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News Articles
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Passamaquoddy Bay & LNG

2008 August

2008	Aug	31	Palin signs order directing state to help with LNG [export] project Gregoire staffers say they'll pressure NorthernStar for answers on LNG project (Aug 29) Oregon LNG terminal clears FERC environmental hurdle (Aug 29) LNG project gets favorable report (Aug 29) US oil production and hurricanes: Insecurity of demand trumps insecurity of supply? (Aug 30)
		29	Passamaquoddy group to appeal dismissal of LNG lawsuit Gas rush is on, and Louisianians cash in Draft Environmental Impact Statement (EIS) for the Jordan Cove Energy liquefied natural gas (LNG) terminal and … Gas Pipeline…. Gushing over gas [Commentary] EU must complete Nabucco gas pipeline: US Senator
		28	NOAA files final environmental impact statement on ship strike reduction measures Like a factory in Yosemite Whatever it takes [Editorial] Smith on LNG: 'Wait for FERC' Groups ask California Energy Commission to address greenhouse gas emissions from new power plant, consider climate impacts from use of imported liquefied natural gas [News release] Gas finds hit LNG Natural gas weekly update Mexico President Felipe Calderón dedicates Sempra Energy's new Baja California LNG terminal [Press release] Japan buys TT LNG at top price
		27	Baltimore County seeks review of Sparrows Point decision 11th hour for proposed LNG terminal LNG meeting gets hot BHA boss supports LNG plant EIA Administrator: Increased domestic gas supplies could affect U.S. LNG imports
		26	Native American group to appeal ruling in suit against BIA Canadian organization affirms opposition to 3 LNG proposals (Aug 22) Baltimore County appeals to U.S. Supreme Court over proposed Sparrows Point LNG project Public meeting tonight on LNG terminal Dredging ahead of schedule, days away from completion (Aug 24) LNG firm confesses link to poll LNG developer acknowledges election spending Backers of LNG terminal admit polling Jordan Cove energy project clears hurdle for new LNG terminal Deadline Tuesday to sign up to vote (Aug 25) 2008–2009 edition of Interstate Natural Gas Infrastructure Map Book now available [Press release]
		25	Progress stalled on shoreline LNG plan (Aug 24) LNG terminal decision just weeks away AES still “hopeful” LNG projects would move forward (Aug 22) Commissioners hear petition of LNG foes, OK contract for jail design The business of change Ore. board denies appeal of LNG berth permit Test finds LNG hostlers emit more NOx than diesel hostlers Drilling boom revives hopes for natural gas (Aug 24) Research and Markets: Introducing an incisive collection of ten key articles, "Gas - in focus" (Aug 22) Gobert: Is natural gas undervalued?
		23	Keep LNG tankers out of the passage [Editorial] Government to spend $100,000 in fight against LNG (Aug 22) NW Natural slips in note about LNG in your bill [Op-ed column] (Aug 22) State denies appeal of LNG opponents LUBA explains LNG appeal dismissal
		22	Narrow interpretation by Woodcock [Blog] (Aug 21) New study doesn't impress U.S. LNG firms LNG tankers: New study planned (Aug 21) Tug and barge allide with Casco Bay Bridge Build the natural gas terminal, but not at Sparrows Point [Opinion column] (Aug 20) Cheniere Marketing Inc. seeks authorization to export LNG (Aug 21) Freeport LNG wants to re-export its products Only stopping in for a while (Aug 21) Alaska Governor orders state agencies to assist developers of LNG liquefaction project LNG ballots will go in the mail Aug. 29 LNG opponents ask Ore. state probe of campaign LNG delays could trim global supply (Aug 21) LNG price may gain 80% on plant delays, export cuts (Update1)
		19	Foes protest LNG, by land and by sea (Aug 17) LNG foes take to the water (Aug 14) Attorney General, in formal brief, fights request that Dept. of Commerce override NY denial of Broadwater [News release] Russian-Canadian energy deals possibly at risk Trinidad sells LNG cargo to Japan Freeport LNG applies to export gas imports Anti-LNG groups blast 'push-polls,' file complaint Johnson fears LNG would disrupt airport US gas in storage could approach last year's record level: report Options Trader: Tuesday outlook [Natural Gas Price Manipulation]
