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Passamaquoddy Bay & LNG

Maine

Legislature passes energy measure, bill to allow UMaine to compete for wind power project (Jun 27) — Bangor Daily News, Bangor, ME

AUGUSTA, Maine -– A bill that aims to help Maine end its heavy dependence on heating oil was passed into law late Wednesday after the state Senate unanimously rejected Gov. Paul LePage’s veto of the measure.

The measure is aimed at expanding New England’s natural gas infrastructure, boosting funding for energy efficiency, lowering businesses’ electricity costs and making it more affordable for residents to abandon oil heat. [Red & bold emphasis added.]

LePage, PUC should wield new energy power with caution [Editorial] (Jun 28) — Bangor Daily News, Bangor, ME

The Northeast could benefit from expanding its interstate pipeline capacity. By increasing the flow of natural gas from places such as New York and Pennsylvania to exceed demand, electricity prices could decrease, as natural gas is the preferred fuel for generating electricity in the Northeast. To expand pipeline capacity, however, developers need financing, and to get financing they need long-term commitments. Now they may get that commitment from Maine. The challenge in allowing this small state to purchase pipeline capacity in Connecticut or Massachusetts will be in determining how to actually contribute to — and spur others to contribute to — a meaningful expansion of infrastructure and reduce electricity prices in a way that offsets the state’s initial investment. Maine does not have a strong record of predicting energy futures, and no other Northeast state has committed itself to a similar arrangement. [Red & bold emphasis added.]

Webmaster's comment: Pipeline infrastructure expansion — not importing LNG — is the long-term solution to increasing natural gas access in Maine and New England. The US is drowning in its own supply of natural gas, mooting any need to import LNG.

Downeast LNG began too late — several years behind Canaport LNG, Northeast Gateway Deepwater Port, and Neptune LNG Deepwater Port — making it surplus from the beginnig. Declining imports at Everett LNG and absolutely zero LNG imports for more than two years at Northeast Gateway and Neptune LNG evidence Downeast LNG's hopeless struggle to have purpose and meaning.

United States

Ron Binz nominated to replace Wellinghoff as FERC chair (Jun 28) — Electric Light & Power

President Barack Obama nominated Ron Binz to serve as the next chair of the Federal Energy Regulatory Committee. If Binz is approved by the Senate, he will replace FERC's current chairman Jon Wellinghoff, who announced his intent to step down when a successor is found in late May 2013.

Binz is described in media reports as a Democrat and an advocate for renewable energy. Binz is currently the head of a regulatory consulting firm called Public Policy Consulting. He served as chair of the Colorado Public Utilities Commission from 2007 to 2011. [Red & bold emphasis added.]

Webmaster's comment: Depending on if and when Mr. Binz is confirmed as FERC chair, he will recognize the futility of Downeast LNG's proposed white elephant project, and will help escort Downeast LNG to the dustbin of history.

Nova Scotia

Goldboro waits for good gas news (Jun 19) — The Chronicle Herald, Halifax, NS

Open house hears progress of proposal for LNG facility

Then there was the proposed Keltic Petrochemicals liquefied natural gas import terminal that struggled on as a proposal for years but never got built because the price for natural gas in North America plummeted after the expanded use of hydraulic fracturing in the United States created an abundant onshore gas supply.

Just as the Keltic Petrochemical proponents were optimistic at their open houses, Mark Brown, director of project development for Pieridae, was quick with a smile Tuesday in Goldboro.

The company plans to file its environmental assessment documents by the end of July, which will trigger a 110-day period for public consultation and a ministerial decision.

It is seeking to get one-third of that from offshore Nova Scotia, one-third from onshore in the Maritimes and one-third from reversed flow through the Maritimes & Northeast pipeline. [Red & bold emphasis added.]

Webmaster's comment: Pieridae Energy hopes to get one-third of its natural gas from the Marcellus Shale in the US Northeast; however, the North American Free Trade Agreement allows the US to prevent Canada from exporting US natural gas. The permitting cart appears to be in front of the natural gas-supply horse.

