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Shale Gas Plentiful; LNG Export Rush Is On
Shale gas in New Brunswick — Resource Investing News, Vancouver, BC
The Canadian province of New Brunswick possesses a variety of rich mineral deposits including … fuels (oil, natural gas and coal)…. All known hydrocarbon deposits are located in the Late Devonian-Carboniferous Maritimes Basin, which underlies the eastern part of the province. New Brunswick’s marginal importance for Canadian exports has increased over each of the past four years, with the percentage of domestic exports from the province reaching a historical high relative to the national total.
On Sunday, New Brunswick Premier David Alward concluded a meeting with Arkansas Governor Mike Beebe in Washington, D.C., with a rekindled desire to take a deeper look at shale gas development in New Brunswick. Three New Brunswick cabinet ministers recently flew to Arkansas to examine the state’s handling of the shale gas industry. Arkansas is one of only four states with a projected balanced budget, and has largely avoided the fiscal crisis sweeping the United States in part through revenues obtained from shale gas resources. [Red bold emphasis added.]
Power line may lead to powerful economy — The Prince George Citizen, Prince George, BC
The National Energy Board will hold a public hearing to consider an application submitted by KM LNG Operating General Partnership for a 20-year licence to export natural gas from northern B.C.
In its application, KM LNG says the majority of the natural gas supply for the proposed exports will come from shale gas resources located in northeastern British Columbia. The natural gas would then be liquefied at the proposed Kitimat LNG Terminal and transported by tankers to markets primarily located in Asia Pacific. [Red bold emphasis added.]
MGP’s outlook clouded (Feb 27) — Petroleum News
File assigned to new cabinet minister; project founders; interest in LNG exports
While the waiting game continues for the MGP, the pace continues to pick up around the Kitimat LNG [export] project, adding to a view that future gas production from northeastern British Columbia poses the biggest threat to the economic prospects for Arctic gas development.
Gerry Goobie, managing consultant for Purvin & Gertz, said the rapid increase in Asian investment in Canada’s shale gas assets means Kitimat LNG has a “pretty good shot” at going ahead.
Industry analysts see advantages for re-tooled North American LNG regasification terminals, greenfield projects for LNG exports (Feb 25) — LNG Law Blog
Platts LNG Daily [subscription required] summarizes remarks from two industry analysts who noted the advantages of expanded LNG regasification terminals and greenfield LNG export projects. Speaking at a Platts LNG conference this week, Amber McCullagh of Wood Mackenzie argued that Gulf Coast LNG facilities, such as Sabine Pass LNG or Freeport LNG, have several advantages over proposed LNG projects. In particular, McCullagh noted that the Gulf Coast LNG facilities already have infrastructure in place and also have the advantage of being in close proximity to large shale gas plays. By contrast, Majed Limam of Poten and Partners, argued that Kitimat LNG's nearer location to attractive Asian destinations will create savings on shipping costs and allow that project to compete with LNG terminals already in existence.
[Red bold emphasis added.]
U.S. DOE approves Freeport LNG's export proposal for FTA nations (Feb 16) — LNG Law Blog
The U.S. Department of Energy (DOE) has approved Freeport LNG's request for authorization to export LNG to nations that currently or in the future enter free trade agreements (FTAs) with the United States. Freeport LNG's export proposal contemplates the export of 9 Mtpa of LNG over a 25-year period. At present, fifteen nations have FTAs with the United States.
Opponent of Weaver's Cove LNG project submits "wedge lot" title research to FERC — LNG Law Blog
David William Frederick, an opponent to the Weaver's Cove LNG project proposed in Fall River, Mass., has submitted research to FERC on the title to the so-called "wedge lot." Frederick argues in his submission that his research demonstrates that the developers of the Weaver's Cove LNG project do not have control over the project site. [Red emphasis added.]
USA: Sonde Resources completes sale of Liberty LNG project (Feb 25) — LNG World News
Subsequent to Sonde’s January 28, 2011 press release with respect to the proposed sale, the Office of the Governor for the State of New Jersey publicly issued a statement indicating that it would not approve a licence for the Project. In light of the increased uncertainty regarding the Project the terms of the transaction were renegotiated with the Purchaser agreeing to assume control over the Project’s future. Pursuant to the sale, Sonde received a U.S.$1.0 million cash payment upon closing in respect of reimbursable expenses, and is entitled to receive deferred cash consideration of U.S.$12.5 million payable upon the Company’s first successful gas delivery. [Red bold emphasis added.]
T&T wants bigger share of LNG (Feb 17) — The Trinidad Guardian, Port-of-Spain, Trinidad & Tobago, West Indies
Government is holding discussions with the foreign shareholders of Atlantic LNG about the possibility of increasing tax revenues when LNG cargoes are diverted to countries where prices are higher than the US and Spain. In a response to the concerns raised by Energy Minister, Carolyn Seepersad-Bachan about the amount of revenue coming to government from Atlantic LNG, bpTT said yesterday: “The contracts held between the Atlantic LNG shareholders and the Government of Trinidad and Tobago prescribe the share of profits between the shareholders and the government.
Our view: No backup [Editorial] (Feb 22) — Anchorage Daily News, Anchorage, AK
Now Alaskans find themselves in the strange position of potentially having more gas available and a longer life for Cook Inlet supplies, but no place to store the gas, not at least until sometime in 2012-13, when storage projects under way will come on line.
Legislature sets agenda for D.C. visit (Feb 25) — KTUU-TV, Anchorage, AK
Johnson’s priorities for the visit include a meeting with the Federal Energy Regulatory Commission, to talk about how Alaska can help turn the soon-to-be shuttered Nikiski LNG plant into a gas import and storage facility. The idea is to keep a steady supply of gas in the grid over the next few years, while Enstar constructs a permanent facility nearby.
Encana deal sign of things to come [Opinion column] (Feb 15) — Calgary Herald, Calgary, AB
Rumours have been floating around for a while that two Canadian producers are looking at the possibility of developing a second liquefied natural gas export terminal -in addition to the one currently proposed at Kitimat, B.C; one of those companies could very well be Encana.
Cheniere signs MOU with Endesa and Enel Trade for bi-directional processing capacity at the Sabine Pass LNG terminal [Press release] (Feb 17) — Digital Journal
Subject to the terms and conditions of the MOU, Sabine, Endesa, and Enel Trade have agreed to proceed with negotiations to contract up to 1.5 million tonnes per annum ("mtpa") of bi-directional LNG processing capacity at the Sabine Pass LNG terminal located in Cameron Parish, Louisiana, subject to certain conditions precedent, including but not limited to the receipt by each party of requisite internal approvals, Sabine's receipt of regulatory approvals and making a final investment decision to construct the liquefaction facilities.
Sempra Energy's Mexican LNG, unit "Energia Costa Azul", defy Mexican authorities by continuing to operate despite government action [Press release] — Yahoo News
According to the City of Ensenada Official Press Release … Sempra Energy Improperly Re-Opens their Mexican LNG, Plant "Energia Costa Azul" Despite Official Closure by Mexican Authorities.
Sempra Energy’s “Energia Costa Azul” LNG Plant has been embroiled in controversy since it was proposed and opened. According to an investigative report by San Diego, CA KGTV News, an ABC affiliate, authorities in the U.S., including the U.S. Department of Justice, the Federal Bureau of Investigation, and the Securities Exchange Commission, have all launched parallel investigations into allegations that Sempra Energy’s, Mexican LNG Unit, “Energia Costa Azul,” may have engaged in criminal conduct in Mexico. See attached lawsuit and video …; See also; video news story of ABC affiliate KGTV CH10 ….
Gazprom ready for regular gas deliveries to USA (Feb 18) — ITAR TASS, Moscow, Russia
“Gazprom has everything ready for regular gas deliveries to the United States. It remains to wait for an acceptable price,” deputy CEO of the gas monopoly Alexander Medvedev said at Gazprom Investor Day.
He specified the company has regasifying capacities at Baja California terminal in Mexico and sufficient liquefied natural gas reserves.
As for the shale gas in the United States, Medvedev said “we see no shale gas threat to our business and even note the factors which can promote our business development.” He did not elaborate, but said in the long run shale gas “will play a positive role for the world gas market and the gas market in the United States.”
Gazprom heads for Atlantic (Feb 18) — The Voice of Russia, Moscow, Russia
The figures look as follows. In the second half of 2010 Gazprom sold about 600 million cubic metres of liquefied natural gas (LNG) to the USA. Gazprom is sure that in the future this amount will exceed 900 million cubic metres. At present this gas monopoly has created all conditions for increased deliveries to the USA. Recall that Gazprom already deals on the US market. Its US branch, Gazprom Marketing and Trading, successfully sells natural gas to the US and is even one of the twenty largest operators. In four years this company is planning to enter the top ten. This plan is feasible, especially because Russia has a very small representation in the US gas market, said Konstantin Simonov, the director of Russia’s National Energy Security Foundation, in his interview for “The Voice of Russia”.
“The Atlantic market is absolutely new for us. We went there with very small volumes and today we are only trying to crack it. This is why the forecasts that have been made are not unachievable, especially if we do not forget that Russia is only taking its first steps in the US market. I’d like to stress once more that we should not ignore the Atlantic market when talking about LNG deliveries”.
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LNG and Market Reality
Let’s come clean on LNG [Op-ed column] (Feb 19) — Savannah Morning News, Savannah, GA
Regulators and local officials can’t get a grip on a host of critical issues.
For months El Paso Corp. has pushed for quick federal approval of its petition to truck LNG on city streets, stonewalling questions from local officials who must assess the risks. The company’s tactic of ignoring public concerns is also strategic.
Without all the facts, regulators and local officials can’t get a grip on a host of critical issues. For instance, if 115 LNG trucks — not 58 — fill the streets daily, what safety and security measures do we really need?
The gas market revolution is key. Development of our enormous domestic shale gas reserves is driving down natural gas prices — off 70 percent from their mid-2008 peak. It is also reshaping the global gas market including for LNG. According to the U.S. Energy Information Administration, our shale gas output will grow to 25 percent of all U.S. natural gas production by 2035.
The abundance of domestic natural gas and the collapse in its price are creating export opportunities. Market specialists predict U.S. gas supplies will be cheaper than in Europe and Asia for years to come, enabling companies to sell American gas abroad.
