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Passamaquoddy Bay & LNG

Maine

Our View: LePage administration chased off ocean wind investment (Oct 22) — Portland Press Herald, Portland, ME

Gov. LePage’s energy policy rests on three principles: Renewable power is too expensive to be practical, access to natural gas is what will make Maine manufacturing competitive and Maine will be able to buy low-cost hydroelectric power from Quebec.

The problem is that it’s possible that none of those things may be true.

There is no guarantee that the kind of infrastructure needed to bring gas from western Pennsylvania to New England will be built in time to take advantage of the historic low prices.

This development comes as the price of renewable energy is dropping and other states are taking advantage. Massachusetts and Connecticut have agreements with a wind power company to provide electricity generated in Maine at prices competitive with natural gas. If successful, ocean-based wind power has the potential to produce more electricity at lower costs than onshore wind farms, creating a hedge if gas prices climb. [Red & bold emphasis added.]

Webmaster's comment: Still, importing costly LNG from overseas — as proposed by Downeast LNG — is not the solution.

Northeast

Shale output surges (Oct 23) — The Intelligencer / Wheeling News-Register, Wheeling, WV

"A year ago, we were not expecting the Marcellus to be at 12 billion cubic feet" per day, said Sam Gorgen of the federal Energy Information Administration, which is the office at the Department of Energy that released a report Tuesday on the increase in activity in the industry.

For perspective, if the Marcellus Shale region were a country, its natural gas production would rank third in the world, after Russia and the rest of the U.S. According to Pennsylvania-based Marcellus Shale Coalition, an industry trade group to which most local frackers belong, the formation now yields twice as much natural gas per year than the entire nation of Iran.

According to the [Energy Information Administration (EIA)] report, natural gas production has risen throughout the nation over the past year, but 75 percent of the increases have come from the Marcellus. Other formations the administration tracks include the Bakken Shale in North Dakota, the Niobrara Shale in Colorado and Wyoming, the Permian Shale in Texas, the Eagle Ford Shale in Texas and the Haynesville Shale in Texas and Louisiana. [Red & bold emphasis added.]

Webmaster's comment: Downeast LNG's purpose and need continues to be blown out of the water.

National Fuel’s shale gas production in Pennsylvania keeps soaring (Oct 22) — The Buffalo News, Buffalo, NY

Drilling in Pennsylvania sends production up 45%

National Fuel said its oil and natural gas production jumped by 45 percent during the fiscal year that ended Sept. 30, which was in line with the increased forecast that it issued in late July. The company said that it expects its production this year to rise by anywhere from 20 percent to 37 percent.

National Fuel said that its 45 percent jump in oil and natural gas production in the latest fiscal year was the equivalent of 120.7 billion cubic feet of gas. The company said that it expects its output this year to rise to between 145 billion and 165 billion cubic feet, up from its earlier forecast of 134 billion to 146 billion cubic feet.

The company also tested a well during the fourth quarter in McKean County that drilled across more than a mile of the Utica Shale, another shale formation below the Marcellus that has been shown to hold increasing promise as another source of vast amounts of natural gas. The Utica Shale well that National Fuel tested in McKean County had a peak 24-hour production rate of 8.5 million cubic feet per day and averaged 6.8 million cubic feet over a week. That’s in line with some of the exploratory Marcellus wells that the company drilled last year in the western portion of its acreage.

National Fuel’s report came on the same day that the federal Energy Information Administration said natural gas production from the Marcellus Shale region is growing faster than expected and has now reached 12 billion cubic feet a day. That’s the energy equivalent of about 2 million barrels of oil a day, and more than six times the 2009 production rate. [Red & bold emphasis added.]

Marcellus gas production continues to grow, report says (Oct 22) — The State Journal, WV

Natural gas production in the Marcellus Shale region of West Virginia and Pennsylvania topped 10 billion cubic feet per day in March of this year and has remained there ever since, according to a report issued Oct. 22 by the Energy Information Administration.

"Although natural gas production increased in 4 of the 6 DPR regions over the past year and the latest month, the Marcellus alone accounts for about 75% of natural gas production growth in the 6 regions over both periods," the EIA said in releasing the first report. [Red & bold emphasis added.]

Democracy in action: 300 enviros, unionists and locals “town hall” together on proposed LNG export terminal — Grist, Seattle, WA

The first town hall meeting concerning the risks of the proposed Cove Point LNG export terminal in Maryland was held Tuesday night, October 23. It was a big and rousing success. At least 300 people attended, most of them local residents. It was held at the Southern Community Center in Lusby, Md. in Calvert County, just a few miles from where Dominion Resources wants to build an industrial terminal to export fracked natural gas — piped in from Appalachia — and ship it to India and Japan. The $3.8 billion facility would chill the gas to 270 degrees below zero, turning it into liquid for 1000-foot-long shipping tankers coming into the Bay. It would generate 3.3 million tons of CO2 pollution per year. (You can learn more about the health and environmental risks of exporting fracked gas from Maryland at http://www.chesapeakeclimate.org/index.php?option=com_k2&view=item&id=3726:stop-fracked-gas-exports-at-cove-point&Itemid=18)

British Columbia

Why Canadians must unite to oppose LNG pipelines and terminals NOW [Opinion column] (Oct 23) — Midas Letter, Bowen Island, BC

Large energy and shipping corporations are publicly traded companies. That mean the senior managment of these entities are informed by shareholder demand for quarter-on-quarter performance. Corporations do not make provisions for their business out in the distant future. This translates directly into a case where the economic interests of the corporations managing our natural resources are in direct conflict to the economic interests of future Canadians.

