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Passamaquoddy Bay & LNG

Gulf of Mexico

Freeport signs LNG-export agreement with Osaka Gas, Chubu — Bloomberg Businessweek

The deal with Freeport is designed to reduce LNG prices in Japan, which are generally linked to the cost of oil, Kei Takeuchi, associate director for LNG trading at Osaka Gas, said at the press conference. [Red & bold emphasis added.]

Webmaster's comment: Selling LNG cheaply via this agreement means the US trade deficit will benefit less. Meanwhile, it may result in more expensive natural gas prices in the US.

Osaka Gas, Chubu Electric eye Henry Hub pricing for Freeport LNG — Platts

"We are hoping to add a new page in our history of procurements with the introduction of the Henry Hub gas price linkage," Hiroki Sato, Chubu Electric's general manager of fuels department and head of LNG business, told a press briefing in Tokyo. [Red & bold emphasis added.]

Webmaster's comment: Basing LNG-to-Japan prices on the US Henry Hub has the potential to de-link the current LNG pricing based on oil-equivalency.

Freeport LNG project secures Japanese contracts — Houston Business Journal, Houston, TX

Under terms of the agreement — with Osaka Gas Co. and Chubu Electric Power Co. — Freeport will liquefy about 4.4 million metric tons of natural gas in 2017 from the project’s first phase. The Japanese utilities will buy and ship the LNG on their own, according to the agreement known as tolling.

However, construction cannot begin until Freeport receives approval from the Federal Energy Regulatory Commission and the U.S. Department of Energy.

Freeport LNG inks liquefaction tolling deals with Osaka Gas and Chubu (USA) — LNG World News

Freeport LNG Expansion said that it had executed 20-year liquefaction tolling agreements with Osaka Gas and Chubu Electric Power covering 100% of the liquefaction capacity of the first train of Freeport LNG’s proposed natural gas liquefaction and LNG loading facility near Freeport, Texas.

Cheniere Partners signs off on Sabine Pass investment — Reuters

Cheniere Energy Partners LP approved investment plans for the start of a $5 billion U.S. liquefied natural gas export project, which it says could come online in 2015.

USA: Cheniere makes FID for two liquefaction trains — LNG World News

Cheniere Energy Partners, owner of the Sabine Pass LNG terminal, announced that its Board of Directors has made a positive final investment decision to construct the first two liquefaction trains of the Sabine Pass liquefaction project.

Caribbean

Editorial - Mair Getting It Right On Energy — The Gleaner, Kingston, Jamaica, West Indies

[T]he Government has just announced that Samsung, the Korean company, has emerged as the preferred bidder for an LNG storage and regasfication facility. It, however, remains unclear, who, and by what arrangement, will supply LNG for that facility.

JPS [Jamaica Public Service Company] has projected that the use of natural gas will lower electricity by around 30 per cent, which some analysts say may not be enough to provide a competitive fillip to Jamaican firms.

However, with a new plant, if it is built, and other conversions, no more than 70 per cent of Jamaica's existing power requirement will be met by natural gas.

Alaska

BP in talks on potential US gas exports — (Dow Jones Newswire) Capital.gr, Hellenic Republic (Greece)

LONDON--BP PLC (BP) is looking at ways to turn its U.S. natural gas into more valuable oil-linked products, including potentially exporting the fuel as liquefied natural gas, Chief Executive Bob Dudley said Tuesday.

Earlier this year, BP, Exxon Mobil Corp. (XOM) and ConocoPhillips (COP) reached an accord with the Alaskan state government to start producing natural gas at their Point Thomson development, a move that could pave the way for exports from the far north-west U.S. state to Asia.

Webmaster's comment: This same article is posted under United States, below.

TransCanada tries again to attract gas line interest (Jul 30) — Anchorage Daily News, Anchorage, AK

Alaskans have long dreamed of a major line as a way to shore-up revenues as oil production declines, create jobs and provide energy for Alaskans. But things have changed since TransCanada received the license in 2008; among other things, gas prices haven't been high relative to oil, and there's been ample gas on the market.

Exxon Mobil Corp. and ConocoPhillips agreed to focus on a large-scale liquefied natural gas project, though it was understood that there was no guarantee that a line would be built.

TransCanada tries again to find customers for Alaska gas pipeline (Jul 30) — Alaska Dispatch, Anchorage, AK

[T]his latest move by the Alaska Pipeline Project, as the company's have dubbed their effort, is sort of like placing an advertisement in a newspaper to gauge interest, said Larry Persily, the federal pipeline coordinator.

One big obstacle now, it seems, is that companies are racing to build natural gas plants wherever they can, which could reduce the need for Alaska's gas.

The "all-Alaska" route, as it's sometimes call, would extend 800 miles or so from the North Slope to a tidewater location in Southcentral Alaska, such as Valdez. There the gas would be processed into liquid for shipping by oceangoing tankers.

The second option, rather than slicing down the middle of the state, would head east into Canada, maybe at Livengood, Fairbanks or Delta. It would connect with a pipeline network near the border of Alberta and British Columbia.

United States

BP in talks on potential US gas exports — (Dow Jones Newswire) Capital.gr, Hellenic Republic (Greece)

LONDON--BP PLC (BP) is looking at ways to turn its U.S. natural gas into more valuable oil-linked products, including potentially exporting the fuel as liquefied natural gas, Chief Executive Bob Dudley said Tuesday.

Earlier this year, BP, Exxon Mobil Corp. (XOM) and ConocoPhillips (COP) reached an accord with the Alaskan state government to start producing natural gas at their Point Thomson development, a move that could pave the way for exports from the far north-west U.S. state to Asia.

Webmaster's comment: This same article is posted under Alaska, above.

New Brunswick

Repsol courts suitors for LNG asset sale (Jul 27) — ICIS Heren, London, England, UK

Spanish oil and gas company Repsol is looking to sell its LNG assets in Trinidad and Tobago, Peru and Canada as part of a wider effort to strengthen its financial position and retain investment-grade credit ratings.

In the Americas, Repsol has equity and offtake positions on all four of the trains at the 15.1million tonne per annum (mtpa) Atlantic LNG facility in Trinidad and Tobago, together with UK-based BG Group and BP. It also holds 20% of the 4.45mpta Peru LNG liquefaction plant, and is the sole offtaker.

A less attractive asset in the current market, but one that could have potential export value in the future is the Spanish company's 75% stake in the 1 billion cubic feet (bcf)/day capacity Canaport terminal on Canada's east coast. [Red, yellow & bold emphasis added.]

Webmaster's comment: This same story appears under the Caribbean heading, below.

Gulf of Mexico

Cheniere Partners signs off on Sabine Pass investment — Reuters

Cheniere Energy Partners LP approved investment plans for the start of a $5 billion U.S. liquefied natural gas export project, which it says could come online in 2015.

Caribbean

Repsol courts suitors for LNG asset sale (Jul 27) — ICIS Heren, London, England, UK

Spanish oil and gas company Repsol is looking to sell its LNG assets in Trinidad and Tobago, Peru and Canada as part of a wider effort to strengthen its financial position and retain investment-grade credit ratings.

In the Americas, Repsol has equity and offtake positions on all four of the trains at the 15.1million tonne per annum (mtpa) Atlantic LNG facility in Trinidad and Tobago, together with UK-based BG Group and BP. It also holds 20% of the 4.45mpta Peru LNG liquefaction plant, and is the sole offtaker.

A less attractive asset in the current market, but one that could have potential export value in the future is the Spanish company's 75% stake in the 1 billion cubic feet (bcf)/day capacity Canaport terminal on Canada's east coast. [Red, yellow & bold emphasis added.]

Webmaster's comment: This same story appears under the New Brunswick heading, above.

Alaska

TransCanada, Exxon study interest in new Alaska pipeline — The Globe and Mail, Toronto, ON

TransCanada has said that as low prices cause conventional Western Canadian producers to slow production, sources from areas like Alaska are necessary to supplant those volumes in the North American market.

TransCanada has so far not been involved in LNG – proposals to import the fuel into Quebec and New York in recent years didn’t pan out – but ConocoPhillips, BP and ExxonMobil have extensive experience building liquefaction terminals around the world.

TransCanada to gauge interest in Alaska LNG project — Reuters

TransCanada Corp said on Monday it will gauge interest from potential shippers in a project to move Alaska North Slope gas to a proposed liquefied natural gas terminal on the Pacific Coast, further moving away from the concept of a long-haul pipeline to U.S. markets.