		18	Natural gas surge fuels worries about glut LNG passes feds' environment assessment Jamaica may halt consideration of LNG import project Riley may veto proposed LNG terminal south of Dauphin Island (Aug 17) Waterway improvement study could be imminent Opportunity slips from Alaska's grasp [Op-ed column] (Aug 16) Larger LNG tankers could come to Oregon (Aug 17) Making America matter as an energy supplier
		17	Activist says don't trust Canadian govt. on LNG (Aug 16) Opponents stay mobilized one year after  BHP defeat (Aug 16)
		14	'Strategically we are well placed' (Aug 13) Sea Shepherd and Greenpeace founder: Don’t trust government on LNG (Aug 12) US EIA slashes quarterly nat gas price estimates by more than $3 (Aug 12) Neighbors decry pipeline path (Aug 13) Gulf Onshore forms company to operate Marcellus Shale business (Aug 11) Freeport LNG seek LNG export authorization from DOE (Aug 13) CRD backs ban on gas-tanker traffic CRD supports fight against tanker traffic off Texada Island (Aug 13) Palomar says FERC lists come from many sources (Aug 12) Short-term energy outlook (Aug 12)
		12	NN opposes Baldacci’s nominee to PUC (Aug 8) Quoddy Bay, tribe at odds over payment (Aug 8) LNG firm cuts payments to Passamaquoddy LNG company holds open house in Calais (Aug 8) Canaport LNG reconsidering no-fly zone application Proposed liquefied natural gas transshipment facility passes federal environmental assessment (Aug 11) Information sessions on LNG pipeline Residents, officials rail against proposed natural gas port off Fort Lauderdale
		10	Surviving rough seas Putting water ahead of natural gas
		9	AES 'tired' of waiting for govt approval Local professionals, artisans hope to benefit with LNG Bigger LNG ships mean bigger risks LNG opponents sue energy commission over mailing list (Aug 8)
		8	Patrick signs law that would ban LNG terminal for Fall River Debate focuses on proposed LNG facilities Environmental groups can't agree on offshore liquefied natural gas structures Liquefied natural gas terminals spark debate in N.J. Jasper Port, LNG hazardous mix, activists say (Aug 7) U.S. Coast Guard, MARAD announce availability of FEIS and public hearing Agencies issue final EIS for offshore LNG terminal in US Gulf Mitsubishi drops California LNG plan, eyes Alaska
		7	Patrick signs LNG buffer bill into law Feds still open to comments on LNG Maryland Historical Trust responds to Sparrows Point LNG project DEIS Environmental groups sue FERC for LNG pipeline documents Rising energy prices stoke natural gas proposals LNG push “poll” angers opponents (Aug 6) Sempra posts lower profit; raises outlook
		6	Indian country reports on Quoddy Bay LNG's renege LNG cuts off flow of money to Maine tribe LNG cuts off flow of money to Maine tribe Quoddy Bay LNG suspends payments to tribe LNG firm cuts payments to Passamaquoddy Tribe Open-space threats discussed at conservancy forum A gas market profile of Maryland [Press release] NATS: Unplanned disruptions to natural gas supplies could alter global LNG market Mustang receives patent for LNG concept Wyden asks feds to slow LNG decision Mitsubishi ends plans for California LNG site, Nikkei reports (Aug 7)
		5	The Haynesville Shale Cheapeake's massive shale find in Louisiana (Mar) Haynesville Shale: News, map, videos, lease and royalty information Tropical storm not expected to affect U.S. gulf coast LNG terminals Protesters voice opposition to new bridge, LNG pipeline (Aug 4) Kuwait LNG deal ‘in final stage’
		4	Eastport pilot: Lots of planning, a few close calls Hydromet Conference upcoming Bursting the energy bubble A push to wrest more oil from land, but most new wells are for natural gas (Aug 3) Analysts offer differing predictions for 2009 U.S. LNG imports Is natural gas the answer to energy needs of US? Natural-gas prices may fall next year on supply surge GCC [Gulf Cooperation Council] demand for gas growing faster than for oil
		3	County to appeal LNG ruling to Supreme Court Markets and federal agencies, not AGIA, will steer pipeline Multiple players still in gas pipeline fray (Aug 1) Nuclear energy must replace natural gas in power plants [Op-ed column]
		1	Energy Issues in the Western Hemisphere Canaport LNG terminal on track for completion this year LNG case may go to high court Natural gas find in Louisiana makes Jed Clampetts of property owners Chesapeake studying LNG export facility investment TransCanada license for Alaska natural gas pipeline approved by Alaska Legislature Analysis—US natgas price slide dims LNG import hopes