Plummeting U.S. gas prices are devastating business at LNG import terminals. Across the country, our imported LNG inventory fell to under 11 percent of overall holding capacity in 2010. The bottom has dropped out of the imported LNG market. As John Deutsch, the former U.S. undersecretary of energy and a participant in last year’s MIT study on the future of natural gas, said, “It no longer makes economic sense to import LNG.”
[Red bold emphasis added.]
The US: a gas market turned on its head (Mar) — Petroleum Economist [Paid subscription required]
US LNG-import terminals are signing agreements to export North American gas, but many variables affect the economics of these potentially risky ventures, writes Nikos Tsafos
Within nine months, the idea of exporting gas from the US Lower 48 as LNG went from cocktail-hour hypothetical to front-page news with extraordinary alacrity. Two Gulf coast regasification terminals – Sabine Pass and Freeport – have announced plans to export LNG from the US, while other companies are conducting feasibility studies to understand the conditions under which exports may be profitable. [Red bold emphasis added.]
US shale set to sail (Mar) — Petroleum Economist [Paid subscription required]
Tentative sales agreements in place for Cheniere; Dominion a third LNG importer to plan exports
PLANS TO turn abundant US shale-gas resources into liquefied natural gas (LNG) exports have gathered steam, with energy firms eyeing new liquefaction plants and signing sales agreements. But the route from shale to sail may still be stormy.
This would be a remarkable U-turn for the US gas market – which only a few years ago was predicted to become the world's largest LNG importer until the success of shale-gas extraction – and exports could allow US LNG investors to claw back some of the billions spent on building unused import terminals.
Following Freeport LNG's plan to build an export plant in Texas in November last year, Dominion Resources said at the end of January it may also build an export facility at its Cove Point import terminal in Maryland, in the US northeast, possibly tapping the Marcellus shale for gas supplies. [Red bold emphasis added.]
Natural gas capacity set to grow by 50% within 5 years - price to remain depressed? (Feb 17) — Seeking Alpha
LNG demand in the Asia-Pacific is strong, but growing shale gas volumes in the United States – a trend unforeseen when these LNG projects were conceived and implemented – has lowered the expected demand curve thereby eating into the potential profitability of these new facilities and postponing the vision that investors originally had of the role of these giant projects.
Forecasters expected the US would need substantial imports of LNG as domestic gas production and imports from Canada fell. They fell into the classic forecasting error of projecting present trends into the future and not being fully aware of a real game-changer, what Nicholas Taleb, has called a "Black Swan".
Instead, the US now imports only small amounts of LNG from Egypt, Nigeria, Norway, Peru, Qatar, Trinidad and Tobago and the Yemen at prices that averaged just $4.81 per thousand cubic feet, according to the U.S. Energy Information Administration. These prices are only a shade higher than the depressed Henry Hub domestic marker price.
So these huge LNG production and regasification capacity projects went ahead and have created a mismatch between demand and capacity mismatch in the United States. US regasification capacity is currently around 15 bcf/day, according to our database of regasification facilities. – equivalent to no less than one quarter of the whole of current U.S. natural gas consumption. Yet these facilities are being utilised at a tiny fraction of their capacity. LNG regasification volumes in the U.S. were just 2 million cu ft a day, or a mere 13% of installed regasification capacity, in January of this year, for example. [Red bold emphasis added.]
Global natural gas: A growing resource (Dec 22) — Congressional Research Service
[Note: The following link will open a 
PDF file.]
U.S. unconventional natural gas reserves and production, particularly shale gas,
have grown rapidly in recent years. In 2009, shale gas reserves increased 76%,
while production rose 47%, according to a recent U.S. Energy Information
Administration (EIA) report. The new shale gas resources have changed the U.S.
natural gas position from net importer to potentially a net exporter. Other
countries are now exploring their own shale gas resources. [Red bold emphasis added.]
Will Bath get gas? (Feb 25) — The Times Record, Brunswick, ME
BIW deal would bring pipeline to city
BATH — Bath Iron Works has reached an agreement with Maine Natural Gas Corp. that would bring a natural gas pipeline to Bath, likely lowering costs and carbon emissions at the shipyard, as well as providing the city with access to a previously unavailable fuel source.
Maine Natural Gas Corp. is a Brunswick-based company with additional infrastructure systems in place in Topsham, Windham, Gorham, Bowdoin, Freeport and Pownal, according to the company’s website.
Second Congress of Councils closed to public and press (Feb 17) — The Jamestown Press, Jamestown, RI
At the Feb. 9 meeting of the Jamestown LNG Threat Committee, committee member Richard Lynn said that the event would be a closed, invitation-only meeting.
In a follow-up interview, [Steve Torres, corporation counsel for Fall River,] explained that the congress was by invitation only and that Hess was not invited. He added that Hess attends all of their meetings and he “takes it as a personal affront.”
“I’m tired of it,” Torres said. He mentioned that Hess practices “bullying” and attempts to “antagonize and intimidate.”
Local officials, residents meet and pledge to continue fighting LNG proposal (Feb 16) — The Herald News, Fall River, MA
Massachusetts and Rhode Island public officials and concerned residents gathered at the Second Congress of Councils on Wednesday, joining forces in the lengthy fight to kill the proposal to put a liquefied natural gas facility here.
“We in Fall River are trying to gather as many supporters as possible to kill this project,” he said. “This is all with the hope of stopping this project and moving forward in the City of Fall River. We can’t do this alone. To see this project come to fruition would be detrimental to the city’s public safety.”
Activists continue push for LNG facility ban (Feb 17) — The Hub, Freehold, NJ
Christie’s veto of liquefied natural gas project lauded
While Gov. Chris Christie’s veto of an offshore LNG facility safeguards the coastline for now, ocean advocates say they will continue to work for permanent shore protection in the form of federal legislation.
“We need federal permit legislation to make sure that these threats will no longer lurk or loom along our coast,” she said. “Now we need to move to the next level, which is the Clean Ocean Zone (COZ), which is legislation that we’ve been working on for the last 10 years.” Zipf was scheduled to be at a public meeting in Long Branch on Feb. 9 on the proposal by Liberty Natural Gas to construct and operate an offshore port to receive foreign vessels transporting LNG to the U.S. for regassification.
The LNG proposal was one of three that at one time threatened the coast, with applications for similar proposals off Sea Bright and Sea Girt being withdrawn last year.
Libya underlines need for urgency on energy [Editorial] — The Gleaner, Kingston, Jamaica, West Indies
The point is that the crisis in North Africa and the Middle East is bad economic news for the world, particularly non-oil-producing energy users like Jamaica. Indeed, these events should concentrate Jamaican minds on the need for an effective energy policy.
On the face of it, the country is moving in that direction with the administration's declared commitment to converting from oil to liquefied natural gas (LNG) as the fuel for the bulk of energy generation. Except that not only has the process been mired in conflict-of-interest controversy, but the basis on which the Government reached its decision has been lacking in transparency.
[O]ur administration has failed - and continues to do so - to clearly outline the financial and economic assumptions for its decision in favour of LNG and how these compare with other potential energy sources. Nor has it been willing to share with the public recent studies that apparently found major flaws in the project's design - even after the Government had named a preferred bidder for an LNG storage and regasification facility and invited bids for 480 megawatts of electricity-generating capacity based on natural gas. Even as the Government presses ahead, there is no indication that the potential end-users, the monopoly electricity transmission and distribution company and the alumina refineries, are on board.
Lack of permanent marine pilot a concern for Prince Rupert mayor (Feb 22) — The Northern View, Prince Rupert, BC
“Currently there are no pilots that are residents in Prince Rupert. They only work here on a temporary basis. Our port has approximately 400 marine vessel movements a year,” the mayor said.
He also noted that log shipping activity is increasing and the liquefied natural gas facility planned for Kitimat should be shipping by 2013 adding more vessel movements in the area.
Skipanon LNG lease is the gift that keeps on giving [Editorial] (Feb 25) — The Daily Astorian, Astoria, OR
At the Pendleton Round-Up an announcer was fond of saying: “You can’t tell the horse from the rider without a program.”
The proposed liquefied natural gas terminal on the Skipanon River is a bit like that. Without an annotated guide, it’s well nigh impossible to grasp the meaning of the latest turn of events, much less identify the corporate players.
The theme in the Skipanon LNG story is that some choices are better left alone. Gearin didn’t need to do the LNG deal. At a time when his vision for the Port of Astoria was succeeding, the LNG lease became his Vietnam War and an element in his undoing. The Port Commission didn’t need the LNG lease either. The eventual cost of Gearin to the commission (and the taxpayers) has been about $800,000. Those costs have spilled over to county government as it deals with the successive owners of the Skipanon lease.
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Activists continue push for LNG facility ban (Feb 17) — The Hub, Freehold NJ
The LNG proposal was one of three that at one time threatened the coast, with applications for similar proposals off Sea Bright and Sea Girt being withdrawn last year.
“Those guys [the other two proposals] said if the governor says he’s going to veto it, then I’m not spending any more money on it,” she said. “LNG was either arrogant or in a dream world to think that the governor was not going to veto their project. This governor never, ever, ever gave a hint of wavering on this issue.”
Legislature to hold hearing on LNG plant closure — KTUU-TV, Anchorage, AK
JUNEAU, Alaska — A special legislative committee is looking at ways to offset the toll of the planned closure of the Kenai liquefied natural gas plant.
ConocoPhillips plans Alaska shut-ins after LNG exports end: official — Platts
ConocoPhillips Alaska will shut in some producing wells in the North Cook Inlet field and the Beluga River field this summer after it ceases exports from the Kenai natural gas liquification plant in April or May, a company official told a state legislative committee in Juneau Tuesday.
TransCanada gas line alternatives floated in Alaska Legislature (Feb 14) — Alaska Dispatch, Anchorage, AK
Last summer, both TransCanada and the BP-ConocoPhillips venture solicited bids aimed at gauging interest from customers in shipping gas through the pipeline. Neither has revealed the results of those bids, and TransCanada has said it needs more time to work out conditions. That's made lawmakers and others question whether there is really enough interest and whether the state should continue to subsidize it. House GOP leaders last week introduced a bill that sets a deadline for TransCanada and Gov. Sean Parnell to prove that the gas line is economically feasible.