Passamaquoddy Bay

FERC to process Downeast LNG’s terminal application despite Canada’s opposition (Jun 21) — LNG Law Blog

FERC Chairman Wellinghoff sent a letter to Canadian Ambassador Gary Doer in response to Doer's letter to FERC reiterating the Canadian government's opposition to the proposed Downeast LNG import terminal. Wellinghoff stated that FERC was under a legal obligation to process Downeast LNG's application, and explained that if FERC finds the project to be in the public interest, FERC would want the project to proceed in a timely manner.

Webmaster's comment: Never mind that FERC's claim of "legal obligation" is fraudulent.

Maine

LePage vetoes Energy Bill with initiatives he proposed, House quickly overrides it (Jun 20) — Natural Resources Council of Maine (NRCM)

AUGUSTA, Maine — Gov. Paul LePage vetoed a comprehensive energy bill late Wednesday night aimed at expanding New England ’s natural gas infrastructure, boosting funding for energy efficiency, directly lowering businesses’ electricity costs and making it more affordable for residents to abandon oil heat.

The House acted quickly to override the veto, voting 121-11 against the governor shortly before 1 a.m. Thursday morning. The bill now heads to the Senate, where it passed 28-7, which would meet the threshold to override LePage’s veto if all senators stick to their original votes.

The Senate is expected to take up the veto next week.

LePage recently met with representatives from Kinder Morgan, a major pipeline developer planning a pipeline expansion in northern Massachusetts, to discuss a potential investment by Maine ratepayers in the new pipeline. [Red & bold emphasis added.]

Northeast

Battle over natural gas port proposal resurfaces — The Hub, Manalapan, NJ

The latest proposal to build an East Coast deepwater natural gas port is once again drawing the ire of area activists, who contend that the project will significantly impact New Jersey residents despite its new location.

Liberty Natural Gas (LNG) officials, however, say the port — dubbed Port Ambrose — and its 22 miles of new natural gas pipeline will be limited to New York waterways, negating any impact on the Garden State.

LNG’s original application, proposed in 2010, would have located a deepwater port 16 miles off the coast of Asbury Park. That application was vetoed by Gov. Chris Christie in February 2011.

According to LNG’s current application, the port would include two submerged buoys approximately 17 miles south of Jones Beach, N.Y., and 24 miles east of Long Branch. Large tankers would deliver natural gas to the port about 45 times a year, primarily in the winter and summer, and the gas would be pumped through 19 miles of sub-sea pipe to an existing mainline about 13 miles east of Sandy Hook.

Webmaster's comment: This appears to be a bait-and-switch proposal: obtain a FERC permit to import, and then switch to an export project, as was done with Jordan Cove LNG in Oregon. Obtaining permits to export is much easier once import permits have been obtained.

United States

Bill introduced to transfer natural gas export authority to FERC (Jun 21) — LNG Law Blog

Yesterday [June 20], U.S. Representative Ted Poe (R-TX) introduced H.R. 2471, which would amend the Department of Energy Organization Act to transfer regulatory authority over exports of natural gas from the Secretary of Energy to the Federal Energy Regulatory Commission. The text of the bill was not available at press time.

Northeast

Liberty Natural Gas submits offshore New York LNG import facility application to MARAD/Coast Guard — LNG Law Blog

A notice was published in the Federal Register that the U.S. Maritime Administration and U.S. Coast Guard received an application by Liberty Natural Gas, LLC proposing to construct and operate an LNG deepwater port, known as Port Ambrose, located in the New York Bight, approximately 17 nautical miles southeast of Jones Beach, N.Y. Port Ambrose would consist of two Submerged Turret Loading (STL) Buoys where imported LNG would be received from LNG regasification vessels, vaporized on site and delivered through the STL buoys via pipeline to an interconnection with Transcontinental Gas Pipe Line's Lower New York Bay Lateral in New York State waters. Deliveries through Port Ambrose would be focused during peak demand winter and summer months.

