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Passamaquoddy Bay & LNG

Northeast

Dominion pushes DOE to give its LNG export project priority (Apr 23) — SNL

Dominion Resources Inc. is lobbying the U.S. Department of Energy to move the Dominion Cove Point LNG LP liquefaction project up the queue of projects waiting for a decision because of its advanced position at FERC and in commercial agreements, Chairman, President and CEO Thomas Farrell II said.

Farrell said the door may close on the U.S. opportunity to export natural gas. Canada is a fierce competitor, he said, and the rest of the global market is getting more competitive every day. "It is time to act," he said.

Farrell said domestic shale gas is a success story for the U.S., and that could be bolstered if LNG exports expand the market for shale production. Domestic supply means natural gas is abundant and cheap, he said, even as he stuck by comments he made earlier in 2013 that warned power generators and other companies against putting all their eggs in one basket as they choose fuels. [Red & bold emphasis added.]

Webmaster's comment: Cove Point LNG is desperate, since the import terminal has no demand for use. In 2011 the company asked FERC to force an LNG cargo to offload there since the facility was in danger or warming, resulting in decommissioning.

The Northeast has plenty of natural gas — apparently enough to export, to the dismay of Downeast LNG.

Commissioners happy with LNG plant expansion plan (Apr 24) — Baynet.com, Southern Maryland News, MD

Leopold reported the plan to build liquefaction facilities would have minimal environmental impact since there would be no work done on the Chesapeake Bay and all construction would be done within the confines of the plant. Additionally, noise mitigation mechanisms will be used.

Dominion CEO Thomas Farrell makes case for U.S. LNG exports (Apr 23) — (PR Newswire) The Sacramento Bee, Sacramento, CA

Dominion has announced that it is moving forward with its project to liquefy natural gas for exportation at its Cove Point import terminal on the Chesapeake Bay in Lusby, Md. Pending all necessary approvals, construction on the $3.4-$3.8 billion project, with access to the Marcellus and Utica Shale production areas, would begin in 2014, with an in-service date of 2017. [Red & bold emphasis added.]

Webmaster's comment: There is no need for Downeast LNG. Everyone else is planning on exporting LNG.

Southeast

FERC to prepare Environmental Assessment for Elba Island LNG export project (Apr 23) — LNG Law Blog

FERC has issued a notice that it will prepare an environmental assessment (EA) for the Elba Liquefaction Project, which involves the construction of LNG export facilities and related pipeline modifications at the existing LNG terminal at Elba Island, Ga. Comments on the scope of the EA are due May 22, 2013. [Red & bold emphasis added.]

Webmaster's comment: Another East Coast LNG export project at an existing import terminal. Yet more proof that Downeast LNG is chasing its tail while wasting taxpayers' money on senseless permitting.

Gulf of Mexico

Barge explosions are a reminder of the dangers in transporting fossil fuels — The Atlantic Wire, Washington, DC

[This news article contains a video of one of the explosions —SPB webmaster]

Contrary to initial reports, the barges did not contain liquefied natural gas. A spokesman for the company that owns the barges clarified their contents in a statement this morning.

The barges are owned by Houston-based Kirby Inland Marine, company spokesman Greg Beuerman said. He said the barges were empty and being cleaned at the Oil Recovery Co. facility when the incident began. He said the barges had been carrying a liquid called natural gasoline -- which he said is neither liquefied natural gas or natural gas. He said the company has dispatched a team to work with investigators to determine what caused the fire.

According to AL.com, there were at least six explosions over the course of the fire, which occurred on the east shore of the Mobile River. The barges had been partially emptied, but still apparently contained some natural gasoline, a derivative of natural gas. [Red & bold emphasis added.]

Webmaster's comment: The barges were "empty." One wonders what would have resulted from full barges.

United States

Fracking’s coming boom (Apr 24) — Salon

“Members of Congress are not energy experts so they are easily confused,” said Tad Patzek, chairman of the Department of Petroleum and Geosystems Engineering at the University of Texas. “And their religion is free market. It’s got nothing to do with reality, especially energy markets.”