Now, proponents of other gas projects are smelling blood in the political waters and they're circling Juneau armed with power points and proposals. Legislators' angst over the TransCanada project, the closing of the Nikiski gas export plant and the notion of importing gas to a state that is supposedly full of it has certainly churned up the talk about other possibilities for getting Alaska gas off the Slope and put to use in Alaska. [Red emphasis added.]
Mexican authorities prevent closure of Costa Azul LNG terminal — LNG World News
Mexican federal and state authorities were locked Monday in a dispute with the mayor of Ensenada over a liquefied natural gas terminal owned by Sempra Energy (SRE) that local officials attempted to shut down.
The incident is the latest chapter in a long-running land dispute between Sempra and a local rancher. In 2006, the rancher, Ramon Eugenio Sanchez Ritchie, claimed that Sempra had unlawfully acquired a 250-acre parcel of land that belonged to him near the LNG terminal site. In May, a Mexican court tribunal ruled that Ritchie was the rightful holder of the land and ordered Sempra to hand the property over to him.
In Ritchie’s latest complaint, filed with the city of Ensenada in January, the rancher accused Sempra of violating Ensenada’s land-use codes by building an industrial facility on land zoned for tourism activities, said C. Cortes, a spokesman for Ritchie.
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Robbinston experiences minor earthquake (Feb 11) — The Quoddy Tides, Eastport, ME
An earthquake of low magnitude, 2.0 on the Richter scale, occurred at Mill Cove in Robbinston at 3:06 a.m. on January 31. Cathy Footer, the Robbinston town clerk, was awake at the time of the quake and says she did not feel any movement but did hear a noise she first attributed to the furnace or a truck passing by. She has not heard any comments from other members of the community concerning the early morning quake.
The quake occurred in the Mill Cove area that is also the proposed site of the Downeast LNG project. Dean Girdis, president and founder of Downeast LNG, says the Federal Energy Regulatory Commission (FERC) requires a detailed seismic analysis as part of an Environmental Impact Statement (EIS). Girdis says, "The whole fault line is fine for an LNG project." Downeast LNG has been required to submit models of the fault area to FERC. "Everything came out fine," comments Girdis. Other agencies have required additional models. [Red bold emphasis added.]
GDF’s Boston-area LNG terminal to receive cargo on Feb. 19 — Bloomberg
Matthew, the tanker carrying the cargo, can move as much as 126,540 cubic meters of LNG, or about 2.72 billion cubic feet of natural gas, equivalent to 4.4 percent of estimated daily U.S. gas production.
Another vessel, Norman Lady, is also carrying a cargo of LNG to Boston. The ship, which can move as much as 86,234 cubic meters of the fuel, is scheduled to arrive Feb. 23.
LNG opponents all smiles after victory in NJ [Opinion] — Atlantic Highlands Herald, Atlantic Highlands, NJ
One of the worst aspects from the Liberty LNG project was the many falsehoods fed to us by Liberty in the their attempt to get government approval. One such piece of propaganda was the statement that natural gas would have been imported by various countries around the world to help ease the natural gas burden in New Jersey.
Yet, our domestic natural gas supply is plentiful and relatively cheap compared to Europe and Asia. North America has some of the largest reserves of natural gas in the world, so why import it? [Red bold emphasis added.]
Port Dolphin Energy receives environmental permits from State of Florida (Feb 12) — iStockAnalyst.com
(Source: Datamonitor)Port Dolphin Energy, LLC, has received environmental permits from the State of Florida to allow construction of on site components for its offshore Liquified Natural Gas, or LNG, terminal.
Port Dolphin received its federal Deepwater Port License in October 2009 and a certificate of public necessity and convenience from the Federal Energy Regulatory Commission in December 2009.
Dr Hutchinson's case for LNG transparency [Editorial] — The Gleaner, Kingston, Jamaica, West Indies
Dr Gladstone Hutchinson, the director general of the Planning Institute of Jamaica (PIOJ), has made the case, perhaps with even greater clarity than we have, for the need for a full, frank and open discourse on the energy source that Jamaica should adopt to drive its economy into the future.
The PIOJ, as yet, has no precise numbers on the price of LNG and, therefore, the ultimate cost of gas-fired energy in Jamaica to put through its economic models.
This newspaper believes that cheaper, efficiently supplied energy could be the game-changer for the Jamaican economy. But deciding on a fuel source and moving to implementation based purely on secret information, available only among a few government officials, is not the way to go about policy formulation and/or implementation. [Red emphasis added.]
Conoco, Marathon say gas supplies to utilities will continue; some concerned about cold weather needs (Feb 11) — Alaska Journal of Commerce, Anchorage, AK
Conoco, Marathon say gas supplies to utilities will continue; some concerned about cold weather needs
Lockhart said the problem of handling large seasonal swings in demand from the Alaskan utilities "won't be an issue because we have sufficient storage," for Marathon's customers, which include regional gas and electric utilities.
Canadian government reviewing PetroChina’s bid for Encana stake — Industrial Fuels and Power, Dorking, Surrey, UK
Canada’s government is currently reviewing PetroChina’s proposed acquisition of a 50% stake in Encana’s shale gas and deep-well western natural gas deposits for CAD5.4bn. The assets include a daily processing capacity of 20Mm3, 3400km of gas transmission pipelines and a major underground storage facility.
Under the Investment Canada act, both parties must demonstrate that the deal will have a net benefit to Canada. It is expected to allow Encana to accelerate the development of its natural gas fields. The deal will also require approval from Chinese regulators.
Mexican mayor orders shut down of natural gas supply to U.S and Mexico, but fails — Hispanically Speaking News, Chicago, IL
Friday, a Baja California natural gas plant was nearly forcibly shut down by the town’s mayor before federal officials intervened.
Ensenada Mayor Enrique Pelayo Torres ordered that a natural gas import terminal, Sempra LNG or LNG Energia Costa Azul, be shut down due to “irregularities and flagrant violations of the law.” Upon his orders, over 50 municipal police, dressed in SWAT-like uniforms, forced their way through the plant’s gates at around 4 p.m. on Friday, but did not move into the facility any further due to a “hardened steel turnstyle.” They did however, put seals on the plant’s gates.
After a letter from the president of the Mexican Energy Regulatory Commission Javier Salazar Diez de Sollano, was sent to Pelayo stating that the plant was operating within the law, police left the facility. The MERC letter also clarified that it is the responsibility of federal officials to determine whether the plant stays open, not local law enforcement.
Sempre LNS is owned by Sempra Energy, and has remained controversial for a number of years, as lawsuits in both Mexico and the U.S. are filled with accusations of corruption, taking land illegally, and firing “whistleblowers,” though Hulse denies the allegations and claims that those behind them are only looking to extort the company.
Sempra shrugs off LNG shut down order — UpstreamOnline.com
Reuters reported that the city of Ensenada said in a statement on Friday it was shutting down the plant temporarily because the company had failed to provide local officials with information for handling emergencies.
Sempra said local police and inspectors placed seals on some of the terminal's doors, but that a court ruling had ordered the city government not to interfere in its business.
Mexican army secures Ensenada LNG plant (Feb 12) — SignOnSanDiego.com
SWAT-style municipal police stopped by steel barrier; plant continued operating during standoff
A tense standoff at a big natural gas plant that supplies Mexican and U.S. customers, including those in San Diego, ended only after Baja California officials and the Mexican army stepped in, the plant’s owner said.
Federal authorities dispatched the army to the plant about five hours after the standoff began.
Mexican city tries to close Sempra LNG terminal (Feb 12) — Reuters
A Mexican city ordered U.S. firm Sempra Energy to shut down its Costa Azul liquefied natural gas terminal, citing saftey concerns, but the company said it was protected by a court order and was operating normally.
The city of Ensenada said in a statement on Friday it was shutting down the plant temporarily because the company had failed to provide local officials with information for handling emergencies.
Sempra LNG plant in Ensenada at center of showdown (Feb 11) — SignOnSanDiego.com
Ensenada Mayor Enrique Pelayo Torres ordered the Sempra Energia Costa Azul LNG plant shut down Friday afternoon saying there were "irregularities and flagrant violations to the law."
Municipal authorities put seals on the plant gates, but state officials stepped in to keep it operating, witnesses said.
The plant has been at the heart of allegations of corruption for years. Its owner, Sempra Energy, has denied those allegations.
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LePage, Lobbyists & LNG
LePage's secret puppeteers (Feb 10) — The Portland Phoenix, Portland, ME
The governor has continued to insist that "most of the [regulatory] proposals" he developed came "directly from business owners and managers who have attended the Red Tape Workshops," but the wish list itself tells a different story: it literally has the marks of corporate lobbyists all over it.
The official copy of the wish list LePage submitted to the legislature has lobbying powerhouse PRETI FLAHERTY BELIVEAU & PACHIOS's distinctive eight-digit document tracking numbers stamped on each page, suggesting it originated not in Augusta, but at the law firm's offices at Portland's One City Center.
The governor's communications director, Dan Demeritt, confirms that the document was compiled by Ann Robinson, the head of Preti's lobbying group, who served as co-chair of LePage's transition team and remains his head advisor on regulatory reform. "Ann Robinson is still advising the governor on regulatory reform matters," Demeritt told us last Friday. "Her computer is at Preti Flaherty, so that's why it has their stamp on it."
[Robinson] and her colleagues at Preti Flaherty lobbied against several of the laws slated for repeal on behalf of corporate clients. Since the inauguration she's re-registered as the official lobbyist for PHRMA, drug maker MERCK, the TOY INDUSTRY ASSOCIATION OF AMERICA, and other corporations that [would] profit from the changes. Robinson — who didn't return our calls — has found herself in the enviable position of being able to ghost-write the governor's regulatory policies on behalf of her paying clients, even though they don't manufacture anything in Maine.
And it's not just Preti that's had the governor's ear. LePage named PIERCE ATWOOD managing partner Gloria Pinza to his transition team, which, as the lobbying firm's website points out, was "providing input into policy proposals and identifying skills needed to fill key positions" in the new administration. It may not be a coincidence that the governor wishes to nominate Pierce Atwood lobbyist Patricia Aho as deputy commissioner of the Department of Environmental Protection.