British Columbia

LNG Canada files for export licence — LNG World News

LNG Canada Development Inc. filed an application with Canada’s National Energy Board for a license to export up to 24 million tons of LNG per annum (approximately 1180 Bcf/y) over a twenty-five year period from the proposed LNG terminal to be located near Kitimat.

LNG Canada is a joint venture comprised of Shell Canada , Korea Gas Corporation (KOGAS), Mitsubishi and PetroChina.

Oregon

Expansion of natural gas pipeline through Washington would feed LNG terminal in Oregon (Jul 28) — The Republic, Columbus, IN

Oregon LNG wants an increase in 750 million cubic feet a day of natural gas for the terminal where it plans to liquefy the gas and ship it to Pacific Rim markets. A proposed 86-mile Oregon pipeline would connect at Woodland.

Canada

Petronas sweetens bid for Calgary-based Progress Energy by $500 million (Jul 28) — The Vancouver Sun, Vancouver, BC

“Canada is going from their No. 1 customer being the U.S. and now their No. 1 competitor being the U.S. with the increased gas production in the U.S. When you have a customer that’s a competitor with no other market, LNG is, in my mind, almost a must.” [Red & bold emphasis added.]

United States

US should ease rules for LNG exports, says GAIL — Business Standard, New Delhi, India

"If US becomes a major exporter (of gas), the market is in countries that have not signed free-trade agreements (FTAs) with the US such as India," GAIL Chairman and Managing Director BC Tripathi told reporters here.

GAIL recently signed an agreement to import 3.5 million tonnes of LNG from Sabine Pass, a subsidiary of Cheniere Energy.

The company wants to tap all of the seven LNG export terminals planned in the US. The seven planned LNG terminals have approvals to sell gas only to nations that have signed FTAs with the US.

Tripathi said GAIL had in September 2011 acquired 20 per cent stake in Eagle Shale Assets in Texas of Carrizo Oil and Gas, which led to sewing up the LNG supply deal with Sabine Pass at a price linked to US Henry Hub gas price as against the practice of tying it up with oil. [Red emphasis added.]

Webmaster's comment: Sabine Pass LNG is selling LNG at fire-sale prices, as compared with the world price tied to oil.

New frontiers: a debate over the prospect of US energy independence — The Barrel

The notion that the US could become "energy independent," or at least "energy self-reliant" within a decade or so has taken on new life as crude gushes from North Dakota and cheap natural gas abounds.

Would US energy self reliance insulate the US from foreign entanglements?

Caribbean

Samsung selected through transparent bidding - Paulwell — Jamaica Gleaner, Kingston, Jamaica, West Indies

ENERGY MINISTER Phillip Paulwell yesterday dismissed questions raised by Gregory Mair about the selection of South Korean company, Samsung, as the preferred bidder to develop Jamaica's liquefied natural gas (LNG) infrastructure, saying the opposition spokesman was creating mischief.

Opposition seriously concerned about LNG — Go-Jamaica, Kingston, Jamaica, West Indies

Opposition Spokesman for Industry, Commerce and Energy, Mr. Gregory Mair says he is baffled about issues surrounding the selection of South Korean company Samsung as the preferred bidder to develop Jamaica's liquefied natural gas (LNG) infrastructure after learning that the recently appointed Chairman of the LNG Committee, Dr. Carlton Davis is yet to have negotiations on the proposed multi-billion dollar development and that Samsung did not have the lowest bid.

Samsung snags LNG project (Jul 25) — The Gleaner, Kingston, Jamaica, West Indies

Philip Paulwell, minister of science, technology, energy and mining, said Tuesday that South Korean company Samsung has emerged the preferred bidder to develop Jamaica's liquefied natural gas (LNG) infrastructure.

Speaking in Parliament, Paulwell told lawmakers that the LNG committee would now begin negotiations with Samsung, which beat out companies such as Exmar Marine of Belgium and Sener Ingenieria y Sisternas, SA of Spain for the job to develop the floating storage regasification unit.

Part of the hold-up of the LNG project has been uncertainty over supplies of gas. Last week, Jamaica's Ministry of Industry, Investment and Commerce issued a statement saying Trinidad had signalled it was committed to resolving the issue of supply.

British Columbia

Shell Canada and partners file LNG export license application with Canada's National Energy Board — LNG Law Blog

Today, LNG Canada Development Inc., on behalf of Shell Canada Energy and affiliates of Korea Gas Corporation, Mitsubishi Corporation, and PetroChina Investment (Hong Kong) Limited, filed an application with Canada's National Energy Board for a license to export up to 24 million tons/year (approximately 1180 Bcf/year) of LNG over a twenty-five year period from the proposed LNG Canada Project LNG terminal to be located near Kitimat, British Columbia.

Natural gas now officially clean energy for LNG (Jul 25) — EnergyCity.ca, Fort St. John, BC

Minister of Energy and Mines Rich Coleman announced today that the Clean Energy Act has officially been amended so that LNG export facilities, and the electricity generation used to power them, are no longer required to have 93 per cent clean and renewable energy. [Brown bold emphasis added.]

Webmaster's comment: The new "British Columbia Law of Chemistry": Burning natural gas is polluting, but we can "think" that pollution away.

United States

US shale gas glut cuts BG Group profits (Jul 26) — Financial Times, London, England, UK

BG Group's strategy in the US is now to concentrate on the long-term opportunity to export, rather than import, liquefied natural gas. Fabio Barbosa, chief financial officer, said: “There are significant opportunities for the export of LNG from North America to BG Group’s global customers.” [Red & bold emphasis added.]

Atlantic Canada

India mulls natural gas imports via Atlantic Canada (Jul 18) — Embassy, Ottawa, ON

Indian government and energy industry officials have been meeting with their Canadian and American counterparts, planting seeds they hope will blossom into a plan to export liquefied natural gas to India, using pipelines and terminals on Canada's East Coast.

Much of the focus on Canadian energy exports so far has been on the West Coast. Not only is there Enbridge's Northern Gateway pipeline that would carry oil from the Alberta oil sands to the British Columbia coast, there are also three liquefied natural gas export projects proposed there, according to Mr. Oliver's office.

But India is eyeing the East in part because two of the Atlantic region's pipelines—the Brunswick pipeline, owned by Emera New Brunswick, and the Maritimes & Northeast pipeline, mostly owned by Spectra Energy Transmission—are connected to a liquefied natural gas terminal in Saint John, NB, that natural gas tankers link up with. Both pipelines cross the border into the US.

That system has been used as a method of unloading liquefied natural gas from foreign sources for use in East Coast, central Canadian, and US markets, but is now being seen by several overseas markets as a potential conduit in reverse. [Red & bold emphasis added.]

Webmaster's comment: You may be thinking Downeast LNG will switch to LNG exporting if it can get FERC permits. Keep this in mind: LNG liquefaction terminals require around 490' x 900' of space for just one liquefaction train. Downeast LNG already has too little space for an import terminal; it has no room for liquefaction and export.

New Brunswick

Environmentalist questions Canaport LNG's future — CBC News

Local environmentalist Gordon Dalzell says he has a few questions about the potential sale of Repsol's 75 per cent share of Canaport LNG.

Dalzell, who sits on the Canaport Community Environmental Liaison Committee, questions whether a buyer would have the same commitment to the community as Repsol.

John Herron, president of the Atlantica Centre for Energy, says he shares that concern.

Gas Natural CEO says approached by Repsol regarding LNG asset sales — Platts

Gas Natural, boosted by the arbitrage which has opened up a thriving LNG reload market in Spain, has been implementing a strategy of two- to three-year contracts with downstream buyers while looking to secure further volumes upstream, including 5 Bcm/year that it will have available from the US Cheniere LNG terminal for 20 years from 2017.

The Madrid-based company has a relatively modest portfolio of LNG assets but has been growing the business in recent years. The unit generated 8% of its operating earnings last year.

The company controls 75% of the Canaport LNG regasification terminal in eastern Canada, where it is contracted for 100% of the plant's capacity, selling gas in the US Northeast since 2009.

The company also has a 20% share of the four-train, 15 million mt/year Atlantic LNG liquefaction plant in Trinidad and Tobago and a 25% stake in Spain's Bahia de Bizkaia regasification terminal in Bilbao.