Patzek, an expert in unconventional gas recovery who has extensively studied U.S. shale plays, called congressional boosters of unlimited exports “delusional” in an interview with AlterNet.

“How does exporting a strategic natural resource make you more energy independent?” Berman said in an interview with AlterNet. “If you’re selling it to somebody else, then by definition you’re decreasing your own supply.”

Berman added, “These companies have stupidly, imprudently overproduced their own product to the point they can’t make money at the price they’ve created themselves. So now they’re looking for a solution to that problem, and they’ve managed to convince a number of idiots in Congress that this is a good idea.” [Red & bold emphasis added.]

Passamaquoddy Bay

Court to review LNG tankers (Apr 9) — The Daily Astorian, Astoria, OR

U.S. Coast Guard approval is questioned

[This article also appears under the Oregon heading, below.]

A U.S. federal court will review a lawsuit that involves the U.S. Coast Guard’s approval of proposed transportation of liquefied natural gas at the mouth of the Columbia River.

The Coast Guard found that tanker traffic would be feasible, but would require tug and escort boats as well as a 500-yard security zone around them while in the shipping channel and a 200-yard zone while berthed. They submitted a recommendation in 2009 that determined the river was not suitable, but could be made suitable for the proposed LNG transportation.

The citizen groups criticize the analysis, citing environmental impacts and potential safety threats were not adequately addressed.

“This challenge is about holding the Coast Guard accountable,” said Lauren Goldberg, staff attorney for Columbia Riverkeeper.

The goal, Goldberg said, is to have the Coast Guard do an Environmental Impact Statement (EIC), which was not conducted before their recommendation.

Webmaster's comment: The USCG failed to perform an EIS for the waterway in Passamaquoddy Bay, as well.

Maine

MNG, XNG ink natural gas deal (Apr 19) — Mainebiz

Boston-based Xpress Natural Gas and Iberdrola subsidiary Maine Natural Gas have signed a letter of intent to cooperate in expanding natural gas service in the Augusta region before a natural gas pipeline is constructed.

Through the agreement, Maine Natural Gas, which is competing with Summit Natural Gas of Maine for capital-area customers, will provide piped gas to XNG. XNG will then truck the gas to customers in the area.

The companies refer to the plan as creating a "rolling pipeline" that can reach new customers in the short-term, while a pipeline is under construction, and also in the long-term to areas where they say a pipeline might not be feasible for several years.

XNG currently has a distribution hub in Baileyville. [Red & bold emphasis added.]

Webmaster's comment: Natural gas access in Maine is expanding without requiring Downeast LNG's moot terminal.

Northeast

Marcellus Shale continues to offer untapped opportunities (Apr 10) — Industrial Info [Free registration required]

[P]roven shale gas reserves in the state rose from 88 billion cubic feet (Bcf) to 10.7 trillion cubic feet, primarily from exploration of the Marcellus Shale. Pennsylvania's natural gas production rate also has increased exponentially during this time, rising from less than 1 billion cubic feet per day (Bcf/d) in 2008 to more than 6 Bcf/d in 2012.

With natural gas prices on the rise again, this ready-to-drill area offers the economic equivalent of an 850-barrel-per-day oil or liquids well in the Utica or Eagle Ford shales, but at a fraction of the cost, providing the opportunity to explore and establish a significant new natural gas field in the Pennsylvania Marcellus Shale with minimal risk. [Red & bold emphasis added.]

Northeast Upgrade Project (Apr 11) — Tennessee Gas Pipeline

Tennessee, a wholly owned subsidiary of Kinder Morgan Energy Partners, is proposing to construct the Northeast Upgrade Project, which, when complete, will allow an additional 636,000 dekatherms per day of natural gas to be transported along Tennessee’s 300 Line in Pennsylvania and delivered to growing markets in the Northeast.

