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"For much of the state of Maine, the environment is the economy"
                                           — US Senator Susan Collins, 2012 Jun 21


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Passamaquoddy Bay & LNG

2015 July

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2015 Jul


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2015 July 31

Nova Scotia

Market Snapshot: Deep Panuke moves to seasonal production and lowers reserves due to water influx (Jul 29) — National Energy Board (NEB), Government of Canada

As of mid-May 2015, natural gas production at Deep Panuke has been shut-down and start-up is not expected until the fourth quarter of 2015. Production is shut down because Encana changed the deliverability profile to a seasonal only operation for Deep Panuke, moving production to winter months when prices in the region are higher. Deep Panuke’s reserve estimate was also decreased by Encana due to higher than expected water incursion into the reservoir. At this point, it is unclear what the impact of seasonal production will be on the ultimate recovery of Deep Panuke’s natural gas.

With production expected to continue to decline from Sable Island and uncertainty surrounding the remaining life of Deep Panuke’s output, it is possible that the Maritimes region could consider switching to imports of liquefied natural gas by tanker into New Brunswick, or pipeline imports from the U.S. Several pipeline expansions and de-bottlenecking initiatives in the U.S. Northeast are currently being proposed and are in the early stages of regulatory review. For one of the projects, Spectra’s Atlantic Bridge Project, Maritimes gas users, such as Heritage Gas, Irving Oil Terminal Operations Inc., and J.D. Irving Ltd., have entered into precedent agreements to help underpin the possible expansion of U.S. pipeline capacity in the region. [Colored & bold emphasis added.]

New Brunswick

Canaport LNG bird kill case adjourned without pleas again (Jul 30) — CBC News

Canaport LNG, Irving Canaport and Repsol each face 3 charges dating back to 2013

Canaport LNG Limited Partnership, Irving Canaport GP Company Ltd., and Repsol Canada Ltd. each face three charges, including two alleged violations of the Migratory Birds Convention Act and one from the Species at Risk Act.

The companies were scheduled to enter pleas in Saint John court on Thursday morning, but a lawyer representing Repsol requested more time for one of the defendants to review scientific data in the case. He did not identify which defendant.

The case has been set over until Sept. 28 at 9:30 a.m.

An estimated 7,500 songbirds were killed when they flew into a gas flare at the liquefied natural gas receiving and regasification terminal ​on Saint John's east side some time between Sept. 14 and Sept. 15, 2013.

In May, the court case was adjourned without pleas to allow more time for full disclosure by the Crown.

Each indictable offence carries a maximum fine of $1 million. [Colored & bold emphasis added.]

Gulf of Mexico

MARAD to prepare EIS for Delfin LNG deepwater port license application (Jul 30) — LNG Law Blog

The U.S. Maritime Administration (MARAD) has issued a notice of intent to prepare in coordination with the U.S. Coast Guard an environmental impact statement (EIS) as part of its environmental review of Delfin LNG LLC’s (Delfin LNG) application for a license to construct and operate an offshore LNG deepwater port export terminal for offshore Cameron Parish, La. The onshore pipeline to be interconnected to Delfin LNG’s proposed deepwater port would be located in Cameron Parish, La. and would be reviewed by FERC.

Liquefied natural gas hearing set (Jul 27) — Valley Morning Star, Harlingen, TX

BROWNSVILLE — Opponents of three liquefied natural gas export terminals proposed for the Port of Brownsville are questioning the format of a public “scoping hearing” the Federal Energy Regulatory Commission has scheduled for Aug. 11.

The meeting, to be held in Port Isabel, is officially meant to gather public input on the Annova LNG project for an Environmental Impact Statement as required by the National Environmental Policy Act, though public comments will be recorded on the other two proposed projects, by Rio Grande LNG and Texas LNG.

Members of the public will not, however, be allowed to air their comments aloud during the Aug. 11 meeting. Rather, their comments will be recorded one-on-one with a stenographer, entered into the project docket and made available for online viewing via FERC’s eLibrary system.

Jim Chapman, chairman of the Lower Rio Grande Valley Sierra Club, said he was told by FERC project manager Rafael Montag that the format for the Port Isabel meeting was chosen to preclude “grandstanding” by commenters. Chapman said Montag also implied that the format was due to concerns about FERC officials’ safety during the hearing

Stefanie Herwick, a member of the Sierra Club chapter’s executive committee, said the meeting format goes against the National Environmental Policy Act’s goal of “encouraging citizen involvement to the largest extent possible.”

She’s also unhappy with that fact that all three LNG projects are being lumped together in one scoping hearing, since they’re not identical and have specific issues surrounding them. The Rio Grande LNG facility, for instance, would feature on-site generation plant while the other two facilities would not, meaning differences in emissions. Herwick thinks it will just end up confusing the public. [Colored & bold emphasis added.]


Losses elsewhere, but profits in Alaska, reports ConocoPhillips —

Thursday it … commented on its natural gas operations in the state, including its just-announced plans to sell most of its Cook Inlet natural gas production and to later develop a large pipeline from the North Slope to export liquefied natural gas.

British Columbia

Drinking from the river at the Unist'ot'en Camp (Jul 28) —

Last week, Chevron representatives tried to enter Unist'ot'en territory at a protocol checkpoint. Watch this video of Chevron bringing industrial tobacco and a case of Nestle bottled water (to a community that can drinking directly from the river). Freda Huson, Unist'ot'en spokesperson, talks about the impacts of the PTP and affirming the need for meaningful consultation and consent.

There are up to 18 proposals to build LNG terminals along the Pacific Coast. Communities have raised concerns about tanker safety, impacts on salmon and other fisheries, the need for free, prior and informed consent of Indigenous communities and how the expansion of fracking to supply the terminals will impact water sources, climate change and public health.

Being at the Unist'ot'en camp was an incredibly moving experience and so inspiring to see people have the courage to put their bodies on the line to defend water, land and our climate. Visiting communities that have fought tar sands pipelines and are ready to fight LNG terminals gives hope that despite the B.C. government being bent on expanding fossil fuels -- including fracked gas -- in the province, there is a strong movement of people that are determined to create a future lit with green energy, sustained by green jobs and progressive policies that protect our water for generations to come. [Colored & bold emphasis added.]

B.C. first nation postpones vote on natural gas facility (Jul 28) — CTV News

SQUAMISH, B.C. -- The Squamish First Nation has delayed a vote on a proposed $1.6 billion liquefied natural gas plant in its traditional territory while it negotiates with the project's backers during an unprecedented environmental review.

The nation says its independent assessment is the first of its kind in British Columbia because it is legally binding and Woodfibre LNG, FortisBC and the province have agreed to participate. Last month, the nation issued 25 conditions it wants met before it grants its own environmental certificate.

The nation issued its conditions in late June after it commissioned an environmental review by an independent consulting group. More than half of the conditions apply to Woodfibre LNG, while the remainder applies to FortisBC and the province.

The province passed legislation last week that allowed for the ratification of its first LNG agreement, signed with Malaysia-led consortium Pacific Northwest LNG. The local Lax Kw'alaams First Nation has refused to support the US$36-billion facility on an island near Prince Rupert.

Squamish Nation delays vote on Woodfibre LNG facility until fall (Jul 28) — The Globe and Mail, Toronto, ON

“We do not find that the proponent’s conclusions of negligible impacts on herring and plankton (tiny fish, plants, marine insects, larval fish or shellfish) are sufficiently proven,” the report said. “We found that the development of this project adds to other industrial impacts on Howe Sound at a time when the waters are coming back to life.” [Colored & bold emphasis added.]

LNG process flawed: Nation Members (Jul 30) — The Squamish Chief, Squamish, BC

Squamish Nation leadership has postponed its decision on the proposed Woodfibre LNG and associated FortisBC pipeline project until fall.

Meanwhile, some Squamish Nation members are saying they have been left out of the decision-making process altogether.

Brown said the actual site of the proposed facility is a traditional Squamish Nation village.

Brown said while the leadership put forward conditions to be met in order for the LNG facility to go through, her feeling is that most of the membership does not want the facility at all.

Farmland under pressure with development of Site C, LNG: former Agricultural Land Commission chair (Jul 29) — CBC News

The proposed Site C Dam will take more than 4,000 hectares of agricultural Crown land. Bullock says the dam should be built elsewhere in the province because this will be the third dam on the Peace River.

The Agricultural Land Commission, formerly known as the Agricultural Land Reserve, was created by the NDP in the early 70s to protect B.C.'s farmland from industrial and urban development.

B.C.'s LNG job boom overstated, according to think tank’s report (Jul 29) — Business in Vancouver, Vancouver, BC

The 100,000 jobs the provincial government has promised due to LNG projects across B.C. is an overblown figure, according to a new report by the Canadian Centre for Policy Alternatives.

The report takes aim at the 4,500 jobs it says the government expects to be created by the Pacific Northwest LNG project headed by Petronas. The provincial legislature passed a bill last week that allowed it to enter into an agreement with the Malaysian owned company to build an LNG export terminal near Prince Rupert. [Colored & bold emphasis added.]

Orca LNG Ltd. receives Canadian LNG export license (Jul 30) — LNG Law Blog

The Canadian National Energy Board has approved Orca LNG Ltd.’s application to export 1,344 Bcf/year of LNG per year over a 25-year term from its proposed natural gas liquefaction and LNG export terminal to be located in the vicinity of Prince Rupert, British Columbia.

United States

No joy in Mudville*: Shale gas stalls, LNG export Dead On Arrival — OilVoice

Something unusual happened while we were focused on the global oil-price collapse — the increase in U.S. shale gas production stalled (Figure 1).

Meanwhile, the global price of LNG is in the gutter. Landed prices in Asia are now less than $8 per mmBtu and, in Europe, are less than $7 per mmBtu (Figure 6).

Woops! LNG export from the U.S never made competitive economic sense to me but now, it looks dead-on-arrival.

The other big appeal of LNG export, of course, was that we had 100 years of the stuff so it wouldn't affect our supply or the price by very much. Now supply is stalled and demand is rising. If this continues, price increases won't be far behind.

The stalling of gas production is a temporary anomaly but it is also a red flag. In July 2015, the future for cheap and abundant natural gas for decades looks increasingly uncertain. [Colored & bold emphasis added.]

EPA proposes voluntary methane emissions reduction program — Energy Legal Blog®

As a first step toward curbing methane emissions from existing sources, EPA has released a proposed framework for the Natural Gas Star Methane Challenge Program. EPA is scheduled to propose regulations this summer to reduce methane emissions from new and modified sources. Therefore, any sources that exist before the date EPA proposes those regulations would not be required to reduce their methane emissions until EPA adopts methane regulations for existing sources. In order to try to reduce methane emissions from existing sources in the interim, EPA will be looking to industry to voluntarily reduce methane emissions by participating in the Natural Gas Star Methane Challenge Program.

Various environmental groups have expressed concerned about delaying the adoption of regulations that reduce methane emissions from existing sources. Depending on industry’s willingness to participate in the program, these environmental groups may file a lawsuit sooner rather than later to try to force EPA to issue methane regulations for existing sources. [Colored & bold emphasis added.]

Webmaster's comment: EPA to natural gas industry: Pleeeeze? Pretty Pleeeeze? No? Oh, okay, then.

FERC offers developers advice on how to befriend stakeholders (Jul 29) — Natural Gas Intelligence [Paid subscription]

As open dockets for pipeline and liquefied natural gas (LNG) projects groan under the weight of numerous objections from landowners and others, FERC has published guidance on "best practices" for stakeholder outreach. Projects will have an easier time in the regulatory process if developers try to make friends with the locals, the Commission said.

The 32-page document presents common practices and highlights tools that FERC-regulated natural gas companies can use to "effectively inform and engage stakeholders during the FERC review process" for interstate pipelines and liquefied natural gas facilities.

Webmaster's comment: Caveat: No public stakeholders were engaged in creating this project-facilitation document.

Climate measure ditched as panel seeks bipartisan energy bill (Jul 29) — Agri-Pulse

WASHINGTON, July 29, 2015- The Senate Energy and Natural Resources Committee rejected a climate change proposal from Sen. Bernie Sanders, I-Vt., as the panel continued to debate amendments on a broad, bipartisan energy bill.

In Wednesday's markup, the panel passed an amendment introduced by Manchin that clarifies how the Department of Energy (DOE) allocates Coal Technology Program research dollars, as well as one from Sen. Elizabeth Warren, D-Mass., that would require DOE to conduct a study on how liquefied natural gas (LNG) exports impact various regions of the country, and another from Sen. Jeff Flake, R-Ariz., that would increase cybersecurity protections for public power utilities through the Federal Energy Regulatory Commission.

Sen. Angus King, I-Maine, introduced an amendment related to LNG exports that inspired a few minutes of debate, but ultimately failed to pass. The measure would have required DOE to assess the economic impact of any future LNG exports. [Colored & bold emphasis added.]


RPT-COLUMN-Asia LNG output vs regas capacity mismatch looming: Russell (Jul 30) — Reuters

LAUNCESTON, Australia, July 30 (Reuters) - What could go wrong for liquefied natural gas (LNG) in Asia to derail the current consensus of strongly rising demand being met by supply that is increasing even faster?

For LNG, there is little doubt about the wave of supply coming onstream in the next few years, with the seven projects in Australia under construction or in the process of starting up largely meeting the timetables set by their operators.

It's much the same with the five projects under construction in the United States, which together with the Australian export terminals will add more than 110 million tonnes of annual capacity to the market within the next four years.

Other projects being built in Russia, Indonesia, Malaysia and Africa will take the total LNG output capacity to 423.7 million tonnes by 2020, up from 301.2 million tonnes last year, according to data from the International Gas Union (IGU).

The supply additions are already starting to overwhelm demand, causing prices to decline sharply. Spot Asian LNG LNG-AS fetched $8.10 per million British thermal units (mmBtu) in the week to July 24, down 20 percent since the start of the year and 60 percent from the record $20.50 hit in February 2014.

Even allowing that more terminals may be completed between 2018 and 2020, it seems unlikely enough regasification capacity is being built to meet expected supply increases, particularly in China and India, the two big hopes for demand growth. [Colored & bold emphasis added.]

Webmaster's comment: Another LNG investment bubble is heading for a loud pop.


2015 July 27

New Brunswick

L-N-G tax deal denounced by former senior city official — CHSJ-FM, Saint John, NB

The 2005 L-N-G tax concession granted by Common Council to Irving Oil sacrificed the interests of ordinary people in the city to corporate greed. That contention in a letter sent to Council and the Premier by the former Commissioner of Municipal Operations for the city, Paul Groody who claims the public was bambozzled.

Irving Oil is paying 500 thousand a year property tax which, without the tax concession, would be around 8 million annually. The city is currently reviewing the agreement to determine if a request should be made of the province to have it overturned.

Gulf of Mexico

Texas LNG, opponents moving forward (Jul 25) — Port Isabel-South Padre Press, Port Isabel, TX

Five LNG companies have been granted options to lease land along the Channel in order to construct facilities that would be used to condense natural gas into a liquid form that could then be exported globally. Currently, three of those companies have taken significant strides to progress on those options, and are in the process of seeking the recommendation of the Federal Energy Regulatory Commission (FERC). Those companies are Texas LNG, Annova LNG and Rio Grande LNG. That process is an extensive one, taking two years, and requiring multiple analyses from each company, as well as numerous opportunities for the public to share their opinions.

Save RGV from LNG members, many of whom are also members of the environmental organization, the Sierra Club, have been vocal presences throughout the process, attending open houses and demonstrating in places like South Padre Island.

FERC launches environmental review for three Brownsville LNG export projects (Jul 24) — SNL

FERC on July 23 issued notices of intent to prepare environmental impact statements for three planned LNG export facilities in Brownsville, Texas, and opened the public commenting period for each.

The public commenting period for Texas LNG LLC's proposed terminal, the Exelon Corp.-linked Annova LNG project, and NextDecade LLC's Rio Grande LNG development, which all entered the prefiling process in March, will end Aug. 24.