If we rush to build all this LNG capacity, and then deplete our reserves of LNG, what condition will that leave the Canadian economy in say, 2050? Surely there must be an obligation to preserve as much as possible cheap energy sources for the future. [Red & bold emphasis added.]

Webmaster's comment: The same is true in the United States.

New Brunswick

Canadian Government raids gas plant after it kills 7,500 birds (Oct 20) — io9

In mid-September, around 7,500 migrating birds were killed when they flew into a gas flare at a natural gas facility in New Brunswick. Yesterday morning, officers from Environment Canada stormed into the facility in search of evidence that could help them in the investigation.

The incident happened when thousands of songbirds, including some endangered species, were drawn to the flare at the Canaport gas plant in Saint John. An estimated 6,800 birds were killed over the course of several hours, while hundreds more were injured and had to be put down. The flare tower is about 100 meters (30 meters) tall and frequently shoots out flames of varying intensities depending on weather conditions. Facility officials do this to maintain normal operating pressure by burning off small amounts of excess natural gas.

Northeast

Plant boss explains export project (Oct 18) — The BayNet, Hollywood, MD

The expansion project would give the plant liquefaction and export capabilities. The construction project is still in the permit obtainment stage.

New Brunswick

Canadian Wildlife Service investigates bird deaths at Canaport LNG plant — Brandon Sun, Brandon, MB

SAINT JOHN, N.B. - All non-essential staff at the Canaport liquefied natural gas plant in Saint John were sent home Thursday as officers with the Canadian Wildlife Service went to the facility to investigate the deaths of about 7,500 migrating birds.

The birds died about a month ago when they flew into a flare that was burning off excess gas at the facility. [Red & bold emphasis added.]

Gas plant in bird kill raided by Environment Canada — CBC News

Environment Canada officers raided a natural gas facility in Saint John on Thursday looking for evidence that could help them investigate a major bird kill last month.

Officers arrived at Canaport LNG just before 9 a.m. on Thursday.

"Environment Canada wildlife officers are investigating a kill of migratory birds that occurred early in September. Today the officers are executing a search warrant trying to gather additional evidence as part of that investigation," said Craig Smith, speaking for Environment Canada.

In mid-September, about 7,500 migrating birds were killed when they flew into the gas flare at Canaport LNG.

Kate Shannon, spokeswoman for Canaport LNG, said the flare is now turned off thanks to continuing upgrades and that the company is fully co-operating with investigators.

So far, no charges have been laid against Canaport LNG. That decision will come once officers have had a chance to sort through all the evidence seized. [Red & bold emphasis added.]

Northeast

Application filed for Marcellus Shale pipeline expansion (Oct 15) — The Times-Tribune, Scranton, PA

On Sept. 30, Williams, the Texas-based company that owns the Transco pipeline, filed an application with the Federal Energy Regulatory Commission to expand its Leidy Line, which delivers gas from central Pennsylvania to customers from New York City to Alabama.

For most of the Transco's existence, gas flowed northerly from wells in the Gulf of Mexico to consumers on the East Coast. The pipeline is the longest natural gas pipeline in the continental U.S.

Since Pennsylvania's gas boom, pipelines throughout the Atlantic Seaboard are expanding to accept more of the commonwealth's gas, Mr. Stockton said.

The Southeast Expansion application comes as Transco finishes work on another expansion of the Leidy Line, which it dubbed the Northeast Supply Link project. That project involved pipeline and compressor station work in Pennsylvania, New Jersey and New York, including 5.39 miles of 42-inch pipe loops in Lycoming and Monroe counties. [Red & bold emphasis added.]

Webmaster's comment: But wait! Lost-in-time Downeast LNG says this kind of thing can't be done, and that we need expensive LNG imports from overseas!

Winter 2013-14 Energy Market Assessment Report to the Commission (Oct 17) — Federal Energy Regulatory Commission (FERC), Washington, DC

[The above link will open a PDF document. This same article appears under the United States heading, below.]

Staff expects current production and storage levels to be sufficient to meet winter heating demand load this winter in all regions. Total U.S. natural gas supply, specifically natural gas production plus LNG and Canadian imports, is up less than 1% year-to-date, while natural gas in storage is down 4%. U.S. natural gas production grew 1.6% year-to-date, as shale gas production in the Northeast outpaced declining production from the Gulf Coast and the West. Marcellus Shale gas production climbed to almost 12 Bcfd in August from last year’s 7.4 Bcfd average. The Northeast is now the largest producing region in the U.S. Gas production from the Eagle Ford Shale in Texas reached almost 5 Bcfd in August, up from 3.3 Bcfd a year ago.

