plus, the natural gas and LNG market has reversed, eliminating the need for additional LNG import infrastructure. The facts speak overwhelmingly for themselves." [Red bold emphasis added.]
Calais LNG withdraws application to build $1 billion natural gas terminal (Dec 14) — Bangor Daily News, Bangor, ME
AUGUSTA, Maine — After months of delays and financial setbacks, officials at Calais LNG notified state regulators on Monday that they are withdrawing their application for a $1 billion liquefied natural gas project in Down East Maine.
During the past six months, Calais LNG has requested [and received] numerous extensions from the BEP as it worked to line up a new financial backer after a subsidiary of the global investment firm Goldman Sachs withdrew from the project.
“…Calais LNG began its project around eight years too late to beat others to the finish line,” Godfrey said in a statement. “The US is now in a 100-year natural gas glut, eliminating the need for additional LNG import facilities. Passamaquoddy Bay and its residents are now a large step closer to protection from harmful LNG siting.”
[Red bold emphasis added.]
Calais LNG pulls application — The Portland Press Herald, Portland, ME
The company that proposed a $1 billion liquefied natural gas terminal in Calais put the project on hold Tuesday, two days before a scheduled showdown with state regulators.
[Red bold emphasis added.]
Calais LNG pulls state application — Mainebiz, Portland, ME
This summer, investor GS Power Holdings, a subsidiary of Goldman Sachs Group Inc., pulled out of the project. In a memo to the board sent earlier this week, Lessard recommended against giving Calais LNG any more time, after approving three previous extensions beginning in July.
Emery did not provide details on Calais LNG's efforts to secure new financial backing or regain the title to the land, but said the company "fully intends to re-file its application" in the near future, according to the paper. [Red, brown, and bold emphasis added.]
LNG threat gone from Passamaquoddy Bay as Calais LNG withdraws all permit applications — Seafood News, Lexington, MA [Paid subscription required]
Canadian and American lobster and other fisheries around Passamaquoddy Bay, the large estuary on the Maine / New Brunswick border, can breathe easier today at the death of a plan to build an … LNG terminal in the area. The company, Calais LNG, has withdrawn from the permitting process after meeting fierce opposition and losing its financial backing. [Red bold emphasis added.]
Cheaper gas coming to Aruba — Caribbean 360, Belleville, St. Michael,
Barbados, West Indies
Officials with the Valero Aruba Refinery and the Government of Aruba announced Monday the signing of a memorandum of understanding to deliver LNG to Aruba, with the aim of helping to reduce utility costs and lower emissions on the island.
Alberta looking to Asia for natural gas customers — Edmonton Journal, Edmonton, AB
Alberta, Saskatchewan and British Columbia team up to “sell the West”
EDMONTON - Alberta is keen to find offshore buyers for the province’s natural gas, and plans to join British Columbia and Saskatchewan in a cooperative effort to “sell the West” in Asian markets, says Energy Minister Ron Liepert.
With natural gas prices expected to remain low for the next three years, and growing supplies of U.S. shale gas killing the traditional market for Alberta producers, Liepert said, “there is a lot of pressure to see what we can do.
At a U.S. energy conference last week, Liepert said he was surprised to hear about a new shale gas field in Texas that is expected to produce vast amounts of gas cheaply, the latest in a long list of rapidly expanding U.S. gas plays. [Red bold emphasis added.]
A tale of two pipelines [Opinion column] — Northern Sentinel, Kitimat, BC
I’ve been asked why one pipeline is controversial and another is not.
The Kitimat LNG (KLNG) project proposes a 463km pipeline from Summit Lake to a terminal in Bish Cove, the KSL Project, would be constructed to supply up to 1 billion cubic feet per day of natural gas.
The Enbridge Northern Gateway project proposes two 1,172km pipelines, one to send crude oil from Alberta tar sands via Bruderheim, Alberta to Kitimat and another to send condensate from Kitimat to Alberta processing facilities.
Kitimat LNG terminal plan files for permission to export — Opinion 250, Prince George, BC
Kitimat LNG has filed a licence application with the National Energy Board for approval to export liquefied natural gas from the planned Kitimat LNG terminal to be located at Bish Cove. The application requests approval to export up to 10 million metric tons of LNG a year over a 20-year time frame.
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Calais LNG application withdrawal gets mixed reaction — MPBN, ME
In his letter to Chair Lessard, Ian Emery put the project's failure down to the "meltdown of the financial markets." Sean Mahoney isn't buying that argument.
"No, I don't agree with that. I don't think it has anything to do with the financial markets," he says. "Indeed Calais LNG trumpeted the fact that one of their partners was Goldman Sachs, which has not suffered in the financial meltdown."
"What Goldman Sachs realized is the same thing that many people have realized, which is that the financial viability of LNG terminals is no longer realistic," Mahoney says. "The need for importing natural gas from overseas by liquifying it, putting it in a boat and shipping it all the way over to the U.S. and then regassifying it doesn't make economic sense, and it certainly doesn't make environmental sense."
"It should have been clear back in July that this was the thing to do," says attorney Ronald Shems, who represents Save Passamaquoddy Bay, another group opposed to the project. "I'm glad it's finally happened now but it should have happened quite some time ago without having to put everyone through all of this, but Happy Holidays."
Calais LNG withdraws application for downeast project — WABI, Bangor, ME
Today's announcement comes on the heels of a recommendation from the head of the Board of Environmental Protection to return the application to the company.
After a nearly the year, Calais LNG's project still wasn't ready for review. The company was also asking the state for another extension and trying to shore up funding.