The company holds stakes in three regasification plants, at Reganosa and Saggas in Spain and one in Puerto Rico. It also has stakes in liquefaction plants at Damietta, Egypt and Oman and is working on two new reception terminals at Trieste and Taranto, both in Italy. [Red, yellow & bold emphasis added.]

Webmaster's comment: This same article appears under the Gulf of Mexico and Caribbean headings, below.

Repsol may sell Canaport LNG, report says (Jul 20) — CBC News

Spanish oil giant Repsol is looking at selling some of its liquefied natural gas assets in Canada, Peru and Trinidad and Tobago, the Reuters news agency reported on Thursday.

Canaport LNG told CBC News that it could not respond to the Reuters story and deferred to Repsol for comment.

Repsol is responsible for providing all of the liquefied natural gas to Saint John's Canaport and holding the capacity at the terminal.

[Repsol North America president Phil Ribbeck] said [in March that] the company was in Saint John for the long run and he expected that low natural gas prices would eventually turn around.

Northeast

EIA: Spot gas prices at Marcellus trading point reflect pipeline constraints (USA) — LNG World News

The U.S. Energy Information Administration (EIA) said in a report that daily natural gas spot prices between Tennessee Gas Pipeline (TGP) Zone 4 Marcellus and Henry Hub have diverged recently largely due to rising Marcellus production, which has outpaced the growth of available take-away pipeline capacity in northern Pennsylvania.

As a result, the spot price of natural gas at the TGP Zone 4 Marcellus trading point has fallen—at times considerably—below the spot price at Henry Hub in Louisiana, and is currently the least expensive wholesale natural gas in North America.

To address this rapid growth in natural gas production, several Northeast interstate pipeline projects were completed in 2011, adding nearly 1.5 billion cubic feet per day (Bcf/d) of capacity in Pennsylvania.

Many additional pipeline projects have been proposed or are in various stages of completion in the Northeast to reduce transportation constraints caused by growing Marcellus natural gas production. EIA’s website has information on the status of some of these pipeline projects.

Further, Bentek Energy estimates that there are over 1,000 natural gas wells that have been drilled in northern Pennsylvania but which are not yet producing natural gas because there is not enough interstate and gathering pipeline infrastructure to accommodate the new production. [Red, yellow & bold emphasis added.]

Webmaster's comment: Downeast LNG president Dean Girdis' disingenuous take on this plentiful domestic gas and pipeline expansion news: No! That's not happening! LNG imports are the only answer.

Gulf of Mexico

Gas Natural CEO says approached by Repsol regarding LNG asset sales — Platts

Gas Natural, boosted by the arbitrage which has opened up a thriving LNG reload market in Spain, has been implementing a strategy of two- to three-year contracts with downstream buyers while looking to secure further volumes upstream, including 5 Bcm/year that it will have available from the US Cheniere LNG terminal for 20 years from 2017.

The Madrid-based company has a relatively modest portfolio of LNG assets but has been growing the business in recent years. The unit generated 8% of its operating earnings last year.

The company controls 75% of the Canaport LNG regasification terminal in eastern Canada, where it is contracted for 100% of the plant's capacity, selling gas in the US Northeast since 2009.

The company also has a 20% share of the four-train, 15 million mt/year Atlantic LNG liquefaction plant in Trinidad and Tobago and a 25% stake in Spain's Bahia de Bizkaia regasification terminal in Bilbao.

The company holds stakes in three regasification plants, at Reganosa and Saggas in Spain and one in Puerto Rico. It also has stakes in liquefaction plants at Damietta, Egypt and Oman and is working on two new reception terminals at Trieste and Taranto, both in Italy. [Red bold emphasis added.]

Webmaster's comment: This same article appears under the New Brunswick heading, above, and the Caribbean heading, below.

Caribbean

CH-IV provides Owner Engineering services to EcoElectrica for LNG terminal expansion, Puerto Rico (Jul 19) — LNG World News

The Terminal expansion effectively doubles the regasification capacity of the EcoEléctrica facility allowing it to send natural gas to the Puerto Rico Electric Power Authority (PREPA) for use in its existing power generating facilities.

Gas Natural CEO says approached by Repsol regarding LNG asset sales — Platts

Gas Natural, boosted by the arbitrage which has opened up a thriving LNG reload market in Spain, has been implementing a strategy of two- to three-year contracts with downstream buyers while looking to secure further volumes upstream, including 5 Bcm/year that it will have available from the US Cheniere LNG terminal for 20 years from 2017.

The Madrid-based company has a relatively modest portfolio of LNG assets but has been growing the business in recent years. The unit generated 8% of its operating earnings last year.

The company controls 75% of the Canaport LNG regasification terminal in eastern Canada, where it is contracted for 100% of the plant's capacity, selling gas in the US Northeast since 2009.

The company [Gas Natural] also has a 20% share of the four-train, 15 million mt/year Atlantic LNG liquefaction plant in Trinidad and Tobago and a 25% stake in Spain's Bahia de Bizkaia regasification terminal in Bilbao.

The company holds stakes in three regasification plants, at Reganosa and Saggas in Spain and one in Puerto Rico. It also has stakes in liquefaction plants at Damietta, Egypt and Oman and is working on two new reception terminals at Trieste and Taranto, both in Italy. [Red, yellow & bold emphasis added.]

Webmaster's comment: This same article appears under the New Brunswick and Gulf of Mexico headings, above.

Alaska

AGPA files with DOE to export LNG from Valdez, Alaska (Jul 17) — LNG World News

Alaska Gasline Port Authority (AGPA) filed an application with the U.S. Department of Energy (DOE) to export up to 19 mtpa of LNG to FTA countries along the Asian- Pacific Rim.

AGPA proposes to export LNG from a future LNG terminal to be located in Valdez, Alaska, to any country which has or in the future develops the capacity to import LNG via ocean-going carriers and with which the United States has, or in the future enters into, a Free Trade Agreement (FTA) requiring the national treatment for trade in natural gas.

British Columbia

B.C. Hydro outlines plans for P.G. region (Jul 20) — Opinion 250, Prince George, BC

With several LNG plants proposed for the Kitimat area, B.C. Hydro says it is currently in negotiations with each proponent on what their electricity needs will be and how those needs will be met.

Fill ‘er up [Editorial] (Jul 18) — Terrace Standard, Terrace, BC

What is going to help [reduce natural gas bills] is the construction of the smallest of the planned liquefied natural gas [export] plants in the Kitimat area.

The gas for this plant will flow through an existing pipeline belonging to Pacific Northern Gas (PNG).

[A] successful BC LNG Export Cooperative LNG barge project will fill the pipeline once more, providing PNG with the kind of revenues that will lower the delivery costs for its other northwest customers.

'Burning a little gas' to fire up the natural gas industry in B.C. (Jul 18) — Rabble.ca, Toronto, ON

With each passing month and no firm commitments by company shareholders to commit the billions of dollars required to build a natural gas pipeline to B.C.'s west coast or the billions more to build Liquefied Natural Gas processing plants, questions arise about the economic wisdom of gas exports from the province.

But that isn't stopping our government leaders from offering every inducement they can to energy companies to try and entice them to enter the global footrace to export LNG to Asian markets.

[E]lsewhere in the world the power source for LNG plants has typically been provided by gas-fired turbines. By making the dubious claim that natural gas is "clean", Clark is offering a further carrot to the industry, saying the industry is free to use the droves of cheap gas at its disposal as the energy source for any LNG plants. No doubt she has chosen to do so on the advice that it would be far cheaper for gas companies to use gas to power their plants than hydroelectricity. [Red emphasis added.]

LNG projects make no sense [Opinion column] (Jul 17) — The Vancouver Sun, Vancouver, BC

Aside from adding to B.C.'s CO2 emissions, the plants may not be built before the market is flooded

Since we are now, according to B.C. Energy Minister Rich Coleman, in a "foot race" with Australia to ship our natural gas to Asian markets, we might want to reconsider the wisdom of doing so in light of two disturbing facts in that report from Down Under.

In the global race to supply Asia with LNG, it looks like Queensland is well ahead. Which raises the question: Why do B.C.'s elected leaders persist in entering a race that looks more and more like a climatic and economic race to the bottom?

Canada

Canada impacted by falling US natural gas prices (Jul 17) — Platts

The extensive physical pipeline ties between the US and Canada and its reliance on those markets has long been a strength for Canada. But the fall of US natural gas prices has dragged Canadian gas prices down. In this video, John Kingston and Samantha Santa Maria discuss the ramifications of that link between the two countries and the fall in prices.