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56 Interstate Natural Gas Pipelines (Maps and Statistics)

10 Natural Gas Storage Facilities (Maps and Statistics)

10 LNG (Liquefied Natural Gas) Facilities (Maps and Statistics)

4 Large Regional Pipeline Maps (each printed across two-page spread for better detail)

Government to spend $100,000 in fight against LNG — Saint Croix Courier, St. Stephen, NB

Conservation Law Foundation jumps into the fray

"We will protect PassamaquoddyBay, we will protect our citizens and we will protect our environment," promised [Member of Parliament and Cabinet Greg Thompson]. "In addition to that, we have said we will fund another study where we collectively will write the terms of the study to defend our position. We are dedicating $100,000 to that project."

"What investment company in the world would want to fund a project of that magnitude when they are staring a sovereign nation in the eye saying we don't want you to come there?" he asked. [Red & bold emphasis added.]

The Conservation Law Foundation, the most respected legal advocate in Maine, will present arguments to the Maine Board of Environmental Protection against LNG going forward. (Aug 22)

NW Natural slips in note about LNG in your bill [Op-ed column] — The Oregonian, Portland, OR

Northwest Natural Gas Co. has stuffed its latest round of bills with inserts touting the need for liquefied natural gas in the state, including the controversial terminals proposed for the Columbia River and Oregon coast.

But the company is hardly an aloof observer. NW Natural, a regulated monopoly that is the state's largest gas provider, hopes to increase profits by building pipelines to serve at least one proposed terminal on the river. It is also looking to expand a lucrative gas-storage business that sits just miles from the proposed Bradwood Landing LNG terminal, east of Astoria. [Red emphasis added.] (Aug 22)

State denies appeal of LNG opponents — The World, Coos Bay, OR

“We’re looking at the market,” Jones said. “If we don’t kill this beast here in the bay, the market will kill it.” [Red emphasis added.]

Webmaster's Comments: The LNG boom has gone bust.

LUBA explains LNG appeal dismissal — The World, Coos Bay, OR

Here is a breakdown of their arguments and the Oregon Land Use Board of Appeals’ responses.

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22 Aug 2008

Narrow interpretation by Woodcock [Blog] — We Take Care of Our Land, Sipayik

No matter its positive spin, [Quoddy Bay LNG] has long closed its doors, locked out those who once were employed there, and is having financial difficulty. The company has not secured anything close to viable for a project of this magnitude, it does, though, continue to have a problematic ground lease. The company has essentially withdrawn from the Maine BEP process, and its FERC application has long since been suspended. (Aug 21)

New study doesn't impress U.S. LNG firms — Telegraph-Journal, Saint John, NB

"We have a prime minister that has stood up for us and has brought this eyeball to eyeball with President George Bush," said Thompson. "We will use every diplomatic and legal means we have and more, if it is needed in the future." [Red & bold emphasis added.]

Webmaster's Comments: "Impressing" the LNG developers isn't necessary. They could continue to delude themselves into believing they could transit Head Harbour Passage and Passamaquoddy Bay; however, they'd be accomplishing nothing but wasting time, effort, and money.

Canada is resolute in its position, and:

Is a sovereign government;

Is not answerable to the U.S. Department of State that falsely claims rights under the UN Convention on the Law of the Sea [UNCLOS] to which the U.S. is not a party;

Is not required to provide any protections under UNCLOS to vessels transiting to ports in Passamaquoddy Bay, because the U.S. is not a party to that treaty;

Even if the U.S. were to ratify its membership in UNCLOS, Canada would not be required to change its sovereign resolve to protect its citizenry;

Does not have to agree to resolve the issue;

Cannot be compelled to appear in international court; and

Even if Canada agreed to allow the issue to be resolved in international court, and even if the decision came down against Canada, the Canadian government couldn't be compelled to recognize that decision. (The United States has done exactly that regarding international disputes that came down against the U.S.! See more about this issue.) The U.S. is in a losing position.