Calais LNG withdraws application for Washington County facility — MPBN, ME
The company has withdrawn its application for state permits for the controversial project, citing the nation's sour economy.
Calais LNG had requested a second extension in its efforts to iron out problems with with the project, including lining up financing. But last week, the chair of Maine's Board of Environmental Protection recommended against allowing Calais LNG any more time.
Calais LNG withdraws DEP permit applications [News release] — Preti Flaharty, Portland, ME
Calais, Maine – Calais LNG Project Company, LLC and Calais Pipeline Company, LLC informed the Maine Department of Environmental Protection and the Maine Board of Environmental Protection today that the companies are withdrawing their permit applications from further consideration by the Department and the Board. The letter withdrawing the applications also noted that Calais LNG intends to re-file the applications in the near term.
[Red & brown emphasis added.]
Developer pulls plug on Calais LNG terminal — The Portland Press Herald, Portland, ME
Two days before a showdown with state regulators, the company that wanted to build a $1 billion liquefied natural gas terminal in Calais is putting the project on hold.
In a letter today to the Maine Board of Environmental Protection, Calais LNG said it was withdrawing its permit applications. It blamed “the meltdown of the financial markets,” for the action.
Calais LNG sold to new entity — Telegraph-Journal, Saint John, NB
On Thursday, the environmental board will hear from parties involved with the project about the extension, and will be asked to make a decision. Lessard, however, has recommended that the board not grant the company a fourth extension and return the applications to the company by Friday.
"The record shows, and there is no dispute, that after nearly a year Calais LNG's applications are not ready for reasons that are unrelated to the Board or it's application review process," reads a draft board order from Lessard.
Gelber said the company has reason to believe that they have sufficient financial backing to complete the project, but did note negotiations surrounding the use of the land for the proposed project are ongoing.
"Our expectation is that we are, and we hopefully will, complete negotiations and resubmit our application," said Gelber. [Brown emphasis added.]
GDF Boston terminal among North America sites due LNG shipments — Bloomberg
GDF Suez’s liquefied-natural-gas terminal near Boston is due to receive an LNG tanker on Dec. 26, according to vessel tracking data compiled by Bloomberg.
U.S. Army Corps of Engineers offers comments on Sabine Pass Liquefaction Resource Reports — LNG Law Blog
The United States Army Corps of Engineers has submitted comments to FERC addressing a number of issues raised in the pre-filing resource reports filed by Cheniere for its Sabine Pass LNG liquefaction project.
Encana says eyes supplying U.S. natgas for export — Reuters
NEW YORK, Dec 14 (Reuters) - Encana Corp (ECA.TO), Canada's biggest natural gas producer, said it is interested in marketing gas produced in the United States for shipment overseas as domestic production increases.
Cheniere's project, which could export up to 16 million tonnes per year of LNG, is one of three proposed LNG export plans in North America as increased production from shale gas and tepid demand push U.S. inventories to record highs. The Federal Energy Regulatory Commission (FERC) is currently considering Cheniere's project. [Red bold emphasis added.]
Jefferson County Commissioners Court (Dec 13) — Guidry News Service, Houston, TX
Jefferson County Commissioners Court today voted unanimously to approve Golden Pass Liquefied Natural Gas Terminal's use of county property at the Keith Lake Fish Pass.
Apache Corp. applies to export natural gas — Calgary Herald, Calgary, AB
CALGARY - Apache Corporation has applied to become Canada's first exporter of liquefied natural gas, setting in regulatory motion a new outlet for an over-stocked, under-priced resource.
The $3.5-billion US Kitimat facility, jointly owned by Apache Corp. at 51 per cent and EOG Resources Canada, at 49 per cent, will have an initial capacity of five million tons per annum of the condensed resource. Increased demand could see expansion to 10 mmtpa, Apache said. The terminal would open a door to new markets for western Canadian natural gas production being displaced by a glut of shale gas production from the U.S. ....
‘Insufficient’ information stalls LNG project — The Daily Astorian, Astoria, OR
The proposed liquefied natural gas terminal and pipeline at the mouth of the Columbia River, Oregon LNG, ran into a roadblock last week when federal fisheries scientists refused to review the project until more information was made available.
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Full board to weigh Calais LNG
request for extension of time (Dec 10) — The Quoddy Tides, Eastport, ME
The full Board of Environmental Protection (BEP) will consider on December 16 Calais LNG's request for an extension of time on its applications for a liquefied natural gas terminal in Red Beach. Board Chair Susan Lessard announced on December 8 that this time the full board, instead of just Lessard, will make the decision. The board will discuss the matter at about 1 p.m. during its regularly scheduled meeting at the Elks Lodge in Augusta. Lessard will be providing the board with her recommendation prior to the meeting.
[Vice president and director of the Conservation Law Foundation Sean Mahoney stated], "It doesn't take a financial wizard to realize that GS Power Holdings hasn't been replaced — it just couldn't find an independent third party to buy its interest and so NEED had no alternative but to 'acquire' those interests." [Red bold emphasis added.]
BEP to vote on future of Calais LNG project — WABI-TV, Bangor, ME
The head of the Board of Environmental Protection says that, after a nearly a year, the application to build a liquefied natural gas terminal downeast still isn't ready for the state to review.
So she's recommending the board vote to return it to the company, if the company doesn't pull the project off the table first. [Red bold emphasis added.]