Natural gas supply from U.S. LNG import terminals dropped 40% to 0.3 Bcfd in 2013, the lowest level since the late 1990s. With abundant domestic production and U.S. natural gas prices much below global gas prices, the only LNG imports that are certain this winter are at Elba Island in Georgia and Everett in Massachusetts, which have long-term contracts in place.

… Closer and cheaper Marcellus Shale gas has largely displaced natural gas supplied to the Northeast via pipelines from the Southeast, the Mid-Continent, and Canada. Supplies from the Southeast, Mid-Continent. and Canada have fallen from around 12 Bcfd in 2008 to less than 6 Bcfd in 2013, while Northeast production has increased from 2 Bcfd to over 11 Bcfd.

… LNG is likely to remain in short supply this winter with price spikes in New England not sustained long enough to incentivize LNG cargos. GDF Suez, the owner of the Everett LNG plant in Massachusetts, is under contract to divert almost half of its supplies to higher priced areas elsewhere in the world. Everett LNG now supplies only Mystic Power Plant Units 8 & 9, and local above ground LNG storage, but does not send out significant quantities of regasified LNG into interconnecting pipelines. Repsol, the owner of Canaport LNG, does not anticipate receiving many cargos this winter or going forward. As of mid-2013, Repsol is under contract to receive about two shipments of LNG a year, just enough to keep the terminal operating.

The new Deep Panuke production project, located offshore Nova Scotia, began flowing natural gas in August and could replace some of the lost LNG supply from Canaport. The project has the potential to supply 8% of New England’s peak winter natural gas demand once it reaches its maximum steady production rate of 300 MMcfd. However, it will not entirely replace Canaport, which is capable of almost 1 Bcfd of sendout, and the timeline for the project to reach peak production capacity remains highly uncertain.

While numerous pipeline projects are due to begin service in the Northeast by the end of the year, none are targeting New England until 2016 when Spectra Energy’s Algonquin Incremental Market project is scheduled to enter service. The Texas Eastern Pipeline New Jersey-New York expansion, scheduled to go into service this November, could alleviate constraints into New York City, another market that experiences price spikes from pipeline bottlenecks. This 800-MMcfd project will allow additional natural gas to flow from the constrained Tennessee 300 line to the New York and New Jersey markets. Incremental Marcellus flows into the NJ-NY project will be supplied via a 636-MMcfd Northeast Upgrade expansion project on Tennessee Gas Pipeline.

ISO-New England has made several market changes to address the potential reliability concerns raised by the region's dependence on natural gas. Notably, the ISO changed the day-ahead market timing, created a winter reliability program, and made changes to the reserve market. First, the electricity day-ahead market will close two hours earlier than last year, allowing gas- fired generators to better coordinate their fuel-supply procurement in the natural gas markets. [Red, yellow & bold emphasis added.]

Webmaster's comment: The sensible solution to natural gas constraints in the Northeast, New England, and Maine during periods of high demand is to improve pipeline capacity from the prolific and nearby Marcellus, and that is being addressed. Importing expensive LNG from unfriendly overseas countries, as advocated by Downeast LNG, is economic and energy-security folly.

Caribbean

Trinidad & Tobago looks to Latin and Central America for natural gas exports — Sys-Con Media, Bergen County, NJ

With the US Shale revolution and Cheniere on the cusp of exporting natural gas, Trinidad & Tobago's biggest LNG customer is soon to become its main competitor.…

United States

Energy Subcommittee members and foreign diplomats discuss U.S. LNG exports — LNG World News

The U.S. is in the midst of a natural gas revolution due to private sector innovation and breakthrough technologies. According to a recent report by the Wall Street Journal, the U.S. last year produced more natural gas than Russia for the first time since 1982. America’s newfound natural gas abundance is helping to refuel our domestic economy, creating jobs, and revitalizing America’s manufacturing sector, but it also stands to be a source of affordable energy for our global friends and allies. [Red & bold emphasis added.]

Winter 2013-14 Energy Market Assessment Report to the Commission (Oct 17) — Federal Energy Regulatory Commission (FERC), Washington, DC

[The above link will open a PDF document. This same article appears under the Northeast heading, above.]

Staff expects current production and storage levels to be sufficient to meet winter heating demand load this winter in all regions. Total U.S. natural gas supply, specifically natural gas production plus LNG and Canadian imports, is up less than 1% year-to-date, while natural gas in storage is down 4%. U.S. natural gas production grew 1.6% year-to-date, as shale gas production in the Northeast outpaced declining production from the Gulf Coast and the West. Marcellus Shale gas production climbed to almost 12 Bcfd in August from last year’s 7.4 Bcfd average. The Northeast is now the largest producing region in the U.S. Gas production from the Eagle Ford Shale in Texas reached almost 5 Bcfd in August, up from 3.3 Bcfd a year ago.

Natural gas supply from U.S. LNG import terminals dropped 40% to 0.3 Bcfd in 2013, the lowest level since the late 1990s. With abundant domestic production and U.S. natural gas prices much below global gas prices, the only LNG imports that are certain this winter are at Elba Island in Georgia and Everett in Massachusetts, which have long-term contracts in place.