Webmaster's comment: Downeast LNG president Dean Girdis, in a false effort to justify his project, claims that offshore LNG import terminals cannot gain access to LNG supplies during high-demand winter months. Save Passamaquoddy Bay has previously demonstrated that the two new LNG receiving terminals offshore from Gloucester, Massachusetts, have received LNG during the months that Dean Girdis says supplies are impossible to obtain.

Port Ambrose offshore LNG is now proposing a brand new US offshore LNG import terminal ... when the US is already drowning in domestic natural gas supply ... near New York state. Still, if the US were to need LNG imports, offshore regasification makes more safety and just-in-time supply sense than shore-based terminals with expensive dedicated storage tanks.

Who is crazier, Downeast LNG or Liberty Natural Gas Port Ambrose? Or, do they both possess the same recessive goofball gene?

United States

Energy Department warns House of limits on natural gas testimony — The Hill, Washington, DC

“Proponents of LNG exports generally endorsed the results of the two-part study, particularly the conclusion of the NERA study that increasing levels of exports will generate net economic benefits for the United States. On the other hand, comments filed by opponents of LNG exports raised a number of issues, including challenges to the assumptions and economic modeling underlying the two-part study and assertions that the two-part macroeconomic study should have further examined regional, sectoral, or environmental issues,” he notes in summarizing the large volume of comments received.

The good and bad of exporting LNG [Blog] — Bacon's Rebellion, VA

The last time a commercial LNG tanker actually showed up [at the Dominion LNG terminal] to unload, it was October 2011. The fracking revolution and the resulting flood of gas negated the logic of importing. Now Dominion wants to export LNG and has invited me along to see the facility. I wrote about it this Sunday in the Washington Post. [Red & bold emphasis added.]

Webmaster's comment: Importing LNG — as being proposed by Downeast LNG — is an obvious loser.

Nova Scotia

Pieridae eyes U.S. gas plans (Apr 2) — The Chronicle Herald, Halifax, NS

The developer behind a $5-billion liquefied natural gas export terminal planned for Goldboro is eyeing Portland Natural Gas Transmission System’s plan to increase capacity on its pipeline that could help bring more cheap natural gas to Nova Scotia.

Alfred Sorensen, president of Pieridae Energy Ltd., said one of his representatives went to Boston to learn more from the proponents. Pieridae is also talking to Tennessee Gas Pipeline Co., which is making plans to expand its capacity to deliver cheaper natural gas to this region.

Pieridae is proposing to build its export facility in Goldboro, close to the Maritimes & Northeast pipeline, a 1,400-kilometre transmission system built to transport natural gas between developments in Nova Scotia and through Atlantic Canada and the northeastern United States. PNGTS and Tennessee Gas both connect to that system.

“We currently don’t have any expansion plans,” [Maritime and Northeast Pipeline spokesman] Rankin said. “But certainly, as they move through their open season, and other pipelines in the northeast are also looking at similar expansions, we would work with any other parties that wanted to move gas through our system.” [Red & bold emphasis added.]

Webmaster's comment: Downeast LNG claims pipeline expansions are nigh impossible. But then, the expansions being planned add to Downeast LNG's mootness, raining on Downeast LNG's parade.

Northeast

An energy dilemma at Md.’s Cove Point [Opinion] — The Washington Post, Washington, DC

[D]ramatic change is on the menu at the Frying Pan and at Cove Point. The plan is to get things moving by reversing the flow of gas. Richmond-based Dominion Transmission wants to invest $3.8 billion — one of the largest corporate investments in Maryland history — and start exporting the gas, suddenly so plentiful in the United States thanks to the advent of revolutionary hydraulic fracking and horizontal drilling methods.

Webmaster's comment: Cove Point LNG at Lusby, MD, is located convenient to the Marcellus Shale field supply, making it perhaps the most competitive location on the Eastern Seaboard. And, it is third in line for DOE permitting, out of around 20 applications, thus far. Experts indicate only five US LNG export terminals are likely to be approved. Downeast LNG would be over 20th in line, making thoughts of exporting from Robbinston, Maine, an impossible dream, if that's what Dean Girdis is thinking.