Weaver's Cove LNG responds to National Park Service comments — LNG Law Blog
Last Friday, Weaver's Cove LNG responded to comments filed by the National Park Service (NPS) regarding the agency's environmental review of the project. Specifically, Weaver's Cove LNG asserts that "[t]he NPS’s comments in the November 10 letter are unhelpful as they rely on overly generalized purported concerns or on outdated comments."
FERC recommends FONSI for Cameron LNG re-export proposal — LNG Law Blog
FERC released an Environmental Assessment Report last week analyzing the likely environmental impacts arising from Cameron LNG's re-export proposal. In the report, Commission staff recommends that, conditioned on three environmental impact mitigation measures, a Finding of No Significant Impact be entered into the Commission's order addressing the re-export proposal.
Cheniere engages Societe Generale as financial advisor for the proposed Sabine Pass liquefaction project [News release] — PR Newswire
HOUSTON, Dec. 13, 2010 /PRNewswire/ -- Cheniere Energy Partners, L.P. announced today that SG Americas Securities, LLC, the U.S. broker-dealer subsidiary of Societe Generale Corporate & Investment Bankin, has been engaged as financial advisor to Sabine Pass Liquefaction, LLC for general financial strategy and planning in connection with the development and financing of liquefaction facilities at the Sabine Pass LNG terminal, located in Cameron Parish, Louisiana.
Valero Energy Co to restart its Aruba refinery — (AP) Product Design and Development
Valero, the largest refining company in the U.S., bought the Aruba plant in 2004 and had been looking to sell it. But in June, Valero announced that a tax settlement with Aruba along with an improved economy made it possible to restart the refinery.
On Monday, the government of Aruba and Valero also signed a memorandum of understanding to deliver liquefied natural gas to the Caribbean island, which will help reduce utility costs. Generating power through liquefied natural gas rather than fuel oil will likely reduce costs both for the refinery and the island.
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BEP head recommends Calais LNG terminal application be returned [Update] (Dec 11) — Bangor Daily News, Bangor, ME
“The record shows, and there is no dispute, that after nearly a year, Calais LNG’s applications are not ready for processing for reasons that are unrelated to the board or its application review process,” Lessard said in the draft order. “In fact, the applications are less ready for processing now than when the first time extension was granted in July 2010, Calais LNG having lost title, right or interest and financial capacity in the interim.”
The board is scheduled to consider the order [to return the permits] during its afternoon session starting at 1 p.m. Thursday.
[Red bold emphasis added.]
Encana shortlists local firms (Dec 8) — The Chronicle Herald, Halifax, NS
[The Deep Panuke natural gas field is on again. In 2008 the Maritimes & Northeast Pipeline had planned, but then cancelled, its US Phase V expansion for 2010 completion when Deep Panuke was prevously taken off the table. (See Spectra Energy's 2008 Feb 5 news release) — SPB webmaster]
The production field centre, which will contain all the main facilities, will be located about 250 kilometres southeast of Halifax in 44 metres of water.
The Deep Panuke natural gas project offshore Nova Scotia is expected to be producing gas in the second half of 2011, said Encana spokeswoman Lori MacLean on Tuesday. She referred any inquiries about the contract to Single Buoy Moorings, but a spokesperson there was unavailable.
The Deep Panuke project is estimated to contain as much as 892 billion cubic feet of natural gas. Spain’s Repsol [Canaport LNG's operator and 75% owner] will buy up to 300 million cubic feet per day of gas over the life of the project, which is estimated to range from eight to 15 years.
Hypocrisy behind statements of LNG’s Shearer [Letter to the editor] (Dec 8) — The Herald News, Fall River, MA
Shearer’s argument goes beyond hypocrisy. Shearer wrote that the efforts of the Massachusetts and Rhode Island senators would “not allow the project to be fairly vetted.” He called for “due process, fundamental fairness” of the “well-tested statutory review process,” and finally “…only the regulatory process with its thorough evaluation of all the facts and opinions, can determine if all the standards and requirements are met.” Apparently Shearer has conveniently forgotten Hess LNG’s misrepresentation of safety zone testing, circumventing federal regulations to gain FERC approval in 2005.
There is documented evidence submitted to the Federal Energy Regulatory Commission prior to the approval of the Hess LNG/Weaver’s Cove Energy project in July 2005, that the company was aware it was required to use FEM3A, available through the Gas Technology Institute and required by federal law in 49 CFR Part 193 since 2000, to calculate the vapor dispersion zone for the proposed LNG facility in Fall River. Hess LNG knowingly used SOURCE5, a model disproven in the 1980s, which understated the size of the safety zone. Use of the inappropriate model is also documented in a book, “LNG: A Level Headed Look at the Liquefied Natural Gas Controversy.”
Our View: Out with the old Fall River waterfront, in with the new [Editorial] (Dec 9) — The Herald News, Fall River, MA
The old Brightman Street Bridge has reached the end of its lifespan. If all goes according to plan, the new $285 million Veterans Memorial Bridge will connect Route 6 between Fall River and Somerset starting next spring. That brings up the multimillion dollar question: What do you do with an old bridge?
Normally, the answer would be to demolish it.
What complicates the issue here is that in 2006 — at the height of the LNG controversy — U.S. Rep. James McGovern successfully shepherded a provision in a highway bill prohibiting federal funds from being used to demolish the span. The existence of the bridge was cited by the U.S. Coast Guard as one of the primary obstacles blocking LNG’s shipping feasibility for tankers. Now, LNG has a host of other obstacles that have been identified, which will probably keep the plan from coming to fruition in the long run. However, the law prohibiting federal funds will more than likely remain on the books.