On the other hand, would you…

• Invest in a project that requires you to send ships through waters of a country that says you can't do so, and will do everything in its power to prevent it?
• Insure a ship or cargo under those same prohibitory conditions?
• Send an LNG ship you own into such an international conflict?
• Contract to buy natural gas from a proposed supplier who faces such international barriers?
• Persist at this terminal project location when you could be building an LNG terminal elsewhere without such obstacles?
• Continue to pursue your project when LNG market growth has disappeared due to 100-years-worth of untapped domestic U.S. gas reserves?

Calais LNG, Downeast LNG, and Quoddy Bay LNG business plans, reasoning, and credibility are seriously deficient.

LNG tankers: New study planned — Telegraph-Journal, Saint John, NB

Environment MP says Ottawa will use document to help keep Head Harbour Passage free of massive ships

The study will get underway "very quickly," will include "off-the-shelf references" and will look at the views of local experts.

The Conservative MP said the study will be one more thing the government can use to back up its position against LNG tankers travelling through Head Harbour Passage.

Ottawa has supported local protesters in their fight to stop three companies' plans to build LNG terminals in Maine that would ship LNG on tankers the size of football fields through Head Harbour Passage. [Red emphasis added.] (Aug 21)

Tug and barge allide with Casco Bay Bridge — MarEx Newsletter, Maritime Executive

PORTLAND, ME (20 August 2008): A tug and barge, with more than 21,000 gallons of fuel aboard, struck the Casco Bay Bridge in Maine around 7 a.m., today.

Webmaster's Comments: Accidents happen. Human error occurs. The LNG industry is not immune.

Build the natural gas terminal, but not at Sparrows Point [Opinion column] — The Baltimore Sun, Baltimore, MD

Importing small but potentially catastrophic industrial risks into highly populated areas may have been OK for the 20th-century economy. It doesn't work now.

Generally, [LNG hazards expert — and Coast Guard developer of LNG vapor modeling used by the US Government — Jerry Havens] says, LNG terminals and shipping routes ought to stay at least three miles away from highly populated areas. Within three miles of the Sparrows Point site, thousands of people live and work. [Red & bold emphasis added.] (Aug 20)

Webmaster's Comments: Jerry Havens indicates that FERC ignores sensible LNG terminal siting distances from the public. Even the Society of International Gas Tanker and Terminal Operators (SIGTTO) — with membership including 95% of the entire world LNG industry — indicates that FERC is ignoring sensible LNG terminal siting safety measures. (See LNG Terminal Sitiing Standards Organization.)

With the world LNG industry and the country's premier LNG vapor hazard expert decrying FERC's public-safety negligence why is Congress allowing FERC and LNG golddiggers to needlessly endanger the public?

Cheniere Marketing Inc. seeks authorization to export LNG — Sutherland LNG Law Blog, Washington, DC

YET ANOTHER LNG IMPORT TERMINAL [Sabine Pass LNG] applies to EXPORT ITS IMPORTED LNG!

This is the second LNG terminal that has applied to export LNG it has previously imported. — SPB Webmaster

On August 15, 2008, Cheniere Marketing Inc. filed an "Application for Blanket Authorization to Export Imported Natural Gas" with the Department of Energy's Office of Fossil Energy. According to the application, Cheniere is seeking authorization to export up to 64 Bcf of LNG for a two-year period from its Sabine Pass LNG terminal. (Aug 21)

Webmaster's Comments: The LNG industry is screaming, “THE LNG GOLDRUSH IS OVER!” Are Calais LNG, Downeast LNG, and Quoddy Bay LNG deaf, or are they simply hoping that their financial nightmares will somehow just “disappear”?

Freeport LNG wants to re-export its products — The Facts, Clute, TX

Prices for the fuel in Europe almost double that of the domestic market, and they are double in Asia, said Bill Henry, vice president at Freeport LNG. Currently, LNG earns about $9 per billion cubic foot in the United States. In Asia, it’s $18.

“LNG is a global commodity and you pay a global price,” he said. “We would see significant losses on a cargo purchase if we sold it at a domestic price.”

Freeport LNG already is paying the higher world price, but is unable to sell the natural gas to the domestic market for as much as it is paying. So by shipping it to Europe and Asia, the company can reduce its losses. [Red & bold emphasis added.]

Webmaster's Comments: The message can't be any clearer. Importing LNG would not lower the price of natural gas in the United States.