Oregon

Federal approval sought for Columbia River LNG terminal (Jun 12) — The Daily News, Longview, WA

The state of Oregon previously locked horns with federal authorities over a separate LNG proposal on the Columbia, called the Bradwood Landing plant.

The state criticized the federal energy commission [FERC] at the time for approving the project with insufficient analysis and before the state had granted necessary permits. Backers abandoned the Bradwood project after spending more than $100 million on permitting efforts. [Red & bold emphasis added.]

Webmaster's comment: Maine is now facing a similar abuse by FERC — a FERC permitting decision even though Downeast LNG backed out of State of Maine permitting in 2007 and has announced it has no plans to re-enter state permitting.

United States

How to improve the LNG export approval process [Blog] — Council on Foreign Relations

One of the odder aspects of how applications to export liquefied natural gas (LNG) are being handled is the “first come, first served” approach. The Department of Energy (DOE) has said that it will consider applications to export LNG to countries with which the United States does not have applicable free trade agreements (non-FTA countries) in the order that they are filed with the DOE, regardless of any other merits or weaknesses of the individual applications. This is led to a stampede of questionable applications driven by a desire to be first in line. [Red & bold emphasis added.]

World

LNG trade falls for first time in 30 years — Financial Times, London, England, UK

After an uninterrupted three-decade expansion, global trade of liquefied natural gas suffered its first ever annual drop last year, according to a closely watched report.

But the 2012 drop is likely to be a blip as more countries join the ranks of LNG exporters and importers. Almost 30 countries import LNG, but the number is set to increase as nations including Pakistan, El Salvador, Uruguay, South Africa, Bahrain, Croatia, the Philippines, Jamaica and Lithuania draw plans to build import terminals. Indonesia, once the world’s largest LNG exporter, has approved plans to begin importing to meet rising demand.

United States

Energy Secretary Moniz promises LNG export decisions this year — The Christian Science Monitor

"[W]e will expeditiously work through the remaining applications [to build LNG export terminals], reviewing each one on a case-by-case basis to ensure that all approvals are in the public interest," Mr. Moniz said Thursday in prepared remarks for his first congressional testimony as head of the Department of Energy.

Webmaster's comment: There are already at least 20 applications before the DOE to export LNG, and the DOE is considering them in order of filing. Most analysts indicate no more than around five LNG export applications will be approved. Downeast LNG is not even in line.

New study from PIRA Energy Group sees significant Henry Hub price volatility emerging from North American LNG exports — Virtual-Strategy Magazine, Bedford, NH

The price of Henry Hub will become significantly more volatile once U.S. LNG exports begin, and the more export capacity that is approved and built, the greater the volatility will be. This is the central theme of a new study released by PIRA Energy Group, a NYC-based energy market consulting firm.

The study, entitled “Liquefied Henry Hub: The Repercussions of North American LNG Exports at Home and Abroad,” concludes that much of the natural gas market's attention is focused on how Henry Hub gas pricing will influence the world once LNG exports begin. An equal, if not greater, concern should be placed on how gas markets in the rest of the world will affect Henry Hub pricing because the influence will be significant.

New Brunswick & Canada

Canadian gas exports fall 10% in April; imports down 22%: NEB — Platts

Canadian gas exports to the US fell some 10% to 6.18 billion cu m (218.24 Bcf) in April from 6.87 billion cu m (242.6 Bcf) in March, according to data released Tuesday by Canada's National Energy Board.

Still, that is about 12.4% lower than the 7.06 billion cu m (249.3 Bcf) reported in April 2012.

Waddington is turning into more of an import point for US gas into Canada, rather than the other way around, sources said, as Marcellus Shale supplies continue to displace Eastern Canadian gas.

One cargo berthed at Canada's only liquefied natural gas import terminal in Canaport, New Brunswick, according to the NEB, simlar to the one cargo seen in March. [Red & bold emphasis added.]

Webmaster's comment: Canaport LNG is losing money. Canadian natural gas exports to the US are falling. Downeast LNG is a lost cause.