United States

Big shift in energy is underway (Jul 20) — Forexpros, Nicosia, Cyprus

The belief that the U.S. must import LNG to make up for the decline in conventional natural gas production has been turned completely on its head by growth in unconventional shale gas. [Red & bold emphasis added.]

LNG: US weighs the cost of gas exports to economy (Jul 17) — Financial Times, London, England, UK

As of last month, more than a dozen applications had been filed to export liquefied natural gas (LNG) from the contiguous US mainland. The total capacity of all the applications is 18.7bn cu ft per day, or 28 per cent of US consumption.

Teri Viswanath, director of commodity strategy at BNP Paribas, says aggressive exports would raise prices and that electric utilities would be hit hardest. Sending gas abroad would mean utilities burn more coal: “US consumers will be competing to some extent with international consumers for US gas. That’s the part that becomes difficult and challenging from a political standpoint.”

Rebutting the IECA attack on my natural gas exports study [Opinion blog] (Jul 20) — Council on Foreign Relations

The logic in the IECA letter appears to be based in a zero-sum vision of natural gas exports that does not accord with reality. In its view of the world, every cubic foot of natural gas that’s exported is a cubic foot that would otherwise have been used in industry. That’s wrong: most natural gas that would be exported will instead stay in the ground if exports aren’t allowed. Meanwhile, the gains in manufacturing that are being spurred by abundant natural gas will largely materialize regardless of whether exports are allowed.

The final point is perhaps the most important. There is rarely a policy in which every last person and firm comes out a winner; I suspect that none exist. Allowing natural gas exports is no different – not everyone will be a winner. Some parts of the manufacturing world, like fertilizer and glass, will lose at the margin. But it is important to remember that they still expect to gain substantially from increased natural gas supplies – and that allowing exports won’t change that.

North America

North America and East Africa: The rising stars in liquefied natural gas production (Jul 23) — Sierra Express Media, Freetown, Sierra Leone

The discovery of new natural gas reserves and the increased exploitation of existing ones will cause a shift in the liquefied natural gas (LNG) landscape, with North America and East Africa set to emerge as some of the world’s significant new exporters, predicts the latest report by natural resources experts GBI Research.

According to the new report*, the shale gas production boom experienced by the US over the last few years has turned it from a country with plans to import LNG as few as five years ago, to one hoping to begin exports by 2016. Several US companies will set up new export terminals over the next few years, or convert existing import sites.

New Brunswick

Canaport LNG could be on auction block — The Chronicle Herald, Halifax, NS

Rix said the potential sale of the Canaport terminal is part of a broader strategic plan that includes investments of about $23 billion and divestment of roughly $5.5 billion.

Irving Oil did not respond to repeated calls and emails for comment on Monday.

A glut of natural gas supply, fuelled by massive shale gas discoveries throughout the continent, has pushed prices to rock-bottom levels.

Spain's Repsol looks to sell LNG assets: sources (Jul 20) — Reuters

Spanish oil major Repsol is looking to sell its liquefied natural gas assets in Canada, Peru and Trinidad and Tobago, two sources with knowledge of the situation said, in a bid to boost its finances and credit ratings.

"Repsol is going to start marketing all its LNG assets. It wants to start an auction process in August in order to close the operation after summer," a financial source said.

Repsol owns a 75 percent stake in the Canaport import terminal in eastern Canada, which began operations in June 2009. It holds a 20 percent stake in the Peru LNG export plant, which started in June 2010, and also has exclusive export rights from that project. It has been shipping LNG from Trinidad and Tobago since 1999. [Red, yellow & bold emphasis added.]

Repsol studying possible sale of LNG assets amid wider asset sales (Jul 20) — Platts

Spanish oil major Repsol says it has started a preliminary study into the possible sale of its LNG assets, amid a wider plan to sell off assets and shore up its financial position.

Maine

Three towns develop plan to bring in natural gas (Jul 17) — The Portland Press Herald, Portland, ME

Cumberland, Falmouth and Yarmouth officials are considering a proposal to build a pipeline that would deliver natural gas -- and significant savings -- to businesses and homes in the coastal towns.

"There's a high-pressure gas main that runs through all three communities and we'd like to take advantage of it," Shane said. "Individually, none of the towns alone has enough customer demand to make it worth the initial investment. Together, we have enough business and residential demand to make it feasible."

At least 50 gas-distribution companies operate in the Northeast, including Maine Natural Gas in Brunswick, a subsidiary of Spain-based Iberdrola USA. The Maritimes & Northeast Pipeline runs 886 miles from Nova Scotia to Massachusetts and is owned by Spectra Energy, Emera Inc. and ExxonMobil Corp.

Webmaster's comment: There is no shortage of natural gas in Maine, or even Boston — but Downeast LNG does not want the public to think otherwise.

Northeast

New pipeline project could lower natural gas transportation costs to New York City (Jul 3) — U.S. Energy Information Administration (EIA)

Future natural gas transportation costs to New York City could be reduced with the expansion of the existing Texas Eastern Transmission pipeline from Linden, New Jersey to Manhattan, New York (see map above). On May 22, 2012, the Federal Energy Regulatory Commission (FERC)—the main jurisdictional authority over the construction of interstate natural gas pipelines in the United States—approved an 800,000 million British thermal unit (MMBtu) per day, or 800,000 dekatherms per day, expansion of the pipeline.

This project is slated to begin service in November 2013 and represents one of the biggest transportation service expansions in the Northeast during the past two decades. The project could have the following effects on the New York City market: reduce reliance on oil-fired generators, enhance the reliability of natural gas supplies, and lower transportation costs—especially in the winter. Spectra Energy secured firm transportation agreements for this expansion with these customers: Consolidated Edison (170,000 MMBtu per day); Chesapeake Energy Marketing, Inc. (425,250 MMBtu per day); and Statoil Natural Gas LLC (204,750 MMBtu per day).

The New York City market reflects one of three major constrained areas on the natural gas grid in the Northeast United States. Bottlenecks exist moving Marcellus natural gas out of Pennsylvania and delivering natural gas into New England, especially in the winter (see map below). Pipeline companies have been adding capacity to the broader Northeast natural gas market. For updates on the status of planned natural gas pipeline infrastructure see EIA's natural gas pipeline data. [Red, yellow & bold emphasis added.]

Webmaster's comment: Seasonal pipeline constraints exist in delivering natural gas to New York City, the Marcellus region of Pennsylvania, and western Massachusetts (not Boston). Those constraints are being addressed with new pipelines and pipeline expansions — but Downeast LNG pretends those projects do not exist. The Energy Information Administration indicates Downeast LNG has its head in the sand.

Gulf of Mexico

FERC issues Supplemental Notice regarding Freeport LNG environmental review (Jul 20) — LNG Law Blog

FERC has determined that Freeport LNG's proposed liquefaction project will require an environmental impact statement rather than an environmental assessment due to changes to the project and the scope of FERC's review since the Commission issued its August 2011 notice of intent to prepare an environmental assessment. Comments on the scope of review are due August 20, 2012. [Red & bold emphasis added.]

Corpus Christi responds to comments on scope of environmental review (Jul 17) — LNG Law Blog

Corpus Christi Liquefaction, LLC (Corpus Christi) has filed a response at FERC to comments on the scope of FERC's environmental review of the company's proposed LNG import and export terminal to be located on the north shore of Corpus Christi Bay, Texas.

Caribbean

Editorial - Caution, Mr Hylton — The Gleaner, Kingston, Jamaica, West Indies

We have noted the statement by the industry, investment and commerce minister, Anthony Hylton, that his Trinidadian counterpart, Vasant Bharath, pledged to resolve the issue of Port-of-Spain's supply of liquefied natural gas (LNG) to Jamaica.

Were it our call, this newspaper would have advised Mr Hylton to keep quiet on the matter until there was something specific and tangible to report other than a highly parsed communiqué that promises nothing, but could raise optimism that may not be realised in the short term.

T&T mulls buying Repsol’s LNG stake (Jul 21) — The Trinidad Guardian Newspaper, Port-of-Spain, Trinindad, West Indies

The Government is willing to consider the purchase of Repsol’s LNG assets in Trinidad if the Spanish energy major decides to sell those assets, Energy Minister Kevin Ramnarine said yesterday. Ramnarine was responding to a Reuters report, which stated that Repsol was “looking to sell” its liquefied natural gas assets in Canada, Peru and Trinidad and Tobago, in a bid to boost its finances and credit ratings.