Only stopping in for a while — Houston Chronicle, Houston, TX

Freeport LNG seeks to re-export LNG

Operators of a newly opened Texas liquefied natural gas import terminal want to re-export the fuel to other countries, saying it will help them weather the current slowdown in the U.S. LNG business.

The company isn't looking to export domestically produced natural gas. Rather, it wants to store foreign LNG shipments and then reload them back on tankers for delivery to other countries, including the United Kingdom, Belgium, Spain, Japan, South Korea, India, China, Taiwan, France and Italy. [Red emphasis added.] (Aug 21)

Alaska Governor orders state agencies to assist developers of LNG liquefaction project — Sutherland LNG Law Blog, Washington, DC

Platts LNG Daily [subscription required] reports that Gov. Sarah Palin (R-Alaska) has ordered  state agencies to assist the companies developing an LNG liquefaction terminal proposed for Valdez that would export LNG to Asian markets or deliver to the U.S. West Coast.

LNG ballots will go in the mail Aug. 29 — The Daily Astorian, Astoria, OR

The measure asks voters whether they support changing county zoning law to allow the installation of pipelines and cables as conditional uses in land zoned as open space, parks and recreation.

A "yes" vote approves that change; a "no" vote maintains the current zoning law, which prohibits pipelines and cables those lands.

LNG opponents ask Ore. state probe of campaign — (AP) OregonLive.com

Oregon law requires groups that spend money on an election campaign to register and report expenses to the secretary of state's office.

The complaint says hundreds of residents have been receiving phone calls urging them to support the projects, but no group has registered or reported such an expense.

LNG delays could trim global supply — The Oregonian, Portland, OR

Delays in liquefied natural gas ventures led by Exxon Mobil Corp. and Chevron Corp. may pare global supplies by 100 million metric tons -- more than the annual demand of South Korea and Japan, the world's biggest importers.

Projects in Australia, Nigeria, Algeria and the Baltics have been shelved or postponed, prompting the capacity shortfall by 2013, said Ian Angell, vice president of gas and power at Wood Mackenzie Consultants Ltd. The deficit, enough to power 250 million homes, will cause spot LNG prices to trade at parity or at a premium to oil, he said.

In recent months … the U.S. price of natural gas has plummeted, and major producers have been crowing about huge new [domestic] gas reserves that they can tap from shale formations using unconventional drilling techniques. [Red & bold emphasis added.] (Aug 21)

Webmaster's Comments: LNG spot market prices will be trading "at parity or at a premium to oil"!!! LNG will not provide lower fuel prices to the U.S.

LNG price may gain 80% on plant delays, export cuts (Update1) — Bloomberg.com

Aug. 15 (Bloomberg) -- Liquefied natural gas prices in Asia may climb about 80 percent this year as new projects get delayed and countries from Indonesia to Egypt curb exports.

Cargoes of LNG, which is gas chilled into liquid for transportation by tankers, may rise to as much as $25 per million British thermal units in the Northern Hemisphere winter….

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19 Aug 2008

Foes protest LNG, by land and by sea — The Herald News, Fall River, MA

Fall River — “I’m ecstatic,” said Joseph Carvalho after the simultaneous land and sea anti-LNG rallies Saturday.

The president of the Coalition for the Safe Siting of LNG Facilities was reacting to the overwhelming turnout for a flotilla of civilian watercraft from Spar Island to the Borden Flats Lighthouse in Mount Hope Bay, and an LNG protest on Atlantic Avenue. (Aug 17)

LNG foes take to the water — The Herald News, Fall River, MA

…a demonstration organizers say is intended to claim Mount Hope Bay and the Taunton River as "LNG-free zones." (Aug 14)

Trinidad sells LNG cargo to Japan — The Miami Herald, Miami, FL

Trinidad & Tobago's Atlantic LNG, the biggest supplier of liquefied natural gas to the United States, sold a spot cargo to Japan at more than double the U.S. benchmark price, a U.K.-based shipbroker said. [Red & bold emphasis added.] (Aug 15)

Webmaster's Comments: World commodification of natural gas via LNG is driving the price of natural gas upward.

Freeport LNG applies to export gas imports — Oil & Gas Journal, Tulsa, OK

HOUSTON, Aug. 19 -- Freeport LNG Development LP is the first US firm to request permission to export LNG imported into its Freeport, Tex., terminal.