Maine

Lincoln Paper inks deal to pipe natural gas into Lincoln (Jun 9) — Bangor Daily News, Bangor, ME

LINCOLN, Maine — Bangor Natural Gas LLC and Lincoln Paper and Tissue LLC have inked a deal to extend a compressed-gas pipeline to the mill by late next year, officials said.

The pipeline gas will also be available to residents and other area businesses, providing potential energy savings and a lure to new business and investors, Town Council Chairman Steve Clay said.

Lincoln Paper and Tissue announced the deal on Friday. It was unclear how far beyond Lincoln the pipeline would extend, though Van Scotter said he believed it would go to Mattawamkeag.

Webmaster's comment: So, Downeast LNG, where's the natural gas shortage? Pipeline expansions are happening exactly because natural gas is available.

Northeast

Dominion Resources’ Cove Point LNG export project: Right place, right time [Opinion column] — Richmond Times-Dispatch, Richmond, VA

Another reason the export project comes at a good time is because the recent huge increase in American natural gas production is drying up the need for Cove Point as an import facility. Today’s abundant natural gas supplies and attendant low prices make importing liquid natural gas into the U.S. uneconomical.

This year, just one LNG tanker docked at Cove Point’s half-mile long pier, and that was on Jan. 1, company officials said.

The Dominion Resources plant at Cove Point has direct access to the Marcellus shale region, the most prolific natural gas basin in America and the gas source closest to the population areas of the U.S. Northeast. [Red, yellow & bold emphasis added.]

Webmaster's comment: Even if Downeast LNG is secretly wanting to export LNG if it can get permitted to import, over 20 other LNG export applicants are in line ahead of them. And, as this news article indicates, others are in far better locations to export than Downeast LNG.

Nova Scotia

Taylor: Booming business means gas storage needed (Jun 6) — The Chronicle Herald, Halifax, NS

Production at ExxonMobil’s Sable offshore natural gas project has been in decline, but it hasn’t wrapped up completely and soon Encana’s Deep Panuke project is expected to start production.

Pieridae Energy Canada Ltd. is planning to build a $5-billion liquefied natural gas export facility in Goldboro, Guysborough County. If everything goes as planned, special vessels will export the liquefied natural gas to global markets.

Meanwhile, H-Energy, which Hiranandani Group of India owns, has also announced it is investigating the construction of another LNG facility in Melford, Guysborough County.

There is also the possibility another company may also be looking at Bear Head, Richmond County — across the Strait of Canso from Melford — as the site of another export plant.

Alton Natural Gas Storage LP was recently granted environmental approval for construction of a 10.8-kilometre pipeline linking Maritimes & Northeast Pipeline’s Halifax lateral to an underground storage facility proposed for Alton, Colchester County. [Red & bold emphasis added.]

Maine

Omnibus Bill represents big step forward on State energy policy (Jun 6) — National Resources Council of Maine, ME

In addition to these clean energy advances, the bill would give Maine’s PUC authority to contract for pipeline capacity to increase the flow of natural gas into New England, most likely by building a new gas pipeline through Massachusetts.

Although our groups did not support this provision when it was first printed, there have been important improvements in the omnibus version, including limits on the size of a contract, requirement for a full hearing process at the PUC and a five-year sunset on this authority. This provision would help lower electricity prices for regional ratepayers by reducing congestion on gas pipelines.

Before the commission can proceed, however, it must pursue other avenues to reduce natural gas prices, including reforms to utilize existing pipelines more efficiently or by encouraging the private sector to finance a pipeline.

Webmaster's comment: "Not possible," Downeast LNG's Dean Girdis has claimed about improving pipeline infrastructure to bring more natural gas to Maine, in his feeble attempt to justify his project.

Senate passes Energy Bill in 28-7 vote after rejecting LePage-backed amendments (Jun 7) — National Resources Council of Maine, ME

AUGUSTA, Maine — The Maine Senate gave overwhelming support to a comprehensive energy bill Thursday, voting 28-7 in favor of a far-reaching measure aimed at expanding New England ’s natural gas infrastructure, boosting funding for energy efficiency, directly lowering businesses’ electricity costs and making it more affordable for residents to abandon oil heat.