Lobbying disclosures on file with the state Ethics Commission show both PhRMA and Merck paid Robinson to defeat the KID-SAFE PRODUCTS ACT, a 2008 law that phased out toxic chemicals in toys, car seats, baby clothes, and other children's products. The AMERICAN PETROLEUM INSTITUTE and drug maker ASTRAZENECA paid Aho to do the same. The governor's wish list calls for "revisions to prohibitions of chemicals and materials in products" saying that "if the state is going to regulate consumer products at all, it should only do so when clearly justified on risk-benefit or cost benefit basis." [Red, brown, yellow & bold emphasis added.]
LNG Export Customers Growing
Update 1-Cheniere signs LNG supply pact with Basic Energy — Reuters
Feb 11 (Reuters) - Cheniere Energy (LNG.A) has signed a pact to supply liquefied natural gas to Basic Energy in the Dominican Republic from its proposed export plant in Louisiana, the company said on Friday.
The companies will now work toward firming up the agreements. Any deal is dependent on Cheniere getting approval to build the export plant, which it has said could be online by 2015. The export plant will be built on the site of Cheniere's existing import terminal at Sabine Pass. [Red bold emphasis added.]
China backs shale revolution [Opinion] — Financial Post, Dons Mills, ON
The commitment certainly seems to confirm China's long-term orientation, because it comes at a time when the North American market is awash with gas, Canadian gas exports to the U.S. continue to slump, and there is no other place for natural gas currently to go. PetroChina's investment is undoubtedly being made with an eye to the planned $3.5-billion project to ship LNG out of Kitimat and link Canadian gas to Asian markets.
[Red bold emphasis added.]
Encana's deal with PetroChina has strong gas-export dimension (Feb 10) — Calgary Sun, Calgary, AB
Randy Eresman, CEO of the Calgary-based natural-gas giant, says that in inking the joint-venture agreement with the Chinese firm, the issue of shipping natural gas to China did not surface. But he reconfirmed Encana is looking at the proposed Kitimat liquefied natural-gas terminal, backed by Apache Canada and EOG Resources, as a potential escape valve for North America’s oversupplied natural-gas market. The glut is suppressing prices and is gnawing on Encana’s fortunes. [Red bold emphasis added.]
New Jersey vetoes Liberty's LNG project amid downbeat gas sector outlook [Opinion] (Feb) — Oil and Gas Insight [Paid subscription required]
BMI View: A politically advantageous decision by Governor Chris Christie is backed by poor gas market fundamentals in the US. [Red emphasis added.]
Liberty Natural Gas public hearings in New Jersey have been canceled (Feb 9) — Surfline, Huntington Beach, CA
The Maritime Administration & U.S. Coast Guard have canceled the LNG public hearings due to the Governor's veto.
FERC authorizes installation of supplemental gas compressor at Sabine Pass LNG facility (Feb 10) — LNG Law Blog
Yesterday FERC approved Sabine Pass LNG, L.P.'s request to install an additional gas compressor at the company's LNG facility.
Colombian Promigas keeps LNG project in Jamaica - report (Feb 10) — ADP News
(ADPnews) - Feb 10, 2011 - Colombian gas distribution company Promigas (CLB:PROMIGAS) will continue the talks for a liquefied natural gas (LNG) project in Jamaica despite the withdrawal of US investment company AEI from Promigas, Colombian daily Portafolio reported.
LNG data still cloudy — The Gleaner, Kingston, Jamaica, West Indies
After more than two years of aggressively promoting LNG as the fuel of choice to power Jamaica's economy into the future, the Jamaican authorities do not yet have a definitive fix on the level of economic savings that will be achieved from the use of natural gas, a senior technocrat indicated Wednesday night.
"LNG may potentially lower the cost of electricity generation, however it is not entirely clear ... that the final effect will be a significant reduction to end-user electricity prices," said Hutchinson, who spoke at the functionahead of Prime Minister Bruce Golding and Energy Minister James Robertson.
Alaska LNG plant closing (Feb 9) — Daily News-Miner, Fairbanks, AK
JUNEAU, Alaska - ConocoPhillips and Marathon Oil Corp. confirmed Wednesday that they plan to close the Kenai liquefied natural gas plant after more than 40 years in operation, citing market changes.
Dan Clark, manager of Cook Inlet assets for ConocoPhillips Alaska, told The Associated Press the company could not secure the sales and supply agreements necessary to keep the plant in operation beyond April or May.
Clark said the companies decided independently that the plant should be closed. He cited as factors a "general deterioration" in the liquefied natural gas, or LNG, market and the volume of gas at the plant.
Both said the decision to cease exports will not affect their contracts to provide natural gas to Alaska utilities. They said they will continue to honor those commitments.
Kenai LNG plant to close doors (Feb 10) — Juneau Empire, Juneau, AK
Lowman said the plant received needed license extensions last year, but was not able to get a satisfactory price for their LNG.
Lowman said it was too early to say whether the company will have more gas to sell to locally now that none is being shipped out of state. But the closure does reinforce the need for gas storage, Lowman said. The company has not signed on as a customer for the proposed Cook Inlet Natural Gas Storage Facility in the central Kenai Peninsula area, but supports gas storage efforts throughout the state, she said.
[Red bold emphasis added.]
Conoco to end Alaska LNG exports; might import — Yahoo News Asia
NEW YORK, Feb 10 - ConocoPhillips and Marathon Oil said on Thursday they plan to shut the Kenai liquefied natural gas plant in Alaska in the coming months as depleting domestic resources and market changes in Asia make exports inviable.
Exports from Alaska could cease by April or May this year, a Conoco spokeswoman said. The small-scale plant, which has been shipping LNG to Asia since 1969, will be mothballed for potential future use.
"The decision to cease exports will enable us to continue to meet our contractual obligations to supply gas to the region."
ConocoPhillips shuttering Kenai LNG plant (Feb 9) — Alaska Dispatch, Anchorage, AK
"It's a sad day when we shut down an export facility knowing that we have 35 known (trillion cubic feet) of gas on the North Slope that's just 800 miles away and one of the things we're looking at is importing LNG from some foreign country," said House Speaker Mike Chenault.
[I]n recent years shipments have dwindled as other supplies of LNG have flooded the Pacific Rim and the company has only been sending out a single ship.
Natural gas production from the company's Tyonek and Beluga facilities will continue and the company will continue to supply natural gas to Southcentral utilities, she said, adding that it was too early to say whether supplies to the local utilities might increase given that some gas would no longer be exported.
Now the scramble is on to bring more natural gas to the Railbelt, either from the huge North Slope reserves or new Cook Inlet production that the state is trying to spark with tax credits and other incentives. But energy experts say any new projects that might be launched wouldn't come on line in time to save the region from a gas shortfall expected to hit in 2013. Importing LNG is a reality, they say.
Sen. Bill Wielechowski, an Anchorage Democrat who has specialized in energy issues, says the "silver lining" in the closure of the Nikiski LNG export facility is that it will free up more gas for Southcentral.
[Red bold emphasis added.]
Conoco to stop LNG exports from Kenai plant in Alaska (Feb 10) — (Dow Jones) Automated Trader
The decision of shutting down the export plant shows the small facility didn't have the economy of scale to compete with a growing number of large suppliers in Asia, said Fadel Gheit, an analyst with Oppenheimer & Co. It also shows that although natural gas in the U.S. is now abundant it's still more expensive to produce than in other areas of the world. "We cannot really be competitive selling LNG from the U.S.," Gheit said.
Persily says plant closure helps make case for gas pipeline (Feb 10) — Alaska Public Radio Network
The Federal Coordinator for Alaska Natural Gas Transportation Projects Larry Persily also reacted to the LNG closure. He says he thinks that this announcement helps make the case for the project he is overseeing that aims to get a gas pipeline from the North Slope to the Lower 48.
Persily says because so many gas producers are in the global market, it makes export of LNG too costly compared with supplying North America, which burns three times as much gas as China, India, Taiwan, South Korea, and Japan combined.
Our view: LNG plant [Editorial] (Feb 10) — Anchorage Daily News, Anchorage, AK
[T]his should lend a sharper sense of urgency -- not panic, but urgency -- to get Alaska's vast stores of gas to market, both in-state and abroad. Rep. Chenault is among those growing impatient with gas line prospects, and the LNG closure points up Alaska's weakness in merely reacting to market forces, rather than taking a role in driving them.
ConocoPhillips mulls LNG import to Alaska — LNG World News
ConocoPhillips is considering importing liquefied natural gas to Alaska in the future, at the site of the Kenai LNG export plant which is being mothballed in the coming months, a company spokeswoman said Thursday.
LNG terminal hearings set (Feb 10) — Calgary Herald, Calgary, AB
The National Energy Board has scheduled a public hearing to consider granting a 20-year licence to export liquefied natural gas from Canada's first terminal at Kitimat, B.C.
The hearing is to start on June 7, but there will be a public information meeting in Kitimat on March 1.
Attorney says new county trio is biased (Feb 10) — The Daily Astorian, Astoria, OR [Paid subscription required]
The bias challenge came from Mike Connors, an attorney who represents Oregon Pipeline LLC, which, as part of the larger Oregon LNG project, seeks to run 41 miles of a 121-mile LNG pipeline through Clatsop County.
State moves pipeline debate to Salem — The World, Coos Bay, OR
Both sides of a land-use appeal affecting the Pacific Connector Gas Pipeline must go all the way to Portland to present oral arguments March 7 to Oregon's Land Use Board of Appeals.
The Coos County Board of Commissioners approved the project's land use permits Sept. 8.
CALNG, Friends of Living Oregon Waters, Jody McCaffree, Harry Stamper, and Holly Stamper filed the appeal Jan. 25. They maintain that the county didn't follow its own land-use planning objectives.
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Domestic Natgas Keeps Booming, Mooting LNG Imports
DJ update:Conoco:US shale output to rise 10%-18% a year from 2010-2014 (Feb 8) — Trading Markets
ConocoPhillips said Tuesday it expects its onshore U.S. shale production to grow 10% to 18% annually between 2010 and 2014 as well as consistent output increases in other areas worldwide.
The Eagle Ford Shale and North Barnett Shale in Texas and the Bakken Shale in North Dakota will be the drivers behind ConocoPhillips' expected increase in shale production in the U.S. The company said U.S. shale production is expected to increase to more than 100,000 barrels of oil equivalent per day by 2013.