FERC issues order authorizing Excelerate Energy's Aguirre Offshore GasPort project [Press release] —

On July 24, 2015, the Federal Energy Regulatory Commission (FERC) issued its order granting authorization to Excelerate Energy ("Excelerate"), in cooperation with the Puerto Rico Electric Power Authority (PREPA), to site, construct, and operate the proposed Aguirre Offshore GasPort Project ("Project") located offshore Puerto Rico. The order confirms the final Environmental Impact Statement (EIS) that resulted in a finding of no significant environmental impact. As part of the order, the Project will comply with all the environmental conditions outlined by FERC.


Prudhoe Bay gas owners apply to boost gas offtake for Alaska LNG Project — Platts

The AOGCC previously set a limit on gas offtake of 2.7 billion cubic feet of gas per day in 1977. BP and ExxonMobil have now asked for permission to increase the rate to 4.1 Bcf/d to supply a planned Alaska gas pipeline and LNG export project, according to the companies' application

British Columbia

VideoConfrontation escalates as First Nations erect LNG pipeline blockade [VIDEO] — Vancouver Observer, Vancouver, BC

'We're blocking pipelines; we're not blocking everyone,' Unist’ot’en Camp spokesperson Freda Huson tells RCMP at the Bulkley Valley road "checkpoint."

A month after the B.C. government conditionally approved a liquefied natural gas project led by Royal Dutch Shell in Kitimat, the Unist’ot’en Camp has reported escalating confrontations as RCMP and the LNG industry seek access to its unceded territory.

The latest recording, posted on July 26, shows TransCanada employees for the Shell project arriving in the area by helicopter. They were soon grounded by supporters who stood in the path of the rotor blades[.]

A July 15 video posted on YouTube shows attempts by the Mounties to pass a “checkpoint” set up by the First Nations camp, and on July 23, another video shows Chevron officials requesting access. Both were denied.

BC can do better than Liquefied Natural Gas (Jul 26) — The Peak, Burnaby, BC

The environmental repercussions of this project shouldn’t come as a shock to anyone. While LNG has been peddled as a less carbon-emitting alternative to Canada’s notoriously dirty oil sands, these projects are projected to account for 8.5 per cent of BC’s annual carbon emissions. The most galling part of this project, however, is not the environmental cost, but rather its vastly unequal trade-off between environmental damage and economic rewards.

One need only glance at the fine print of Bill-30 to see that this is a terrible deal. The bill ensures a consistent profit margin for Petronas by demanding that all corporate or industry-specific taxes or regulations remain unchanged for the 25 year duration of the deal.

This means BC cannot raise its corporate income tax, its LNG income tax, introduce a carbon tax, or impose more stringent regulations on carbon emissions in the LNG industry without compensating Pacific Northwest LNG for the increase in costs. These compensation costs are estimated to possibly amount to $25 million or more every year.

This is also a matter of principle, as the carbon-intensive LNG industry should not be immune to the harm it inflicts on the environment. Ironically, if 10 years down the line BC starts to see the spectre of a global climate shift and wants to take drastic action to mitigate its own carbon emissions, the most carbon-intensive industry will be sheltered from accountability. [Colored & bold emphasis added.]

NEB approves Orca LNG export licence — National Energy Board (NEB)

The National Energy Board (NEB) has approved the application of Orca LNG Ltd. (Orca LNG) for a 25 year natural gas export licence with a maximum term quantity of 901 billion cubic metresFootnote 1. The issuance of this licence is subject to the approval of the Governor in Council.

The approved export point is at the outlet of the loading arm of the liquefaction terminal, which is to be located in the vicinity of Prince Rupert, British Columbia.

Michael de Jong heads to Malaysia to try and close LNG deal (Jul 25) — CBC News

B.C Minister of Finance to shore up project with Petronas after passing new act

The province passed the Liquefied Natural Gas Project Agreements Act on July 21, and ratified the Pacific NorthWest LNG project agreements on July 23.

Under the terms of the agreement, B.C. would compensate the consortium if future governments:

  • Raise income rates for LNG operations.
  • Add carbon taxes that specifically target the industry.
  • Reduce natural gas tax credits.
  • Make changes to rules on greenhouse emissions that financially harm the industry.

Anthony Gelotti: Why Howe Sound is the right place for LNG facility (Jul 26) — The Province, Vancouver, BC

LNG shipping is safe for Howe Sound. LNG has one of the best safety records in the shipping industry with 50-plus years of shipping and not one incident of loss of containment at sea. That’s because LNG ships are designed for safety and their crews are some of the most highly trained in the industry.

Webmaster's comment: Yes, LNG has an admirable shipping safety record — in part because the LNG shipping industry has abided by the industry's own best practices (per SIGTTO). Siting an LNG terminal in Howe Sound is just as imprudent as Downeast LNG siting one in Passamaquoddy Bay — as indicated by SIGTTO.


2015 July 24

British Columbia

BC's gas export hopes face 'scandal that ate Malaysia' — The Tyee, Vancouver, BC

Asian nation's PM, key to $36 billion LNG bid by Petronas, in corruption probe.

The prime minister of Malaysia [Najib Razak], who is central to British Columbia's liquefied natural gas development ambitions, is the subject of a major financial corruption scandal rocking his country.

The debacle threatens to undermine the nation's economy, according to an expert writing for East Asia Forum: "Malaysia's international credibility is on the line, as is its currency, access to foreign capital and future economic prosperity."

The state owned company [Petronas], established in 1974, operates with limited transparency. The state's largest single tax payer and revenue generator does not report to Parliament but only to the prime minister, Najib Razak.

"With the attorney-general's confirmation [of an investigation], the WSJ allegation against Najib has assumed an even more serious character and import, sparking a political and government crisis of the first magnitude never seen in Malaysia's 58-year history," Lim Kit Siang, the opposition Democratic Action Party's (DAP) parliamentary leader, said in a statement.

[Martyn Brown who served as former chief of staff to premier Gordon Campbell] said [Premier Christy Clark] got played by a powerful multinational energy company that recognized that she was politically vulnerable due to unattainable LNG promises.

More than half of 3,000 executives from 30 different countries said they had lost a contract in Malaysia because a competitor paid a bribe.x

In 2013, two senior Petronas managers were charged with bribery. In 2015, Malaysia courts acquitted one executive, but convicted another for bribery and money laundering. [Colored & bold emphasis added.]

Webmaster's comment: Canada appears to have no greater qualms than the United States in doing business with despots and criminals. When Save Passamaquoddy Bay enquired on multiple occasions, FERC has repeatedly indicated that it would accept LNG terminal applications from the likes of Adolf Hitler, Idi Amin, and Charles Manson, so long as they followed the FERC permitting process.

United States

Drillers fracking at much shallower depths than widely believed — InsideClimate News

One in six wells were fracked less than one mile below the surface, at the same depth of known water sources, according to a new study.

The nation's first survey of fracking well depths shows shallow fracking is more widespread than previously thought, occurring at 16 percent of publicly recorded sites in 27 states, posing a potential threat to underground sources of drinking water.

Using well data from the website FracFocus spanning 2008-13, the researchers found well depths ranged nationwide from deeper than 3 miles to as shallow as 100 feet. Of the 27 states reviewed, 12 had recorded at least 50 shallow wells, defined as those drilled less than a mile deep. The three top states for shallow wells include Texas with 2,872 wells, Arkansas with 1,224 and California with 804.

Not all shallow wells pose the same threat to groundwater. The "riskiest" fracked wells are both shallow and use high levels of water—1 million gallons or more, said Jackson. Studies have shown that when these high-pressure wells fracture the bedrock, the cracks can extend as much as 2,000 feet upward. This provides an opportunity for the chemical-laced water used in fracking to migrate to the shallower depths of the water table. And the smaller the gap between drilling and surface water, the greater the chance of interaction, said Jackson.

The researchers identified about 2,000 of these shallow, high-volume fracking wells nationwide. "The state that sticks out is Arkansas," said Jackson. Arkansas has 1,215 of these wells, representing about 99 percent of the state's publicly reported shallow wells. Kansas, Oklahoma, Pennsylvania and Texas also have this type of shallow well—but to a lesser extent.

Additionally, Jackson's study reviewed state regulations current through 2014 across the U.S. and found that in most cases, including Arkansas, California and Wyoming, regulators required no extra safeguards for shallow fracking operations. [Colored & bold emphasis added.]

Multiple natgas projects slated for FERC review — Natural Gas Intelligence [Paid subscription]

FERC staff Thursday announced environmental reviews of several natural gas projects: Annova LNG Brownsville; Dominion Transmission Inc.'s Leidy South Expansion; Trans-Pecos Pipeline LLC's Presidio, TX, Border Crossing; Texas LNG Brownsville LLC; and the Rio Grande LNG project.


2015 July 23

New England

A big fight over a natural gas pipeline project divides Massachusetts —

“The concern for our organization is that we have become over-reliant on natural gas in New England,” said Peter Shattuck, clean energy and initiative director at the Acadia Center, a clean energy group based in Boston. “And the proposed solution in the form of a new, publicly funded gas pipeline would increase that problem.”

“It is not healthy from the ratepayers’ perspective to be so dependent on these highly volatile commodities for our energy use when we can be reducing our reliance by implementing energy efficiency measures and transitioning to more renewables, which, once you pay the capital costs, the fuel is free,” [Pipeline Awareness Network for the Northeast president Kathryn Eiseman] said.

Opponents also claim that Kinder Morgan will send only some of the new pipeline’s natural gas to ratepayers, with the remainder eventually getting sold at liquefied natural gas — LNG — terminals.

The revised draft of the pipeline will go before the Federal Energy Regulatory Commission as part of an environmental report later this month.

A number of other pipeline proposals from other contractors have been discussed, including one from Spectra Energy.

Backed by a couple of the biggest utility companies in New England, it’s called the Access Northeast project and, if completed, will come up along the eastern part of New England, with the addition originating in Connecticut and extending into Maine.

Gulf of Mexico

Magnolia LNG, Meridian in liquefaction tolling deal — LNG World News

LNG Limited’s Magnolia LNG has signed a legally binding agreement with Meridian LNG for firm capacity rights for up to 2 million tonnes per annum at Magnolia LNG, located on the Calcasieu shipping channel in the Lake Charles, Louisiana.

Meridian LNG intends to deliver the LNG to Port Meridian, its Höegh LNG operated floating re-gasification terminal in the UK with the gas delivered to E.ON Global Commodities under the 20-year gas sales agreement.

Freeport sets sights on export of foreign-sourced LNG (Jul 22) — LNG World News

Texas-based terminal operator Freeport LNG Development LP has filed an application with the US Department of Energy (DoE) for renewal of its blanket authorization to export LNG previously imported into the US from foreign sources.

G2 granted LNG export authorization — LNG World News

The United States Department of Energy issued an order granting Louisiana-based G2 long-term, multi-contract authorization to export LNG by vessel from the proposed G2 liquefaction terminal.

G2 LNG informed in its filing seeking authorization to export LNG that the liquefaction project will be located along the Calcasieu Ship Channel in Cameron Parish, Louisiana, and that it will have a 14 million metric tons per annum liquefaction capacity. G2 LNG states that the facilities are anticipated to include two 7 mtpa LNG trains, LNG storage tank with approximately ten days of storage at full capacity, and vessel loading facilities.

British Columbia

Building to scale (Jul 22) — The Prince George Citizen, Prince George, BC

Nineteen LNG (Liquefied Natural Gas) export facilities are proposed on the B.C. coast although no one, not even the B.C. government, believes more than five will get built.…

The B.C. government maintains on its website that B.C. "has more than an estimated 2,900 trillion cubic feet of marketable shale gas reserves". This was reiterated by Rich Coleman, Minister of Natural Gas, in response to my report.

If this were true, B.C. would have more gas than the entire United States, which was recently estimated to have 2,853 trillion cubic feet, including proven reserves and probable, possible and speculative resources.

The fact that the B.C. government is grossly exaggerating the amount of gas available in northeast B.C. can probably be written off to boosterism trying to make B.C. look as good as possible and deflect the obvious questions from the public. [Colored & bold emphasis added.]

B.C. gives green light to Petronas LNG (Jul 21) — Sooke News Mirror, Sooke, BC

VICTORIA – The B.C. government has passed legislation setting tax rates in a 25-year project development deal for what the government hopes is the first of a series of liquefied natural gas export facilities.

Pacific Northwest still needs an environmental permit from the federal government, and approval from the Lax Kw'alaams Band, whose territory includes the Lelu Island site chosen for the LNG shipping terminal.

*Updated: Squamish Nation’s full 25 conditions on LNG leaked (Jul 21) — The Squamish Chief, Squamish, BC

Details of the 25 conditions that must be met in order for Squamish Nation to support the Woodfibre LNG proposal have been leaked to The Squamish Chief.

“Bottom line. If our lands and waters are not protected, liquefied natural gas plants or other industrial operations simply won’t get built. Period,” hereditary Chief Ian Campbell said in the report, which was leaked on Tuesday.

Delta to get say in LNG assessment (Jul 22) — Delta Optimist, Ladner, BC

Delta will be invited to participate in the environmental assessment of the proposed WesPac Midstream liquefied natural gas (LNG) export facility in Tilbury.

The advocacy group Voters Taking Action on Climate Change has been calling for a full federal environmental assessment, including an assessment of the risks associated with LNG tanker traffic on the Fraser River.

United States

Senators strike deal on sweeping energy bill (Jul 22) — The Hill, Washington, DC

The bill would set a deadline for the federal government to decide on applications to export liquefied natural gas, indefinitely renew the government’s key conservation funding program and push toward an electric grid that is better prepared for cyber security and renewable energy, among other provisions.

The Energy Committee will start debating and potentially voting on the bill next week. [Colored & bold emphasis added.]

Tribes say FERC guidelines should guard cultural heritage (Jul 21) — Law360 [Paid subscription]

Law360, New York (July 21, 2015, 7:56 PM ET) -- The Colorado River Indian Tribes on Monday said the Federal Energy Regulatory Commission should aim to avoid disturbing Native American cultural resources as part of a possible revamp of guidelines focused on pipeline projects, laying out suggestions for greater tribal input.

Webmaster's comment: FERC should avoid disturbing Native American cultural resources in LNG terminal projects, too — but FERC has ignored the significant cultural and spiritual site that sits squarely beneath the proposed Downeast LNG terminal on the south side of Mill Cove in Robbinston, Maine.

Study gets a handle on gas leaks: 80 billion cubic feet — InsideClimate News

4 percent of the facilities surveyed accounted for 23 percent of the leaked natural gas, worth about $240 million.

About 80 billion cubic feet of the potent greenhouse gas methane escapes into the air each year from the complex U.S. system for carrying natural gas to power stations and other consumers, according to new research published this week.

"This study reiterates what several other recent studies have found: A few leaks can dominate the methane emissions coming from the natural gas supply system," said Amy Townsend-Small, a geologist at the University of Cincinnati who studies methane emissions from the oil and gas industry.

The study is part of an ambitious, four-year-old methane research program led by the Environmental Defense Fund. The environmental organization is coordinating an $18 million series with industry of 16 studies by more than 100 researchers investigating the booming natural gas industry's climate footprint as gas increasingly supplants coal in America's energy portfolio.

"Natural gas operators are not required to find and address methane leaks," said Jonathan Peress, director of EDF's air quality program for natural gas. The discovery of so many high-methane sites confirms the "need for a rigorous leak detection and repair regulatory program," he said.

The study found significant discrepancies between what companies report to the EPA's Greenhouse Gas Reporting Program and what actually leaks from facilities.

"What it really boils down to is we still don't have a really good handle on this, except that we know quite a bit of methane goes into the atmosphere," Flocke said. "The whole discussion of whether this is a good bridge fuel—you're still emitting CO2, you're just not making as much. But that doesn't mean methane is going to save the world from getting warmer. If we really want to prevent the Earth from becoming a hell hole, we need to switch off fossil fuels completely, including natural gas." [Colored & bold emphasis added.]

Study looks at gas transmission, storage sites’ methane releases (Jul 21) — Oil & Gas Journal

A comprehensive study of US natural gas transmission and storage operations found total methane emissions from 2,292 on-site measurements, additional emissions data from 677 facilities, and activity data from 922 facilities were 27% lower than emissions for the industry in the US Environmental Protection Agency’s 2012 Greenhouse Gas Inventory.