The Northeast Upgrade Project, along with the company’s 300 Line Project, will add about 1 billion cubic feet per day of new firm transportation capacity that will provide safe and reliable transportation of clean-burning, domestic natural gas supplies to key Northeast markets. [Red & bold emphasis added.]

Webmaster's comment: Waaaaiiiiit a minute!!! Downeast LNG claims pipeline expansion to deliver more natural gas to New England is impossible!

The Northeast Upgrade Project will deliver twice the capacity of the doomed Downeast LNG proposal.

FERC issues notice of Dominion Cove Point LNG, LP's application seeking authorization to construct, modify, own and operate certain facilities to enable the liquefaction of natural gas for the export at its existing Cove Point LNG terminal (Apr 13) — Electric Light & Power

Docket Nos. CP13-113-000 PF12-16-000

On June 26, 2012, the Commission staff granted Dominion Cove Point's request to utilize the Pre-Filing Process and assigned Docket No. PF12-16 to staff activities involved with Dominion Cove Point's Liquefaction Project. Now, as of the filing of the application on April 1, 2013, the Pre-Filing Process for this project has ended. From this time forward, this proceeding will be conducted in Docket No. CP13-113-000, as noted in the caption of this Notice.

Florida

FERC nixes approval for Fla. LNG import project (Apr 12) — Law360 [Paid subscription]

Federal energy regulators on Thursday rescinded their authorization of a 55-mile liquefied natural gas pipeline that an AES Corp. subsidiary planned to build in waters off the coast of Broward County, Fla., saying the project failed to start construction on time.

The Federal Energy Regulatory Commission vacated authorization it first gave AES Ocean Express LLC in January 2004 to build and operate a 54.5-mile, 24-inch diameter pipeline stretching from a proposed LNG terminal in the Bahamas to Broward County, Fla., for failure to meet deadlines for... [Red & bold emphasis added.]

Webmaster's comment: AES Ocean Express getting its permit pulled exemplifies why Downeast LNG is moot — the US is swimming in domestic supply of natural gas.

Oregon

Court to review LNG tankers (Apr 9) — The Daily Astorian, Astoria, OR

U.S. Coast Guard approval is questioned

[This article also appears under the Passamaquoddy Bay heading, above.]

A U.S. federal court will review a lawsuit that involves the U.S. Coast Guard’s approval of proposed transportation of liquefied natural gas at the mouth of the Columbia River.

The Coast Guard found that tanker traffic would be feasible, but would require tug and escort boats as well as a 500-yard security zone around them while in the shipping channel and a 200-yard zone while berthed. They submitted a recommendation in 2009 that determined the river was not suitable, but could be made suitable for the proposed LNG transportation.

The citizen groups criticize the analysis, citing environmental impacts and potential safety threats were not adequately addressed.

“This challenge is about holding the Coast Guard accountable,” said Lauren Goldberg, staff attorney for Columbia Riverkeeper.

The goal, Goldberg said, is to have the Coast Guard do an Environmental Impact Statement (EIC), which was not conducted before their recommendation.

Webmaster's comment: The USCG failed to perform an EIS for the waterway in Passamaquoddy Bay, as well.

United States

Obama Administration says no to full environmental study of LNG exports — DC Bureau, Washington, DC

The Obama Administration is blocking a comprehensive environmental study on the impact of exporting massive quantities of liquefied natural gas, or LNG, on the grounds that new gas drilling induced by the exports is not “reasonably foreseeable.”

LNG 17: Top US consultant illustrates redrawn map for global gas business (Apr 17) — Hydrocarbon Processing

In the US, at least 30 LNG export applications have been submitted for review, although only a few of these plants will be built, Mr. Yergin acknowledged. The major market constraint in North America is demand, not supply. Whether or not the supply chain will be able to deliver is a question of equipment and personnel, he said. [Red & bold emphasis added.]

Webmaster's comment: In 2005 there were 40 LNG export terminal projects in the US. Now, there is a similar mad rush to send LNG in the opposite direction. Can you say, "Madly running in all directions?"