School board offers warning for LNG route (Dec 9) — Savannah Morning News, Savannah, GA
The Savannah-Chatham Public School Board won't formally protest plans to transport liquid natural gas locally, but they will warn federal officials that the proposed trucking route falls within one mile of 15 school properties.
Wednesday, District Operations Chief Otis Brock presented information on safety precautions and worst case scenarios - information the board had already debated. But they also provided a detailed list and map showing that the proposed LNG transport route passes nearly one third of the public school system's properties, including 15 schools and a site where school buses and fuel are stored. The list got even longer when schools that are just over one mile were included.
December SCCPSS Board Meeting (Dec 8) — WSAV, Savannah, GA
SAVANNAH, G.A. --
From budget to bullying, probably the biggest hot button issue in the agenda Wednesday-- liquefied natural gas, and the possibility that close to [80] trucks a day will be on the roads of Savannah.
[S]chool Superintendent Dr. Thomas Lockamy, says that student safety is key.
"I think the board is still trying to figure out what their stance is. However, my position continues to be- if any student, if any staff person, if any family member is put in harms way - I can not afford to support that."
DOE issues exclusion from environmental assessment requirement for Sabine Pass export proposal (Dec 9) — LNG Law Blog
Yesterday [Dec 8] the U.S. Department of Energy's Office of Fossil Energy issued a categorical exclusion from the requirement to prepare an environmental assessment or environmental impact statement for Chevron U.S.A. Inc.'s proposal to export LNG from the Sabine Pass LNG terminal.
T&T needs higher LNG prices — minister (Dec 9) — Guardian, Port-of-Spain, Trinidad & Tobago, West Indies
Trinidad and Tobago wants to see a fair price for natural gas and is more concerned about that than the establishment of any world gas producers’ cartel. That is the view of Energy Minister Carolyn Seepersad -Bachan who is now the alternate president and chairman of the executive board of the Gas Exporting Countries Forum. Mrs Seepersad-Bachan said she was concerned that global natural gas prices remained weak and that was not in the interest of Trinidad and Tobago. “If you look at our production portfolio, you will see that we are far more reliant on gas than on oil. In fact, natural gas is the mainstay of our economy and at present the natural gas prices are weak particularly in our major market, the US market , and we need to see higher prices for LNG in that markets.” Minister Seepersad Bachan told BG. [Red, yellow & bold emphasis added.]
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Maine DEP chairwoman recommends tossing Calais LNG application (Dec 10) — Platts
Maine regulators will vote next week on a recommendation to toss out Calais LNG's application to build an LNG import terminal after the project's financial and land deals crumbled.
Susan Lessard, chairwoman of the Maine Board of Environmental Protection, wrote in a draft order Friday that the state should deny the company's fourth request for a delay. Among other things, she took issue with Calais LNG's failure to disclose that its option to buy waterfront property crucial to the project had expired in August. The state only learned of that fact from the landowners.
"The record shows, and there is no dispute, that after nearly a year, Calais LNG's applications are not ready for processing for reasons that are unrelated to the board or its application review process," Lessard said in the draft order. "In fact, the applications are less ready for processing now than when the first time extension was granted in July 2010, Calais LNG having lost title, right or interest and financial capacity in the interim."
Project manager Art Gelber said in November that the beleaguered project cannot start from scratch and would fold if the board does not grant another delay. [Red, yellow & bold emphasis added.]
BEP chair recommends against extending Calais LNG deadline (Dec 10) — MPBN (Maine Public Broadcasting Network), ME
The chair of the Maine Board of Environmental Protection has recommended against allowing Calais LNG any more time in it efforts to establish a liquified natural gas terminal near Calais in Washington County. [Red, yellow & bold emphasis added.]
BEP head recommends Calais LNG terminal application be returned — Bangor Daily News, Bangor, ME
“The record shows, and there is no dispute, that after nearly a year, Calais LNG’s applications are not ready for processing for reasons that are unrelated to the board or its application review process,” Lessard said in the draft order. “In fact, the applications are less ready for processing now than when the first time extension was granted in July 2010, Calais LNG having lost title, right or interest and financial capacity in the interim.”
The loss of the option on the land, however, was not the only reason Lessard cited for returning the application. She also cited technical and financial factors.
“The applications also lack information on financial capacity to construct the proposed facility,” she wrote in the order. “Calais LNG has failed to provide this information as well as additional technical information ... despite six months of time extensions in which to do so.” [Red, yellow & bold emphasis added.]
Apache applies to export super-cooled natural gas (Dec 10) — Edmonton Journal, Edmonton, AB
CALGARY - Apache Corporation has applied to become Canada's first exporter of liquefied natural gas, setting in regulatory motion a new outlet for an over-stocked, under-priced resource. [Red bold emphasis added.]
Kitimat LNG files application to export gas, still looking for buyers — Calgary Sun, Calgary, AB
Kitimat LNG is trying to clear the last major regulatory hurdle for its natural gas export terminal on the B.C. coast.
“The long and short of it is, (our supply) will be economical, and Canada and North America have a great supply of gas and a very politically stable environment,” Poole-Moffatt said. [Red bold emphasis added.]
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LNG clean slate [Editorial] — Bangor Daily News, Bangor, ME
It’s time for a fresh start for Calais LNG. The company’s bid to develop a terminal for importing liquefied natural gas along the St. Croix River is in limbo. But it is a self-imposed limbo, arrived at through requests to delay a Board of Environmental Protection hearing on the project. BEP would do well to tell Calais LNG to go back to the drawing board.