The results, however, were statistically similar because of several significant, but offsetting, factors, the new report said. Movement from engines toward lower-emitting turbine and electric compressor drives and less use of gas-driven pneumatic helped reduce the study’s totals, while updated emissions rates in certain categories and explicit treatment of skewed component and facility emissions increased the numbers.

The study also confirmed earlier findings that a relatively small number of so-called “super-emitters” contribute a large portion of releases to the total. “Finding a super-emitter is one thing. Making sure it is fixed is another,” said a second teleconference participant, Jonathan Peress, natural gas air policy director at the Environmental Defense Fund, which also was involved in the study. “There currently is no requirement for this. We believe some sort of regime for this will be necessary.”

Based on the study’s results, an estimated one in 25 storage and transmission facilities may be emitting 300 scf/min or more of gas at any given time. These releases account for about one third of fugitive emissions, and a quarter of all methane emissions from the sector annually, it indicated. [Colored & bold emphasis added.]


UPDATE 1-Japan's average LNG import price lowest since September 2009 — Reuters

TOKYO, July 23 (Reuters) - Japan's average price for imported liquefied natural gas (LNG) fell to the lowest since September 2009 in June, cutting the country's fuel bill after record amounts of the gas have been imported to burn in power stations since the Fukushima disaster. [Colored & bold emphasis added.]

Webmaster's comment: North American LNG projects planning on making a fortune by selling to Japan may want to rethink their investment strategy.


2015 July 21

Nova Scotia

LNG project in Nova Scotia clears significant regulatory hurdle, but faces many more (Jul 20) — Financial Post, Don Mills, ON

Despite receiving regulatory approvals from the U.S. on Monday, a liquefied natural gas export project proposed for the Nova Scotia coast is still a long way from being built.

Halifax-based Bear Head LNG Corp. announced Monday that the U.S. Department of Energy had authorized the company to export up to 440 billion cubic feet per year of American-sourced natural gas into Canada before converting that gas into its liquefied form for export to countries that have signed free trade agreements with the U.S.

As a result of complicated pipeline routes, the project’s proponents are also seeking approvals to ship Canadian-sourced natural gas through the U.S. and then back into Canada before exporting that gas off the coast of Nova Scotia.


Summit finds 256 faulty connections in Waterville area (Jul 20) — Mainebiz

Summit Natural Gas of Maine has found that about two-thirds of its natural gas connections installed in the Waterville area last year were improperly installed.

In Summit's report to the Maine Public Utilities Commission, the natural gas company said it is replacing 256 of the 384 electro-fusion tees in Waterville, Fairfield and Madison that failed a visual inspection, according to the Morning Sentinel. An electro-fusion tee is a component that connects a service line to the main gas distribution line. [Colored & bold emphasis added.]

Webmaster's comment: How does this news report comport with the industry telling the public that they don't want accidents, so they'll do everything safely?


Crowley Maritime adds 16 ISO tanks to meet LNG demand (Jul 20) — LNG Law Blog

Crowley Maritime Corporation announced that, in response to high customer demand, it has acquired 16 additional ISO tanks for its affiliate Carib Energy to supply LNG sourced from the United States to customers in Puerto Rico, the Caribbean and Central America. According to the press release, the new 40-foot tanks, each with capacity of 10,700 gallons of LNG, feature improved technology for increased offload rate, allowing for faster fuel transfers to customers. [Colored & bold emphasis added.]

Webmaster's comment: Carib Energy is in direct competition with Dean Girdis's Nova Scotia LNG export terminal project that intends to supply LNG from Nova Scotia to the Caribbean. Carib Energy is 1,000 miles closer to the market than Dean Girdis's Nova Scotia LNG wacky-idea project. Nova Scotia LNG would need to import US natural gas all the way up to Nova Scotia, increasing the cost, and then ship it all the way to the Caribbean, making it less competitive than Carib Energy's LNG. And, guess who is (as always) late to the market: Dean Girdis.

Gulf of Mexico

MARAD begins processing Delfin LNG deepwater port application (Jul 17) — LNG Law Blog

The U.S. Maritimes Administration (MARAD) has issued a notice stating that Delfin LNG’s Deepwater Port application to construct an LNG export terminal for offshore Louisiana contains all information necessary to initiate processing of the application. The MARAD notice references the notice of Delfin LNG’s FERC application for the onshore portion of the project, where FERC states that it will not begin processing Delfin LNG’s application until High Island Offshore System submits an application to abandon the facilities to be leased by Delfin LNG, which has not occurred to this date.

FERC releases Draft Environmental Impact Statement for Magnolia LNG project (Jul 17) — LNG Law Blog

FERC has released its Draft Environmental Impact Statement (DEIS) for the proposed Magnolia LNG liquefaction and export terminal project at Lake Charles, La. and the interconnected pipeline. The DEIS concludes that construction and operation of the proposed projects would result in adverse environmental impacts, but the impacts would be reduced to less-than-significant levels with the implementation of Magnolia LNG’s proposed and FERC Staff’s recommended mitigation measures.

FERC Staff Issues the Final Environmental Impact Statement for Magnolia LNG, LLC’s and Kinder Morgan Louisiana Pipeline LLC’s Magnolia LNG and Lake Charles Expansion Projects (Docket Nos. CP14-347-000 and CP14-511-000) (Jul 17) — FERC (Federal Energy Regulatory Commission)

The staff of the Federal Energy Regulatory Commission (FERC or Commission) has prepared a draft environmental impact statement (EIS) for the Magnolia LNG Project proposed by Magnolia LNG, LLC (Magnolia), and the Lake Charles Expansion Project proposed by Kinder Morgan Louisiana Pipeline LLC (KMLP).

We determined that construction and operation of the Magnolia LNG and Lake Charles Expansion Projects would result in limited adverse environmental impacts. Most adverse environmental impacts would be temporary or short term during construction and operation, although some long-term and permanent environmental impacts on wetlands, vegetation, and land use would also occur as part of the projects. This determination is based on a review of the information provided by Magnolia and KMLP and further developed from data requests; field investigations; scoping; literature research; alternatives analysis; contacts with federal, state, and local agencies as well as Indian tribes; and comments from individual members of the public. …

Comments on the draft EIS must be received in Washington, DC on or before September 8, 2015. Once the final EIS is issued, the FERC Commissioners will take into consideration the FERC staff’s recommendations when the Commission makes a decision on the projects. [Colored & bold emphasis added.]

G2 LNG LLC receives DOE FTA export authorization — LNG Law Blog

The U.S. Department of Energy issued an order authorizing G2 LNG LLC to export by vessel approximately 672 Bcf/year of LNG over a 30-year term from a proposed liquefaction and export terminal along the Calcasieu Ship Channel in Cameron Parish, La., to nations with a Free Trade Agreement (FTA) with the United States. G2 LNG’s application to export LNG to non-FTA nations remains pending.

Delfin LNG applies to build deepwater LNG export facility in Gulf of Mexico (Jul 18) — Splash 24/7

San Francisco: Delfin LNG has applied to build and operate the Delfin LNG Project (Port Delfin) – an offshore deepwater port export facility for liquefied natural gas (LNG) – in the Gulf of Mexico.

Under the US Deepwater Port Act (DPA) there is a specific time frame of 330 days for approval or denial of the deepwater port licence.

The Project proposes to use pipeline infrastructure in the Gulf to transport natural gas offshore to four moored floating liquefied natural gas vessels (FLNGVs). The FLNGVs will use air cooling technology to liquefy natural gas, reducing impacts on marine resources. The Project also proposes to construct an onshore compressor station to move natural gas through the pipeline to the FLNGVs.

Corpus Christi Liquefaction submits construction progress report (Jul 20) — LNG Law Blog

Corpus Christi Liquefaction has filed a report with FERC covering the progress of construction of its LNG export terminal near Corpus Christi, Texas through June 2015. The report states that engineering has progressed to 66.9% compared to a plan of 65% and procurement has progressed to 20.2% completion against a plan of 12.7%. The total Project has progressed to 15.8% complete against a planned 12.6%.

British Columbia

Environmental review for B.C.’s LNG project faces likely delay (Jul 19) — The Globe and Mail, Toronto, ON

Don’t expect federal Environment Minister Leona Aglukkaq to render any ruling on the controversial Pacific NorthWest LNG file during an election campaign, said Matthew Keen, an energy regulatory lawyer at Bull Housser in Vancouver.

In May, members of the Lax Kw’alaams First Nation overwhelmingly rejected a $1-billion cash offer over 40 years from Pacific NorthWest LNG, declining to give aboriginal consent to the project in their traditional territory near Prince Rupert.

A study commissioned by the 3,600-member Lax Kw’alaams band warns that the trestle would disrupt a complex system that effectively holds Flora Bank in place, putting juvenile salmon at risk in the Skeena River estuary.

CEAA started its review into Pacific NorthWest LNG in April, 2013. Since then, there have been five pauses to what industry observers originally thought might be a process that would take two years at most. The latest delay arose when the federal regulator temporarily halted its review on June 2 – day 263 of the 365-day process. It is unclear when the regulatory clock will restart, but industry observers say any final approval by CEAA appears destined for weeks after the federal election to be held Oct. 19.

B.C. to pass 25-year LNG law, but industry wants more (Jul 19) — CTV News

VICTORIA -- A liquefied natural gas industry: the British Columbia government fought an election on it, launched an extraordinary summer legislative session and made financial concessions, but it still isn't enough for the companies that want even lower taxes and have expressed concerns over the availability of workers. [Colored & bold emphasis added.]

B.C.’s Howe Sound is no place for an LNG facility [Op-ed] (Jul 17) — The Globe and Mail, Toronto, ON

Supporters of Woodfibre maintain LNG is perfectly safe. We beg to differ. In its liquid state (-162 C), methane does not burn. An LNG spill on land could be a non-event. But a spill over water presents an entirely different and potentially dangerous scenario.

There may be places along the B.C. coast where LNG facilities can be safely established. But Howe Sound is not one of them.

Are B.C.'s climate goals a lot of hot air? (Jul 17) — Business in Vancouver, Vancouver, BC

At a July 17 press conference, [Environment Minister Mary Polak] said her government’s push to develop a liquefied natural gas industry is not at odds with its commitment to address climate change.

“We’re missing a huge opportunity to act against climate change as we debate right now about LNG,” [Spencer Chandra Herbert, MLA for Vancouver-West End] said. “About 70% of the emissions from LNG have been exempted from LNG climate regulations and legislation. That’s a real challenge.”

By 2050, Petronas’ proposed LNG plant near Prince Rupert would produce emissions nearly equal to the entire amount of emissions currently produced by the province.

Opinion: Is B.C.’s natural gas bounty for LNG export real or imagined? (Jul 17) — The Vancouver Sun, Vancouver, BC

Nineteen liquified natural gas export facilities are proposed on the B.C. coast although no one, not even the B.C. government, believes more than five will be built.

The B.C. government maintains on its website that B.C. “has more than an estimated 2,900 trillion cubic feet of marketable shale gas reserves”. This was reiterated by Minister of Natural Gas Rich Coleman, in response to my report.

If this was true, B.C. would have more gas than the entire U.S., which was recently estimated to have 2,853 trillion cubic feet, including proven reserves and probable, possible and speculative resources.

The fact the B.C. government is grossly exaggerating the amount of gas available in northeast B.C. can probably be written off to boosterism, trying to make B.C. look as good as possible and deflect questions from the public.

Canada and B.C. need a long-term plan recognizing that fossil fuels are a finite resource and their extraction necessitates very significant environmental effects. Ignoring inconvenient facts, as the B.C. government has done, is a disservice to the long-term energy- and environmental-sustainability of this country. [Colored & bold emphasis added.]

BC LNG deal lets Petronas off hook for two kinds of emissions (Jul 17) — The Tyee, Vancouver, BC

The B.C. government plans to subsidize Malaysian gas giant Petronas to the tune of $16 million, in part due to a promise to exclude a significant chunk of the greenhouse gas emissions from the Pacific NorthWest LNG project from compliance penalties, DeSmog Canada has learned.

While the compensation clause has commanded the lion's share of attention, DeSmog Canada has learned that the B.C. government has quietly excluded two sources of Petronas' carbon emissions from compliance standards, which will result in the province paying out millions of dollars in subsidies.

The issue centres around two types of emissions -- "entrained" emissions and "emergency" emissions.

"When you have a law that says we have to reduce emissions by 30 per cent by 2020 and 80 per cent by 2050, but one plant comes close to polluting as much as we've allotted for the entire province, that's a huge problem," he said. "It really shows the lie of B.C. government's clean LNG promise." [Colored & bold emphasis added.]


Your View: Kudos from the other end of the LNG pipe [Op-ed] (Jul 20) — The World, Coos Bay, OR

From the State of Colorado, we would like to take this time to thank you for your coverage of the people fighting for community rights, and against the dangerous and inherently undemocratic Jordan Cove LNG facility. We write this as people in daily struggle with the production side of this issue, which here in Colorado has become widely known as a statewide battle against fracking. We see your efforts to protect your communities as an extension of our own, and would like to extend our gratitude and support in every way.

Here in Colorado we know what it means to fight an industry with seemingly all power, politicians and legal privilege on its side. Our conflict with the fossil fuel industry is drawn along parallel lines as your own. Communities, faced with a nonstop assault of oil and gas drilling have produced heroic efforts to protect our people and environment. We have democratically passed local measures that have delayed or prohibited drilling next to our homes, schools and communities alongside a news media that routinely describes the latest spill, fire, explosion and other industrial accidents and catastrophes. We have watched our politicians line up with the big dollars and power of the Colorado Oil and Gas Association at it sues to overturn our local laws against fracking. We see the never-ending barrage of industry commercials and talking points, and have experienced the threats of international drilling corporations as they come to strip us of our health, welfare and basic, fundamental rights. This is done to gain access to the fossil fuels and the profits they represent.

We would like to conclude by thanking you specifically for not shrinking from the larger fight against the very corporate legal privilege the fossil fuel industry will try to threaten you with. In Colorado it has become exceedingly clear that the real battle is over more than just fracking itself. Rather, it is about who makes decisions for our communities. The oil and gas industry knows that they cannot conduct business without repressing the demands of our communities, and so it is that very fight for our rights and democratic decision making which will lead our survival or demise. Like yourselves, we are fighting for these rights locally, and at the same time, running a state ballot initiative to codify our right to local self government. The efforts in each state are complimentary and among the most relevant of our times.

Let’s fight together, and create democracy in the most important place it can occur: where we live. [Colored & bold emphasis added.]

Webmaster's comment: Home rule is working where citizens have the will to do it.

Oregon LNG, Army Corps clash over easement (Jul 16) — The Daily Astorian, Astoria, OR

Legal fight could derail terminal

PORTLAND — Lawyers for Oregon LNG and the U.S. Army Corps of Engineers presented arguments Wednesday in a lawsuit over whether the liquefied natural gas company can force the federal government off an easement on the Skipanon Peninsula in Warrenton.

The outcome of the lawsuit could determine whether Oregon LNG can build a liquefied natural gas export terminal on its proposed site at the mouth of the Columbia River. Local, state and federal officials are reviewing the $6 billion project, which also includes a pipeline from Washington state through Columbia, Tillamook and Clatsop counties.

Oregon LNG wants to build a liquefied natural gas export terminal on land sub-leased from the state and Port of Astoria, but the project site overlaps with an area where the Army Corps has deposited dredging spoils for decades. The federal agency obtained an easement from Clatsop County in 1957, according to court documents.

In its response, the Army Corps cited sovereign immunity and said Oregon LNG did not have a right to sue the federal government under statutes the company referred to in its initial complaint. Under the sovereign immunity principle, plaintiffs cannot sue the federal government unless the law explicitly allows it.

The six-year statute of limitations in which Oregon LNG or another party could appeal the federal government’s claim to the land has also passed, Assistant U.S. Attorney Stephen Odell wrote in a court document. The Corps asked a federal judge to dismiss the lawsuit based in part on those arguments.