The bill next returns to the House, where it has already received initial approval.

The bill would allow Maine to buy capacity in new pipelines as a way to spur expansions of a constrained natural gas infrastructure in the region. The intent is to erase the difference between the much higher gas prices paid in New England and the rest of the country.

Webmaster's comment: Downeast LNG is waaaaay moot.

Summit Natural Gas starts $350M pipeline construction in Madison (Jun 4) — Kennebec Journal, Augusta, ME

"We're pleased to announce the signing of our three contractors as they commence construction on this year's $110 million portion of our Kennebec Valley natural gas transmission and distribution system," Mike Minkos, president of Summit Natural Gas of Maine said in a news release. "This represents the installation of 68 miles of steel pipe and 66 miles of plastic distribution pipe in various communities throughout the region, which creates an estimated 435 jobs during this construction season."

Dan Hucko, spokesman for Maine Natural Gas parent company Iberdrola, USA, which also owns Central Maine Power, said construction of the firm's competing 12-inch steel pipeline into Augusta is about 40 percent complete, with about four miles finished. He said installation of plastic distribution pipe is more than halfway complete and Maine Natural Gas' Windsor facility where it will tap into the Maritimes and Northeast pipeline is on schedule for completion this month.

Maine Natural Gas' current efforts are focused on bringing gas to Augusta, though company officials have said they will expand to more of the Kennebec Valley if it is economically feasible. Hucko said there are about 150 workers on the construction job.

Webmaster's comment: All this without needing a sniff of Downeast LNG natural gas. Is reality reaching DeLNG president Dean Girdis?

Northeast

BP continues push for turnback of Cove Point LNG import capacity (Jun 5) — LNG Law Blog

Alleging undue discrimination and undue preference, BP Energy Company (BP) filed a pleading at FERC yesterday requesting that FERC require Dominion Cove Point LNG, LP (DCP) to give BP an opportunity to relinquish its LNG import capacity in the same manner as DCP provided to Statoil Natural Gas.

Webmaster's comment: BP wants to export, not import.

Alaska

No LNG needed? (Week of Jun 9) — Petroleum News, Anchorage, AK

Hilcorp says there’s gas in Cook Inlet, will develop it to meet contracts

Does Southcentral Alaska need to import liquefied natural gas?

...Hilcorp Alaska — now the region’s major oil and gas producer — says the gas resource exists to meet expected demands.

But Hilcorp doesn’t plan to go back to the way things were in Cook Inlet when there was an abundance of natural gas found while looking for oil, which produced numbers like 20 to 1 reserves to production ratios, held prices down and required industrial facilities like the LNG export plant and the fertilizer plant.

...Hilcorp officials say that based on gas which is either available or available to develop they are in discussions with customers for contracts to meet local needs through 2017.

Webmaster's comment: The previous philosophy was to export. The result was they appeared to run out of natural gas to heat local homes; thus, were considering importing LNG. Hilcorp apparently does not plan to export, thus providing a longer-term supply to local residents and businesses.

United States

DOE releases U.S. LNG import figures for April 2013 (Jun 7) — LNG Law Blog

The U.S. Department of Energy (DOE) has released the latest data for LNG imports into the United States. During April 2013, two shipments of LNG totaling 5.2 Bcf were received at the Everett, Mass. terminal.

World

8 June: International Day of the Oceans — Media for Freedom

8 June has been designated by the United Nations General Assembly as the International Day of the Oceans to highlight the important role that the United Nations has played in creating the Law of the Sea and the World Court in facilitating adjudication of maritime delimitations.

Webmaster's comment: The US is the only major holdout to membership in the UN Convention on the Law of the Sea (UNCLOS), but pretends to be a member, claiming treaty rights under UNCLOS that the US clearly does not have — specifically, innocent passage in Canada's Head Harbour Passage and in the Canadian waters of Passamaquoddy Bay. (Even the US Coast Guard's Chief of International and Maritime Law has publicly admitted the US lack of innocent passage.)

The Department of State and FERC refuse to recognize that calling a skunk a horse does not make it one.