While private enterprises are free to consider such projects, the state could take a much more active role in identifying appropriate locations for LNG terminals. Passamaquoddy Bay may not be the best location, as opponents have noted. Beyond environmental and marine considerations, the best location also would be appropriate for a consumer of the fuel, perhaps to produce electricity.
[Red, yellow & bold emphasis added.]
Calais LNG application remains in limbo (Dec 8) — Bangor Daily News, Bangor, ME
MACHIAS, Maine — The status of the proposed Calais Liquefied Natural Gas facility at Red Beach remains in limbo, as state and federal officials react to the company’s loss of its land lease [sic; option to purchase the land] and its request for an extension of time on its permit applications.
[I]nterested and affected parties, including the Federal Energy Regulatory Commission, have been weighing in against extending the permitting process.
[FERC’s director of Office of Energy Projects ] Jeff Wright wrote to CLNG that his office “will be assessing whether it remains appropriate for the commission to continue to process your application.”
[Save Passamaquoddy Bay attorneys wrote to BEP Chair Lessard,] “[T]he applicant concedes that it no longer has TRI in the land for the terminal and has not had it for nearly three months. Furthermore, despite the Chair’s order that CLNG ‘show cause as to why the applications should remain pending,’ CLNG failed to respond with any evidentiary or legal support for its position.” [Red, yellow & bold emphasis added.]
Business: Calais LNG reaches another "Tipping Point" [Blog] — Fundy Tides, Bocabec, NB
Cursed by their own rush to push through applications with the Maine Board of Environmental Protection and the FERC, Calais LNG LLC has lost their principal investor Goldman Sachs and the option on the land at Devil's Head where their terminal was to be built. While deadlines have been extended numerous times to accommodate this well-connected company, new deadlines set by both agencies may finally determine the future of this proposed development.
[Red bold emphasis added.]
BEP to decide on extension for Calais LNG project (Dec 8) — WABI-TV, Bangor, ME
Calais - The entire Board of Environmental Protection will decide whether to extend the project application deadline for a company that wants to build a $1 billion liquefied natural gas terminal in Calais.
DOE authorizes LNG re-export for Sempra LNG (Dec 8) — LNG Law Blog
The U.S. Department of Energy has authorized Sempra LNG Marketing, LLC to re-export up to 250 Bcf of LNG from the Cameron LNG facility over a two-year period beginning on February 1, 2011. The order specifically proscribes the export of any domestically produced LNG under this permit.
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US Nat Gas Resources Augur LNG Exporting
Short-term energy outlook — U.S. Energy Information Administration
EIA expects gross pipeline imports of 8.4 Bcf/d in 2011, a decrease of 6.3 percent compared with 2010 pipeline imports. This is a significant revision of last month's forecast of a 1.4-percent increase. EIA expects that Canadian gas will become less competitive as new U.S. pipelines and increased lower-48 production with lower transport costs displace imports. Projected liquefied natural gas (LNG) imports average 1.25 Bcf/d in 2010, a 1.0-percent increase from 2009 levels. Imports in 2011 fall to 1.21 Bcf/d, a decline of 2.9 percent. High domestic production, high inventories, and low U.S. prices relative to European and Asian markets should continue to discourage LNG imports into North America. [Red bold emphasis added.]
UK LNG imports to rise, U.S. seen LNG exporter-SSE — Reuters UK
Britain's dependence on shipped gas imports is predicted to grow to 40 percent by 2020, while the U.S. is expected to soon become an exporter of liquefied natural gas (LNG), major UK energy companies said on Tuesday.
"The United States is going to be the next exporting country in the not too distant future with shale gas," said Paul Golby, chief executive of E.ON UK (EONGn.DE).
The U.S. has seen an oversupply in domestic gas as gas extracted from rocks - also known as shale gas - has swamped the market.
[Red bold emphasis added.]
US consumers enjoy natural-gas glut while Europe looks on — The Wall Street Journal
The U.S. is seeing a major benefit from its natural-gas glut as winter approaches, paying half as much for the heating fuel than much of Europe is.
The U.S. link to foreign gas supplies comes from terminals, mostly in New England and the Gulf Coast, that import--but cannot export--chilled liquefied natural gas. But shale gas has left those ties to the global market hanging by a thread, with facilities expected to operate below the 11% of capacity used in 2009, said Damien Gaul, an economist with the federal Energy Information Administration.
America's next great commodity boom — Business Insider, New York, NY
US energy companies, before the shale gas boom changed everything, thought the US would need to import natural gas. So the US has about 10 LNG import terminals and two more in the works. Now, with a natural gas glut in the US, these terminals are pretty much useless.
As The Financial Times reported, “The US could soon be competing with Russia and the Middle East to supply the world with natural gas, a shift in production that would reshape energy markets over the next decade.” Even if the US exported just 10% of its natural gas, it would become the largest exporter of LNG in the world. Few countries can match the US in natural gas resources or low costs.
[Red bold emphasis added.]
US gas export plan sparks price fears — Financial Times, London, England, UK
An outcry from big US energy users is complicating plans to export some of the country’s bounty of natural gas.
“Exporting natural gas means that in time, US natural gas prices will rise to global price levels. The implication is serious because when the likes of China is in the market to buy, US buyers and consumers will have to compete with them for that natural gas,” said Paul Cicio, IECA president. [Red emphasis added.]