Premiers meeting shows national energy policy is 'a mess' (Jul 19) — CBC News

Canada's premiers may have just agreed on a national energy strategy, but whether it will actually make any practical difference remains an open question.

Trying to build consensus among the premiers on a national energy strategy is a tall order. Even oil powerhouses Alberta and Saskatchewan couldn't agree.

"It's a real mess. No one has really articulated what they mean by national energy strategy," said Frank Atkins, a research chair with the Frontier Centre for Public Policy and a former economics professor at the University of Calgary. [Colored & bold emphasis added.]

United States

9th Circ. lets Tribe, enviros challenge Federal land leases — Law360 [Paid subscription]

Law360, New York (July 20, 2015, 6:53 PM ET) -- The Ninth Circuit on Monday overturned a lower court ruling tossing a challenge brought by a Native American tribe and several environmental groups to geothermal leases on California land sacred to the tribe, saying they had standing to challenge the U.S. Bureau of Land Management's decision... [Colored & bold emphasis added.]

U.S. green groups defend push to expand review of LNG export project (Jul 20) — Reuters

The federal government must consider how a liquefied natural gas export project will affect natural gas production nationwide, two environmental groups have told a U.S. court.

In a reply brief filed on Friday, Sierra Club and Galveston Baykeeper urged the U.S. Court of Appeals for the District of Columbia Circuit to reject the Federal Energy Regulatory Commission's argument that it was not required to assess how a single LNG export project will impact natural gas output.

Eastern Europe & Asia

Ukraine to resume suspended LNG terminal project: PM (Jul 18) — Cihan World News, Istanbul, Turkey

Ukraine will resume the project of building a liquefied natural gas (LNG) terminal on the Black Sea coast in southern Odessa region, Prime Minister Arseniy Yatsenyuk said here Friday.

…[T]he project, which was launched in 2012 but suspended in 2013 due to inadequate investment, will allow Ukraine to import LNG from Georgia through the Black Sea. [Colored & bold emphasis added.]

Webmaster's comment: Despite some US members of Congress who argue that exporting US LNG to Ukraine would help that country, such cargoes are impossible since Turkey prohibits LNG ship transits through the Bosphorus Strait (just as Canada prohibits LNG transits in Head Harbour Passage and Passamaquoddy Bay); meaning, no LNG from the Mediterranian Sea can get to the Black Sea and on to Ukraine. Ukraine is planning on receiving LNG via ship by merely crossing the Black Sea from Georgia directly to Ukraine. The US has no LNG export role in supplying Ukraine.

China's LNG deals under strain as demand falls (Jul 20) — Radio Free Asia

Signs of trouble have been mounting for liquefied natural gas (LNG) suppliers with reports that China is seeking to revise major import deals.

Last month, the industry publication Petroleum Economist said that China's national oil companies were "desperately trying" to renegotiate LNG purchase commitments after domestic demand growth declined sharply last year.

It has been clear for a year or more that the Australian projects were all coming on stream at a time of declining demand," said Philip Andrews-Speed, a China energy expert at National University of Singapore.

For suppliers to China, the confluence of timing, market conditions and economic factors could hardly be worse. [Colored & bold emphasis added.]


2015 July 16


Report: Cost of Maine natural gas plans exceed benefits (Jul 15) — MPBN News

AUGUSTA, Maine - A study commissioned by Maine utility regulators says that the cost of proposals that they're examining to increase natural gas supply would exceed the benefits to the state.

The Maine Public Utilities Commission is examining several contract proposals to boost natural gas supply in an effort to lower energy prices in Maine. The Legislature has authorized the commission to spend up to $75 million a year to buy up to 200 cubic feet of natural gas capacity per day.

But a report by Boston-based London Economic International LLC found that the benefits to consumers would not outweigh the costs under any of the proposals. The group says that's primarily because Maine consumes a small amount of gas and power compared to the rest of New England. [Colored & bold emphasis added.]


Dominion Cove Point LNG files Construction Status Report — LNG Law Blog

Dominion Cove Point LNG has filed a report with FERC on construction activities through June 2015 at its LNG export terminal near Lusby, Md. The status report states that engineering is 90% complete, procurement is 77% complete, and construction is 5.3% complete.


Kinder Morgan grabs holds of Georgia LNG project — UPI

HOUSTON, July 16 (UPI) -- Infrastructure leader Kinder Morgan announced it bought the entire stake in a liquefied natural gas terminal in Savannah, Ga., for $630 million from Shell.

"We are very pleased to purchase Shell's equity interest in the joint venture and advance the project with Shell's continued support and subscription to 100 percent of the capacity of our world-class Elba Island terminal," said Kinder Morgan East Region Natural Gas Pipelines President Kimberly S. Watson.

Construction at the terminal is expected to begin in the fourth quarter, with production set for late 2017. Shell maintains a 20-year hold over the terminal's planned 2.5 million tons of annual LNG exports.

Kinder said in a statement the next step in the process for Elba Island is for the Federal Energy Regulatory Commission to issue a draft environmental assessment of the project.

Floridian Natural Gas Storage granted order to reduce LNG storage, sendout capacity — LNG Law Blog

FERC issued an order granting Floridian Natural Gas Storage Company’s request to modify the previously authorized proposed Phase 1 LNG storage facilities near Indiantown, Fla. by substituting a 1 Bcf single-containment LNG storage tank for the previously authorized 4 Bcf full-containment tank and reducing the associated Phase 1 vaporization capacity or sendout capacity from 400 MMcf/day to 100 MMcf/day. Floridian requested the scale back of Phase 1 of its project due to a changed natural gas market. No modifications were proposed to the previously authorized Phase 2 facilities which would increase LNG storage capacity by 4 Bcf and sendout capacity by 400 MMcf/day. [Colored & bold emphasis added.]

Webmaster's comment: Floridian Natural Gas Storage is proposing to supply LNG to the Caribbean — and is 1,000 miles closer to the market than Dean Girdis's Nova Scotia LNG proposal to supply the same market.

Gulf of Mexico

NMFS seeks more info for Jordan Cove LNG BA review — LNG World News

The United States National Marine Fisheries Service [NMFS] filed a request with FERC for additional information to initiate consultation on the Jordan Cove LNG export terminal and Pacific Connector gas pipeline project.

In terms of the ESA responsibility, understanding the short-term effects of the action is essential to complete the survival part of the analysis, and information regarding long-term effects is essential for understanding the recovery consequences of the project located in Coos Bay, Oregon, NMFS said.

British Columbia

As scandal rocks Malaysian government, B.C. pushes LNG deal with state-owned gas giant (Jul 15) — National Observer

Christy Clark is recklessly planning on linking the next generation in BC to the Malaysian government, which in the last few days has headed into the worst financial and political scandal in its recent history – the latest in a long history of questionable government behaviour.

Petronas is wholly owned by the Malaysian government (which has been controlled by a single ruling coalition, Barisan Nasional, for the last 50 years). Petronas supplies the Malaysian government with as much as 45 per cent of its budget, according to Reuters.

On July 2, the Wall Street Journal broke the story in Western media. Citing leaked documents, now published on the Internet, the Wall Street Journal has shown convincing evidence of nearly US$700 million in money transferred to the personal bank account of Malaysian president Najib Razak.

BC Liberals must have known about this track record when they decided to engage in a massive deal with the company that backstops a corruption-plagued regime. They must have privately realized that the Razak government is not necessarily the best business partner to hand a contract that guarantees no changes in tariffs for 23 years.

Far from giving British Columbians a safe and secure economic future, the B.C. Premier — intent on signing with Petronas as soon as possible — is simply propping up a corruption-plagued government whose primary source of rescue remedies is the $160 billion fossil fuel company, which contributes heavily to global warming. [Colored & bold emphasis added.]

Flotilla protests Woodfibre LNG in Howe Sound — Coast Reporter, Sechelt, BC

The Save Our Sound flotilla protesting the Woodfibre LNG plant in Howe Sound set sail with close to 50 boats and 150 people on July 11 with their message to Christy Clark: No LNG facility in Howe Sound.

The event was organized by two groups with a vested interested in Howe Sound, the Concerned Citizens of Bowen (CCB) and My Sea to Sky (MSS).

“We’ve often stated many objections to it, most of which have been repeated by the Squamish First Nation in their 26 demands,” MSS co-founder Eoin Finn said.

“The public has been shut out of this process as of about six weeks ago. We have no further input into it,” Finn said. “That’s not sitting very well with us, so the message to Christy Clark has to be over sound waves and the media: Please do not put an LNG facility in Howe Sound.”

United States

US LNG imports – the shale effect — Interfax Global Energy [Paid subscription]

United States LNG imports fell by 92% between 2007 and 2014, according to the Department of Energy, as shale production took up market share.…

Webmaster's comment: Throughout the 2007–2014 period, Downeast LNG attempted to convince the public that LNG importing was necessary. Not until LNG imports had fallen by 92% did Downeast LNG announce, "Ooops! We actually think exporting is what we want to do." Downeast LNG has been way behind the market curve all along, and continues that losing strategy. Dean Girdis and company need to find a different line of work.

Drillers under pressure as low prices, broad uncertainties put oil & gas industry's financial prospects 'in limbo' — DeSmogBlog

In the realpolitik world of investing and economics, a slowly-emerging awareness of the need to take steps to mitigate climate change seems to be emerging — making fossil fuel investments look not only hazardous to the climate, but also turning long-time blue chip stocks into investments that look uniquely financially risky.

Federal banking regulators have begun warning lenders that many of the loans made to drillers at the height of the shale rush must be treated as “substandard” — indicating an increased risk that companies will default and fail to repay loans or that the regulators doubt that the oil and gas reserves backing the loans will really prove to be worth what borrowers claimed, according to the Wall Street Journal.

The oil and gas industry has historically far out-earned what it spent, giving more than enough cash to fund more drilling out of its own pockets. But for many companies — especially the smaller wildcatters that have stoked enthusiasm about shale drilling even while the majors like Royal Dutch Shell renounced it as a money-loser — the current drilling boom is fueled by debt.

But that debt looks increasingly risky, as a wave of credit downgrades and lowered financial outlooks have swept across the industry. A May report by Standard and Poors found that fully one third of the world's three dozen corporate debt defaults this year were by oil and gas companies.

The wave of bankruptcies has caught the attention of environmentalists, who argue that building infrastructure for fossil fuels like oil and shale gas is not only damaging to air and water, but also makes little financial sense.

Plans by U.S. drillers to export shale gas by liquefying it and shipping it across oceans in tankers have drawn attention from Wall Street, with 19 of the top 20 Liquefied Natural Gas (LNG) companies planning projects. But building that infrastructure today makes no sense if burning that gas would send the climate over a tipping point. More than $283 billion worth of currently proposed LNG projects — those proposed by 16 of the 19 companies — will likely be “uneconomic” if the world sticks to its current climate agreements, a report by the London-based group Climate Tracker found. [Colored & bold emphasis added.]

House reps rap pipeline regulator for slow action on safeguards (Jul 14) — Fuel Fix

WASHINGTON — The nation’s top pipeline regulator has taken too long to impose congressionally ordered safeguards, including changes that could have blunted the impact of a recent spill in California, lawmakers said Tuesday.

The stalled reforms include regulations governing how quickly companies must notify authorities after a pipeline spill, leak detection systems and the use of automatic and remote-control shut-off valves that can be triggered in emergencies to swiftly halt flowing oil and natural gas. All told, more than a dozen of the 42 mandates Congress gave the Pipeline and Hazardous Materials Safety Administration [PHMSA] in a 2011 law remain unfinished, lawmakers said Tuesday.

The interim director of PHMSA, Stacy Cummings, sought to assuage lawmakers and insisted that the agency is working to roll out regulations and boost inspections, even as the two spill investigations are underway.

But Cummings did not provide a schedule for action, disappointing Rep. David McKinley, R-W.Va., who called her responses “evasive.”

“While PHMSA is certainly the easiest target since they have been slow to produce the required reports and regulations,” [Pipeline Safety Trust executive director Carl Weime] said, “they lack the financial and personnel resources needed to complete their mission in a timely manner.” [Colored & bold emphasis added.]

Webmaster's comment: PHMSA is the agency within the US Department of Transportation that has been ignoring potential for vapor fence destruction coincidental to LNG release at the proposed Downeast LNG terminal and pier.


LNG glut to get a lot worse this year (Jul 13) —

Another LNG train is up and running in Australia, adding to the growing abundance of capacity.

The $20 billion LNG project is not the only one expected to come online this year. Santos is planning on starting up its GLNG facility later this year, a unique project that will turn natural gas from coal seams into LNG. Santos is joined by its partners Petronas, Total, and KOGAS. GLNG will have the capacity to ship 7.8 mtpa of LNG. Origin Energy, another LNG producer, is expected to bring its Australia Pacific facility online this year as well, another coal seam gas project.

But the long list of projects nearing completion will only add more capacity to a marketplace that is relatively well-supplied. Spot LNG cargoes in Asia have seen their prices fall precipitously over the past year. The collapse in oil prices has contributed to weaker LNG pricing, as LNG prices are often linked to the price of crude oil. However, soft demand in Asia for LNG has also tempered prices. China, although expected to be a major consumer of LNG over the longer-term, has disappointed producers. [Colored & bold emphasis added.]

Webmaster's comment: Downeast LNG is way late.


2015 July 15

Gulf of Mexico

DOE grants rehearing on Corpus Christi LNG export authorization — LNG World News

As DOE informed in its notice, Sierra Club submitted a request for rehearing of the order granting Cheniere authorization to export, over a period of 20 years, up to 767 billion cubic feet a year of LNG from the proposed Corpus Christi liquefaction and LNG export project near Corpus Christi, Texas.

DOE grants additional export volumes to Cameron LNG (Jul 14) — LNG World News

The United States Department of Energy issued an order granting a 20-year authorization to export liquefied natural gas to Cameron LNG equivalent to approximately 515 billion cubic feet per year to free trade agreement countries.

Cameron LNG requested the additional export authorization from existing LNG terminal in Cameron, Louisiana, the notice reveals. The additional export volume will be produced at the company’s two new liquefaction trains to be constructed on the site.

DOE previously authorized Cameron LNG to export 772 billion cubic feet per year of natural gas from the first three liquefaction trains. This new authorization brings the total authorized FTA volume to 1,287 billion cubic feet per year.

British Columbia

Canadian court sides with Natives in frack sand mine dispute — Natural Gas Intelligence [Paid subscription]

A court decision Monday posted a sharp warning against cutting environmental and aboriginal rights corners to British Columbia's avidly pro-liquefied natural gas (LNG) development Liberal government.

As the BC legislature began a special summer sitting to ratify an LNG project agreement billed as worth C$36 billion (US$29 billion), Fort Nelson First Nation (FNFN) won a lawsuit against hasty approval of a northern industrial spinoff.

BC Supreme Court Justice Barry Davies ordered provincial authorities to reconsider a decision not to hold an environmental assessment on a mining project for sand to be used in horizontal drilling and hydraulic fracturing to produce shale gas for LNG exports.

The judge also declared that the province violated the natives' constitutional rights to be consulted and accommodated by initially not telling them about the mining scheme in their traditional territory, and then only requiring sketchy notices and descriptions.

Boaters protest Woodfibre LNG (Jul 14) — The Squamish Chief, Squamish, BC

The ships came from all over the South Coast and the message was simple: Save our sound.

Dozens gathered at Horseshoe Bay in West Vancouver to express their concerns about the Woodfibre LNG plant proposed for Squamish and the tanker route it will potentially follow.

A short press conference with Eoin Finn of My Sea to Sky and Anton van Walraven of the Concerned Citizens Bowen kicked off the event, followed by a flotilla of several dozen boats blowing their horns along the proposed tanker route.

“It starts with public safety because there is no regulation for LNG transport in Canada,” he said. “In New Brunswick the federal government said it was too dangerous for Maine to transport LNG, so why is it OK to do so in Howe Sound? We have ferries going in and out every day, recreational users and log booms coming through – it’s already very well used.”

Summer LNG session a desperate move, say critics (Jul 13) — Vancouver Observer, Vancouver, BC

The 'rare' summer legislative session is an attempt to slide a questionable LNG deal past a vacationing public, say critics.