Nova Scotia & New Brunswick

Editorial: LNG exports on horizon — The Chronicle Herald, Halifax, NS

Last month, Indian firm H-Energy of Mumbai announced it had an option to buy land for an LNG plant and export terminal on the Strait of Canso. Repsol’s Canaport LNG import facility in Saint John, N.B., could also be converted into an export facility.

Experts say the key to getting the first LNG export terminal in the Maritimes off the ground is securing supply.

Phil Knoll of Corridor Resources in Halifax says the Canaport facility, with storage and docking facilities in place, has an edge.

Supply shouldn’t be a problem for any of the projects. Gas imports to the Maritimes from the Marcellus and Utica shale gas fields in the eastern United States could expand with Portland Natural Gas Transmission System’s plan to increase its New England pipeline capacity into this region. Gas from Nova Scotia’s offshore and New Brunswick’s gas fields is also available, with the possibility of gas production in Nova Scotia after a moratorium on hydraulic fracturing ends in mid-2014.

Webmaster's comment: The vastly speculative nature of LNG terminal permitting makes it is unusual for an LNG terminal proposal to obtain a commitment from a supplier or customer prior to obtaining the required permits. Read on...

The NAFTA treaty appears to prevent Canada from exporting natural gas that it has imported from the US.

Big Ooooops!

Ewart: East Coast experiencing LNG promise — Calgary Herald, Calgary, AB

The latest announcement occurred Monday in Halifax when little-known Pieridae Energy Canada confirmed it had signed a 20-year agreement to supply liquefied natural gas to the German conglomerate E.ON Global Commodities from an LNG plant it plans to build at Goldboro, N.S.

The Indian company H-Energy earlier this spring said it intends to build a $3-billion LNG terminal in Nova Scotia and there's speculation the Canaport LNG import terminal in New Brunswick could follow several U.S. LNG plants to be repurposed to export the glut of North American gas.

During the past 15 years, Sable Petrochemical of Houston announced a $600-million petrochemical plant for the Strait of Canso, Anadarko Petroleum planned a $650-million LNG plant near Port Hawkesbury, Keltic Petrochemicals of Halifax put forward a $4.5-billion petrochemical plant near Goldboro and a Dutch-backed company, Maple LNG, also proposed a $700-million LNG facility.

None of them went ahead....

The company said its gas could come from the Marcellus shale in the northeast U.S., a promising but undeveloped shale gas play in New Brunswick or renewed development around Nova Scotia's declining Sable offshore gas field.

Pieridae has said it's talked with the owners of the Maritimes & Northeast Pipeline to reverse the pipeline, which brings gas from Canada to Boston. Exports of natural gas from the U.S. outside Canada are not permitted under the North American Free Trade Agreement so approvals beyond traditional export licences are another hurdle.

Webmaster's comment: The Calgary Herald has it right!

Canada's Goldboro LNG inks 20-year sales deal with Germany's E.ON (Jun 3) — Platts

Pieridae said that in conjunction with gas E&P company Contact Exploration it was engaged in "advanced discussions with North American natural gas suppliers and pipelines, which are expected to be concluded within the terms of the sales and purchase agreement."

[S]ources in the Nova Scotia government told Platts they understood Pieridae hoped to access Marcellus Shale production in New York and Pennsylvania.

Webmaster's comment: There is a lot of smoke and mirrors going on, just as happened with the LNG import terminal proposals.

Nova Scotia

East Coast LNG project gains momentum, strikes supply deal with Germany’s E.ON — The Globe and Mail, Toronto, ON

Goldboro will send roughly five million tonnes of LNG a year for 20 years to E.ON, which will deliver to a number of places in western Europe, the statement said. That volume of gas equals the first phase of a proposed project in Kitimat on the British Columbia coast.

Five million tonnes a year is worth about $1-billion, one source estimated ahead of the announcement. The companies involved did not release a price tag, but the statement detailing the deal said: “LNG pricing in the agreement is based on market prices of natural gas in the Western European market.”