Arabs in drive to tap unconventional gas (Dec 6) — Zawya, Dubai
"Whereas only a few years ago almost all gas sector specialists were predicting that the decline in US natural gas production would continue and that its gas imports, essentially in the form of liquefied natural gas (LNG), would continue their irrepressible ascent, the US became the world's leading gas producer in 2009 ahead of Russia, while the prospect of its importing huge volumes of gas has been put off for the foreseeable future and the productive life of its natural gas reserves has increased substantially."
The report said Qatar and other gas exporting countries which embarked on major LNG projects several years ago with their eyes on the US market have had to look elsewhere to sell their gas, mainly Europe and Asia.
"The first element is that the fall in gas prices has not resulted in any decline in American natural gas production, which shows that the unconventional gas industry in the US has succeeded in adapting to a sharp decline in prices and that its economic model has become compatible with gas prices that are appreciably lower than up to 2008," the report said.
[Red bold emphasis added.]
Transportation officials discussing a new use for the old Brightman Street Bridge (Dec 6) — The Herald News, Fall River, MA
Demolition is slated to begin next week on the Brightman Street overpass, a vital connection from Fall River to Somerset, but the Brightman Street Bridge itself isn’t going anywhere.
The Coast Guard said in 2007 that the proximity of the Brightman Street and Veterans Memorial bridges, as well as the angle of the bridge openings for boats, would make it unsuitable for LNG tankers to pass through safely. McGovern wanted to block federal funding from being used to keep the obstacle for LNG in place, spokesman Michael Mershon said.
DOE applies categorical exclusion to Cameron LNG export proposal — LNG Law Blog
Last week the Department of Energy's Office of Fossil Energy determined that Cameron LNG's re-export proposal meets the requirements to be categorically excluded from further review under the National Environmental Policy Act.
US got secret ALNG info — Newsday, Port-of-Spain, Trinidad & Tobago
In a cable sent on February 18, 2009, Clinton said that the State Department “is surveying posts for their input on critical infrastructure and key resources within their host country which, if destroyed, disrupted or exploited, would likely have an immediate and deleterious effect on the United States.”
Two key assets were included in the 2008 for which updated information was requested in a list sent attached to the cable. The are: the Atlantic LNG which the cable noted “provides 70 per cent of US natural gas import needs” and the Americas II undersea telecommunications cable which lands at Chaguaramas.
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FERC requests financing, site control details from Calais LNG — LNG Law Blog
Noting recent project development challenges, FERC has requested that Calais LNG provide the Commission with a schedule for "planned activities in securing project financing and appropriate title, right, or interest in the project site" by December 13, 2010.
FERC issues status updates on Downeast, Calais LNG projects — LNG Law Blog
FERC has released project updates for the Downeast and Calais LNG projects. These brief brochures note where the agency stands in its review of the respective projects.
Baldacci praises coperation (sic) on cean energy (Dec 4) — (AP) Natural Resources Council of Maine, ME
Baldacci says the time's over to rely on some of the most dangerous and unstable places in the world to feed the oil-consumption habit.
Riverkeeper leader a hero to friends, obstructionist to foes (Dec 4) — The Daily News, Longview, WA
In the last year, Riverkeeper has played a major role in halting two industrial projects near Cowlitz County — a $650 million liquefied natural gas terminal proposed for Bradwood Landing and a plan to ship garbage from Hawaii to Central Washington through the Port of Longview.
UK man pleads guilty in U.S. over KBR Nigeria bribes — Reuters UK
The bribes were paid to get contracts for a KBR-run joint venture to build and expand Nigeria's Bonny Island liquefied natural gas [LNG] terminal. KBR sought to avoid an FCPA breach by using shell companies in Portugal and not appointing U.S. citizens to run them, according to previous court filings.
KBR and ex-parent Halliburton Co already reached a total U.S. settlement over Bonny Island of $579 million. As part of the 2007 separation, Halliburton agreed to cover KBR's Bonny Island liabilities, and Britain's Serious Fraud Office is in talks with a local KBR subsidiary over a settlement
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Natural gas line expands to Freeport, thanks to big customer — The Portland Press Herald, Portland, ME
After months of planning and construction, Maine Natural Gas began pumping fuel underground to Freeport on Friday, in the company's first expansion into a new community in nearly a decade. Several businesses, town-owned properties including the high school, and a few homes already have hooked up.
Next year, gas will reach the Harraseeket Inn and the Hilton Garden Inn at the northern end of the village, and extend south along Route 1 to the business park on Stonewood Drive. The pipeline could approach the Yarmouth town line in 2012.
But underground gas lines are costly to install, and that remains an obstacle to wider expansion in Maine. Just as a major shopping center needs an anchor store, gas companies won't run lines without big users to help amortize the investment.
But [the state's energy director John Kerry] is frustrated by how hard it is to expand natural gas in Maine. His office has been talking with Maine Natural Gas about building a spur from the Maritimes & Northeast Pipeline in Windsor to the Togus VA Medical Center and on to the state office complexes in Augusta. So far, it has proven too costly.
It's very challenging," Kerry said. "The bottom line is return on investment."
[Red bold emphasis added.]
LNG opponents to meet December 9 in Somerset — The Herald News, Fall River, MA
The next meeting of the Coalition for Responsible Siting of LNG Facilities will be held Thursday, Dec. 9, at 7 p.m. at the Somerset Old Town Hall, 1464 County St.
LNG panel focuses on next ‘Congress of Councils’ (Dec 2) — The Jamestown Press, Jamestown, RI
Setting the date for a second Congress of Councils topped the agenda at the Nov. 23 meeting of the LNG Threat Committee.