… Closer and cheaper Marcellus Shale gas has largely displaced natural gas supplied to the Northeast via pipelines from the Southeast, the Mid-Continent, and Canada. Supplies from the Southeast, Mid-Continent. and Canada have fallen from around 12 Bcfd in 2008 to less than 6 Bcfd in 2013, while Northeast production has increased from 2 Bcfd to over 11 Bcfd.

… LNG is likely to remain in short supply this winter with price spikes in New England not sustained long enough to incentivize LNG cargos. GDF Suez, the owner of the Everett LNG plant in Massachusetts, is under contract to divert almost half of its supplies to higher priced areas elsewhere in the world. Everett LNG now supplies only Mystic Power Plant Units 8 & 9, and local above ground LNG storage, but does not send out significant quantities of regasified LNG into interconnecting pipelines. Repsol, the owner of Canaport LNG, does not anticipate receiving many cargos this winter or going forward. As of mid-2013, Repsol is under contract to receive about two shipments of LNG a year, just enough to keep the terminal operating.

The new Deep Panuke production project, located offshore Nova Scotia, began flowing natural gas in August and could replace some of the lost LNG supply from Canaport. The project has the potential to supply 8% of New England’s peak winter natural gas demand once it reaches its maximum steady production rate of 300 MMcfd. However, it will not entirely replace Canaport, which is capable of almost 1 Bcfd of sendout, and the timeline for the project to reach peak production capacity remains highly uncertain.

While numerous pipeline projects are due to begin service in the Northeast by the end of the year, none are targeting New England until 2016 when Spectra Energy’s Algonquin Incremental Market project is scheduled to enter service. The Texas Eastern Pipeline New Jersey-New York expansion, scheduled to go into service this November, could alleviate constraints into New York City, another market that experiences price spikes from pipeline bottlenecks. This 800-MMcfd project will allow additional natural gas to flow from the constrained Tennessee 300 line to the New York and New Jersey markets. Incremental Marcellus flows into the NJ-NY project will be supplied via a 636-MMcfd Northeast Upgrade expansion project on Tennessee Gas Pipeline.

ISO-New England has made several market changes to address the potential reliability concerns raised by the region's dependence on natural gas. Notably, the ISO changed the day-ahead market timing, created a winter reliability program, and made changes to the reserve market. First, the electricity day-ahead market will close two hours earlier than last year, allowing gas- fired generators to better coordinate their fuel-supply procurement in the natural gas markets. [Red, yellow & bold emphasis added.]

Webmaster's comment: The sensible solution to natural gas constraints in the Northeast, New England, and Maine during periods of high demand is to improve pipeline capacity from the prolific and nearby Marcellus, and that is being addressed. Importing expensive LNG from unfriendly overseas countries, as advocated by Downeast LNG, is economic and energy-security folly.

Northeast

Ninth District delegation opposes LNG terminals off NJ coast (Oct 12) — The SandPaper, Surf City, NJ

Coastal legislators Sen. Christopher J. Connors, Assemblyman Brian E. Rumpf and Assemblywoman DiAnne C. Gove (all R-9th) have joined a legislative effort in support of federal and state entities taking appropriate action to prevent the construction of the proposed Port Ambrose deepwater liquefied natural gas terminal off the coast of New Jersey.

“As part of our continuing efforts to safeguard the environment, our delegation stands resolutely opposed to the construction of any LNG terminals off of New Jersey’s coastline,” the delegation noted in a joint statement.

Oregon

Editorial: Let’s put LNG behind us — The Daily Astorian, Astoria, OR

‘Fruit of the poisonous tree’ contaminates our community

Possibly in part because of a realization that a significant number of county residents wouldn’t be happy about the decision, the Port of Astoria’s executive director and board at the time delivered the LNG facility lease as a done deal. County officials dealt with the related issue of building a pipeline to connect the terminal with the outside world.

Both political bodies – from the port and county – were convinced of the intelligence, economic reasoning and procedural validity of their actions. But the fatal flaw – the “poisonous fruit” – is that they were really just listening to a sort of echo chamber that was ratifying their decisions. They dismissed those who disagreed as cranks or environmentalists.

Smart community leadership doesn’t entail charging ahead of the people and hoping they tail along. More than anything else, it consists of seeking out diverse opinions, listening, and trying to find a path forward that incorporates a consensus of those views.

United States

LNG export facilities, compiled by the American Petroleum Institute — API

Click on a location on the map for a summary of anticipated capital investments, jobs, and export volumes associated with each U.S. site, as well an estimated value of potential exports, based on application documents. Sites are listed according to the order that the DOE expects to review each application. Zoom in to view sites that are close together.

21 applications pending for LNG export terminals in five states — Akron Beacon Journal, Akron, OH

The online API LNG export map displays a summary of investments, exports, and jobs associated with each application to sell LNG to countries that do not have free trade agreements with the United States. Terminals are listed in the order that the DOE expects to review the projects, along with how long each has waited for approval. Also listed are the four U.S. export sites approved since 2011, as well as 63 competing sites planned or under construction in foreign nations.