World LNG prices are breaking free from oil (Feb 8) — The Barrel, Platts
One argument that used to be heard about the way LNG pricing would go is that it might eventually be tied to the US Henry Hub price. The school of thought was that with plans for dozens of new LNG import capacity on the boards in the US, a seller of a cargo of LNG anywhere in the world would need to ask themselves the question: can I do better in the US?
That's over. The shale gas revolution has put US gas prices $5-$6/Mcf less than LNG elsewhere in the world, including Asia, and import facilities are either not getting built or their owners are petitioning the US government for permission to become an LNG export facility. Just today, New Jersey Governor Chris Christie blocked the Liberty Deepwater Port, which had been the last surviving LNG terminal proposed for the New York region.
[Red bold emphasis added.]
Shale gas: Global game changer — PennEnergy, Tulsa, OK
Ten years ago, few crystal balls foresaw the lightning impact and development of shale gas on the world’s energy scene. In the last 10 years – during which shale gas became commercial in the US – its use has grown from near zero to about 20% of the already enormous US gas stream. Booked shale gas reserves, at present rates of production, may still be onstream 100 years into the future, a figure that will increase if gas begins to approach oil on a price parity basis.
[Red bold emphasis added.]
Egypt a reminder for U.S. to hang onto its gas (Feb 8) — Reuters
A glut in the United States as vast new shale plays come on-stream has kept prices at around $4.50 per million British thermal units. Across the Atlantic producers can expect to get $8.50 or higher while long-term contracts in Asia can reach as high as $15.
So at first blush the commercial logic for exporting looks unassailable. Several pioneers, such as Cheniere Energy and Freeport LNG, plan to set up the infrastructure to make this possible. Dominion Resources said last week it may build an LNG export plant on the site of its existing import terminal in Maryland.
It would not be the first time that Cheniere and its ilk have been badly wrong footed. Hugely expensive LNG import facilities — built in expectation that the United States would become more dependent on foreign sources — now lie idle. Such terminals operate at below 10 percent capacity, according to consultancy Wood Mackenzie. Cheniere shares have lost 80 percent of their value since peaking in 2006.
Until America has done more to liberate itself from an addiction to foreign oil, exporting hydrocarbons looks plain loopy.
[Red bold emphasis added.]
GTL: a glut-inspired idea for North America's shale-gas abundance (Feb) — Petroleum Economist [Paid subscription required]
UNCONVENTIONAL gas from Canada's Montney shale play could be converted into synthetic oil products to exploit the dramatic structural divergence of North American oil and gas prices.
[Red bold emphasis added.]
Short-term energy outlook (Feb 8) — U.S. Energy Information Administration
EIA expects gross pipeline imports of 8.7 Bcf/d in 2011 and 8.2 Bcf/d in 2012, year-over-year decreases of 4.2 and 5.5 percent, respectively. Projected imports of liquefied natural gas (LNG) average 1.1 Bcf/d in 2011, a 4.4-percent decrease from 2010 levels. LNG imports in 2012 grow modestly to 1.2 Bcf/d. High domestic production, high inventories, and low U.S. prices relative to European and Asian markets should continue to discourage LNG imports. [Red bold emphasis added.]
Torres: Fall River has spent $67,000 on LNG fight in fiscal 2011 (Feb 7) — The Herald News, Fall River, MA
Corporation Counsel Steven Torres specified the amount spent this fiscal year in the continued fight against Weaver’s Cove Energy’s proposed liquefied natural gas terminal.
Pereira … asked whether the city has had success compelling area communities to share litigation expenses in the lengthy LNG fight.
A meeting next week of Rhode Island communities could result in a resolution being sent to foundations, chambers of commerce and others likely to oppose LNG tankers traversing Narragansett Bay, Torres said.
Another LNG Project Bites the Dust
Additional LNG Import Terminals Are Moot — Even Offshore
Governor Christie vetoes LNG offshore natural gas project to safeguard New Jersey’s environment, economy and security [Press release] (Feb 8) — Governor of New Jersey, NJ
Trenton, NJ – Further demonstrating his commitment to protect New Jersey's coastal waters and natural resources, Governor Chris Christie today invoked his authority under the federal Deepwater Port Act, vetoing a proposed deepwater liquefied natural gas operation 16 miles off the coast of Asbury Park. The action prevents Liberty Natural Gas from constructing and operating its proposed offshore port to receive foreign vessels transporting liquid natural gas (LNG) to the U.S. for regassification.
"The Liberty Natural Gas project could stifle investment in renewable energy technologies by increasing reliance on foreign energy sources, which would undermine all of the progress made by New Jersey to promote sustainable energy.''
New Jersey governor kills offshore gas-import project — Tulsa World, Tulsa, OK
"I take very seriously our obligation to protect the environmental health of our coastal waters," Christie said in a statement. "We must ensure that our 126 miles of shoreline remain an economic driver for tourism and that our fishing and shellfish industries remain healthy and productive now and for future generations."
The first-term Republican governor said he was using authority granted to him by the federal Deepwater Port Act.
Governor Christie rescues ocean from harmful industrialization vetoes Liberty Natural Gas project off Asbury Park! [News release] (Feb 8) — Clean Ocean Action, Highlands, NJ
As promised, Governor Christie vetoed the ill-fated, ill-advised, ill-conceived Liberty Natural Gas project that sought to industrialize the ocean by constructing an import facility for foreign liquefied natural gas.
Offshore Liquified Natural Gas Project Background: Three liquefied natural gas import facilities were pending off the Jersey Shore: Liberty Natural Gas … off Asbury Park; Atlantic Sea Island Group … off Sea Bright, NJ; and ExxonMobile’s BlueOcean Energy project … off Sea Girt. Following the Governors announcement, and changes to the global LNG market, the latter two companies withdrew their plans last year. Only Liberty Natural Gas proceeded, taunting the Governor’s promise of a veto.
[Red bold emphasis added.]
Environmentalists pleased by governor’s veto of LNG project (Feb 8) — NJToday.net
“The Governor’s veto today keeps New Jersey’s eye on the prize — environmentally and economically, we need to be developing clean renewable energy and becoming more energy efficient instead of relying on dirty and dangerous options like liquid natural gas on the Jersey Shore,” said Dave Pringle, director of the New Jersey Environmental Federation.
Victory for the Jersey shore: Governor vetoes offshore LNG port — Environmental News Network
For the past few years, Liberty Natural Gas has been trying to construct an offshore port for the delivery of liquefied natural gas (LNG). The port would be located about 15 miles off the coast of Asbury Park, NJ, and a gas pipeline would be constructed along the sea floor that would deliver an estimated 1.2 cubic feet per day to the region's hungry energy market. However, the project has serious environmental, social, and economic implications which could not be overlooked. The decision has finally been made by Governor Chris Christie: there will be no offshore LNG port off the coast of New Jersey.
According to Governor Christie, who has shown his appreciation for preserving the environment, the project would present unacceptable and substantial risks that would affect NJ residents, the environment, economy, and security. It would affect almost 6,000 acres of seafloor over prime fishing grounds. Discharge from wastewater, regasification effluent, and storm water runoff and add to the environmental degradation. The state has been working hard to improve its water quality, and the proposed project would threaten that work.
The Governor also stated that the LNG project would be a step backwards in the state's efforts to achieve its renewable energy goals. [Red bold emphasis added.]
NJ governor vetoes liquefied natural gas operation (Feb 8) — CNBC
Liberty's plan was designed to transport up to 2.4 billion cubic feet a day of natural gas from the deep water port to shore. The company says that's enough to fuel 5 million homes.
The company said it hopes it can prevail upon state and federal officials to let it change its plan to address any concerns they may have.
"This project is dead in the water," [Clean Ocean Action executive director Cindy Zipf ] said. "They can try to fight it, but I don't think there has been a case when a company has overcome a governor's veto."
Freeport LNG submits further information on LNG export proposal to FERC (Feb 8) — LNG Law Blog
Freeport LNG has submitted Resource Reports 1 and 10 to FERC. The reports provide additional information, including a detailed project description in Resource Report 1, regarding the planned Freeport LNG export project.
Promigas says it's committed to LNG project — The Gleaner, Kingston, Jamaica, West Indies
Promigas, the Colombian gas pipeline company, says that it will remain part of a consortium with which the government is negotiating to build a liquefied natural gas (LNG) facility in Jamaica - a decision that has been warmly welcomed by the Jamaican authorities.
[T]he project has been mired in controversy over whether Moore, when he was chairman of the PCJ, had inside knowledge that informed the Exmar bid and whether other potential bidders were fairly treated. These issues are being investigated by the Office of the Contractor General.
Trinidad and Tobago minister seeking change to LNG profit formula — Oil & Gas Journal
PORT OF SPAIN, Feb. 9 -- Trinidad and Tobago’s Energy Minister Carolyn Seepersad Bachan reported she will seek Cabinet approval to renegotiate the formula on how the profits are distributed from her country’s export of LNG.
The twin-island nation’s energy minister added that the netback formula assume the export of LNG to the North American market while the current reality is that the US market is oversupplied with LNG and cargo diversions to Europe and Asia is the norm.
[Red bold emphasis added.]
Alaska gas pipeline under threat from new legislation (Feb) — Oil and Gas Insight [Paid subscription required]
Alaskan state lawmakers have introduced legislation to abandon the Alaska Gasline Inducement Act (AGIA), which promises US$500mn of state funding to build the proposed Alaska Gas Pipeline. The pipeline is designed to commercialise gas from the Alaskan North Slope through a pipeline link to a proposed liquefied natural gas (LNG) terminal at Valdez. The withdrawal of state support would severely damage the prospects of the project going ahead, especially considering the current depressed gas market prices in the US.
NEB Hearing for Canada's first liquefied natural gas export licence — EnergeticCity.ca
The National Energy Board has announced that it will hold a public hearing in Kitimat next month, to consider an application submitted by KM-LNG Operating General Partnership, for a 20-year licence to export natural gas in the form of liquefied natural gas.