“The real reason for the timing is to try and get it out of the way while nobody’s paying attention," said Martyn Brown, political advisor and chief of staff for former B.C. premier Gordon Campbell. Brown wrote a column in the Georgia Straight Monday morning detailing the fiscal foolhardiness of the tabled legislation, which proposes an unprecedented 25-year tax holiday for LNG proponents.

"They also don’t want the time it would take to study and scrutinize this bill between now and the fall -- they want to get it out and down before people can find out what’s in it."

The numbers don't add up with Voters Taking Action on Climate Change (VTACC), which said the government is making a serious mistake by rushing this legislation ahead.

Political and public timeliness aside however, Eby said the party’s urgency to pass the project could indicate that oil and gas industry may be influencing the BC Liberal agenda.

“Foreign investors are laughing their way to the bank because we’re giving it away for almost nothing,” said Anton van Walraven of Concerned Citizens Bowen, which held an anti-LNG demonstration two days before the legislature recall. “There are other priorities (for the legislature) to push through other than an energy deal.”

Just how bad Is BC's LNG deal with Petronas? (Jul 14) — The Tyee, Vancouver, BC

As far as the Project Development Agreement goes, much of the concern raised has been that the B.C. government is locking in the tax and regulatory regime for 25 years into the future. Changes made by subsequent governments -- to the LNG tax, a special tax credit on corporate income tax, the B.C. carbon tax, and anything else that would affect project costs -- would essentially have to pay compensation to Petronas. It is understandable why Petronas would seek such provisions, as this is a low-margin industry, and without them the company could not justify laying down tens of billions of dollars in capital investment.

However, what's most disturbing is that this is a massive privatization of a public resource, for which the people of B.C. will get very little in return. Let's look at the numbers.

Public revenues for B.C. depend on what price Petronas is able to get for LNG in Asia, but prices for LNG have crashed along with oil prices. It costs about $10 per mcf (thousand cubic feet) to land LNG in Asia due to the high costs of liquefaction and shipping, whereas current prices in Japan, Korea and China are much lower ($7.45 to $7.85). So any company exporting B.C. LNG in the current market would be losing lots of money.

For all of the hype about LNG creating jobs and eliminating our provincial debt, these real-world numbers are underwhelming to say the least. Having campaigned on that hype in the provincial election two years ago, it appears our provincial government is willing to accept a bad deal over no deal.

B.C. premier heralds gov't blueprint for LNG plant (Jul 14) — CTV News

Protesters chanting, "No consent, no LNG," disrupted [Premier] Clark's opening statement in the legislature. She was forced to sit down as security officials removed the protesters from the building.

"We're wondering why the province has called an emergency session to hold the door open for industry that will actually accelerate climate change," said protester Anna Gerrard.

Public access to B.C. Legislature chamber barred after LNG protest (Jul 14) — The Vancouver Sun, Vancouver, BC

VICTORIA — B.C. legislature officials barred public access to the chamber Tuesday morning, after protesters interrupted Premier Christy Clark’s speech on liquefied natural gas a day earlier.

The general public was not allowed into the chamber to watch MLAs debate LNG legislation Tuesday morning, though vetted guests of MLAs with tickets were able to attend. Public tours in the rest of the building were unaffected.

The decision was made by Speaker Linda Reid. She reversed course and re-opened the chamber Tuesday afternoon, amid public criticism from MLAs.

As many as 12 protesters interrupted Clark’s LNG speech Monday by standing in the public gallery while shouting slogans about how LNG development will lead to increased climate change. They were immediately escorted out of the building by security.

The legislature is currently installing scanning machines at the main entrances to the building, though officials admitted Tuesday none of the current or new security measures will prevent disgruntled members of the public from shouting and being disruptive once they are inside the building.

Parties, unions, and protesters draw political lines in the sand as LNG debate continues —

The legislation was tabled on Monday and NDP leader John Horgan wasted no time in stating the official opposition will vote against the bill.

At the legislature this week, security officials have removed protesters chanting “No consent…No LNG,” and suggesting, among other things, that the government is opening the door to the oil and gas industry to accelerate climate change.

Vaughn Palmer: With LNG, the more things change, the more they stay (in)sane — The Vancouver Sun, Vancouver, BC

Thirty-three years ago, government promises of LNG riches were skewered by Opposition. Sound familiar?

VICTORIA — The date: July 15, 1982. The setting: the B.C. legislature. And the energy minister of the day was on his feet to declare in somewhat breathless tones that LNG was at hand.

Five Japanese utilities were locked in as buyers via 20-year contracts. Financing already secured. Construction on a $1.7-billion terminal and pipeline to start the following year at a site near Prince Rupert.

While the Australians got going on LNG, the Socreds continued to talk about the prospects here in B.C., even signing an energy removal certificate for the project in early 1984. But long before the decade was out, Western LNG had joined Dome Petroleum itself in the scrap heap of ventures that never materialized.

Environmental concerns loom larger today and there are other points of departure as well. But for skeptics there’s one ready point of comparison to the promise of LNG that was touted on the floor of the legislature 30 years ago: Believe it when you see it, not when they say it.

New LNG regulations for Prince Rupert port — Northern View, Prince Rupert, BC

Any and all proposed LNG facilities to be built in Prince Rupert on federal lands will be required to abide by the new measures, published on June 20 in a report issued under the federal authority of the Canada Marine Act, titled Port of Prince Rupert Liquefied Natural Gas Facilities Regulations.

Four objectives have been outlined with respect to the regulations – to establish a federal regulatory regime for LNG projects in B.C. and specifically the Port of Prince Rupert, to make sure the British Columbia Oil and Gas Commission (OGC) has LNG facility construction and operations oversight, to reassure investors, developers and the public that there is a mandated regulated regime in place and to have consistency in LNG projects on B.C. federal or provincial lands.

Quicksilver gets LNG export licence (Jul 14) — Campbell River Mirror, Campbell River, BC

There’s now one less hurdle for Quicksilver Resources Canada to go through in its attempt to export Liquified Natural Gas (LNG) from its Discovery LNG site in Campbell River.

Last week, Quicksilver’s application for an export licence was approved by the National Energy Board.

The licence is good for 25 years and allows Quicksilver to export natural gas with a maximum term quantity of 733 billion cubic metres.

The licence will allow Quicksilver to export natural gas from its proposed natural gas liquefaction terminal at the former Elk Falls mill site.

B.C. to head review of LNG terminal on Fraser (Jul 14) — New Westminster News Leader, Burnaby, BC

Activists had hoped feds would oversee WesPac assessment

The federal government has decided B.C. will lead the environmental assessment into the proposed WesPac Tilbury LNG jetty that would bring liquefied natural gas ships into the mouth of the Fraser River.

Friday's decision is a disappointment to environmental groups that distrust B.C.'s LNG-promoting provincial government and had hoped federal environmental regulators would conduct their own review of the project.

The federal substitution order requires the province to assess environmental effects of marine shipping of LNG between the proposed jetty at Tilbury Island in Delta and Sand Heads at the entrance to the Strait of Georgia.

The carriers loading at WesPac would go right past populated neighbouhoods in Ladner and Steveston – considerably closer than tankers expected to serve other proposed B.C. LNG terminals. [Colored & bold emphasis added.]


Oregon LNG consistency certification decision delayed (Jul 14) — LNG World News

The Oregon Department of Land Conservation and Development and Oregon LNG have signed a stay agreement by which the project’s consistency certification is delayed for an additional 90 days.

The parties said in their agreement that the stay period ends on October 9 with DLCD’s decision due on October 23. However, they may agree to further stay the review period through mutual agreements.

National Marine Fisheries Service requests more information for Jordan Cove Energy project biological assessment (Jul 14) — LNG Law Blog

The West Coast Region of the National Marine Fisheries Service (NMFS) has filed a lengthy request with FERC for more information to enable NMFS to perform its evaluation of FERC’s Biological Assessment for the proposed Jordan Cove Energy Project LNG export terminal at Coos Bay, Ore., and interconnected pipeline.

United States

Most U.S. LNG projects won’t cross the finish line, new study says (Jul 14) — Fuel Fix

Most of the proposed U.S. liquefied natural gas export projects won’t get built amid stiffening competition from foreign competitors who will flood the market with the supercooled gas as demand begins to slow, a new study finds.

Five U.S. LNG projects already under construction, including Cheniere’s two terminals in Louisiana and Corpus Christi, will cross the finish line, but beyond that, construction appears “increasingly unlikely” for the remaining proposals, according to the latest study unveiled Tuesday by a task force of natural gas experts assembled by the Brookings Institution, a Washington D.C.-based thinktank.

Developers have been rolling out proposals on the assumptions that U.S. natural gas prices will remain at record low levels while LNG prices in Asia and Europe remain high, offering North American exporters attractive margins. Developers also placed bets that U.S. LNG, which is linked to natural gas prices, would allow them to hold a competitive edge over foreign suppliers, whose LNG is tied to crude prices, which were relatively high until they began falling late last year.

The report found that there are flaws in those assumptions that call into question whether U.S. LNG projects will be successful. [Colored & bold emphasis added.]


Peru dispatches cargoes to Mexico and Spain — LNG World News

The 170,00 cbm SCF Mitre departed from the facility on July 10 towards Mexico. The second vessel, the 130,000 cbm Galea LNG carrier departed only two days later on July 12 setting course for Spain.

Perupetro did not reveal the exact destination of the two liquefied natural gas carriers, but SCF Mitre delivered its last load to Mexico’s Manzanillo LNG terminal while Galea LNG carrier delivered cargo to Cartagena terminal on its last visit to Spain.


2015 July 13

New England

What to do with the Brightman Street Bridge? (Jul 10) — The Herald News, Fall River, MA

Changes to the old Brightman Street Bridge remain slow coming, despite the long-settled battle over a liquefied natural gas terminal in Fall River.

To help block construction of an LNG terminal at Weaver’s Cove on the 76-acre Hess site in northern Fall River, the area congressional delegation, with strong local backing, pushed through new legislation.

The legislation requires maintenance of the Brightman as an emergency service route tied to any effort to demolish it.

It says, in part, “No federal funds shall be obligated or expended for the demolition of the existing Brightman Street Bridge,” and the existing bridge “shall be maintained for pedestrian and bicycle access and as an emergency service route.”


BP Energy appeals against Dominion Cove Point LNG (Jul 10) — LNG World News

BP Energy challenged orders in which FERC said that Dominion Cove Point LNG did not unduly discriminate against BP Energy by not offering it the same opportunity to turn back its capacity at the terminal.

BP Energy also challenged FERC’s order denying rehearing and stay of its order approving the Dominion Cove Point LNG export project in Lusby, Maryland.

A similar motion by an environmental group has already been denied by the U.S. Court of Appeals for the District of Columbia Circuit.

Gulf of Mexico

DOE authorizes additional LNG exports from Cameron LNG expansion — LNG Law Blog

The U.S. Department of Energy (DOE) has authorized Cameron LNG to export 515 Bcf/year of LNG produced from Cameron LNG’s proposed liquefaction Trains 4 and 5 near Hackberry, La. to nations with a Free Trade Agreement (FTA) with the United States. Cameron LNG’s total authorized FTA export volume is now 1,287 Bcf/year from Trains 1-5 at its terminal.

Methane emissions in Texas fracking region 50% higher than EPA estimates (Jul 8) — InsideClimate News

Environmental Defense Fund-backed studies of 30,000 Barnett Shale wells shows the EPA has vastly underestimated emissions.

The EDF-sponsored research adds to a growing body of work on the amount of methane leaking from natural gas operations, and the results are crucial for understanding whether natural gas will accelerate or delay the effects of climate change as it's increasingly used in place of coal.

Dozens of scientists from 20 universities and private research firms contributed to the 11 studies, collectively called the "Barnett Coordinated Campaign." Twelve research teams took measurements over an area that included 30,000 oil and gas wells, 275 compressor stations and 40 processing plants. All of the studies were published in the peer-reviewed journal Environmental Science & Technology. Another study that synthesizes the papers' results will be published later.

The scientists behind the Barnett campaign used both "top-down" methods—where emissions are measured from aircraft over a large area—and "bottom-up" methods, where emission sources such as pneumatic valves and compression stations are individually measured and tallied up. Both methods showed that a large portion of the leaks come from a relatively small number of "super-emitters." The scientists also used chemical "fingerprints" to distinguish the methane emitted by oil and gas production from the methane coming out of landfills and agricultural sources. One of these "fingerprints" is ethane, a light gas that's found only in fossil fuel-produced methane. [Colored & bold emphasis added.]

Briefs -- Piedmont open season, Venture Global LNG, LINN Energy (Jul 2) — Natural Gas Intelligence [Paid subscription]

FERC has approved for prefiling review Venture Global Plaquemines LNG LLC's planned liquefied natural gas (LNG) terminal that would be sited in Plaquemines Parish, LA. Plaquemines LNG plans to construct a terminal ultimately capable of exporting 20 million tonnes per annum (mtpa) of LNG. The first phase would have 10 mtpa of capacity. The project site would be about 623 acres south of Myrtle Grove, LA, on the west side of the Mississippi River, Plaquemines LNG has told the Federal Energy Regulatory Commission [PF15-27]. Venture Global also is developing an LNG export terminal in Calcasieu Parish, LA (see Daily GPIJune 24); the Plaquemines project is the company's second in Louisiana.


Dominican Republic to get LNG cargo from Trinidad — LNG World News

The cargo is being carried by the 138,000 cbm British Trader, and it is due to arrive at the AES Andres LNG terminal on July 14, according to shipping data.

Jamaica Public Service wants to import gas tax free (Jul 10) — The Gleaner, Kingston, Jamaica, West Indies

The Jamaica Public Service Company Limited (JPS), which is finalising a deal with United States-based Fortress Energy to supply it with liquefied natural gas (LNG), is hoping that the government will permit the company to import the gas tax-free and on terms similar to the state refinery Petrojam.

Additionally, the company is weighing whether to invest in a gas terminal project mooted as a hub to supply the wider Caribbean. The cost is estimated at between US$200 million and US$300 million to develop the infrastructure, as well as for internal and external supply.

Webmaster's comment: But, Downeast LNG president Dean Girdis has an LNG export project in Nova Scotia that wants to ship LNG to the Caribbean — 1,000 miles farther away from the market than from Florida, Texas, or Louisiana. If Jamaica is distributing to the Caribbean, Dean Girdis is piloting yet another dead-before-it-begins LNG project. Dean Girdis may want to find another line of work.

British Columbia

Opinion: LNG expansion will add fuel to B.C.’s growing wildfire problem — The Vancouver Sun, Vancouver, BC

Temperatures are soaring, the province is on fire and Premier Christy Clark has called a rare summer sitting of the legislature.

Although Clark recently announced — with much fanfare — a commitment to climate action, she continues to focus on promoting LNG projects with no regard for the carbon and methane emissions they will produce.

The development of an LNG export industry is not compatible with any serious approach to tackling climate change, and would make things worse. Building three LNG terminals would result in an extra 36 million tonnes per year of greenhouse gases representing more than 50 per cent of B.C.’s officially reported emissions.

Rather than reconvening the legislature to pass new laws promoting climate-polluting fracked gas and undermining our decision-making ability, Clark should use this summer session to urgently enact climate policies that protect our communities from drought and fire, now and into the future.

B.C. Legislature debates law on 25-year LNG deal — CBC News

Unprecedented agreement would give industry relief from LNG-targeted tax increases

The B.C. Legislature is holding a rare summer sitting today to debate an unprecedented 25-year liquefied natural gas agreement projected to be the cornerstone of the province's financial future.

The government plans to pass legislation enabling the $36-billion deal with Pacific NorthWest LNG, a consortium led by Malaysian energy giant Petronas.

The consortium wants to build an LNG export terminal near Prince Rupert. The agreement would protect the business from tax increases made specifically to target the LNG industry.

The project faces a number of hurdles including opposition from native groups who have vowed to fight it in court.

Finance minister says legislation blueprint for $36B LNG deal — CTV News

Pacific NorthWest LNG, a joint venture backed by Malaysian state-owned energy giant Petronas, wants to construct a plant near Prince Rupert though it has not yet made a final investment decision on the project.