Currently, there are 21 pending applications, including sites in Texas, Louisiana, Georgia, Oregon, and Mississippi. The next site expected to be reviewed is on Quintana Island near Freeport, Texas, where the applicant is requesting added export capacity for a facility that will attract $3 billion in capital investments and create over 3,000 construction and engineering jobs.

MIddle East

Navy repels pirates' attack on Iranian LNG carrying vessel (Oct 12) — FARS News Agency, Iran

Lieutenant Commander of the Iranian Navy for Operations Admiral Siyavash Jarreh said armed pirates on a speedboat attacked an Iranian vessel carrying LNG on Friday, but they had to flee after Iranian naval forces took swift action to repel their attack.

On Sunday, Admiral Jarreh announced that the [Iranian] Navy's 27th fleet of warship saved the Iranian tanker from pirate attacks in the Gulf of Aden.

Yet, the admiral said, the pirates returned after reinvigorating their forces on eight boats but the Iranian fleet of warships rushed to the scene and forced pirates to flee by staging successful defensive operations and a heavy firepower. [Red, yellow & bold emphasis added.]

New Brunswick

Gas flare draws thousands of birds to their deaths, and ignites questions — E&E Publishing

[This same article appears under the Northeast heading, below.]

The issue of wind energy-related bird deaths has received wide publicity with extensive news reports and some studies stemming from the realization in recent years that deadly bird strikes at wind turbine farms can add up. But there is little tracking of avian mortality at natural gas facilities.

[Canaport LNG spokesperson] Shannon Marie said the company has just brought online a two-year, $45 million upgrade to reduce flaring at the terminal by adding two compressors, a retrofit that was not yet in place in mid-September when the incident took place.

"These compressors will allow our facility to send the excess gas to the pipeline instead of to the flare, reducing the visible flare and its impact on the environment, significantly preventing the risk of this occurring again," she said.

Onshore, new oil and gas development activities popping up in Ohio, Pennsylvania, North Dakota and elsewhere could have notable impacts, too, with around-the-clock drilling schedules leading to new light sources in rural and semi-rural landscapes, and high flaring rates in areas where natural gas transportation infrastructure fails to keep up with production.

Proposed new LNG export facilities could raise similar concerns. Canaport's case, in which the addition of new compressors to the facility is expected to significantly reduce flaring, underlines the extent to which the equipment configurations at individual terminals could affect those outcomes.

Daniel Donovan, a spokesman for Dominion Resources Inc., which owns the Dominion Cove Point LNG import terminal near Lusby, Md., said that as currently configured, the plant does not flare natural gas. In the case of an emergency, natural gas would be released by venting it, without a flame, allowing the lighter-than-air gas to escape upward, he said.

Dominion is proposing to redevelop Cove Point for LNG exports, a complex and expensive undertaking requiring extensive new construction as well as new safety analyses. Donovan said that during the liquefaction process before export, other hydrocarbons are present that are heavier than air. In an emergency release, those would be burned as a flare to prevent pooling at ground level, he said. Normal shutdown operations could also require some flaring of those hydrocarbons, Donovan acknowledged, though he said the extent of it would be limited.

Webmaster's comment: The Dominion Cove Point LNG terminal would vent natural gas without flaring. Unburned natural gas is a significantly more potent greenhouse gas than the byproducts of flared (burned) natural gas.

Maine

LePage compares Maine to a turtle, urges action on ‘broken’ energy policy — Bangor Daily News, Bangor, ME

LePage’s remarks followed a series of panels at which energy industry players and stakeholders discussed the state of the natural gas industry, and what efforts are underway that will allow Maine businesses and residents to take advantage of natural gas’ historically low costs.

As to how to solve the pipeline capacity problems, several solutions have been floated. Representatives of pipeline companies such as Portland Natural Gas Transmission System and Spectra Energy were at the event discussing their companies’ plans to increase the capacity of natural gas entering New England and Maine.

[T]here’s discussion among the state governments in New England about how to solve the problem. LePage’s administration is trying to enlist other New England states in a plan that would try to get ISO-New England, the organization that manages the New England power grid, to purchase capacity on natural gas pipelines. Pipeline companies are prohibited by federal law from building pipelines on speculation, so they need contracts to ensure that demand for the natural gas is there before they invest in building a new pipeline or expanding an existing one.

“I think the conversations have been constructive thus far in New England, yet the details are obviously hugely important,” Woodcock told the Bangor Daily News on Thursday. “And we hope to have an agreement with our counterparts in the coming months of a real new initiative to start talking about competitiveness and seizing these world-class resources, whether it be natural gas in Pennsylvania, which is the best natural gas supplies in the world, and secondly whether we can use expanded low greenhouse gas renewables to comply with some of the targets in southern New England.” [Red, yellow & bold emphasis added.]

Webmaster's comment: Importing expensive LNG from overseas was not mentioned. If access to more natural gas is desired, the solution is not imported LNG; it is expanding pipeline capacity — as is being worked on, as you read this. Downeast LNG, read it, and weep.