Kitimat LNG Partners to purchase Pacific Trail Pipelines interest (Feb 7) — DailyFinance, AOL
"Acquiring the PTP is an important step in building a comprehensive system that will enable Apache and EOG to tap Asian markets for our abundant natural gas resources in the Horn River Basin and elsewhere in Western Canada," said Janine McArdle, president of Kitimat LNG.
TransCanada's Horn River gas pipeline receives NEB approval (Feb) — PennEnergy, Tulsa, OK
TransCanada expects British Columbia shale gas supplies to climb to more than 5 bcfd by the end of the decade and the Horn River pipeline is the company's second major pipeline connecting its Alberta System to these supplies. The first extension of the Alberta System into British Columbia was the Groundbirch pipeline, which came into service in December 2010. Horn River and Groundbirch shippers have committed to Alberta System transportation contracts reaching 1.9 bcfd by 2014.
TransCanada plans to bring its Keystone Phase 2 crude pipeline and Guadalajara natural gas pipeline in Mexico into service during 2011.
The Guadalajara Pipeline will move gas from an LNG terminal under construction near Manzanillo on Mexico's Pacific Coast to both Guadalajara and the CFE CT Manzanillo power plant.
Sempra Energy's Mexican (LNG) unit, 'Energia Costa Azul' facing permanent closure, states landowner Ramon Eugenio Sanchez Ritchie [News release] (Feb 8) — PR Newswire
City of Ensenada's City Council action proposes resolution to permanently shut down the LNG plant for land use, public safety and environmental law violations by Mexican authorities
Plant closure will halt natural gas delivery to Sempra Energy customers
SAN DIEGO, Feb. 8, 2011 /PRNewswire/ -- After an almost five-year legal battle surrounding ownership of a parcel of land that acted as a "set back cushion" required to run its Mexican LNG Unit "Energia Costa Azul," plant in Baja California, MX, in compliance with Mexican local, State and Federal laws, Sempra Energy; a San Diego based energy company, has suffered yet again, another devastating blow, according to Ramon Eugenio Sanchez Ritchie, after the Ensenada City Council, this past Friday, February 4th, placed on the Agenda, a Proposed Resolution attaching a scathing document concluding its investigation surrounding claims regarding setback requirements, land use violations, public safety violations, environmental issues and for having illegally obtained licenses and permits to develop, construct and operate its LNG plant in the City of Ensenada.
Feds have talked to Sempra on Baja claims (Feb 6) — The San Diego Union-Tribune, San Diego, CA
Parties on both sides of a wrongful termination case against San Diego-based Sempra Energy say they have spoken with the federal government about the matter, although they portray the contact differently.
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US Nat Gas Supply Stifles LNG Imports
Natural gas drops most in three months on mild weather outlook — Businessweek, Bloomberg
Imports of liquefied natural gas to North America will be unchanged at 1.2 billion cubic feet a day this year “as the region continues to struggle with domestic oversupply,” the Barclays analysts said. [Red bold emphasis added.]
Pacific Northern to sell stake in Pacific Trail Pipelines — The Vancouver Sun, Vancouver, BC
Pacific Northern Gas is to receive payment for its stake in the project in two parts, the first, for $30 million, when the deal closes; the second, for $20 million, when Apache and EOG decide to build the Kitimat LNG facility. The deal is expected to close by the end of February.
When Pacific Northern Gas became involved in the project in 2005, the Kitimat terminal was proposed as an import facility with the pipeline connecting it to the North American market. However, new gas extraction techniques have created a gas surplus in North America and the pipeline is now to link new markets in Asia with northeastern B.C. [Red bold emphasis added.]
Hearing on LNG proposal to be held in Long Branch (Feb 3) — Atlanticville, Freehold, NJ
Hearings are scheduled this week by the U.S. Coast Guard and Maritime Administration to allow for public comment on a proposal by Liberty Natural Gas to build an industrial facility off Asbury Park to import foreign liquefied natural gas (LNG).
“The United States has a robust supply of domestic natural gas and is energy independent; we do not need and we should not be seeking foreign sources from countries like Libya and Tunisia.” [Red bold emphasis added.]
LNG terminal to get first ship this summer — Mississippi Business Journal, MS
Terminal spokesman Bill Baerg told The Sun Herald that the first transport will commission the plant with LNG — natural gas that has been chilled and condensed to a liquid for movement and storage.
Full operations are expected to begin around October, he said.
T & T plans review of LNG sales to US — UpstreamOnline.com
Trinidad & Tobago plans to review long-term contracts for the sale of liquefied natural gas to terminals in the United States as it seeks to fetch higher prices from other buyers, Energy Minister Carolyn Seepersad-Bachan said.
Speaking at a business conference, she said the traditional LNG market structure was based on comparatively rigid long-term contracts that linked suppliers from the twin-island Caribbean nation with specific US-based terminals, Reuters reported.
Much of the LNG committed under those contracts is being resold to Asia and Europe where LNG prices are higher.
Kitimat LNG project gets boost — The Globe and Mail, Toronto, ON
Calgary-based Apache and Houston-based EOG are partners in the Kitimat LNG project, which is undergoing engineering and design work; a final investment decision is expected later this year, with construction starting early in 2012. The project is designed to ship natural gas from Canada, where prices have been depressed, to Asia, where gas prices are tied to oil prices and have been far higher.
The initial terminal would export five million tonnes per year of gas. However, the export option has proven so attractive that Apache plans to funnel only its own gas through the terminal – leaving competitors dependent on North American markets – and has already begun discussing expansion plans. [Red bold emphasis added.]
ConocoPhillips needs to pump up production to justify stock price — Forbes
Growing Demand for Liquid Natural Gas
U.S. imports of LNG in 2007 were approximately three times the amount in 2000. The U.S. Energy Department estimated a 42% hike in LNG imports in 2010 to 1.76 billion cubic feet per day, and expects the supply to increase an additional 2.8% in 2011 to 1.81 billion cubic feet per day. [1] The demand for natural gas has also shot up in emerging economies like China and South Korea, partly due to poor infrastructure and lack of pipeline availability.
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Domestic Nat Gas Has Increased Energy Security,
Mooted Additional LNG Import Infrastructure
DOE's early investment in shale gas technology producing results today (Feb 2) — U.S. Department of Energy
Washington, D.C. — A $92 million research investment in the 1970s by the U.S. Department of Energy (DOE) is today being credited with technological contributions that have stimulated development of domestic natural gas from shales. The result: more U.S. jobs, increased energy security, and higher revenues for states and the Federal Government.
Spurred by the technological advancements resulting from this investment, U.S. shale gas production continues to grow, amounting to more than 8 billion cubic feet per day, or about 14 percent of the total volume of dry natural gas produced in the United States.
[Red bold emphasis added.]
Shale set to sail (Feb 2) — Petroleum Economist [Paid subscription required]
Tentative LNG sales agreements in place for Cheniere; Dominion a third LNG importer to plan exports from US
PLANS TO turn abundant US shale-gas resources into liquefied natural gas (LNG) exports have gathered steam, with energy firms eyeing a new liquefaction plants and signing sales agreements. But the route from shale to sail may still be stormy.
This would be a remarkable U-turn for the US gas market – which only a few years ago was predicted to become the world's largest LNG importer until the success of shale-gas extraction – and exports could allow US LNG investors to claw back some of the billions spent on building unused import terminals.
Following Freeport LNG's plan to build an export plant in Texas in November last year, Dominion Resources said at the end of January it may also build an export facility at its Cove Point import terminal in ...
[Red bold emphasis added.]
New Brunswick eyes shale-gas development (Feb 2) — Petroleum Economist [Paid subscription required]
THE Canadian province of New Brunswick is betwixt and between in the North American shale-gas equation. By most early estimates, it has abundant prospects, including a thick vein estimated to hold 60 trillion cubic feet (cf) of gas-in-place in one sweet spot.
US re-exports 12 LNG cargoes in 2010 (Feb 4) — Gas Matters [Paid subscription required]
The US re-exported 12 cargoes of LNG in 2010 compared to only one the year before, according to US Department of Energy data.
[Red bold emphasis added.]
U.S. firms to export natural gas (Feb 4) — BloggingStocks
Here is a game changer. The natural gas market is about to become an export market. The U.S. has abundant natural gas and now two companies plan to take advantage of the opportunity, as reported in the Wall Street Journal (subscription required).
[Red bold emphasis added.]
Cove Point plan offers LNG export route for US northeastern shale (Feb 4) — ICIS Heren
The energy transportation company is exploring the option of tapping the vast unconventional gas reserves in the US northeast, including the Marcellus Shale Formation, for exports from the project.
Listening to the shale revolution [Opinion] — The Wall Street Journal [Paid subscription required]
Any energy forecast a few years ago that failed to anticipate the shale boom and associated technological breakthroughs now mostly looks like a wasted effort.
[Red bold emphasis added.]
Gov. LePage Likes Poorly-Ranked Mississippi Environmental Rules
Deregulating & Enabling LNG Permitting
in Passamaquoddy Bayis Economic & Environmental Folly
Regulatory reform or environmental rollback? (Feb 3) — Village Soup
As LePage spokesperson Adrienne Bennett told WERU radio, Maine should use Mississippi's hazardous waste rules because they are only seven pages in length.
Holding a public hearing to receive only the testimonies that reassure your own personal world view is not the way to handle opposing views in a democracy. Gov. LePage's environmental roll-back is phase one of what will eventually become an omnibus regulatory reform bill that will be considered and vetted by the Committee on Regulatory Fairness and Reform. Members of the public have a right and a duty to present their concerns at the committee's hearings throughout the state.
[Bold, red & brown emphasis added.]
Environmental regulations and business interests may place Maine at a crossroads (Feb 3) — MPBN
"The threat to our environment is very clear as illustrated through the governor's proposal to weaken our current environmental protections and protections for our public health," Drouin said. "So it has brought new allies together."
"I don't believe it was regulation that caused the economic troubles we're having," [Fayette logger Harry Dwyer] said. "If anything it was the lack of adequate regulation that got us to where we are...lax enforcement and non-existent regulations. So I think that de-regulating is a false answer to our problems. I would also offer that the regulations that we have now are improvements that have taken years and to get to and to undo them is a real step backwards."
[Red bold emphasis added.]