Repsol owns 20 per cent of Atlantic LNG Train I, which produces 3 million tonnes per annum, 25 per cent of Trains II and III, which produce 6.6 million tonnes per annum and 22.2 per cent of Train IV, which has a production capacity of 5.2 million tonnes per annum. The Reuters story quoted analysts who valued Repsol’s LNG assets at between 2 billion and 3 billion euros (US$3.7 billion).

Jamaica, Trinidad LNG talks continue (Jul 20) — Go-Jamaica, Kingston, Jamaica, West Indies

Trinidad & Tobago’s Trade Minister Vasant Bharath says efforts are being made to resolve the stalemate regarding the supply of liquefied natural gas (LNG) to Jamaica.

Oregon

Jordan Cove Energy files Draft Resource Reports at FERC — LNG Law Blog

Jordan Cove Energy Project (Jordan Cove) filed Draft Resource Reports 1 (General Project Description) and 10 (Alternatives) with FERC as part of the Commission's pre-filing environmental review of Jordan Cove's proposed LNG export terminal to be located at Coos Bay, Ore.

Oregon LNG files at DOE to export LNG to non-FTA nations (Jul 19) — LNG Law Blog

LNG Development Company, LLC, d/b/a Oregon LNG, has filed an application with the U.S. Department of Energy (DOE) for authority to export up to 9.6 million metric tons of LNG per year (approximately 1.3 Bcf/day) over a 25-year term from its proposed bi-directional LNG terminal in Warrenton, Ore., to nations without a Free Trade Agreement with the United States. Oregon LNG's application indicates that it intends to export Canadian-sourced gas and, to a lesser extent, gas produced domestically. [Red emphasis added.]

Feds to conduct joint review of Oregon LNG terminal and Washington pipeline expansion (Jul 17) — The Oregonian, Portland, OR

Federal regulators will conduct a cumulative environmental review, rather than separate reviews, of a proposed liquefied natural gas export terminal in Warrenton, near the mouth of the Columbia River, and a pipeline expansion in Washington designed to serve the terminal.

Opponents of the LNG terminals, who are regrouping to battle projects that have morphed from import to export proposals, applauded FERC's decision. They say it will preclude the kind of divide-and-conquer strategy that they accuse the backers of the Bradwood Landing LNG terminal and Palomar pipeline of employing to minimize the environmental impact of their proposals and expedite approvals. [Red emphasis added.]

FERC approves pre-filing environmental review process for Oregon LNG export terminal (Jul 17) — LNG Law Blog

FERC has approved LNG Development Company and Oregon Pipeline Company’s (together, Oregon LNG) request to initiate the pre-filing environmental review process for the proposed LNG export terminal to be located at Warrenton, Ore. FERC states that it will prepare a single environmental impact statement for both the export terminal and the related pipeline. Oregon LNG expects to file an amendment to its pending LNG import application to reflect the addition of LNG export facilities by first quarter 2013.

Canada

Senators see urgent need for national energy policy (Jul 19) — CBC News

On Wednesday, a coalition of over 700 industry, environmental and aboriginal groups released an energy strategy plan that focused on renewable energy sources: what they are calling a "clean energy accord."

The effort was spearheaded by Tides Canada, an environmental charity.

"We had Tides Canada," said [Conservative Senator David Angus]. "We heard they were terrible people. And they came and they presented to us. We found them to be perfectly reasonable people and they're doing very good things in the energy field and they've produced a report which we like."

Northeast

Fitch Ratings: Marcellus Shale presents opportunities and challenges to U.S. (Jul 13) — LNG World News

Looking ahead, Fitch notes several key Marcellus Shale pipeline projects are underway, including both NGL and natural gas. In general, the company anticipates that project sponsors will benefit from the growth in the Marcellus as new infrastructure is put in place to move production to end user markets. Contracts for midstream and pipeline services are generally credit positive, master limited partnership-friendly, long-term, fee-based arrangements with minimal commodity price exposure. To date, the financing decisions made by sponsors to fund projects have also been balanced between debt and equity, and Fitch Ratings anticipates this will continue to be the case. [Red & bold emphasis added.]

Webmaster's comment: But, Downeast LNG says new pipelines to supply the Northeast and New England can't be happening!

Gulf of Mexico

Cheniere Energy's LNG export facility will look to have a positive impact on natural gas prices — MarketWatch

Cheniere announced on Thursday that eight banks have committed to finance the first liquefied-natural-gas export facility in the U.S. The facility will be located in Louisiana and will allow the company to export 1.1 billion cubic feet a day by the end of 2015, according to a recent Wall Street Journal article. "They have all the capital they need, they have all the permitting they need," said Will Frohnhoefer, BTIG. "I think they're good to go."

Low natural gas prices may draw industries to Louisiana (Jul 15) — NOLA.com

Export terminals on the rise

Part of the industrial development taking place in the state also centers around the establishment of terminals that export LNG.

Cheniere Energy Inc. has received the go-ahead from the Federal Energy Regulatory Commission to modify its import terminal at Sabine Pass in Cameron Parish for exports, and could begin exporting LNG to the international gas markets as soon as 2015 as part of a $6 billion project.

A similar effort to expand an existing LNG terminal to handle LNG exports could follow suit in Lake Charles.

And Sempra Energy Inc. has announced its own $6 billion LNG export terminal project to be developed at its existing import terminal in southwestern Louisiana.

Caribbean

Golding's US expert out of LNG project; new bids expected by Tuesday (Jul 15) — The Gleaner, Kingston, Jamaica, West Indies

Ernest Megginson, the American consultant who was hired by the Bruce Golding administration to lead Jamaica's quest to introduce liquefied natural gas (LNG), has parted ways with the Government.

[D]espite the presence of Megginson, the LNG programme moved at a snail's pace with a moving timeline.

Op-ed: Jamaica, Trinidad and CARICOM — Caribbean Journal, Miami, FL

I considered the CARICOM Communiqué disappointing ... because it failed to embrace the CCJ issue and the Jamaica/Trinidad LNG negotiations as important parts of the discussions.

The big LNG issue for Jamaican energy is the question of supply. Without a regular source of supply of LNG, the country’s LNG policy is dead in the water.

Alaska

Alaska Gasline Port Authority files at DOE for LNG export authority from proposed Valdez terminal — LNG Law Blog

Alaska Gasline Port Authority recently filed an application at the U.S. Department of Energy (DOE) to export up to 2.5 Bcf equivalent per day (approximately 19 million metric tons/year) of LNG from a future LNG terminal to be constructed at Valdez, Alaska, to Asian-Pacific Rim countries that have a Free Trade agreement with the United States. According to the application, the exact site of the LNG terminal has not been determined.

Canada

Gujarat offers to invest in LNG export terminal in Canada (Jul 14) — The Economic Times

"The State government and Indian companies are ready to invest in Canada if the Harper government is willing to export LNG to India," said D J Pandian, Principal Secretary in the state's Energy and Petrochemicals Department, on Thursday.

NEB streamlines its gas export license review process — LNG Law Blog

The Canadian National Energy Board has issued an Interim Memorandum of Guidance announcing a review of its regulations for assessing oil and gas export and import licenses and interim governing guidance. The interim guidance: (1) eliminates mandatory public hearings; (2) establishes a new standard for assessment, which shall be that the quantity of gas (or oil) to be exported shall not exceed the surplus remaining in Canada after due allowance for the reasonably foreseeable needs of Canadians; (3) eliminates the requirement that export license applicants file information on the environmental effects of the proposed exports and any related social effects; and (4) eliminates the NEB’s ability to place conditions affecting environmental protection and restoration on export licenses.

Webmaster's comment: This is utter insanity.

United States

Law of the Sea Treaty [UNCLOS] all but dead with 34 GOP Senators opposing measure — The Huffington Post

[Ultra-conservative members of the US Senate drive another nail into Downeast LNG's coffin — SPB webmaster]

WASHINGTON — A treaty governing the high seas is all but dead in the Senate as two Republican senators announced their opposition Monday, giving conservative foes the necessary votes to scuttle the pact.

The treaty establishes a system for resolving disputes in international waters and recognizes sovereign rights over a country's continental shelf out to 200 nautical miles and beyond if the country can provide evidence to substantiate its claims. The United States has abided by the rules of the treaty since President Ronald Reagan's administration. [Red & bold emphasis added.]