“Town solicitors and town administrators [from both Rhode Island and Massachusetts] are working on getting together,” LNG Threat Committee Chairman Dan Wright said. “An executive session will be called if necessary.”
The first Congress of Councils was held in Jamestown on Sept. 8, as an effort to foster further solidarity in opposition to Weaver’s Cove LNG project. The committee expressed consensus regarding the need for a town other than Jamestown to host the second congress and they also agreed that if no other town stepped forward then the Newport County Visitors Bureau could possibly host the event. As a last option, Jamestown would host the congress for a second time.
Sabine Pass LNG submits Draft Resource Report and seeks to begin NEPA pre-filing process (Dec 3) — LNG Law Blog
Sabine Pass LNG has submitted its Draft Resource Report 11 and requested that FERC commence the NEPA pre-filing process to consider its proposal to construct and operate new LNG liquefaction facilities at its existing LNG terminal. Resource Report 11 outlines operational and safety concerns related to the proposal.
LNG project transferred to OPM — Jamaica Observer, Kingston, Jamaica, West Indies
ENERGY Minister James Robertson yesterday denied that he was stripped of the Liquified Natural Gas (LNG) implementation project, saying that the transfer of the project to the Office of the Prime Minister was prearranged.
Golding continues to bat for LNG — The Gleaner, Kingston, Jamaica, West Indies
"More gas fields are being developed every few months," he said, "In addition to that, the advent in the US of shale gas has changed the dynamics of the gas industry entirely, (which) now signifies that huge quantities of gas will be available, and naturally, that will have some impact on the kind of stability in prices we would want once we are anchoring ourselves to this kind of long-term arrangement."
Meanwhile, Prime Minister Golding lamented the fact that Jamaica numbers among the worst users of electricity in the world.
"We use almost 20,000 BTUs to produce US$1 of electricity, where globally, the average is less than 5,000," he said. "And it is now time that we take greater care with how we utilise energy because no matter how cheaper gas turns out to be, how we use the fuel will be a determining factor."
Iran exports gas to Argentina and Cuba — MOJ News Agency, Iran
According to the contract terms of Iran LNG project, established with a 10 percent share of Venezuelan National Oil Company, Iran will start exporting LNG to Argentina and Cuba.
According to the Letter of Intent signed between Iran and Venezuela, an Iranian LNG plant will be established in Venezuela with an annual production capacity of 5.4 million metric tones of natural gas. Iran will also help Venezuela to build a LNG plant in Delta Caribe area, according to the LOI signed by the two countries' oil ministers.
Report urges enhanced maritime security — IPS News
WASHINGTON, Dec 4, 2010 (IPS) - The United States and its allies should give much more attention - and resources - to ensuring that weak West African governments along the oil- and gas-rich Gulf of Guinea can protect their territory and coastal regions from terrorists, drug and human traffickers, and other threats, according to new report by an influential think tank released here this week.
[T]he U.S. has also become increasingly reliant on oil and gas exports from West Africa and the Gulf of Guinea itself. According to the report, 18 percent of U.S. oil imports and 14 percent of its natural gas (LNG) imports currently originate in the region. That percentage is expected to rise to 25 percent by 2015.
Because most of those resources are produced along the region's coastline or, increasingly, off-shore, secure and sustained access to those resources has become a growing concern in Washington, particularly in light of recent disruptions caused by local insurgencies or criminal gangs, especially in Nigeria, the region's most important oil- producer, described in the report as "the closest to what the area can call a regional hegemon". [Red & bold emphasis added.]
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Shale Gas is Quickly Diminishing LNG's Role
Shale gas guilty of assaulting North American LNG industry — International Oil Daily, Energy Intelligence [Paid subscription required]
The outlook for the liquefied natural gas (LNG) business in the coming decade is strong outside of North America, but the continuing expansion of shale gas production in the US and Canada will limit the continent’s LNG requirements for several decades, say industry executives at the CWC 11th Annual World LNG Summit. [Red bold emphasis added.]
Global LNG industry being forced to undergo transformation — International Oil Daily, Energy Intelligence [Paid subscription required]
With North America essentially self-sufficient through domestic natural gas, and the whole Atlantic Basin sloshing in a surplus from a combination of excess LNG and pipeline supplies, the LNG industry must now redefine itself, industry executives said this week at the CWC 11th Annual World LNG Summit in Barcelona.
[Red bold emphasis added.]
LNG re-exports signal US shale gas impact — Lloyd's List, London, England, UK [Paid subscription required]
The US is normally regarded as a hungry energy consumer, but has recently assumed a new role — that of exporter of liquefied natural gas.
[Red bold emphasis added.]
U.S. Energy Department natural gas update for Dec. 1 (Text) — Bloomberg
U.S. pipeline imports from Canada were significantly higher during the report week in comparison with the prior week, likely resulting from increased withdrawals from storage in Canada to meet heating demand in the United States. According to BENTEK, which monitors flows on the continental pipeline network, U.S imports from Canada during the report week increased 15 percent relative to the prior week to 7.0 Bcf per day. However, liquefied natural gas (LNG) imports (as measured by sendout from regasification terminals) averaged just 0.5 Bcf per day during this report week, which was over 21.1 percent lower than the prior week. Both Canadian and LNG imports have been significantly lower than the prior year, likely as a result of continuing supply strength from domestic drilling, particularly in shale formations in the lower 48 States. Pipeline and LNG imports during the report week were, respectively, 2.2 percent and 44.4 percent lower than last year at this time.