Environmentalists question source of LePage reforms (Feb 4) — MPBN
Ever since Governor Paul LePage released a six-page list of proposed environmental rules and regulations he'd like to relax or repealed...environmental groups and others have wanted to know where the list originated. The governor says most of them came from his red tape audit meetings held with business owners and leaders around the state. But some environmentalists are skeptical since the document itself is linked to one of the most powerful lobbying firms in the state; one that represents a wealth of corporations and interest groups that have a financial stake in weaker environmental laws.
When the governor's list of proposed rollbacks came out late last month the document contained a small eight-digit number on the lower left-hand corner...the same font and style that the law firm Preti-Flaherty routinely uses when it sends documents and communication to state agencies and when it submits written testimony to the Legislature on behalf of clients.
Rep Duchesne said. "What really disturbs me, I guess, is the line seems to get blurred with the Administration as to who's doing the governor's work. And when you're seeing proposals coming out in the governor's name that have the lobbyist's...potentially the lobbyist's tracking code on it, you have to wonder what the source really was."
The identifying number raised some eyebrows at the Statehouse because Ann Robinson, a partner in Preti-Flaherty's Augusta office, is a co-chair of the governor's transition team. She's also a lobbyist for clients such as the New York-based Toy Industry Association which opposed the Kid Safe Products Act that sets up a process for identifying toxic chemicals of concern in Maine; and the Washington, D.C.-based Pharmaceutical Research and Manufacturers of America known as PHRMA which Mike Beliveau of the Environmental Health Strategies Center says has also actively opposed Maine environmental legislation.
PHRMA [Washington, D.C.-based Pharmaceutical Research and Manufacturers of America] contributed more than 100 thousand dollars to the Paul LePage campaign for governor. And records from the Maine Ethics Commission show that over the past five years PHRMA has compensated Robinson nearly 40-thousand dollars for her work on its behalf. But the law firm has more than a dozen lobbyists representing a wide range of clients. Among them: paper companies, building contractors and energy firms including Calais LNG which paid Preti's chief lobbyist, Severin Beliveau, more than 130-thousand dollars over the past two years before withdrawing its application for a liquefied natural gas project. Beliveau declined to be interviewed for this story and in a brief telephone call Anne Robinson said the governor had tasked her with policy and regulatory review and it should come as no surprise that she helped compile the list of proposed reform. [Red, yellow & bold emphasis added.]
This Isn't Exactly New Information, Gov. LePage
Environmentalism and economic prosperity: An update [Scientific research report] (1993 Feb 16) — Stephen M. Meyer, MIT, Boston, MA
CONCLUSION:
In essence stronger environmental standards as implemented over the past two decades are "economy neutral." They neither hinder nor help the economy in aggregate. On a state to state basis measurable economic growth has not been stifled,
state competitiveness has not been undermined, and jobs sacrificed at the alter of environmentalism.
Perhaps more to the point those who live and work in states that have vigorously pursued environmental quality and are now contemplating rolling back environmental standards as a quick fix to jump-starting their economies out of recession should reconsider. Based on the evidence there is no reason to expect that loosening environmental standards will have any effect on the pace of state economic growth. [Red & bold emphasis added.]
Environment, economy art not foes (1992 Oct 21) — MIT News, Boston, MA
[A 1990s] MIT study has found that strict environmental regulations and controls do not hurt economic growth in contrast to the beliefs and consequent policies of both the Reagan and Bush administrations.
"This is the first study to look at each of the states and try to understand what's going on across the nation with respect to environmental policies and economic growth," Professor Meyer said.
He found that during the Reagan New Federalism era, 1982-89, "states with stronger environmental policies did not experience inferior rates of economic growth and development compared to states with weaker environmental regulations." In fact, he wrote, during that period "the environmentally strong states [the first 17 in the ranking] outperformed the environmentally weak states [the last 18] by substantial amounts." (The 15 states in the middle of the ranking were defined as environmentally moderate. Among the New England states MA, ME, VT, and CT were ranked environmentally strong; NH weak, and RI moderate.)
He concluded: "It is clear from the data and analyses presented in this report that the states can pursue environmental quality without fear of impeding economic prosperity. For those who continue to argue that environmentalism hurts economic growth and prosperity the burden of proof now clearly falls on their shoulders." [Red bold emphasis added.]
Environmentalism and economic prosperity: Testing the environmental impact hypothesis [Scientific research paper] (1992 Oct 5) — Stephen M. Meyer, MIT, Boston, MA
The analyses presented in this study clearly refute the environmental impact hypothesis in either its forceful or subtle variant. States with stronger environmental policies and programs did not exhibit hobbled economic growth or development compared to those with weaker environmental records. Moreover, rather than detect the absence of a systematic relationship between pursuit of environmental quality and economic growth and development - which would have been sufficient to dismiss the environmental impact hypothesis -- the data revealed a clear and consistent positive relationship between the states' environmental effort and their economic performance. States with higher environmental rankings outperformed states with lower environmental rankings on four of the five economic growth indicators. This surprising yet solid finding allows us to dismiss the environmental impact hypothesis with even greater confidence.
The benefits of environmental protection are obvious and demonstrable. It is clear from the data and analyses presented in this report that the states can pursue environmental quality without fear of impeding economic prosperity. For those who continue to argue that environmentalism hurts economic growth and prosperity the burden of proof now clearly falls on their shoulders. [Red bold emphasis added.]
Building a natural gas industry cluster in new brunswick [Opinion] — Telegraph-Journal, Saint John, NB
You may not have noticed but New Brunswick is awash in natural gas.
The Maritimes and Northeast Pipeline brings offshore Nova Scotia gas into the province. The Irving Oil/Repsol liquefied natural gas (LNG) terminal in Saint John brings large quantities of natural gas from abroad and ships it mostly into the United States. We have local wells near Sussex from which natural gas is extracted and shipped to markets south of the border.
In addition, New Brunswick has large deposits of what is known as shale gas and several firms are currently drilling test wells to determine its extractability.
Regulatory Reform Committee comes to Machias (Feb 1) — WQDY-FM, Calais, ME
LNG opponent Robert Godfrey said, "We have already experienced the expensive impacts from rushed state environmental permitting as happened with the Calais LNG project. At Calais LNG's request, and legislators requests, the permitting was rushed to the point that even the applicant could not keep up -- so they requested numerous delays." [Red bold emphasis added.]
Down East residents to LePage: Keep laws, but fix the process (Jan 31) — Bangor Daily News, Bangor, ME
MACHIAS, Maine — Down East residents sent a clear message to Gov. Paul LePage on Monday: Keep environmental protections in place, and do not water them down by adopting federal standards, but ease the cumbersome permitting process that often hampers development and growth.
[Red bold emphasis added.]
LNG meeting Tuesday night (Feb 4) — The Wave, Rockaway, NJ
At the request of Congressman Anthony Weiner, the U.S. Coast Guard has agreed to hold a public hearing for New York City residents concerning a proposal to build a liquefied natural gas (LNG) terminal 23 miles off the Rockaway shoreline. The hearing will be held at 6:30 p.m. on Tuesday, February 8 at Beach Channel High School, 100-00 Beach Channel Drive.
Many still concerned about plan to truck LNG through Savannah — WSAV-TV, Savannah, GA
The Federal Energy Regulatory Commission held a meeting at the Savannah Civic Center Wednesday night to get public comments on the plan, which the company says could help eliminate the need for diesel fuel.
City leaders and the community have said they are worried about safety and traffic.
Savannah residents demand better scrutiny of LNG trucking (Feb 3) — Savannah Morning News, Savannah, GA
Residents opposed to plans that would send up to 58 tanker truckloads a day of liquefied natural gas, or LNG, through Savannah asked federal regulators Wednesday night for more information and a more thorough assessment of the project's risks.
While many residents were concerned with a lack of information, some pointed out what they felt were errors in the information that had been provided. Beth Kinstler called into question a 172-page report about "significant structures" along the trucking route. It sounded lukewarm to Kinstler about some of Savannah's most beloved neighborhoods and buildings; the Owens- Thomas House, for instance, was deemed "potentially significant."
FERC officials made it clear that while they can consider LNG trucking in their environmental assessment, the commission doesn't actually regulate trucking. That's the job of the U.S. and Georgia Departments of Transportation. FERC invited officials from those agencies to the meeting but none attended.
Many unknowns [Editorial] (Feb 2) — Savannah Morning News, Savannah, GA
What's needed is a credible, independent risk assessment of all hazardous materials that move through the city on a regular basis. Don't just single out LNG.
What's also needed is more transparency, public education and communication with citizens.
None of these things have taken place to any great degree. That's why many people are concerned. But until a much greater effort is made at gathering, explaining and sharing credible information, reasonable people can't make an informed decision about Southeast LNG's proposal.
[T]he company's tone, as perceived by many in the public, has done little to calm fears. Southeast LNG should take a different tack of openness, starting with Savannah Fire Chief Charles Middleton. Despite months of public discussion, Chief Middleton said he still lacks details on accident modeling and emergency response training requirements. That's troubling. If an accident occurs, he's got to deal with it.
First ship will arrive at Gulf LNG in early summer (Feb 4) — SunHerald, Gulfport, MS
PASCAGOULA -- The first tanker carrying millions of gallons of liquified natural gas will arrive at the new terminal in May or June.
The terminal is in its final phase of construction.
Natural gas shortages reported across several US states (Feb 4) — Digital Journal
However, the shortage issue may reflect the logistics of delivery. The Wall Street Journal reported that natural gas futures have dipped, as supply appears to have surpassed demand. [Red bold emphasis added.]
Jamaica: Government will ensure strong regulatory framework to protect consumers-aim of LNG project-PM Golding (Feb 3) — LNG World News
“The use of natural gas has been the subject of intense controversy even among the technical personnel and it is for that reason that the Government said we want to seek another opinion” the PM continued.
Will Promigas remain in LNG project? (Feb 2) — The Gleaner, Kingston, Jamaica, West Indies
Houston-based AEI, the parent firm of the electricity company, Jamaica Private Power (JPP), says it is selling $4.8 billion worth of assets in South America, including a 52.13 per cent stake in Promigas, the Colombian pipeline company that is part of a consortium that the Jamaican Government controversially named as its preferred bidder for an LNG project here.
New drilling under way, but too slow for demand (Feb 4) — Alaska Journal of Commerce, Anchorage, AK
New exploration drilling for natural gas by independents is under way in Southcentral Alaska this winter, spurred by generous state of Alaska incentives that in some cases pay for most of the drilling.