Goldboro said natural gas supply could come from the Marcellus formation in the northeastern United States, New Brunswick and on and offshore Nova Scotia. The Sable offshore project, owned by Exxon Mobil Corp., Royal Dutch Shell PLC, Imperial Oil Ltd., Pengrowth Energy Corp. and Mosbacher Operating Ltd., could also benefit and is only 200 kilometres to Goldboro. [Red & bold emphasis added.]

Webmaster's comment: This is the company that wants the Maritimes and Northeast Pipeline to reverse direction so that it can export US-source natural gas as LNG.

The US is not very likely to export to Canada so that Canada can export US gas as LNG.

Pieridae inks $35-billion deal for gas from Goldboro LNG — The Chronicle Herald, Halifax, NS

An agreement with a German buyer would see Pieridae Energy Canada Ltd. export more than $35 billion worth of natural gas over 20 years from its proposed Goldboro LNG plant and terminal.

Knoll said Corridor [Corridor Resources Inc.] is already producing 200 million cubic feet of natural gas annually at its New Brunswick location and is sitting on an estimated 67 trillion-cubic-foot resource in that province.

Sorensen said he is confident negotiations now underway with Canadian gas suppliers will be successful, but he said he did not want to get specific. Negotiations will also likely involve eastern United States gas producers, he said.

The Corridor Resources site is on the route of the Maritimes & Northeast pipeline that pushes natural gas from the Sable offshore project through Goldboro to the northeastern United States, he said. [Red & bold emphasis added.]

Webmaster's comment: Goldboro LNG and Pieridae Energy are banking on the US exporting natural gas by pipeline to Canada so that Canada can export it as LNG.

The US has nearly two dozen domestic applications of its own to do just that, including from Cove Point LNG in Lusby, Maryland. Cove Point LNG is virtually atop that source of natural gas wanted by Goldboro LNG. The Canadian proposal is unlikely to obtain US natural gas for export.

Pieridae Energy signs LNG deal for proposed project in Goldboro, N.S. — Yahoo Finance

The company is planning to have natural gas shipped to Goldboro by reversing the flow of the Maritimes and Northeast pipeline, which carries offshore natural gas to New England from the Sable Island Offshore Project. [Red & bold emphasis added.]

Contact Exploration's Goldbodo LNG partner signs 20 year sales agreement with customer — NASDAQ

Contact Exploration Inc. reports that Pieridae Energy (Canada) Ltd. has entered into a long-term sales agreement with E.ON Global Commodities SE, a subsidiary of E.ON SE, and one of the world's largest investor-owned power and gas companies, for the purchase of liquefied natural gas from the Goldboro LNG project being developed by Pieridae in Nova Scotia, Canada. Under the agreement, Pieridae is to deliver approximately 5 million tons per annum (MTPA) of LNG to E.ON for 20 years into a number of locations in Western Europe.

Webmaster's comment: LNG export project developers, drooling at — and blinded by — the thought of potential billions in profits, are just as wacky as LNG import developers have been. Pieridae Energy requires US natural gas in order to have enough to export. It is unlikely that the Maritimes and Northeast Pipeline would be allowed to export US natural gas to Canada for export overseas.

E.ON signs up for Goldboro LNG volumes — Upstreamonline.com

The two companies said they were “in advanced discussions with North American natural gas exploration and production and pipeline companies” on gaining natural gas feedstock and transportation services for the facility. [Red & bold emphasis added.]

Webmaster's comment: This indicates new pipeline infrastructure would be built from the Marcellus Shale Field to the Maritimes and Northeast Pipeline. Such infrastructure would eliminate seasonal access constraints to the vast domestic natural gas supply in the Marcellus, lowering natural gas costs in New England, including Maine — even more bad news for Downeast LNG.

E.ON confirms Canada LNG deal, denies plans to cancel Gazprom contracts — Capital.gr, Greece

The deal is the German utility's first move to take advantage of huge amounts of inexpensive shale gas flooding the North American market. It also is an effort to further diversify its gas sources. The company's largest gas suppliers are Norway and Russia. [Red & bold emphasis added.]