Northeast

Gas flare draws thousands of birds to their deaths, and ignites questions — E&E Publishing

[This same article appears under the New Brunswick heading, above.]

The issue of wind energy-related bird deaths has received wide publicity with extensive news reports and some studies stemming from the realization in recent years that deadly bird strikes at wind turbine farms can add up. But there is little tracking of avian mortality at natural gas facilities.

[Canaport LNG spokesperson] Shannon Marie said the company has just brought online a two-year, $45 million upgrade to reduce flaring at the terminal by adding two compressors, a retrofit that was not yet in place in mid-September when the incident took place.

"These compressors will allow our facility to send the excess gas to the pipeline instead of to the flare, reducing the visible flare and its impact on the environment, significantly preventing the risk of this occurring again," she said.

Onshore, new oil and gas development activities popping up in Ohio, Pennsylvania, North Dakota and elsewhere could have notable impacts, too, with around-the-clock drilling schedules leading to new light sources in rural and semi-rural landscapes, and high flaring rates in areas where natural gas transportation infrastructure fails to keep up with production.

Proposed new LNG export facilities could raise similar concerns. Canaport's case, in which the addition of new compressors to the facility is expected to significantly reduce flaring, underlines the extent to which the equipment configurations at individual terminals could affect those outcomes.

Daniel Donovan, a spokesman for Dominion Resources Inc., which owns the Dominion Cove Point LNG import terminal near Lusby, Md., said that as currently configured, the plant does not flare natural gas. In the case of an emergency, natural gas would be released by venting it, without a flame, allowing the lighter-than-air gas to escape upward, he said.

Dominion is proposing to redevelop Cove Point for LNG exports, a complex and expensive undertaking requiring extensive new construction as well as new safety analyses. Donovan said that during the liquefaction process before export, other hydrocarbons are present that are heavier than air. In an emergency release, those would be burned as a flare to prevent pooling at ground level, he said. Normal shutdown operations could also require some flaring of those hydrocarbons, Donovan acknowledged, though he said the extent of it would be limited.

Webmaster's comment: The Dominion Cove Point LNG terminal would vent natural gas without flaring it. Unburned natural gas is a significantly more potent greenhouse gas than the byproducts of flared (burned) natural gas.

API launches map of U.S. LNG export projects — LNG World News

API [American Petroleum Institute] launched a new web-based map tracking liquefied natural gas (LNG) export projects, including those waiting for approval from the federal government. According to Erik Milito, director of upstream and industry operations, approval of the multi-billion dollar export terminals could create thousands of American jobs, strengthen the U.S. geopolitical position, reduce global emissions, and help the Obama administration to meet its promise to double American exports.

The online API LNG export map displays a summary of investments, exports, and jobs associated with each application to sell LNG to countries that do not have free trade agreements with the United States. Terminals are listed in the order that the DOE expects to review the projects, along with how long each has waited for approval. Also listed are the four U.S. export sites approved since 2011, as well as 63 competing sites planned or under construction in foreign nations.

Northeast

Shale industry development creating excitement in Mon Valley (Oct 9) — TribLIVE, Pittsburgh, PA

Oliver said Marcellus shale wells being dug in Washington and Westmoreland counties currently have a 30- to 50-year lifetime.

Pennsylvania is strategically located not only in the Marcellus shale formation but located in the high-energy needs market of the northeast. [Red & bold emphasis added.]

Marcellus spurs wholesale gas price break at regional trading point — NPR

The growing supply of gas from the Marcellus Shale is set to push wholesale natural gas prices at a Mid-Atlantic regional trading point below the nation’s benchmark price beginning early next year, according to market projections.

The EIA notes that recent growth in gas production in the region is mostly due to increased output from northeastern Pennsylvania wells that have been tied in to new or expanded pipelines. Northeastern Pennsylvania still produces most of the state’s Marcellus Shale gas, even though companies have been sending more of their drilling rigs to the “wet” gas regions of the Marcellus in southwestern Pennsylvania and West Virginia since early 2012. [Red & bold emphasis added.]

Southeast

Elba Island taxes: The county's job (Oct 9) — Savannah Morning News, Savannah, GA

THE COMPANY that owns the Elba Island LNG facility is in the business of handling liquified natural gas for private customers. It’s not a public utility.

On Tuesday, the Georgia Supreme Court heard oral arguments from attorneys for Southern LNG, which is claiming it should be treated like a public utility. It’s part of an ongoing effort by Southern to get the state to assess the value of its riverside property on Elba, rather than Chatham County tax assessors.

Webmaster's comment: Southern LNG, being Big Energy, feels it should get a tax break. Just because.

Caribbean

Jamaicans question deal with Australian company — The Sydney Morning Herald, Sydney, Australia

[The LNG industry seems to have a disproportionate number of flim-flam artists. And there seem to be plenty of government officials ready to accommodate the flim-flammery.]

Instead of lining up with the other energy companies in the tender for the 360-megawatt power station by the Office of Utilities Regulation, EWI had gone straight to Jamaica's cabinet to have its pitch approved. Anti-corruption campaigners are up in arms.