Webmaster's comment: The US failure to ratify joining the UN Convention on the Law of the Sea (UNCLOS; but that opponents like to call "LOST") is yet another blow to Downeast LNG.

Downeast LNG president Dean Girdis deludes himself into believing that LNG ships would be able to transit through Canada's Head Harbour Passage under UNCLOS-defined innocent passage — defying Canada's resolute and repeated prohibition against such transits. But, since the US is not a member of the treaty (and apparently is not about to become a member), the US has no rights under UNCLOS — as is clearly spelled out in the treaty; only treaty member states (member nations) have rights under the treaty.

Without membership in UNCLOS, the US cannot claim UNCLOS-defined innocent passage, and the US has no legal recourse under international law, as even the US Coast Guard Office of Maritime & International Law admits. It appears that the US will not be joining UNCLOS in the near future, driving another nail into Downeast LNG's coffin.

See our page on UNCLOS for more specific details.

Japanese demand may fuel American natural gas prices, an Industrial Info News Alert — MarketWatch

With its nuclear fleet's uncertain future, the world's largest importer of liquefied natural gas (LNG), Japan, is turning toward natural gas as its power generation fuel of choice for the mid-term. In an effort to encourage development among small-size power producers, Japan is considering a new pipeline project reaching from Sendai in the tsunami-blasted northeastern region of the main island, Honshu, to the northern end of Kyushu, which lies off the most southwestern tip of Honshu. While the route has not been decided, the Japanese Ministry of Economy, Trade, and Industry (METI) has already announced that it intends to import LNG from the American market, where prices are much lower than in Japan.

Can tech-driven U.S. energy boom survive challenges? (Jul 12) — Investor's Business Daily

The world may be facing an era of cheap and plentiful energy, and the U.S. lies at the center of the potential boon to the global economy, thanks to technology and a bit of luck. But the road faces serious hurdles, including environmental worries driving political opposition.

Some 7.609 trillion cubic feet of shale gas will be produced in the U.S. this year, up 11.6% from last year. In 2004, before the industry embraced fracking and HDT, the U.S. produced just 0.604 TCF of shale gas. [Red & bold emphasis added.]

Natural gas glut a dilemma for Obama — Fuel Fix

WASHINGTON – The drilling boom that has led to a glut of natural gas and sent prices to 10-year lows is causing a quandary for the Obama administration, which is struggling to decide whether – and how much – the U.S. should share the bounty with foreign countries.

“It’s a lot safer for politicians who don’t want to be on the wrong side to defer it,” said Kevin Book, an analyst with ClearView Energy Partners.

President Barack Obama and Republican challenger Mitt Romney ... have avoided making big pronouncements.

Advances in drilling technology have allowed energy companies to extract natural gas from dense rock formations coast to coast and tap what analysts widely describe as a 100-year supply of the fossil fuel.

Gulf of Mexico

FERC Chairman responds to Louisiana officials regarding Sabine Pass LNG export project — LNG Law Blog

FERC Chairman Wellinghoff has sent letters to Louisiana Governor Jindal and several U.S. Representatives from Louisiana assuring them that FERC will fully consider the issues before it acts on Sierra Club's motion for stay and rehearing of FERC's order authorizing the Sabine Pass LNG export project.

Cheniere Partners says gets $3.4 bln in finance commitments — Reuters

Cheniere Energy Partners LP has received firm financing commitments of about $3.4 billion to build its planned liquefied natural gas project at Sabine Pass in Louisiana, the company said on Thursday.

Cheniere Partners receives $3.4B firm lender commitments for Sabine Pass Liquefaction Project [Press release] — MarketWatch

Cheniere Energy Partners, L.P. ("Cheniere Partners") announced today that it has received executed firm financial commitments in aggregate of approximately $3.4 billion to fund the costs of developing, constructing and placing into service the first two liquefaction trains of the Sabine Pass LNG liquefaction project (the "Liquefaction Project"). Commitments for a Term Loan A ("Credit Facility") were received from all of the previously announced joint lead arranger banks and from additional banks and financial institutions ("Lenders"). As a result, Cheniere Partners has decided to upsize the Credit Facility and withdraw the previously announced syndication of a $1.25 billion Term Loan B facility.

"Including the recently announced $2 billion of equity commitments, we have now received financial commitments of approximately $5.4 billion for the construction of Trains 1 and 2 of our Liquefaction Project...."

FERC approves Cameron LNG boil-off gas re-liquefaction facilities — LNG Law Blog

Yesterday, FERC issued an order approving Cameron LNG's application to construct and operate facilities to re-liquefy boil-off gas at Cameron LNG's existing LNG terminal in Cameron Parish, La. The facilities will provide LNG supplies to enable Cameron to maintain its LNG storage tanks in a cryogenic state without the need for LNG imports.

United States

Points of light (Jul 14 print edition) — The Economist

Not so long ago, terminals were still being built in America to import liquefied natural gas (LNG). Now the country is enjoying a bonanza of domestic gas. Americans pay less than $3 for 1m British thermal units, where Europeans and Asians often pay more than $10. Accordingly, America is now planning to send the stuff abroad. Michael Levi of the Council on Foreign Relations thinks that exports of 60 billion cubic metres a year would yield revenue of $20 billion, though higher imports of other goods would offset the benefit to the trade balance.

Gas works (Jul 14 print edition) — The Economist

PENNSYLVANIA, THE SITE of America’s first oil wells back in the 1850s, is now home to the world’s second-largest gas field after South Pars, on the border between Qatar and Iran. At the turn of the millennium America’s conventional gasfields were in decline. The country was preparing to become a significant importer: around $100 billion was invested in LNG import terminals that may now be redundant. Shale gas was known to geologists but had never been worth extracting. As recently as 2000 hardly any of it was coming out of the ground. [Red & bold emphasis added.]

A liquid market (Jul 14 print edition) — The Economist

[T]he economics of LNG still resemble those of pipelines. Big LNG projects need customers in order to secure finance for building the liquefaction and regas terminals and the specialist tankers that shuttle between them. And costs have been increasing steeply, making it ever harder to raise the money. In the 1980s building a liquefaction plant cost around $350 per tonne of LNG a year. By the 2000s the figure, in current terms, had fallen to $200 as technology improved. Now some facilities cost as much as $1,000 a tonne. One reason is that steel, which LNG projects use in large quantities, has shot up in price. And LNG terminals are now being built in Australia, which is set to become a bigger producer than Qatar within a few years, rather than in low-wage developing countries. Australian workers do not come cheap, and wages make up a big part of the total cost. Tankers to tote the LNG round the world are pricey too, at around $200m apiece. Liquefying the gas, carrying it to its destination and regasifying it can cost between $4 and $7 mBtu, a lot more than the $2.50 mBtu that the gas itself currently sells for in America.

But there are other suppliers of LNG aside from the United States, and they could be exporting a lot more of it in a few years’ time. Luis Barallat of Boston Consulting Group expects a supply surge in LNG during 2015-16. Canada has large quantities of shale gas that it could send to Asia, and shipping costs from its west coast will be far lower than from the Gulf of Mexico. Exporting westwards will get Canada out of a bind. Its energy infrastructure is tied to that of the United States, where gas is cheap. Canada would get a lot more in Asian markets. Shale gas from the Horn River or Montney field in the far north is expected to get to the Pacific coast through pipelines. According to some estimates, Canada could end up exporting 30m tpa by 2020, almost half as much as export-happy Qatar. [Red & bold emphasis added.]

Oil-linked LNG 'not reasonable' (Jun 11) — Petroleum Economist [Paid subscription]

Kwok W Wan, KUALA LUMPUR: Japanese gas importers want to buy liquefied natural gas (LNG) linked to US or European gas hub prices and move away from traditional oil-linked contracts, the Japan Gas Association told reporters at the WGC2012.The world’s largest LNG importer buys most of its gas on oil-linked contracts, but soaring demand after the Fukushima Daiichi disaster last year and high crude prices means Japanese customers are paying up to seven times more compared to US gas prices.“For the natural gas price to be linked to the oil price right now has lost any economic rationale,” Japan Gas Association chairman Mitsunori Torihara said.“Looking at the main uses of natural gas right now, it’s for power generation and such use of natural gas is becoming more prevalent, which means it’s not really in competition with oil but rather in competition with nuclear and coal. So… to still link with the...