De Jong said legislation is the final piece of the puzzle that the government has been building for years to attract an LNG industry to B.C.

He said all that's left is a federal environmental certificate approving the project, adding Pacific NorthWest LNG is “anxious to begin.

B.C. to head review of LNG terminal on Fraser River — Surrey Leader, Surrey, BC

The federal government has decided B.C. will lead the environmental assessment into the proposed WesPac Tilbury LNG jetty that would bring liquefied natural gas ships into the mouth of the Fraser River.

Friday's decision is a disappointment to environmental groups that distrust B.C.'s LNG-promoting provincial government and had hoped federal environmental regulators would conduct their own review of the project.

ederal environment minister Leona Aglukkaq's decision to allow B.C.'s Environmental Assessment Office to substitute for a federal review came a few days after a determination by the Canadian Environmental Assessment Agency that the WesPac project requires a federal assessment.

Flotilla protesters buoyed by delay to $1.7 billion LNG plant — The Tyee, Vancouver, BC

While the proponent of a Howe Sound liquefied natural gas plant has pushed pause on the $1.7-billion project, area residents haven't suspended their campaign against it.

More than three-dozen power and sail boats -- as small as a rigid inflatable and as big as a yacht -- travelled around Bowyer Island midday July 11, blowing horns, displaying signs and banners and chanting "No LNG, No LNG!" under ominous clouds.

"There is no regional plan for Howe Sound, it's a very piecemeal approach," said Concerned Citizens Bowen's Anton van Walraven. "What we have to do as communities around the sound, we have to demand a planning process. We have to develop a vision."

LNG protest attracts dozens of boaters to Horseshoe Bay (Jul 11) — CBC News

Dozens of boaters took to the waters off Horseshoe Bay Saturday to protest a proposed liquefied natural gas plant in Howe Sound.

With the legislature set to convene to debate the government's agreement with Pacific NorthWest LNG on Monday, a coalition of citizens groups turned out to turn up the heat on Woodfibre's proposed LNG plant in Squamish.

"If LNG has a future in B.C. it is certainly not in the middle of the most beautiful fjord, southernmost fjord in North America," [Eoin Finn] said to cheers. "To plunk it right in here is a travesty of justice and we will not put up with it."

First Nations team up in reviewing B.C. LNG export impacts (Jul 10) — LNG World News

First Nations formed the Tsimshian Environmental Stewardship Authority which will assess the environmental impact of liquefied natural gas projects proposed in the Prince Rupert region of British Columbia.

Lax Kw’alaams First Nation has not joined the group due to its concerns of Pacific NorthWest LNG export projects impact on the salmon habitat that is in close proximity to the project’s site on Lelu Island.

Capt. Stephen Brown: Fearmongering by LNG critics is simply shameful — The Province, Vancouver, BC

The construction, technological sophistication and record of safe operation of LNG carriers is without parallel — all in the name of leaving nothing to chance. This comes at a cost — upwards of $200 million per vessel — but our industry will always do what it takes to meet the standards of safety and environmental protection demanded of us.

Several LNG projects have been targeted by a well-co-ordinated campaign of misinformation, including the small-scale proposal in Howe Sound known as Woodfibre LNG. I have heard extensively exaggerated claims in terms of the number of vessels per month, the project’s impact on ferry services, its impact on tourism and even the wake the LNG carriers will create when passing local marinas.

In reality, these vessels will travel the same, proven, safe route used by more than 100 vessels a year. They all call at Howe Sound ports and are largely unnoticed while posing no threat to anyone, any business and certainly not tourism. [Colored & bold emphasis added.]

Webmaster's comment: Contradicting Capt. Stephen Brown's assurance of safety, Woodfibre LNG and some other proposed LNG terminal projects in BC do not comply with the LNG industry's own terminal siting best safe practices as published by the Society of International Gas Tanker and Terminal Operators (SIGTTO) . For safety reasons, the conditions approaching, and in, Howe Sound make that location inappropriate for an LNG terminal.


Decision stayed again on Oregon LNG projects’ consistency with the State Coastal Management Program — LNG Law Blog

The Oregon Department of Land Conservation and Development (OLCD) has entered into an agreement with Oregon LNG to extend for an additional 90 days the deadline by which OLCD must review Oregon LNG’s certification that its proposed bidirectional LNG terminal project in Warrenton, Ore. is consistent with Oregon’s Coastal Management Program under the federal Coastal Zone Management Act. OLCD’s decision on Oregon LNG’s Consistency Certification is now due by October 23, 2015.

Editorial: Where does Sen. Wyden stand on Oregon LNG? (Jul 9) — The Daily Astorian, Astoria, OR

Senator, governor clarify our relationship to Oregon LNG

…[I]t is heartening to hear U.S. Sen. Ron Wyden demystify the remarks of Peter Hansen, chief executive of Oregon LNG. Hansen dismissed the role of local government in siting the terminal and its pipelines.

Sen. Wyden said Hansen’s remarks were “way over the line.” Derrick DePledge reported Wyden’s statement during his weekend visit to Astoria.

Astoria Mayor Arline LaMear is correct that Wyden needs to tell us more clearly where he stands on the Oregon LNG proposal. “We’d like to have a straight answer on where he is on this particular project,” said Mayor LaMear.

United States

USA: 15 LNG cargoes imported in Jan-April — LNG World News

The U.S. imports of liquefied natural gas reached 41.3 Bcf in the January-April period, according to the U.S. Department of Energy data.

The Everett LNG terminal received eight cargoes from January to April. Three LNG tankers called at the Elba Island terminal, Sabine Pass received two cargoes while Northeast Gateway and the Cove Point terminal received one cargo each.

Two LNG cargoes were re-exported from the Freeport terminal in Texas to Brazil in the January-April period, the data said.


2015 July 8

New England

Massachusetts Attorney General studying regional natgas capacity (Jul 7) — Natural Gas Intelligence [Paid subscription]

Options to address New England's natural gas capacity demand and other options to address the region's electricity reliability needs through 2030 will be the focus of a study announced Monday by Massachusetts Attorney General (AG) Maura Healey.

The study will include an evaluation of all potentially available energy resource options to meet reliability needs, including natural gas pipelines, liquefied natural gas (LNG), oil, hydro imports, energy efficiency, demand response and renewables, Healey said.

"A key focus of the study will be the question of whether more natural gas is needed in the region, and if so, how much more capacity is needed," the AG's office said.

"...While there have been a number of prior studies conducted, none have answered the precise question of how much additional gas is needed in the New England region and whether that gas can by supplied by LNG or additional pipeline capacity is needed." [Colored & bold emphasis added.]


Pipeline turnabout: Gas could be sent India (Jun 26) — Work It, SoVa, Danville, VA

A partner in the controversial Mountain Valley Pipeline confirmed this week that natural gas transported by the pipeline could be one supply source for liquefied natural gas bound for India.

The news comes after Paul Friedman, a project manager for the Federal Energy Regulatory Commission, repeatedly — and publicly — dismissed concerns last month from pipeline opponents that natural gas transported through the pipeline would be exported.

WGL Midstream has a 7 percent ownership interest in the Mountain Valley project, a joint venture that also includes EQT Corp., NextEra Energy and Vega Midstream MVP. In December, WGL announced it has a sales agreement to export natural gas to India via Dominion’s Cove Point Liquefied Natural Gas facility in Maryland. Vega Midstream helped negotiate the deal.

“This will not happen, and I’ll explain why: Mountain Valley has not applied to either the FERC or the U.S. Department of Energy for permission to export natural gas. Without those applications and our permission, they cannot export natural gas,” Friedman said, according to an official transcript.

Young-Allen acknowledged, however, that Mountain Valley or its customers could apply for export permits after the project receives a certificate of public convenience and necessity from FERC. The certificate would allow construction to begin on the 300-mile, 42-inch diameter pipeline.

Webmaster's comment: FERC staff repeatedly misinform the public, to applicants' advantage, as FERC's Paul Friedman has done in the above instances.

Gulf of Mexico

Cheniere begins construction on LNG terminal expansion (Jul 1) — Houston Business Journal, Houston, TX

Cheniere Energy Partners LPsaid June 30 it issued a notice for the oil, gas and chemicals division of San Francisco-based Bechtel Corp. to proceed with construction of Train 5 of the Sabine Pass Liquefaction Project.

The news comes about days after Cheniere received approval for the expansion project from the U.S. Department of Energy and from the Federal Energy Regulatory Commission prior to that, the Houston Chronicle reported.

The Sabine Pass Liquefaction Project is designed to include six liquefaction trains, which are in various stages of development and will have production capacity of approximately 4.5 million tonnes per annum.

Enbridge takes 5 percent stake in planned offshore LNG project (Jul 1) — Fuel Fix

Pipeline giant Enbridge Inc has agreed to buy a 5 percent equity stake in a proposed offshore, Gulf of Mexico natural gas export facility.

Houston’s Fairwood Peninsula Energy Corp., which owns the liquefied natural gas or LNG project, said Wednesday that the pipeline company had purchased the small stake and agreed to assist in the development of its Delfin LNG project.

If built to current plans, Delfin would ultimately put four or more floating liquefaction vessels about 50 miles off Louisiana’s coast in the Gulf of Mexico. The liquefied gas would then be shipped overseas to customers around the world.

Freeport LNG seeking increased production capacity authorization (Jun 29) — LNG World News

Freeport LNG filed an application with the Federal Energy Regulatory Commission seeking approval of an increase of the projects’s authorized maximum peak day LNG production capacity from the approximately 1.8 Bcf/d to approximately 2.14 Bcf/d.

The nameplate liquefaction capacity for project in the initial application of approximately 657 Bcf/y of natural gas, which is the equivalent of approximately 13.2 mtpa of LNG, is the nameplate capacity determined by Freeport LNG and its engineering, procurement, and construction contractor during the early stages of front-end engineering design of the liquefaction project, using very conservative design and operating assumptions.

FERC sets Golden Pass LNG export project final EIS date (Jun 29) — LNG World News

March 4, 2016, has been set as the date FERC will issue the final environmental impact statement on the project. Other agencies issuing federal authorizations will have a 90-day deadline to make their decisions. This period ends on June 2, 2016, FERC said in its notice.

The project would involve the construction of an LNG export integrated with, the existing Golden Pass LNG import terminal with the capability to export up to 15.6 million metric tons per annum of domestic natural gas as LNG.

Sabine Pass expansion gets DOE approval (Jun 29) — LNG World News

The Energy Department has issued a final authorization for Sabine Pass Liquefaction, LLC’s expansion project to export domestically produced liquefied natural gas to countries that do not have a free trade agreement (FTA) with the United States.

The Sabine Pass LNG terminal in Cameron Parish, Louisiana is authorized to export additional volumes of LNG up to the equivalent of 1.38 billion standard cubic feet per day (Bcf/d) of natural gas for a period of 20 years.

With this most recent authorization, Sabine Pass Liquefaction, a unit of Cheniere, is authorized to export LNG up to the equivalent of 3.58 Bcf/d of natural gas for a period of 20 years, DOE said in a statement released on Friday.

Report: Cheniere completes first spot LNG sale (Jun 29) — LNG World News

Sources told Platts that the maiden trade was completed at $7.20 per mmBtu and the cargo will be delivered onboard the 162,000 cbm Clean Ocean LNG carrier in July to an Asian buyer.

US FERC to prepare Port Arthur LNG EIS (Jun 26) — LNG World News

The U.S. Federal Energy Regulatory Commission has released a notice of its intent to prepare an environmental impact statement (EIS) that will discuss the environmental impacts of the Port Arthur liquefaction project and associated pipeline.

Each of the natural gas liquefaction trains will be capable of producing up to 5 MTPA of LNG for export, for a total capacity of up to 10 MTPA.


LNG breadbasket Trinidad & Tobago facing production challenges (Jun 26) — Natural Gas Intelligence [Paid subscription]

Production of natural gas in Trinidad & Tobago (T&T) has been waning, as evidenced by liquefied natural gas (LNG) output curtailments by Atlantic LNG announced recently. Reserves are in decline, but there's more gas to be had if terms are right for producers and/or a deal could be struck with neighboring Venezuela, an industry consultant told NGI.

For the near term, though, T&T is experiencing the consequences of being a multi-decade natural gas producer: declining reserves. T&T's proved reserves have been falling over the last 15 years. T&T's proved gas reserves are at 13 Tcf, down from a peak of 26 Tcf in 2006, according to U.S. Energy Information Administration data. That leaves just 8.6 years left of production, given T&T's 2013 production rate. Production has plateaued in the last four years, running between nearly 1.5 and 1.511 Tcf three of the last four years.


Economist: State must shore up finances to support AK LNG (Jul 1) — Alaska Journal of Commerce

A senior economist with a leading U.S. policy think-tank told an Institute of the North audience June 23 that the state had best get its financial house in order because an instability could undermine the Alaska LNG Project.

The threat that could undermine Alaska is the unexpected revolution in shale oil and gas in the Lower 48 states and the increasingly fierce competition that is developing in international LNG markets.

Route change, bigger pipeline on table (Jun 24) — Alaska Journal of Commerce

The governor is now asking for additional changes in the project. In a June 8 letter to the three North Slope producers, Walker asked for an enlargement of the pipe size from a 42-inch diameter size to 48 inches so as to be able accommodate more gas in the future. Walker indicated that the state would be willing to pay for the additional capacity, subject to legislative approval, but would also own the added space.

…Walker asked for a major decision on the way the partners, including the state, would market their respective shares of LNG from the project and address upstream issues. The governor is proposing a joint-venture marketing organization formed by the partners in lieu of a plan for “equity” marketing, or each partner selling its own share of LNG on its own.

British Columbia

Federal government nixes environmental review of proposed LNG facility by B.C. only — The Georgia Strait, Vancouver, BC

The federal government has rejected B.C.’s request for a province-only review of a proposed facility for exporting liquefied natural gas from Metro Vancouver, according to environmental activist Kevin Washbrook.

The marine jetty planned in Delta by American company WesPac Midstream could lead to 120 LNG tankers plying the salmon-bearing Fraser River every year. The terminal is to be located adjacent to a long-standing FortisBC LNG plant at Tilbury Island, which is currently undergoing a $400-million expansion.

On July 6, the Canadian Environmental Assessment Agency announced that a federal environmental assessment is required for WesPac’s proposal. It cited, among other reasons, the “possibility that the carrying out of the project may cause adverse environmental effects”. WesPac has a licence from the National Energy Board to export 3.5 million tonnes of LNG annually from the South Arm of the Fraser River.

“The B.C. government is so wholly committed to LNG exports,” Washbrook told the Straight in a phone interview. “No disrespect to the…hard-working staff of the B.C. Environmental Assessment Office, but I don’t think anyone could really be satisfied that the B.C. review would be objective and thorough. This government wants to export LNG. It doesn’t want to turn projects down. So it makes sense that we have, you know, a somewhat more removed government doing its own objective review process.”

B.C. releases details on $36 billion tax deal with Pacific NorthWest LNG (Jul 7) — Oil & Gas 360

British Columbian Finance Minister Mike de Jong released the details of the province’s deal with Petronas-led Pacific NorthWest LNG (PNW LNG) in order to attract a Final Investment Decision (FID) on the company’s liquefied natural gas (LNG) project. B.C. will compensate PNW LNG for any raises on the LNG industry for a 25-year period after the plant begins shipments, reports CBC.

Despite the group’s decision to progress with the project, the British Columbian First Nations group, the Lax Kw’alaams, voted unanimously against allowing a ship terminal for the project to be built near the community. The First Nation group turned down Pacific NorthWest’s $1 billion offer, saying they were concerned over the environmental impacts of the project.

A second First Nations group, the Gitga’at, has now joined the Lax Kw’alaams in protesting the construction of the LNG terminal, reports The Vancouver Sun. The Gitga’at First Nation is seeking a judicial review from the B.C. Supreme Court over a B.C. Environmental Assessment Office decision they say does not recognize the Gitga’at as being one of the First Nations entitled to full consultation on the project. [Colored & bold emphasis added.]