Apart from a page of lofty claims on the website of Energy World Corporation, citing its status as a "pioneer of modular LNG development", the track record of EWI can most charitably be described as lacking in verifiable detail.

Despite claims on the EWC website that it had a 25-year track record in building power stations, despite reports in the Sri Lankan press this year that it was constructing a $US1.35 billion port and LNG terminal in Colombo, despite it receiving multimillion-dollar payments from Energy World, and despite it suddenly emerging as preferred bidder on the power station project in Jamaica, EWI does not appear to have a website of its own. Even a telephone number proved elusive.

Over the years, EWC has told the stock exchange it has been building LNG plants in Indonesia, Australia, the Philippines and Papua New Guinea. Over the years, these projects have all been delayed.

In its recently lodged 2013 annual report – audited by Ernst & Young – details of the progress of its 2 million to 5 million-tonne plant to be constructed in the Western Province of Papua New Guinea – along with a deep-water port and power station – appear to have vanished. [Red & bold emphasis added.]

British Columbia

British Columbia First Nations dig in on LNG projects — Platts

British Columbia First Nations, despite divisions within their own ranks, will not be swayed by government and industry pressure to clear the way for LNG projects, aboriginal leader Ed John told an LNG summit Thursday.

"For us, the land is absolutely critical," he said. "If somebody wants to build a pipeline across our land we need to have a thorough assessment of what that means."

The Gitanyow signed a reconciliation agreement with the British Columbia government two years ago defining what and where industrial development could occur, but were informed in May the land-use plan did not apply to pipelines, Donaldson said, arguing that "creates an atmosphere of distrust."

Oregon

Clatsop County tells LNG: No way — The Daily Astorian, Astoria, OR

After reconsidering impacts and county development codes, Clatsop County commissioners voted unanimously Wednesday to deny an application for a proposed liquefied natural gas (LNG) pipeline and terminal on 41 miles of county land.

However, Oregon LNG and the Oregon Pipeline Company, two affiliated companies seeking to construct the pipeline, say federal regulators will have the ultimate say.

Webmaster's comment: Oregon LNG is bluffing. FERC does not allow terminal construction until all permits are obtained — including county, municipal, and state.

Clatsop County commissioners reject liquid natural gas pipeline and terminal project — (AP) Daily Journal, Franklin, IN

The board concluded that Oregon LNG's proposed pipeline violated land-use rules. Wednesday's unanimous vote got a standing ovation from liquefied natural gas opponents who wore red shirts to signify their opposition.

The terminal was originally envisioned as a means to import liquefied gas, but technological advances touched off a boom in domestic exploration and production. After that, the LNG proposal began to focus on exporting domestic supplies to Asia.

Northeast

USA: Marcellus growth to drive Appalachian gas prices below Henry Hub — LNG World News

Natural gas production in the Northeast has grown by about 3.2 billion cubic feet per day (Bcf/d) so far in 2013, a 30% increase from the same period last year. Total natural gas production in this region reached 12.2 Bcf/d in August, a 4.1-Bcf/d increase from August 2012 and a 2.5-Bcf/d increase from the end of last year

Growth is mostly from dry gas production in northeastern Pennsylvania. This coincides with infrastructure improvements in the region, as gathering lines and pipeline capacity expansions have helped flow more gas to market.…. [Red & bold emphasis added.]

Webmaster's comment: A vast supply of natural gas is domestic and available to Maine. Importing expensive LNG from overseas — proposed by Downeast LNG — makes no sense.

Bentek: Utica Shale play triggering regional role reversal (USA) — LNG World News

Massive shale-driven production growth in the U.S. Northeast and soaring demand from the Southeast will turn the nation’s traditional south-to-north and west-to-east pipeline natural gas flows and price spreads upside down, according to Bentek Energy, the natural gas and oil analytics unit of Platts.

…“The Northeast is poised to switch from the nation’s largest demand region to a net supply region, and the U.S. Southeast is racing to become a much larger net demand region after being a major supplier to the U.S. gas market.”

New England

Natural gas prices fall on cold; Binz in trouble; “bullet pipe” for New England? (Oct 3) — Platts

[The bullet pipeline coverage begins at 3:59 in the article's linked soundfile.]

Natural gas prices lost altitude as cooler weather moves across the country. The nomination of Ron Binz as chair of the Federal Energy regulatory Commission is trouble as the Senate wants to debate America’s energy future and a “bullet” pipe could be the solution to high prices in New England… if it can get built. Platts editors Bill Holland, Kate Winston, Chris Tremulis, and Bobby McMahon report. [Red, yellow & bold emphasis added.]

Webmaster's comment: A 30" bullet pipeline is being proposed from the Marcellus shale to Dracutt, Massachusetts. The state of Maine recently passed legislation to encourage and finance such projects. Downeast LNG president Dean Girdis wants you to believe that is impossible.

United States

U.S. projected to be the world’s biggest oil and gas producer this year — StateImpact Pennsylvania, PA

Pennsylvania’s Marcellus Shale produced over 1.4 trillion cubic feet of gas during the first half of 2013 according to the most recent numbers released by the state Department of Environmental Protection– that represents a 57 percent increase in gas production compared to the same time period from last year. [Red & bold emphasis added.]