Freeport LNG Vice-Pres. Bill Henry told OGJ, "We need to do this to keep the equipment cold and sell the excess LNG either into the US market or export the LNG into the [higher priced] international market."

Due to lower prices for gas in the US and increased domestic production from the shale gas plays, Henry said, "There is very little LNG scheduled into the US for the next 12 months." [Red, bold, italic, and underlined emphasis added.]

Anti-LNG groups blast 'push-polls,' file complaint — The Daily Astorian, Astoria, OR

Two anti-LNG groups, Clatsop County Citizens for Common Sense and Columbia Riverkeeper, filed a complaint Tuesday with the Oregon Secretary of State calling for an immediate investigation of "push polls" that they believe are being bankrolled by supporters of Liquefied Natural Gas pipelines.

The push poll is illegal because no company, including Bradwood Landing, has registered or reported spending any money on the referendum, said Brent Foster, executive director of Columbia Riverkeeper. He said Oregon campaign finance laws require that companies report how much they are spending on elections. "Here, someone is breaking the law by conducting a bogus survey, but not reporting any of it. The push poll is underhanded, failing to report is illegal."

Johnson fears LNG would disrupt airport — The Daily Astorian, Astoria, OR

Senator raises concerns for project endangering Warrenton airport

Johnson, a licensed commercial pilot, said after reviewing regulations she believes the project's 195-foot-tall LNG storage tanks will protrude into protected air space around the airport and put pilots and the surrounding community at risk.

[Port Director of Operations Ron Larsen] said the Port didn't know at the outset of the Oregon LNG project that the LNG storage tanks would be so tall they would enter the protected airspace. Now, he said, it does appear the tops of the tanks will cut into that space.

US gas in storage could approach last year's record level: report — Platts

The US could end its traditional natural gas injection season with 3.52 Tcf in storage at the end of October, just under last year's record 3.545 Tcf as mild summer weather, increased domestic production and reduced industrial sector demand begin to ease a tight supply picture, Lehman Brothers said.

Options Trader: Tuesday outlook — SeekingAlpha.com

And another hurricane bites the dust!

This is turning into another disaster for natural gas traders, who ran up the price up to $14 just 4 weeks ago from $7 at the beginning of the year and now, 30 days later, it’s back to $7.

We won’t get into the scam that is LNG here, other than to remind you that this is a scheme to INCREASE imports of energy into the US of one of the only things we have plenty of.  The key to the drive to build LNG terminals is that energy companies can store months’ worth of natural gas in the ground, rather than be forced to sell it at market prices as it’s produced.  Recent failures to get a plant under construction on the Taunton river in MA were the last straw for traders, and gas prices fell almost 20% from the point the plant was essentially blocked (July 18th).  Chesapeake Energy, who routinely have had to cut back production the past two years to prevent US storage from overflowing, have been in free-fall, dropping from $74 on July 1st to $44.92 yesterday. [Red, italic, and bold emphasis added.]

Webmaster's Comments: There is an over-abundance of natural gas in the US. This article indicates that at least some US natural gas producers are manipulating supply in order to manipulate price. Where is FERC in regulating this price manipulation?

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18 Aug 2008

Natural gas surge fuels worries about glut — Star-Telegram, Fort Worth, TX

If the United States continues to produce as much natural gas as it has in the year’s first five months, the country will see a 35-year high in annual production in 2008.

…U.S. natural gas production is up nearly 9 percent through May. At that rate, output this year will rise to nearly 22 trillion cubic feet, the highest since 1973’s 22.6 trillion cubic feet, the all-time record.

Consider Freeport LNG, which in June opened its $850 million terminal south of Houston. Freeport is the result of an eight-year plan to build a terminal to import liquefied natural gas — natural gas that has been chilled to about 260 degrees below zero — from overseas producers.

On Aug. 1, however, Freeport LNG asked the Energy Department for permission to export LNG that it previously imported. [Red & bold emphasis added.]

Webmaster's Comments: Conclusion: "There is a natural gas glut."

LNG passes feds' environment assessment — The Packet, Clarenville, NL

Newfoundland LNG has cleared the final hurdle to making a transshipment terminal a reality in Placentia Bay. The project was granted environmental approval by the federal Minister of Environment last Monday.