Gitga'at First Nation launches legal challenge of Pacific NorthWest LNG consultation process [Press release] (Jul 6) — Digital Journal

The judicial review filed by GFN in the Supreme Court of British Columbia targets a decision of the BC Environmental Assessment Office, which does not recognize the Gitga'at First Nation as being one of the Tsimshian First Nations entitled to full consultation on the project. The BC government is leading project proponents to believe that the duty of the Provincial crown to consult, and the responsibility of project proponents to engage meaningfully with GFN on projects in or near Prince Rupert Harbour, doesn't exist.

"We're not trying to take anything away from the other Tsimshian Tribes," Chief Clifton clarified. "The Prince Rupert harbour area and to the mouth of the Skeena River is an area of common use for all Tsimshian people. We just want Gitga'at rights recognized and considered the same way as those of the other Tsimshian tribes who assert Aboriginal rights in the Prince Rupert area."

Gitga'at First Nation launches legal challenge to Pacific Northwest LNG (Jul 7) — Times Colonist, Victoria, BC

The First Nation is seeking a judicial review of the B.C. government's handling of consultation for the liquefied natural gas project on Lelu Island, near Prince Rupert in northwest B.C.

In a news release, the Gitga'at said the review filed in B.C. Supreme Court targets a decision of the B.C. Environmental Assessment Office, which does not recognize the Gitga'at First Nation as being one of the Tsimshian First Nations entitled to full consultation on the project.

"Anthropological evidence and our Adawx, which are the oral records of the Gitga'at, show that we have fished and hunted in Prince Rupert Harbour and the lower Skeena River since before the European settlers arrived," Arnold Clifton, chief councillor of the Gitga'at First Nation, said in a written statement.

India looking to import LNG from Canada (Jul 7) — NDTV, New Delhi, India

Oil Minister Dharmendra Pradhan met Canadian Minister for Natural Resources Greg Rickford at the second India-Canada Ministerial Energy Dialogue in Calgary to discuss enhancing energy cooperation between the two countries.

"Canada could potentially supply a significant amount of the 44 billion cubic metres of natural gas that India is forecast to import annually by 2025," the statement said.

In March 2014, IOC [State-owned Indian Oil Corp] acquired 10 per cent stake in an integrated LNG project -- Pacific Northwest LNG proposed at Lelu Island, British Columbia.

Quicksilver Resources Canada will export up to 20 tons per year of LNG from British Columbia (Jul 6) — Gasworld

Quicksilver Resources Canada Inc. announced that it received approval from the Canadian National Energy Board (NEB) to export up to 20 million tons per year of liquefied natural gas from its Discovery LNG site located near Campbell River, British Columbia, for a period of 25 years.

Shell, Asian partners seek Canadian ‘super-permit’ for LNG exports (Jul 6) — Natural Gas Intelligence [Paid subscription]

An international liquefied natural gas (LNG) scheme led by Shell has stepped forward as the first candidate for newly available extended Canadian export licenses with a lifespan of 40 years.

Canada’s pro-industry Conservative federal government enacted the availability of the extended license term as of June. Only the duration -- and not the size -- of the plan for an export terminal at Kitimat on the northern Pacific coast of British Columbia would change, LNG Canada says in its application for an extended license to the National Energy Board (NEB).

The development plan calls for construction of the proposed Kitimat export terminal in four equal “trains” or stages. “Operations are tentatively scheduled to start in 2021 but Train #1 may start up as early as 2019, with Train #2 following six months later,” says the NEB application.

Agreement with B.C. lets LNG group seek compensation if taxes increase (Jul 6) — The Globe and Mail, Toronto, ON

A liquefied natural gas consortium would be entitled to compensation if future B.C. governments increase energy and environmental taxes.

Should future governments raise income tax rates for LNG operations, reduce tax credits for producing natural gas, add carbon taxes that target the LNG sector or make changes to the rules on greenhouse gas emissions that cause the company financial pain, it could seek compensation of $25-million a year or more and would likely be successful.

The LNG project remains under a lengthy federal review by the Canadian Environmental Assessment Agency. The federal regulator temporarily halted its assessment on June 2 because it requires more information from project officials about the potential impact that building an export terminal will have on juvenile salmon habitat in Flora Bank.

Woodfibre LNG granted temporary environmental review suspension (Jul 2) — LNG World News

Woodfibre LNG made the request to allow the company time to further engage Squamish Nation on the conditions of its environmental review of the Woodfibre LNG project and FortisBC Eagle Mountain – Woodfibre gas pipeline expansion project. These conditions, as well as further consultation with Squamish Nation, will become part of a report to the BC Environmental Assessment Office as part of the environmental assessment of the proposed project.

Shifts in energy markets adjust time frame for B.C. LNG proponents (Jul 1) — The Vancouver Sun, Vancouver, BC

Outside the higher-profile news associated with Malaysian energy firm Petronas’s liquefied natural gas proposal for Prince Rupert and gloomy forecasts for the sector’s prospects in British Columbia, AltaGas Ltd. continues working away under the radar on its own proposals.

Calgary-based AltaGas anticipates it will be able to make a final investment decision before the end of the year on the relatively modest Douglas Channel LNG proposal at Kitimat. The bigger Triton project that AltaGas is also involved in remains a bit on the back burner.

Project agreements signed with First Nations for LNG Canada’s feeder pipeline (Jun 30) — LNG Law Blog

TransCanada announced its Coastal GasLink Pipeline Project (Coastal GasLink) has signed project agreements with Canadian First Nations Wet’suwet’en First Nation, Skin Tyee Nation, Nee-Tahi-Buhn Band, Yekooche First Nation, Doig River First Nation, and Halfway River First Nation, whose traditional and treaty territories are located along the proposed Coastal GasLink pipeline route in northern British Columbia (B.C.). Coastal GasLink is proposing to construct and operate a 670-kilometre natural gas pipeline from the Groundbirch area near Dawson Creek, B.C., to the Shell Canada-led LNG Canada export facility near Kitimat, B.C. The project agreements include various financial and other benefits related to the pipeline project.

Canadian firm gearing up for Hawaiian Electric LNG project (Jun 29) — Pacific Business News, Honolulu, HI

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

Doug Stout, vice president of market development and external affairs for FortisBC, said in an opinion piece in the Delta Optimist on Friday that Hawaiian Electric is interested in LNG supplied from its Tilbury LNG facility as a bridge replacement of oil as the state moves closer to its 100 percent renewable energy goal by 2045.

The agreement still needs the approval from the Hawaii Public Utilities Commission and will require other regulatory approvals and permits.

Hawaiian Electric said earlier this month that it does not envision shipping LNG to the Islands until 2019, two years later than it originally planned, as first reported by PBN.

Squamish Nation sets conditions on LNG facility (Jun 27) — The Squamish Chief, Squamish, BC

Woodfibre LNG would have to meet five major conditions to get the Nation’s nod

“Call them the Top Five,” said Nation lawyer Aaron Bruce in a news release Saturday. “Bottom line here is that Squamish Nation will simply not approve the Woodfibre LNG proposal unless all of these conditions are addressed and resolved — to the Squamish Nation’s satisfaction.”

Woodfibre LNG officials must be legally bound to fulfill the conditions, before the Nation will support the proposed liquefied natural gas export facility slated for about six kilometres southwest of Squamish, according to the release. “The conditions are needed to protect sensitive land and marine habitat in the Squamish estuary, in Howe Sound and beyond — all in Squamish Nation traditional territory," said Bruce.

All 26 conditions need to be met, according to the release. The Nation will require proponents to enter into an Environmental Certificate, Bruce said.

The Squamish Nation chiefs and council will still vote on accepting or rejecting the proposal at the end of July, according to the release.

Federal Government introduces Prince Rupert Port Authority liquefied natural gas facilities regulations (Jun 25) — Canadian Energy Perspectives

On June 20, 2015, the federal Department of Transportation published the proposed Port of Prince Rupert Liquefied Natural Gas Facilities Regulations (Regulations) with respect to proposed liquefied natural gas (LNG) facilities to be built at Prince Rupert, British Columbia. The Regulations are issued under federal authority by virtue of the Canada Marine Act, which regulates Canadian ports. At present, there are four proposals for LNG facilities to be located at Prince Rupert, two are to be located wholly on federal port lands and two are to be located largely on provincial lands, with small portions on federal port lands.

The Regulations would only apply to LNG facilities located on federal lands at the Port and would incorporate by reference, with some adaptations and exclusions, the existing British Columbia regulatory regime.…

Woodfibre LNG responds to the district (Jun 25) — The Squamish Chief, Squamish, BC

The Woodfibre LNG response letter, sent June 11, addressed each of the district’s concerns submitted on April 30 in turn, but often referred the district back to the Environmental Assessment website or application.

“Some of [the responses] don’t really address our concerns to the detail I think we were expecting,” Councillor Karen Elliott said at the June 16 council meeting when the Woodfibre LNG responses were tabled.


U.S. permit schedule forces six-month delay for Veresen's Jordan Cove LNG (Jul 6) — Calgary Herald, Calgary, AB

Veresen said FERC had moved the date for issuing its final environmental impact statement to Sept. 30, suggesting a final FERC certificate will be issued on or before Dec. 29 and a “Notice to Proceed” by mid-2016. A final investment decision is to follow.

Jordan Cove is negotiating tolling agreements with buyers rather than enlisting customers as investors, the model being pursued by Malaysia’s Petronas Bhd. and Royal Dutch Shell PLC on Canada’s West Coast. Veresen said it expects negotiations now underway with potential customers could be extended about six months longer than expected to year-end 2015 or into early 2016.

Union members crowd Jordan Cove hearing in effort to drown out LNG opponents (Jun 26) — The World, Coos Bay, OR

COOS BAY — Marshfield High's auditorium was overwhelmed by union members from across Oregon and southwest Washington on Thursday night, dominating the anti-LNG voices — sometimes by yelling.

Oregon's Energy Facility Siting Council held two meetings Thursday to hear comments on the draft proposed order for Jordan Cove's 420-megawatt South Dunes Power Plant. The power plant would provide energy for the Jordan Cove terminal to liquefy natural gas for export.

At EFSC's next meeting, which is tentatively scheduled for Aug. 6-7, the council will review the draft proposed order and comments. EFSC will then direct Department of Energy staff to issue a proposed order approving or denying the application, and to issue a notice of contested case. Following the contested case, EFSC will issue a final order on the application.


Canadian firm gearing up for Hawaiian Electric LNG project (Jun 29) — Pacific Business News, Honolulu, HI

[This article also appears under the British Columbia heading, above.]

Doug Stout, vice president of market development and external affairs for FortisBC, said in an opinion piece in the Delta Optimist on Friday that Hawaiian Electric is interested in LNG supplied from its Tilbury LNG facility as a bridge replacement of oil as the state moves closer to its 100 percent renewable energy goal by 2045.

The agreement still needs the approval from the Hawaii Public Utilities Commission and will require other regulatory approvals and permits.

Hawaiian Electric said earlier this month that it does not envision shipping LNG to the Islands until 2019, two years later than it originally planned, as first reported by PBN.


Carbon Tracker Initiative report casts doubt on Canada's LNG ambitions (Jul 7) — [The Canadian Press] Calgary Herald, Calgary, AB

A new report by the Carbon Tracker Initiative is throwing some cold water on Canada’s liquefied natural gas ambitions.

It identifies $283 billion in possible projects worldwide that may not be needed, including $82 billion in Canada over the next decade in a low-demand scenario.

“As far as we can see, from our demand scenario the LNG market is pretty fully built out in terms of supply for the next seven years at least,” he said in an interview from New York. “It wouldn’t be a great bet in our view … to expand further at this time.” [Colored & bold emphasis added.]

United States

$71 billion in U.S. LNG projects not needed in low-carbon world, group says (Jul 7) —

Billions of dollars worth of liquefied natural gas projects won’t be needed in the next decade as the world strives to limit its carbon footprint and rein in climate change, a new analysis finds.

“Investors should scrutinize the true potential for growth of LNG businesses over the next decade,” James Leaton, the group’s head of research, said in a statement. “The current oversupply of LNG means there is already a pipeline of projects waiting to come on stream. It is not clear whether these will be needed and generate value for stakeholders.”

Carbon Tracker found that a majority of the LNG needed within the next 10 years will come from projects already built, under construction or those in which companies have already announced a final investment decision. Global demand in a low-carbon world is not robust enough to justify projects proposed by most of the 20 companies eying massive investments to supercool natural gas, Carbon Tracker said.

Only three companies, Houston-based Cheniere Energy and Noble Energy, and Eni, an Italian multinational oil and gas corporation, have additional projects needed to satisfy the world’s appetite for LNG by 2025, the report says.

Renewable energy has gotten cheaper, which could allow some countries to “leapfrog over gas straight to renewables,” creating a further drain on demand for LNG, Carbon Tracker said. Global demand will also be influenced by stronger energy efficiency measures, new storage technologies and volatile energy prices, the group said. [Colored & bold emphasis added.]

Webmaster's comment: Downeast LNG continues to throw money away while chasing its tail.

Commentary: My fellow Americans, please stop undermining the truth (Jul 7) — Portland Press Herald, Portland, ME

LONDON — People believe all kinds of crazy things. Three out of four Americans believe there are signs that aliens from outer space have visited the Earth. More than 40 percent think that early modern humans co-existed with dinosaurs. As of 2010, Americans on average thought the U.S. spent a full quarter of its federal budget on foreign aid (the actual figure was about 1 percent).

The problem isn’t that people often believe things that aren’t true. The real trouble is willful ignorance, typically the result of a strong psychological connection to a comforting ideology that provides ready answers to all questions – a turning away from reality. “This sort of obstinacy,” McIntyre notes, “reflects a dangerous contempt for the methods that customarily lead to recognition of the truth.”

McIntyre worries that humanity could be putting at risk one of its most precious resources – the ability to use logic and evidence to inform intelligent, adapted behavior. This skill is clearly the result of long evolutionary selection. Yet our brains remain prone to a host of biases and systematic errors in reasoning, from confirmation bias to overconfidence. Modern forces have learned to manipulate these to further their own ends.

Can we overcome these weaknesses? McIntyre suggests that it will be difficult. But there are encouraging examples. Pope Francis acknowledged, in his recent encyclical, that climate change is one of the major problems facing humanity today, with “grave implications: environmental, social, economic, political and for the distribution of goods.” This from the leader of the church that in 1600 burned Giordano Bruno at the stake for even suggesting that distant stars might be like our own sun. [Colored & bold emphasis added.]

Energy News Roundup: Obama stands firm on renewables, EPA leaks fracking insight & Chevron LNG plans stalling (Jul 6) — Breaking Energy

A new report from the EPA as found that hydraulic fracturing for oil and gas can lead, and has led, to the contamination of drinking water. “It was the first time the federal government had admitted such a link.


Mexico’s Altamira awaits Nigerian LNG cargo (Jul 7) — LNG World News

Mexico’s Altamira liquefied natural gas terminal will get a cargo of the chilled fuel on July 12, according to the Port of Altamira website.

The 126,530 cbm LNG Edo is sailing from Nigeria’s 22 Mtpa export terminal on Bonny Island.

Peru ships two LNG cargoes to Mexico (Jun 29) — LNG World News

The 170,00 cbm SCF Mitre departed from the facility located in Pampa Melchorita on June 20. The second vessel, the 130,000 cbm Galea LNG carrier. departed only two days later on June 22, Perupetro informed, without revealing the final destination of the vessels.

North America

Shale gas export terminals don’t fit with climate action – research — Hellenic Shipping News Worldwide

Plans to liquefy North American shale gas for shipping around the world do not fit with a safe climate future, analysts have warned.

Worldwide, US$283 billion of mooted Liquefied Natural Gas (LNG) projects are unlikely to pay off if efforts to curb warming to 2C are effective.

More than half of these are in Canada and the US, whence producers hope to export the fruits of their fracking boom.

Some 97% of LNG demand over the next decade can be met from projects already inked, Carbon Tracker’s analysis suggests. [Colored & bold emphasis added.]

Webmaster's comment: Meanwhile, Downeast LNG flogs — and attempts to feed — a dead horse.