Shale Development Helps Boost Proved Natural Gas Reserves to Highest Level since 1971. Natural gas proved reserves are at their highest level since 1971, according to EIA Summary: US Crude Oil, Natural Gas, and Natural Gas Liquid Reserves, 2009, http://www.eia.gov/oil_gas/natural_gas/data_publications/crude_o il_natural_gas_reserves/cr.html, which was released November 30, 2010. Proved reserves of wet natural gas (including natural gas liquids) rose by 11 percent to 284 trillion cubic feet (Tcf). Development of natural gas in shale formations drove the increase.
Two new pipelines began full-service on December 1. ETC Tiger Pipeline, with a projected 2 Bcf per day capacity, commences at an interconnect with Houston Pipeline Company in Panola County, Texas, and terminates at the Perryville Hub in Richland Parish, Louisiana. According to the company, ETC Tiger Pipeline will move natural gas from the Haynesville Shale, Bossier Sands and Fort Worth Basin production areas to end markets in the Midwest and Northeast via deliveries to seven interstate pipelines. Similarly, the Fayetteville Express pipeline, a joint venture between Kinder Morgan Energy Partners, LP, and Energy Transfer Partners, adds nearly 2 Bcf per day of capacity. Originating in Conway County, Arkansas, the pipeline terminates at an interconnect with Trunkline Gas Company in Panola County, Mississippi. This pipeline will help move Fayetteville Shale produced gas to the end markets of the Midwest and Northeast via connections with four interstate pipelines. [Red bold emphasis added.]
Calais LNG loses option on land, asks state board for another extension (Dec 1) — WCSH Downeast News, Bangor, ME
CALAIS, Maine (NEWS CENTER) -- Calais LNG missed another deadline Wednesday to show the Board of Environmental Protection that it has a new financial backer for the project, and it's option to purchase a key 250 acre parcel of land for the LNG terminal has expired. Art Gelbert (sic), development manager for Calais LNG says he is hopeful that the board will grant Calais LNG an extension until January 15th so that it can work out a deal with the landowners. He says without that piece of land the project could not move forward. Gelbert (sic) also stated that more than 20 million dollars has been invested in the project so far.
"It's throwing good money after bad," Godfrey said. "It's causing everyone involved to continue throwing good money after bad." [Red, yellow & bold emphasis added.]
First LNG shipments leave Qatar for Canada — UPI
HOUSTON, Dec. 2 (UPI) -- The first shipment of liquefied natural gas from Qatar is on its way to New Brunswick, Canada, supermajor ConocoPhillips announced.
The first cargo of LNG left the Ras Laffan industrial city in Qatar for a port in [Saint] John. The Qatari project represents a collaboration between ConocoPhillips, Qatar Petroleum and Japanese conglomerate Mitsui, which holds a 1.5-percent stake in the venture.
First LNG from Qatargas 3 shipped (Dec 1) — Upstream Online
The cargo left Qatar on a QMax LNG ship for the Canaport LNG terminal in St John, New Brunswick, Canada.
A ConocoPhillips spokesman said the ship holds about 266,000 cubic metres of LNG, but said he was unsure of the cargo's exact size.
LNG: Public over politics [Editorial] — The Providence Journal, Providence, RI
It may not be surprising, given how politics works, but it is depressing when politicians pander to the not-in-my-backyard crowd, using underhanded means to try to block projects that would serve the common good.
Such is the case with the planned Weaver’s Cove project, which would help ease the high costs of energy in our region by bringing in liquefied natural gas (LNG). Unfortunately, the NIMBYs are in near hysterics about this comparatively safe energy, and politicians seem only too happy to troll for their votes and campaign contributions.
Certainly, our region would benefit greatly by increased shipments of LNG, the cleanest fossil fuel and one that has a sparkling safety record. The facility itself would produce high-paying jobs, while the project would tend to reduce the region’s energy costs. High energy costs hold back local businesses from creating jobs. [Brown emphasis added.]
Nigeria to charge Dick Cheney over alleged energy firm bribery case (Dec 3) — The Daily Telegraph, Australia
NIGERIAN authorities are planning to charge former US vice president Dick Cheney in connection with a bribery scandal allegedly involving energy firm Halliburton.
The case involves an alleged $182 million cash-for-contract scandal over 10 years, until 2005, over construction of the LNG plant in southern Nigeria. Halliburton denied involvement in the allegations.
US authorities said last year that Halliburton and its former subsidiary Kellogg Brown and Root agreed to pay $579 million in fines related to the case, one of the biggest fines ever paid by US companies in a foreign corruption case.
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ConocoPhillips announces first LNG shipment from Qatargas 3 project [News release] — BusinessWire
HOUSTON--(BUSINESS WIRE)--ConocoPhillips announced today that the first cargo of liquefied natural gas (LNG) from the Qatargas 3 joint venture was shipped on Nov. 25, 2010. The cargo departed from Ras Laffan Industrial City, Qatar, bound for the Canaport LNG Terminal in Saint John, New Brunswick, Canada.
Update 2-Peru LNG eyes 58 cargoes in '11, some may be for Asia — Reuters Africa
Two-thirds of the project's production is earmarked for the
Manzanillo terminal on Mexico's Pacific coast, which begins
operations in the fourth quarter of 2011.
The first cargoes from Peru have headed to the Canaport LNG
terminal in New Brunswick, east Canada, in which Repsol has a
majority stake, as well as Sempra Energy's Costa Azul
terminal in New Brunswick and U.S. terminals in the Gulf of
Mexico.
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