Jamaica may halt consideration of LNG import project — Sutherland LNG Law Blog, Washington, DC

An anonymous source told Platts LNG Daily [subscription required] that the Jamaican government is no longer considering an LNG import terminal proposed for a site on the country's southern coast, saying that the Jamaican government is leaning towards coal as a future fuel for the island nation.

Riley may veto proposed LNG terminal south of Dauphin Island — Press-Register, Birmingham, AL

Gov. Bob Riley has until Oct. 10 to decide whether to allow a new liquefied natural gas terminal to be built 63 miles south of Dauphin Island.

Federal agencies charged with protecting the nation's fisheries and the marine environment remain opposed to TORP's proposal. Those agencies, including the National Marine Fisheries Service and the National Oceanic and Atmospheric Administration, describe "significant adverse impacts on the marine environment" that they believe the terminal could cause.

Riley opposed a similar proposal from ConocoPhillips Corp. in 2006, arguing that it would take an unacceptable toll on sea life and the seafood industry in the Gulf. At that time, federal officials estimated that terminal would kill perhaps 2 billion eggs and larvae per year. ConocoPhillips withdrew its application when it became apparent Riley would veto it. (Aug 17)

Waterway improvement study could be imminent — The Beaumont Enterprise, Beaumont, TX

Selling the project to some lawmakers is simple by pointing out some gee-whiz facts and figures, such as the water-way being the country's top arrival site for crude tankers, Henderson said.

He also touts the three liquefied natural gas terminals expected to be completed by 2012, making the waterway home to about 70 percent of the nation's LNG import capacity.

Webmaster's Comments: LNG projects up the Sabine-Neches Waterway, from Sabine Pass to the Port of Beaumont, would provide "about 70 % in the nation's LNG import capacity." And yet, compared to the amount of LNG currently being imported into the US, the Quoddy Bay LNG project would import an additional 200% to the US LNG import volume. Add to that the Downeast LNG (an additional 50% over the nation's current import volume) and Calais LNG Project Co. (100% of the nation's current import volume).

There are already a whole lot of US projects with a total LNG import volume of many-times over 100%. It's obvious the Passamaquoddy Bay-area projects are overkill to the extreme. They simply aren't needed.

Opportunity slips from Alaska's grasp [Op-ed column] — The Anchorage Daily News, Anchorage, AK

It's time our leaders admitted that the South 48 doesn't need Alaska gas. As the Wall Street Journal reported earlier this month, thousands of wells are being drilled in Texas, Louisiana and Oklahoma, and analysts are talking about a "gas glut." [Red & bold emphasis added.] (Aug 16)

Webmaster's Comments: Calais LNG, Downeast LNG, and Quoddy Bay LNG, please take notice of the essential natural gas market information in the above story…

There is “a natural gas glut!”

Larger LNG tankers could come to Oregon — (AP) OregonLive.com, Portland, OR

NorthernStar, which would operate Bradwood, says it is building the facility for ships with capacities of from 100,000 and 200,000 cubic meters. (Aug 17)

Making America matter as an energy supplier — Barron's, New York, NY

Attempts to build an LNG terminal in Washington County, Maine, have been delayed by local lawsuits and opposition by Canada, which says that it will not let tankers sail through its waters to get to the proposed U.S. facility, claiming an environmental threat to the bay.

Webmaster's Comments: Canada's prohibition to LNG ships in Passamaquoddy Bay is also based on the 2.2-mile Hazard Zones radiating out from transiting LNG ships that would endanger Canadian citizens, and based on the economic damage that the LNG proposals would cause. Canada's position is in perfect step with the world LNG industry, that warns against siting LNG terminals under the conditions present in Passamaquoddy Bay. (See SIGTTO and LNG Terminal Siting Standards Organization.)

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17 Aug 2008

Activist says don't trust Canadian govt. on LNG — WQDY-FM, Calais, ME

[This is the same story covered on Aug 15 by the Saint Croix Courier (see below).]

…Watson did claim to have shut down an LNG terminal that was going to be built in Longbeach, Calif. (Aug 16)

Webmaster's Comments: Watson's self-promotion is incorrect. See "VICTORY! FERC puts Long Beach LNG proposal on terminal hold" and the California Sierra Club article, "Long Beach LNG officially dead!," for more accurate accounts of what actually defeated the Long Beach LNG project.