Low-carbon world won't need $283 billion of natural gas projects (Jul 7) — InsideClimate News

Investors warned that keeping global warming at 2 degrees means gas companies could shelve big plans for LNG in U.S., Canada and Australia.

The conclusion challenges the growth plans of most of the world's top 20 LNG companies, but it's of particular concern for investors in Royal Dutch Shell, Chevron, ExxonMobil, and BG Group, the British oil and gas majors. Those four producers are considering new LNG projects that would cost $93 billion—a third of the total project spending that could be at risk, according to the report by the Carbon Tracker Initiative, a London-based think tank.

The projects most at risk under Carbon Tracker's low-demand scenario are developed enough to be in the pipeline of potential investments, but they have not yet won a formal go-ahead by their company sponsors. But, Carbon Tracker warns, "Any new gas plants being approved now may have a limited lifetime." [Colored & bold emphasis added.]

Webmaster's comment: Downeast LNG is on the "most at risk/low demand" list.


2025 prediction: $300B wasted on natural gas projects — Fierce Energy

Carbon and natural gas could soon be at odds, according to a new report by the Carbon Tracker Initiative. The report found that by 2025, there will be $283 billion of surplus liquefied natural gas (LNG), based on projects currently underway.

"We certainly don't see any prospect of a 'golden age of gas', as the International Energy Agency suggested a few years ago," said Anthony Hobley, CEO of Carbon Tracker, in a statement.

"Gas is a complex fossil fuel," Hobley added. "The gas industry argues that coal is the enemy and gas is part of the solution. Obviously there is a push to position it as a bridge to a low-carbon future and there is some basis for that, particularly in North America and Europe. There is some room for growth, but nowhere near as much as the gas industry would have us believe. Certainly in the LNG sector, most of the capacity that will be needed for the next 10 years has already been built."

The report found that certain aspects of LNG infrastructure, including the production of US shale gas or Australian coal-bed methane, emit high levels of greenhouse gases (GHG) -- and only 17 percent of LNG produced by North American Shale gas or Australian coal-bed methane is needed. [Colored & bold emphasis added.]

Webmaster's comment: Downeast LNG has been surplus from its 2004 beginnings. Nothing has changed.


2015 July 6

Passamaquoddy Bay

Downeast LNG names chairman, progresses project (Jul 3) — LNG World News

Downeast LNG informed that George Petrides has been appointed Chairman of its Board of Directors.

Commenting on his new role Petrides, an investment banker and investor in the energy industry for 30 years, said, “We expect to admit additional investment soon to keep development and permitting on pace as we advance to building out the project for an estimated $2.2 billion.”

Nova Scotia

Black & Veatch, U.S. Market Impact Assessment for LNG Exports at the Bear Head Export Project (Feb) — US Department of Energy

Black & Veatch utilized a scenario analysis to assess the potential price impact of 1.2 Bcf/d of related gas demand related to LNG exports from the Bear Head Project. Based on our independent assessment, these proposed export volumes are expected to have a limited price impact both in New England and across the rest of the U.S. during the analysis period when incremental gas pipeline infrastructure into New England is constructed and completed by 2019.

Black & Veatch’s With Bear Head Project Exports analysis indicates that export volumes from the Bear Head Project would contribute to an estimated $0.04/MMBtu (0.8%) increase in gas prices at the Henry Hub during the first 15 years of operation. The price impact during the remaining 16 years is expected to be an average increase of $0.01/MMBtu (0.1%) over the Base Case average price of $8.55/MMBtu.…

A portion of the Bear Head Project export volumes are expected to originate at Dracut, Massachusetts, the pipeline interconnect between Maritimes & Northeast Pipeline (“M&NP”) and Tennessee Gas Pipeline (“TGP”), and will have a higher price impact on the Algonquin city-gates than on Henry Hub. The Base Case price impact at Algonquin city-gates is projected to be $0.10/MMBtu (1.8%) over the first 15 years of the Bear Head Project’s operations. The price impact for the latter half of the analysis period is slightly less, increasing the Base Case average price of $8.68/MMBtu by $0.09/MMBtu (1.0%). [Colored & bold emphasis added.]


Maine pipeline fight likely heading to court (Jun 27) — Portland Press Herald, Portland, ME

A multimillion-dollar dispute between the natural gas pipeline company doing the Kennebec Valley pipeline project and its major contractor is likely to go to a trial before a federal judge.

Schmid sued Summit for $72 million in damages in December 2013, saying Summit had breached its contract with the company and underestimated the scope of necessary work on the pipeline network. As a result, Schmid said it had to increase the number of workers and their working hours while providing more in materials and equipment without Summit increasing its payments.


NOPE media advisory for LNG export agenda revealed [Press release] (May 28) — Beyond Extreme Energy

Approval of Natural Gas Export Terminal Debunks FERC’s Claim That Massive Pipeline Buildout Not For Export

A grassroots coalition, No Pipeline Expansion (NOPE), stated today that the Department of Energy’s (DOE) approval of the Pieridae liquefied natural gas (LNG) export terminal in Nova Scotia, Canada confirms their position that natural gas from Spectra Energy’s northeast pipeline expansions will be shipped overseas. According to the Pieridae website, “the Pieridae facility is located adjacent to the Maritimes & Northeast Pipeline, a 1,400-kilometre transmission pipeline system built to transport natural gas between developments in Nova Scotia, Atlantic Canada and the northeastern United States.” The Spectra Maritimes & Northeast pipeline connects directly to the Spectra Algonquin pipeline in Beverly, MA. Exports by Spectra, assisted by the proposed Kinder Morgan greenfield pipeline and Peabody lateral, could feed most of Pieridae’s needs for gas.

Marcellus Shale region to see wave of large pipeline projects (Jun 23) — Pittsburgh Post-Gazette, Pittsburgh, PA

Over the next three years, the Marcellus Shale region can expect to see about 17 pipeline projects meant to ship about 17.3 billion cubic feet per day of natural gas out of Pennsylvania, West Virginia and Ohio to end-users, according to IHS Energy.

Those destinations “are varied, and in addition to New England, some are targeting the Midwest, eastern Canada and the South,” said Matthew Piatek, associate director of North American natural gas for IHS, which tracks energy markets.

The new infrastructure is in high demand. As natural gas production ramped up in the Marcellus and Utica regions, the existing pipeline network to take that fuel from well sites to market has been maxed out.

“That’s been one of the areas we expect to see major growth in demand, particularly for LNG exports from the Atlantic and Gulf Coast areas, new gas-fired generation in the Southeast, as well as an appetite for [local distribution companies] through the Midwest,” Mr. Piatek said. [Colored & bold emphasis added.]

Gulf of Mexico

FERC concerned with viability of CE FLNG project — LNG Law Blog

FERC Staff has sent a letter to CE FLNG, LLC (CE FLNG), an affiliate of Cambridge Energy Group Limited, regarding the status of its proposed self-propelled floating LNG export terminal on the Mississippi River near Baptiste Collette Bayou in Plaquemines Parish, La. The letter states that due to CE FLNG’s project schedule changes and the lack of a complete set of filed draft resource reports, Staff was “concerned about the viability of the Project and the use of Commission resources in support of the pre-filing process.” The letter directs CE FLNG to submit draft resource reports in support of its project by August 1, 2015, or the pre-filing process will be suspended, in which case CE FLNG would need to begin the pre-filing process anew if it wants to move forward with the project. [Colored & bold emphasis added.]

Webmaster's comment: Hell may freeze over, again! Downeast LNG and Calais LNG were both dismissed from permitting by FERC — the first and second LNG terminal projects ever to be dismissed by FERC from permitting. Could CE FLNG become the third?

FERC initiates Pre-Filing process for Venture Global Plaquemines LNG project (Jul 2) — LNG Law Blog

FERC has granted Venture Global Plaquemines LNG, LLC’s (Plaquemines LNG) request to begin pre-filing review for the proposed 2,800 MMcf/day liquefaction and export terminal to be located near river mile marker 55 on the west side of the Mississippi River, in Plaquemines Parish, La. The project would include 20 liquefaction trains, each with a capacity of approximately 140 MMcf/day, four LNG storage tanks, and three marine loading berths for ocean-going vessels.

Energy Department authorizes Sabine Pass Liquefaction’s expansion project to export liquefied natural gas (Jun 27) — Yuma News Now, Yuma, AZ

Washington, DC - The Energy Department announced today that it has issued a final authorization for Sabine Pass Liquefaction, LLC’s Expansion Project (Sabine Pass) to export domestically produced liquefied natural gas (LNG) to countries that do not have a Free Trade Agreement (FTA) with the United States.

Webmaster's comment: The Department of Energy is required to approve exports to FTA nations.


Trinidad and Tobago LNG bound for Puerto Rico — LNG World News

The cargo is being carried by the 138,000 cbm British Trader, and it is expected to arrive at the Peñuelas LNG terminal around July 7, shipping data reveals.

EcoElectrica operates the facility located at Guayanilla Bay, Peñuelas, about nine miles west of Ponce, Puerto Rico and uses the gas to fire a 461 megawatt power plant.

British Columbia

Justin Trudeau open to LNG ships on northern B.C. coast (Jun 30) — The Vancouver Sun, Vancouver, BC

Federal Liberal leader Justin Trudeau said Monday his mind is closed to oil tankers plying the waters of northern B.C. but open to shipping of liquefied natural gas as well as increased oil tanker traffic through Port Metro Vancouver — on the condition proper reviews are conducted.

[Living Oceans Society executive director Karen Wristen] noted that oil shipping in the Salish Sea puts endangered resident killer whales at risk in their critical habitat, while LNG shipping in the north poses a threat to marine species such as threatened fin whales. “Wherever it is, more traffic means more noise and disruption,” she said.

LNG caught in federal political crossfire — The Vancouver Sun, Vancouver, BC

Trudeau spoke positively about LNG in an interview with The Sun last week, saying he spoke to First Nations leaders on the north coast who are fiercely opposed to oilsands pipelines but have fewer concerns with LNG. [Colored & bold emphasis added.]

Canada awards license for LNG exports to Asia (Jul 1) — UPI

Quicksilver Resources received a 25-year export license from the National Energy Board to send LNG from a facility in British Columbia.

Quicksilver's parent company in March filed for Chapter 11 bankruptcy. Chief Executive Officer Glenn Darden said in a statement at the time its marketing process "has not produced viable options" for capital.

The company's Canadian subsidiary, which applied for the export license, was not included in the bankruptcy proceedings.


Wyden: Oregon LNG executive ‘way over the line’ in dismissing local review — The Daily Astorian, Astoria, OR

After the state Land Use Board of Appeals in April upheld Clatsop County’s rejection of a permit for a portion of the pipeline, Peter Hansen, Oregon LNG’s chief executive officer, told an energy industry publication: “If local permits were required from every little jurisdiction along a FERC (Federal Energy Regulatory Commission) interstate pipeline, you would never get any pipeline built anywhere.”

“That’s not the way we do it in Oregon,” Wyden said during an afternoon visit to Fort George Brewery and Public House’s Lovell Showroom. “We talk about making sure you find common ground.”

Wyden has said Oregon LNG, like the Jordan Cove LNG project near Coos Bay, should have a “full airing” of land use and environmental issues.Webmaster's comment: xx


Report casts doubt on Canada's LNG ambitions — [The Canadian Press]

CALGARY - A new report by the Carbon Tracker Initiative is throwing some cold water on Canada's liquefied natural gas ambitions.

It identifies $283 billion in possible projects worldwide that may not be needed, including $82 billion in Canada over the next decade in a low-demand scenario.

"As far as we can see, from our demand scenario the LNG market is pretty fully built out in terms of supply for the next seven years at least," he said in an interview from New York. "It wouldn't be a great bet in our view ... to expand further at this time." [Colored & bold emphasis added.]

United States: Department of Energy approves first export of Canadian LNG made from natural gas produced in the United States (Jun 30) — Mondaq [Registration]

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

In a groundbreaking decision, the US Department of Energy's Office of Fossil Energy ("DOE/FE") issued its Order 3639 ("Order") on Friday, May 22, 2015 with respect to Pieridae Energy (USA) Ltd. ("Pieridae") — a client of Norton Rose Fulbright US LLP and Norton Rose Fulbright Canada LLP. While similar in many respects to the numerous earlier orders the DOE/FE has issued authorizing entities to export liquefied natural gas ("LNG") to countries having free trade agreements requiring the national treatment of trade in natural gas ("FTA countries"), this was the first time the DOE/FE has issued an order providing for natural gas to be exported to Canada for the express purpose of being converted to LNG and then re-exported to other countries.

In situations involving the conversion of natural gas to LNG in the US and the subsequent export of the LNG the DOE/FE's approach is clear, it follows the LNG in transit until the LNG reaches its final destination. Delivering LNG to the first port-of-call does not end the DOE/FE's involvement. If the LNG is reloaded and sent on to a subsequent destination, the location of ultimate end-use of the LNG must fall within the scope of the US exporter's DOE/FE export authorization or the exporter will be subject to sanctions, including the revocation of its export authorization.

Currently, there are no docketed applications before the DOE/FE that propose to export LNG made in Canada (or Mexico) to non-FTA countries, where such LNG would be made with US-sourced natural gas that was exported into Canada (or Mexico) on the basis of a DOE/FE Order authorizing export of such feedstock natural gas only to FTA countries. However, the DOE/FE, nevertheless, used the Order to put future applicants on notice that the DOE/FE would not grant such an application.… [Colored & bold emphasis added.]

United States

TTIP aim to lift US oil export ban goes against climate targets (Jul 3) — The Guardian

If EU policy makers find it useful to kneel down and pray for cheap American energy to flood in and free us from Putin’s grasp then that is their prerogative, but their time would be better spent reading up on the logistics.

The US does not have the infrastructure or facilities necessary to export LNG at scale to Europe, and the development of said infrastructure would be expensive and time intensive. When finally in place, the transportation and liquefaction process is not cheap. So, there is little reason to think US LNG will be able to out-compete low-cost Russian gas anytime soon, which will likely remain the natural order of things for decades to come.

Even if all restrictions were lifted, cheap American energy would likely remain as it is now: little more than a pipe dream.

If we are to avoid the most severe impacts of climate change, 80% of known fossil fuel reserves must remain in the ground. It is inexcusable that the EU is pushing for measures in a trade deal that would – as envisioned - likely lead to more investment sunk into fossil fuel exploration, extraction, processing and transport, and in doing so potentially lock in high carbon dirty energy for the foreseeable future. [Colored & bold emphasis added.]

United States: Department of Energy approves first export of Canadian LNG made from natural gas produced in the United States (Jun 30) — Mondaq [Registration]

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

In a groundbreaking decision, the US Department of Energy's Office of Fossil Energy ("DOE/FE") issued its Order 3639 ("Order") on Friday, May 22, 2015 with respect to Pieridae Energy (USA) Ltd. ("Pieridae") — a client of Norton Rose Fulbright US LLP and Norton Rose Fulbright Canada LLP. While similar in many respects to the numerous earlier orders the DOE/FE has issued authorizing entities to export liquefied natural gas ("LNG") to countries having free trade agreements requiring the national treatment of trade in natural gas ("FTA countries"), this was the first time the DOE/FE has issued an order providing for natural gas to be exported to Canada for the express purpose of being converted to LNG and then re-exported to other countries.

In situations involving the conversion of natural gas to LNG in the US and the subsequent export of the LNG the DOE/FE's approach is clear, it follows the LNG in transit until the LNG reaches its final destination. Delivering LNG to the first port-of-call does not end the DOE/FE's involvement. If the LNG is reloaded and sent on to a subsequent destination, the location of ultimate end-use of the LNG must fall within the scope of the US exporter's DOE/FE export authorization or the exporter will be subject to sanctions, including the revocation of its export authorization.

Currently, there are no docketed applications before the DOE/FE that propose to export LNG made in Canada (or Mexico) to non-FTA countries, where such LNG would be made with US-sourced natural gas that was exported into Canada (or Mexico) on the basis of a DOE/FE Order authorizing export of such feedstock natural gas only to FTA countries. However, the DOE/FE, nevertheless, used the Order to put future applicants on notice that the DOE/FE would not grant such an application.… [Colored & bold emphasis added.]


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