Webmaster's comment: The US goldrush to build LNG liquefaction and export facilities may fall just as flat on its face as did the LNG import goldrush.

US LNG set to change price framework (Jun 25) — Petroleum Economist [Paid subscription]

Kwok W Wan, LONDON: Asian liquefied natural gas (LNG) buyers expect US exports to spur the change from traditional oil-index priced contracts to include a larger gas hub element, according to the Japan Oil, Gas, and Metals National Corporation (Jogmec).The traditional Asian buyers – comprising Japan, South Korea, and Taiwan – have bought long-term LNG on prices linked with oil for over 40 years. But with the US planning to build a number of LNG export facilities, Asian importers have rushed to sign contracts because they are either linked to US Henry Hub gas prices or are tolling agreements where the shipper buys the gas at market prices themselves and pay a liquefaction fee.“Since US... [Red & bold emphasis added.]

Northeast

FERC vacates authorization for Broadwater Energy’s LNG import terminal (Jul 9) — LNG Law Blog

On Friday, FERC issued an order vacating authorization for construction and operation of Broadwater Energy's proposed LNG import terminal, which was to be located in Long Island Sound off Long Island, N.Y. Broadwater notified FERC in March 2012 that it would not go forward with the project and requested vacatur of FERC's authorization. FERC's order vacated the authority for the project but denied a request by the Towns of Riverhead and Southold, N.Y. to vacate the orders authorizing the project, finding no exceptional circumstances justifying vacatur of the orders.

Webmaster's comment: Downeast LNG does not want the public to believe that the 100-years-plus domestic natural gas supply moots additional LNG import infrastructure, as has happened with Broadwater Energy's LNG project.

Cove Point LNG rate case settlement approved (Jul 9) — LNG Law Blog

Today [Jul 9], FERC issued an order approving a settlement of Dominion Cove Point LNG’s rate case. The settlement includes, among other things, provisions for Cove Point to amend its tariff to provide for operational purchases and sales of LNG cooling quantities, including an associated cost recovery mechanism, provisions for liquefier usage and cost recovery, and a requirement that Cove Point file a new rate case to be effective January 1, 2017.

Gulf of Mexico

FERC vacates authorization for Cameron LNG's fourth LNG storage tank (Jul 9) — LNG Law Blog

FERC issued an order on Friday vacating authorization for Cameron LNG to construct a fourth LNG storage tank at its existing LNG import terminal near Hackberry, La., since Cameron has not begun construction of the tank and the extended deadline for the in-service date expired six months ago.

Webmaster's comment: Prolific US domestic natural gas supplies mooted Cameron LNG's fourth storage tank — just as they have mooted Downeast LNG.

Caribbean

Caricom - accentuate the positive [Opinion column] — Jamaica Observer, Kingston, Jamaica, West Indies

The time has come to "Accentuate the Positive" and work towards solving the existing difficulties with Caricom and restore the trade balance with the Eastern Caribbean countries and Trinidad and Tobago (T&T) in particular. Ministers Anthony Hylton and Phillip Paulwell are currently discussing the supply of T&T LNG with that country's Energy Minister Kevin Ramnarine, and we eagerly await the outcome.

British Columbia

Palmer: Uncertainties make it hard to predict when first LNG terminal will be built (Jul 9) — The Vancouver Sun, Vancouver, BC

VICTORIA - The B.C. Liberals are considering a gas-fired electricity generating plant in Kitimat as one option to meet the anticipated power needs for multiple liquefied natural gas export terminals on the northwest coast.

USA: Apache finds huge shale gas reserves in Liard Basin — LNG World News

Apache Corp. has found a huge amount (up to 48 trillion cubic feet) of natural gas in its Liard Basin properties in northeastern BC. All of the gas is targeted to ship to a proposed LNG plant which should be built at Kitimat, according to Refinery News.

Oregon

FERC requests agency participation for environmental review of Jordan Cove LNG export project (Jul 9) — LNG Law Blog

FERC has requested that various agencies participate as cooperating agencies in the preparation of an environmental impact statement for Jordan Cove Energy Project's proposed LNG export terminal to be located on the North Spit of Coos Bay, in Coos County, Ore., and related pipeline. FERC requested participation from the Bureau of Land Management, U.S. Coast Guard, U.S. Environmental Protection Agency, National Marine Fisheries Service, U.S. Fish & Wildlife Service, U.S. Department of Transportation, U.S. Bureau of Reclamation, and the U.S. Department of Agriculture, Forest Service.

LNG opponents regroup to battle export idea — The Daily Astorian, Astoria, OR [Paid subscription]

WARRENTON — In their latest filing with the Federal Energy Regulatory Commission, the developers of a proposed liquefied natural gas terminal in Warrenton [Oregon LNG] say they plan to start operation by 2019, exporting as much as 1.3 billion cubic feet of LNG per day to markets in Asia.

CH-IV International prepares FEED for U.S. bi-directional LNG facility on behalf of LNG Development Company LLC (dba Oregon LNG) [Press release] (Jul 7) — redOrbit

CH-IV International had previously prepared a FEED for Oregon LNG for its proposed LNG Import Terminal, which has now been modified to include liquefaction facilities.

United States

Romney campaign hits Obama admin's delay of LNG exports — Reuters

A representative for Mitt Romney on Wednesday criticized Obama administration delays on whether to allow more natural gas exports, but stopped short of saying the former Massachusetts governor would speed the process should he become president.

Dan Reicher, who represented President Barack Obama in the debate, said the administration supports the development of terminals to export the fuel, but "striking the right balance is not a simple thing to do."

KNOC seeking to invest in US shale gas — Rigzone

SEOUL - Korea National Oil Corp. is seeking to invest in U.S. shale gas projects with an annual output around 3 million-3.5 million metric tons, together with Korea Gas Corp., Chang Sungjin, Vice President of KNOC's New Ventures division, told Dow Jones Newswires Wednesday.

Last month, a Kogas executive said the company was looking at U.S. shale gas assets and expects to invest in a liquefied natural gas project there that will lead to imports of at least another 3 million metric tons a year.

Gulf of Mexico

Sierra Club calls for full environmental review of Corpus Christi export terminal proposal — LNG Law Blog

Sierra Club filed comments on the scope of FERC's environmental review of Corpus Christi Liquefaction's proposed LNG export terminal and associated pipeline, stating that environmental review should include the impacts of additional shale gas production that will be induced by the proposed project and that a full environmental impact statement, rather than an environmental assessment, should be prepared.

British Columbia

Redefining dirty as clean is no way to cut emissions (Jul 3) — The Vancouver Sun, Vancouver, BC

British Columbia voters could be forgiven for feeling like Alice in Wonderland after learning of premier Christy Clark’s proposal to revise B.C.’s definition of “clean energy” to allow burning of natural gas to power LNG exports. What was once dirty has been declared clean.

The idea that certain energy uses can be quarantined also defies reason. The real problem is that it is extremely energy intensive to liquefy natural gas to prepare it for export by tanker — a step that is not necessary if the gas is used within North America.

LNG production not only threatens B.C.’s commitment to clean energy, but also the province’s legally binding commitment to reduce its greenhouse gas emissions. The additional emissions from powering just one LNG plant with natural gas and from upstream production of natural gas through unconventional fracking are projected to increase B.C.’s emissions by 22 per cent, or 15 million tonnes of CO2. [Red emphasis added.]

Gas-fired power plant could boost city fortunes [Opinion] (Jul 4) — Terrace Standard, Terrace, BC

As reported in this paper May 30, BC Hydro says it can handle the power needs of the KM LNG and the much smaller BC LNG Co-op plants. But it needs new sources of power to fuel the Shell project – it is bigger than the other two put together.

While BC Hydro pays lip service to “renewable” energy such as wind and run-of-river, it recognizes the reality that a natural gas fired power plant may be needed to ensure a constant supply of electricity.

Environment Minister Terry Lake presses for increased coast guard along B.C. shores (Jul 3) — The Vancouver Sun, Vancouver, BC

“We’re going to have more traffic in and out of Kitimat with liquefied natural gas (LNG), we’ve got more container ships coming into Vancouver and to Prince Rupert, we’ve got proposals for oil pipelines — I think the average British Columbian says, ‘Why would you be scaling back the coast guard resources at a time when all we can see into the near future is an increase in the need?’ ” Lake said Tuesday.