However, Colleen Starring, president of Enstar Natural Gas Co., says the pace of new exploration still isn't enough to forestall looming shortages of gas in the region or the likely need to import liquefied natural gas in a few years.
Starring told the Resource Development Council recently that she will press for a decision within six months by her company and regional electric utilities to move forward with an LNG import plan.
ConocoPhillips and Marathon Oil now own a LNG plant near Kenai that exports Cook Inlet gas to Japan. The federal LNG export license expires in two years, however, and the companies have indicated an interest in having the plant play some future role in meeting local gas demand, including possible LNG imports. [Red emphasis added.]
Time for Kitimat to go coastal (Feb 2) — Kitimat Sentinel, Kitimat, BC
Further discussion focused on how local businesses can take advantage of the upcoming influx of money related to construction of the Kitimat Modernization Project and the Kitimat LNG terminal.
“People who come in to work on major construction projects don’t tend to spend money the way a local worker does at all, they’re not buying a mortgage, you spend the least that you can,” Cullen said, summarizing the concerns about a possible boom and bust related to the upcoming construction phases.
CPUC orders PG&E to Reduce Pressure in LNG Lines [Online forum] (Feb 3) — Pacific Sun, San Rafael, CA
The CPUC on Wednesday ordered PG&E to reduce pressure in all of its natural gas pipelines by 20 percent. The pressure that PG&E was operating at was illegal and dangerous.
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Natural Gas Consumption Has Dropped
Monthly energy review (2011 Jan) — U.S. Energy Information Administration
Natural gas consumption by sector
Compared with [nine-month total consuption ending] October 2009 … [over the same period in 2010] natural gas consumption decreased 1%,….
Update 3-Dominion eyes Cove Point LNG export by 2015 — Reuters
NEW YORK, Feb 1 (Reuters) - Dominion Resources Inc is
considering plans to build a liquefied natural gas export plant
on the site of its existing import terminal at Cove Point,
Maryland, by 2015, a company spokesman said on Tuesday.
The export plant would source gas from the prolific
Marcellus shale gas field, which stretches across two thirds of
Pennsylvania and parts of surrounding states.
US OVERSUPPLY
Dominion's move is part of a wider change in the U.S. gas
market where increased supply outstrips demand, thanks to huge
rises in shale gas production.
Shipments to Cove Point have dropped significantly over the
last few years, from 220 billion cubic feet (bcf) in 2005 to
147 bcf in 2007 and 43 bcf in 2010, according to figures from
Waterborne LNG analysts in Houston.
These other projects [Cheniere Energy's Sabine Pass terminal in Louisiana and Freeport LNG in Texas] will likely include facilities to
export and import LNG, but the Dominion spokesman said that it
will likely focus only on export.
Sabine Pass LNG files application with FERC to install liquefaction equipment — LNG Law Blog
Sabine Pass LNG has submitted to FERC an application and supplementary materials for its planned LNG liquefaction and export project.
Cost prohibits tapping into La. 's deep gas supply (Jan 24) — PennEnergy, Tulsa, OK
Right now, the Gulf lacks commercial liquid natural gas facilities to make possible large exports. McMoRan has considered turning unused offshore structures into an energy services facility, including an LNG, regasification and storage facility, but increased domestic supplies of natural gas, excess LNG regasification capacity and the economy have prevented the move. [Red & bold emphasis added.]
LePage Environmental Cutbacks
Could Facilitate LNG in Passamaquoddy Bay
Governor LePage’s reform proposals stun Maine (Jan 27) — CLF Scoop, Conservation Law Foundation, Boston, MA
Any doubts that Maine’s new Governor Paul LePage is intent on rolling back decades of environmental protections were put to rest this week with the release of Phase 1 of the governor’s Regulatory Reform Proposals.
The proposals are clearly the wish list of a few select special interest groups that have dominated this new administration.
People who care about Maine’s environment, who understand that a strong and healthy environment is necessary for a strong and healthy economy, need to stand up and make their voices heard by the governor. Phone calls, letters, emails to the governor’s office and to legislative leaders are critical, as is a strong turnout at the remainder of the Regulatory Reform hearings. Before this train leaves the station, we need to do all we can to try and keep it from going off the rails. [Bold, red & brown emphasis added.]
Out-of-state companies behind LePage push for regulatory reform (Jan 31) — MPBN, ME
LePage's spokesman, Dan DeMeritt, says opposition to the Kid Safe Products Law came from the Maine Grocers Association at the first red tape audit workshop in November. "Their concern is about the rule, and it's not just a concern about one chemical, it's a concern about a process and the process that businesses will have to go through moving forward."
Shelly Doak of the Maine Grocers' Association says her members are concerned about the process of identifying toxic chemicals under the Kid Safe Products Law, but have not actually taken a stance. "The grocers--Maine Grocers' Association--has been monitoring the rule-making proceedings that have been taking place over the last year or so and have not taken an active role, or have we taken a position on the rule," she says.
In fact, during the rulemaking process at the BEP over the past year-and-a-half, most of the opposition to the rule phasing out BPA has come from the Washington D.C.-based American Chemistry Council, which represents chemical and plastics manufacturers; and from the Toy Industry Association in New York which objects to the BPA rule for several reasons, including cost, and what it characterizes as a "testing burden."
But at least one small business organization is now beginning its own push-back of the governor's proposals. Nate Libby represents Maine's Small Business Coalition, which he says represents 2,500 members with fewer than five employees.
[Brown, red & bold emphasis added.]
[Earthquake] Magnitude 2.0 - Maine (Jan 31 03:06:14 AM at epicenter) — US Geological Service
Date-Time: Monday, January 31, 2011 at 03:06:14 AM at epicenter
Location: 45.052°N, 67.105°W [Mill Cove, Robbinston]
Depth 7.3 km (4.5 miles) [Red bold emphasis added.]
Image source: Google Earth with USGS real-time earthquake gadget installed.
Web news: Harpswell petitioners seek withdrawal from SAD 75 — The Times Record, Brunswick, ME
But McIntyre said today that the first withdrawal effort came too closely on the heels of a divisive town battle over a proposed liquid natural gas terminal at Mitchell Field, which in 2004 split residents into two factions. He said that when the 2006 withdrawal process was initiated, some residents associated proponents of the LNG terminal with proponents of the withdrawal and based their opposition on that.
“My understanding is the connection of the bitterness of the LNG struggle and the school withdrawal issue is the core element in the failure of the latter,” he said. “There was so much unhappiness and bitterness about LNG, that it meant people couldn’t think about (withdrawal) with an open mind, with such a short time lapse between the two issues.”
Oil dispersants lingering (Jan 31) — The Boston Globe, Boston, MA
Opponents of the Fall River liquefied natural gas terminal proposed by Hess are trying to persuade regional governments to divest their municipal and state retirement funds of the company’s stock.
“We are urging local governments to understand that by holding Hess stock they are reassuring the Hess’s board of directors that everything is fine. We are trying to send a message that we, in Rhode Island and Massachusetts, are washing our hands of the company as long as they continue to push this project forward,’’ said Chris Gray, chairman of the LNG Working Group, in a statement.
LNG trucking in Savannah gets another airing — Savannah Morning News, Savannah, GA
The public costs and risks of transporting up to 58 truckloads a day of liquefied natural gas across DeRenne Avenue will be the subject of a public meeting hosted by federal regulators Wednesday.
And it's not only neighbors who don't have the information they want. Neither does Savannah Fire Chief Charles Middleton, who said he's still awaiting further communication with LNG officials.
Chief Middleton said he is still waiting for information - such as accident modeling and emergency response training requirements - that would allow his department to evaluate the proposal's safety and cost implications. The company's public filings haven't satisfied the city's requests.
Port Dolphin Energy receives key state environmental permits to build deepwater LNG port serving Flo — PR-USA.net
Port Dolphin Energy, LLC, today announced it has received key environmental permits from the State of Florida to allow construction of onsite components for its offshore Liquified Natural Gas (LNG) terminal. When completed, specially designed vessel(s) operated by Port Dolphin's parent company, Hoegh LNG, will return LNG to a gaseous state onboard and move natural gas through the terminal's pipeline. Port Dolphin's infrastructure will enable gas suppliers to provide much needed natural gas to help serve the state's growing energy needs.
Port Dolphin received its federal Deepwater Port License in October 2009 and a certificate of public necessity and convenience from the Federal Energy Regulatory Commission in December 2009.
The unloading facility of this new deepwater port will be located approximately 28 miles southwest of Tampa Bay.
More than $5 billion in projects planned or proposed in Jackson County — The Mississippi Press
…Gulf LNG is investing $1.1 billion into its liquefied natural gas terminal in Pascagoula that will import via foreign producers, convert it back to gas by heating it and pump it through pipelines throughout the region. The first shipments are expected to begin arriving later this year.
More gas coming for Southcentral — Penninsula Clarion, Kenai, AK
Utilities and oil and gas companies are securing new natural gas supplies for Southcentral Alaska, but they aren't finding new gas fast enough to offset the likely need for imported liquefied natural gas in a few years, Colleen Starring, president of Enstar Natural Gas Co., told a business group in Anchorage.
North Slope-to-Fairbanks natural gas line promoted (Jan 31) — R&D Magazine
Enter the "stub to hub" line, something Anchorage businessman and financial adviser David Gottstein has been quietly pushing for the last year and a half. His idea: The state should finance, through bonds or direct investment, a big-diameter gas pipeline from the North Slope to a hub near Fairbanks, perhaps at Livengood.
From there it's just a short jaunt to gas-starved Fairbanks and close enough to Anchorage and Kenai that a utility could afford to finance a pipeline to take gas to Southcentral for local consumers, Gottstein said.
A Livengood hub, with some 400 miles of pipe from the North Slope, offers flexibility for the future, Gottstein said. If the price of gas rises and it becomes economical to sell large quantities commercially, it wouldn't be a colossal feat to extend the pipeline another 400 miles to Valdez for a future liquefied natural gas plant -- a dream of some Alaskans, like defeated Republican gubernatorial candidate Bill Walker -- or another 1,300 miles into Alberta and the existing pipeline network leading to the Lower 48.
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