EIA estimates U.S. will be largest producer of gas hydrocarbons in 2013 (Oct 4) — LNG World News

The U.S. Energy Information Administration estimates that the United States will be the world’s top producer of petroleum and natural gas hydrocarbons in 2013, surpassing Russia and Saudi Arabia. For the United States and Russia, total petroleum and natural gas hydrocarbon production, in energy content terms, is almost evenly split between petroleum and natural gas. Saudi Arabia’s production, on the other hand, heavily favors petroleum.

Webmaster's comment: Downeast LNG wants you to believe there is a desperate need for the US to import expensive LNG from overseas.

Northeast

Landslide citizen opposition to liquefied natural gas [Press release] (Oct 1) — Clean Ocean Action, NY & NJ

[The above link will open a PDF file.]

Sandy Hook, NJ – Overall, out of a sea of over 25,350 comments submitted to the Liberty LNG - Port Ambrose docket, only 16 comments supported industrialization of the ocean. This broad opposition to Liberty LNG’s Port Ambrose came from concerned citizens across the United States whose input was solicited by the Maritime Administration and the U.S. Coast Guard as part of the federal government’s project review process.

British Columbia

Editorial: Not as green as advertised — Times Colonist, Victoria, BC

British Columbia’s liquefied natural gas might not be as clean as it first appeared. It’s all in the words. Premier Christy Clark, who has staked her government’s future on developing a liquefied natural gas industry in the province, has repeatedly said that B.C.’s will be the cleanest LNG in the world. She even included it in her letter of instruction to new Environment Minister Mary Polak.

The key is the word “liquefied.” Until the plants process it, it’s still a gas, and she says her “clean” promise doesn’t apply.

A report by Tides Canada says the plants will account for one-third of the carbon emissions, while extracting and shipping the gas to the plants accounts for two-thirds. [Red & bold emphasis added.]

United States

ICYMI: Ron Binz talks to Platts about his failed FERC nomination (Oct 1) — The Barrel, Platts

Ron Binz, who was nominated by President Obama to be the new chair of the Federal Energy Regulatory Commission, asked that his name be withdrawn this morning [Oct 1]. It was shocking and it wasn’t.

U.S. energy commission to keep lights on during gov't shutdown (Oct 1) — UPI

Federal Energy Regulatory Commission said it was business as usual during the government shutdown but other agencies weren't as fortunate. [Red, yellow & bold emphasis added.]

In government shutdown, who keeps the lights on? — The Christian Science Monitor

The Department of Energy and the Federal Energy Regulatory Commission continued to operate normally Thursday, according to officials. But if a shutdown lingers, the departments responsible for ensuring the security and reliability of the nation's electric grid will be forced to cut back.

For now, both DOE and FERC are using carryover funds from previous years to function normally during a lapse of appropriations. But those funds will only last "for a short period" after Sept. 30, according to a DOE official. After that, the agencies will begin to implement their shutdown plans

FERC's shutdown plan lists six activities as essential, including "continued monitoring of the reliability of the bulk power system and threats to energy infrastructures under the Commission’s jurisdiction." That includes real-time operations of the bulk power system and a 24/7 emergency message notification system to alert the five FERC commissioners in the case of emergencies. The plan allocates four employees to this function who "will perform a minimum level of these oversight roles, to monitor for urgent matters.". [Red, yellow & bold emphasis added.]

Northeast

Citizens overwhelming oppose offshore liquefied natural gas operation — NJToday.net, NJ

SANDY HOOK – Overall, out of a sea of over 25,350 comments submitted to the Liberty LNG – Port Ambrose docket, only 16 comments supported industrialization of the ocean, according to environmentalist group Clean Ocean Action. This broad opposition to Liberty LNG’s Port Ambrose came from concerned citizens across the United States whose input was solicited by the Maritime Administration and the U.S. Coast Guard as part of the federal government’s project review process.

“If energy independence is our national goal, then neither imports nor exports are in our national interest,” said Bob Bennekamper, concerned citizen from Brick Township, New Jersey. [Red & bold emphasis added.]

Plans for Sparrows Point LNG terminal scrapped (Sep 30) — The Baltimore Sun, Baltimore, MD

After years of legal wrangling, Va. company gives up the fight

Arlington, Va.-based AES Corp. told the Federal Energy Regulatory Commission in a brief motion that it "has decided to no longer pursue" the project. The company cited no reasons and did not respond to a phone call and email seeking comment Monday.

The terminal and pipeline drew stiff opposition from residents, local politicians, state leaders and members of Congress. Though AES won approval from the Federal Energy Commission to proceed, it failed to get a needed state certification to dredge the waters around the former Bethlehem Steel shipyard to make way for big tankers.

The nation's net imports of natural gas dropped 23 percent last year from the year before, according to the U.S. Energy Information Administration.… [Red & bold emphasis added.]

Webmaster's comment: Downeast LNG is just about like Sparrows Point LNG — only Downeast LNG doesn't have a FERC permit.