LNG: Progressive chance or regressive act? (Jul 4) — The Vancouver Sun, Vancouver, BC

...With the North American marketplace awash in natural gas resulting from new shale gas supply options, and B.C. with over 100 years of supply, there is urgency required to ensure the multibillion-dollar LNG export investments occur soon. [Red & bold emphasis added.]

Progress Energy takeover: Only the beginning? — Resource Investing News, Vancouver, BC

According to the mid-sized Canadian producer, the purpose of the deal was to accelerate the two companies’ plans to bring liquified natural gas (LNG) to the British Columbia coast for transport to energy-starved Asian markets. Progress is best known for its reserves in Alberta’s Deep Basin and British Columbia’s Montney tight gas region.

The race for energy resources (Jul 4) — Credit Writedowns

Malaysia’s state-owned oil and gas company just made a multibillion-dollar bet that Canada will choose to export its shale gas riches. Even though the odds of securing permission to export liquefied natural gas (LNG) from the Canadian west coast are still pretty poor, the costs of such an endeavor immense, and the timeline in question very long, Petronas is putting $5.5 billion on the table – far more than it has ever spent on an acquisition before – to secure a large foothold in the British Columbia shale gas scene.

Oregon

Oregon LNG seeks to start environmental review for export project — Platts

The company is moving ahead with the FERC process, even though the Department of Energy has put some LNG export applications on hold, Peter Hansen, the project manager, said Thursday.

Oregon LNG seeks pipeline routes through Columbia, Cowlitz counties — (AP) The Daily News, Longview, WA

The company plans to eliminate 75 miles of the proposed pipeline through Washington County. But it would add 39 miles of pipeline along a new route through Columbia County and across the Columbia River to Cowlitz County, Washington. The Clatsop County portion of the pipeline wouldn’t change.

Oregon LNG reveals changes to its plans (Jul 4) — The Daily Astorian, Astoria, OR

The liquefied natural gas company Oregon LNG is changing its plans for an import facility in Warrenton. Oregon LNG has sent the Federal Energy Regulatory Commission a preliminary application for an LNG export project. [Red & bold emphasis added.]

Webmaster's comment: This is actually old news. FERC has been aware for months of Oregon LNG's plan to export instead of import.

United States

India turns to US shale gas — LNG World News

Shale gas has turned the US market upside down from shortage into glut. USA now tries to find markets abroad. According to US Energy Information Administration, the US has the world’s second largest shale gas reserve of 862 tef, right after China’s 1,275 tef. [Red & bold emphasis added.]

Webmaster's comment: Downeast LNG wants the public to believe the natural gas glut does not apply to New England and the Northeast, even though new pipelines and pipeline expansions are in progress to deliver domestic-sourced natural gas to Boston and New York

North America

Americas LNG Markets to 2020- Analysis and Forecasts of Terminal wise Capacity and Associated Contracts, LNG Trade movements and Prices — ReportLinker

LNGReports has launched the new comprehensive report on Americas LNG industry outlook to 2020. The report provides profound analysis and complete data on each segment of LNG countries in Americas. It also forecasts production, demand, major trends and challenges of investing in the market. Historical and forecasted information on source fields, connecting pipelines, processing plant, trains, storage tanks, jetty and LNG carriers is provided for each of the existing and planned LNG terminals in the country.

Northeast

Pre-filing procedures approved for Cove Point’s proposed export terminal facilities (Jul 2) — LNG Law Blog

Last week FERC approved Dominion Cove Point LNG’s request to use FERC’s pre-filing procedures for Dominion’s proposed liquefaction facilities to be constructed at the Cove Point LNG terminal in Lusby, Md.

Webmaster's comment: Cove Point LNG demonstrates that the Northeast does not need LNG imports. Downeast LNG is moot.

Gulf of Mexico

Withdrawal of TORP Terminal LP, Bienville Offshore Energy Terminal liquefied natural gas (LNG) deepwater port application (Jun 26) — Federal Register

The Maritime Administration (MARAD) announces TORP Terminal LP's (TORP) withdrawal of the deepwater port license application for the proposed Bienville Offshore Energy Terminal (BOET). All actions related to the processing and agency coordination activities required under the Deepwater Port Act of 1974, as amended, are hereby terminated, and the official Record of Decision on the BOET application issued October 29, 2010, by David T. Matsuda, Maritime Administrator, is hereby rescinded.

On January 13, 2012, MARAD received notification from the applicant, TORP Terminal LP, of the withdrawal of its application to own, construct, and operate a deepwater port for a liquefied natural gas deepwater port facility, located approximately 62.6 miles south of Fort Morgan, Alabama in the Federal waters of the Outer Continental Shelf (OCS) on Main Pass Block 258 and connected to existing offshore pipelines. Consequently, MARAD has terminated all activities pertaining to TORP's application and has rescinded its Record of Decision for this deepwater port project. All agency records and documents related to the BOET deepwater port license application are being preserved and retained by MARAD and USCG. Further information pertaining to this application may be found in the public docket (see ADDRESSES). [Red & bold emphasis added.]

Webmaster's comment: MARAD (US Maritime Administration) had approved this project's permit in 2010. Unlike Downeast LNG and its financial backers Kestrel Energy Partners and York Town Energy Partners, TORP's developers recognized reality back in January — there is no need for additional US LNG import infrastructure.

TORP’s Bienville offshore energy terminal application withdrawn (Jul 2) — LNG Law Blog

The U.S. Maritime Administration announced the withdrawal of TORP Terminal LP's deepwater port license application for the proposed Bienville Offshore Energy Terminal regasification project and rescinded the official Record of Decision on the application issued October 29, 2010.

United States

Lawmakers: Speed up natural gas exports (Jul 2) — Fuel Fix

The push comes amid a surge in domestic natural gas production from shale rock formations that has caused a glut of the fossil fuel and kept domestic prices low. [Red & bold emphasis added.]

Don't let US lose global LNG race, Reps. tell DOE (Jul 2) — Law360 [Paid subscription]

Lawmakers from shale gas-heavy states implored the U.S. Department of Energy on Friday to step up its review of the federal government's liquefied natural gas export policy and start issuing licenses, lest other potential LNG powers beat the U.S. to the world market.

Twenty-one members of the U.S. House of Representatives from states like Ohio, Pennsylvania and West Virginia broke Congress' relative silence on the topic of LNG exports, calling on the Obama administration to “bring a new sense of urgency to the approval process” in...

New EIA model needed for LNG exports: Sieminski – Gas Business Briefing — Exporter Magazine, Morris, NY

The Energy Information Administration could provide guidance to policymakers on the impact of liquefied natural gas exports, but the agency lacks a good model for forecasting the likelihood and potential volume of such exports, EIA Administrator Adam ... [Red & bold emphasis added.]

Japan's gas utlities may work together to import North American LNG — Platts

Japanese gas utilities are considering expanding their participation in upstream developments for LNG as part of efforts to lower cost of importing the product, the Japan Gas Association Chairman Mitsunori Torihara told reporters Tuesday.

When asked whether the Japanese gas utilities had a large capacity to import shale-gas based LNG from North America, Torihara said that the utilities may work together to receive the lean-gas based LNG from North America because they would need to blend it with LPG to enrich it for city gas supply.

Video: Morgan Lewis' Bradshaw talks risks of LNG export deals — The Deal Pipeline [Paid subscription]

Brian Bradshaw, a partner at Morgan, Lewis & Bockius LLP, chats with The Deal Pipeline's David Marcus about LNG dealmaking. Bradshaw speaks of the risks associated with financing LNG export deals, citing the fluctuating price of natural gas. Says Bradshaw, "The real issue here becomes exposure to commodity risk." He then explains how these risks are minimized.

North America

Which course will North American natural gas producers choose? — GoldSeek.com

News of a "monster" natural gas find in British Columbia has one again highlighted that North Americans need to make a choice. Do we want to keep the huge volumes of natural gas that have been discovered in recent years across the continent landlocked and transportable only by pipeline, or should we develop the infrastructure that will enable us to transport this fuel to the gas-hungry markets of Asia?

So economics are not the question. The question, instead, is environmental. Does North America want to become an LNG exporter? The economic upsides include jobs and money, but the environmental concerns include new pipelines, tankers transiting coastal waters, more drilling and fracking of natural gas wells, and the knowledge that we are enabling a continued global addiction to fossil fuels. [Red & bold emphasis added.]