When reading Watson's remarks, one should take the source into account.

Opponents stay mobilized one year after  BHP defeat — Malibu Surfside News, Malibu, CA

The entire market assumptions for the profitable importation of LNG to California may have been upended, however, by the recent spike in oil prices, which has also pulled world LNG prices up. A recent LNG sales contract signed by Indonesia set prices four times greater than those in LNG studies assumed by those in Sacramento who said the state needs the gas, putting imported LNG way more expensive than domestic gas

[T]he parent company of the Southern California Gas Company is about to inaugurate the LNG plant it rushed to completion in Baja California, where U.S. environmental review laws could not delay it. That $1 billion-plus plant, called Costa Azul, has capacity equal to one tenth of the natural gas used on the entire West Coast of Canada, Mexico and the U.S. [Red emphasis added.] (Aug 16)

Webmaster's Comments: LNG is far more expensive than plentiful domestic natural gas supplies; plus, Cosal Azul's import capacity dwarfs the needs along the entire North American west coast.

The LNG import goldrush is over.

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14 Aug 2008

'Strategically we are well placed' — Telegraph-Journal, Saint John, NB

Newfoundland Project to become continent's first LNG storage and transshipment facility

The project, which will include a marine terminal with three berths, a tug basin, eight storage tanks, an access road and office facilities will be starting just as the construction of three liquefied natural gas terminals in Saint John is wrapping up.

"We are one and half days to markets in Boston. It would take longer than that to get that volume there through a pipeline," he said.

But one energy consultant has doubts about the ability of the market to support so much liquefied natural gas activity. Both New Brunswick and Newfoundland's projects are targeting U.S. markets, which already have liquefied natural gas storage capacity, said North Carolina consultant Zach Allen.

"The market is very limited," he said.

Allen has also cast doubts about Canaport's chances of future success. [Red emphasis added.] (Aug 13)

Webmaster's Comments: Canaport may be LNG overkill, the Newfoundland LNG transshipment project may be super-overkill, since the market for LNG is limited. We aren't the ones saying that — that's coming from the industry, itself. Downeast LNG, Calais LNG Project Co., and Quoddy Bay LNG investors must be seriously reconsidering their own judgement.

Sea Shepherd and Greenpeace founder: Don’t trust government on LNG — Saint Croix Courier, St. Stephen, NB

Webmaster's Comments: Sea Shepherd and Greenpeace founder Paul Watson's remarks in this August 12 story about LNG in Passamaquoddy Bay, in this webmaster's opinion, are irresponsible and counter-productive. Save Passamaquoddy Bay does not share his views.

US EIA slashes quarterly nat gas price estimates by more than $3 — Platts

Looking ahead, the agency said that "strong domestic production is expected to limit the impact of lower LNG and Canadian imports on natural gas prices." [Red & bold emphasis added.] (Aug 12)

Webmaster's Comments: Read that again: “Lower LNG and Canadian imports” due to “strong domestic [natural gas] production." The local LNG speculators are fooling themselves and their investors if they seriously believe their projects have futures.

Neighbors decry pipeline path — The Baltimore Sun, Baltimore, MD

Harford residents see loss of land, potential dan

The lush 12-acre field, bordered by huge oaks and a rippling creek, would have been the perfect setting for a country house, with plenty of room for a few horses to gallop around.

That, at least, was Ann Paszkiewicz's vision six years ago, when she paid $250,000 for the property near Fallston High School in Harford County.

Paszkiewicz and some of her neighbors say they have lost hope that they will be fairly compensated for the land they might be forced to give up.

Pipeline operators say their systems have a good safety record. (Aug 13)

Webmaster's Comments: According to the U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA), the gas only (gas transmission + gas gathering + gas distribution) 5-year (2003–2007) annual average was: 58 fatalities, 163 hospitalized injuries, and $198,626,480 in public property damage. (Source: PHMSA's Consequences to the Public and the Pipeline Industry website section.)

Gulf Onshore forms company to operate Marcellus Shale business — Platts

The Marcellus Shale, which is estimated to contain more than 500 Tcf of natural gas, extends throughout the Appalachian Basin from southern New York to Tennessee, Gulf Onshore said. [Red emphasis added.] (Aug 11)

Webmaster's Comments: Domestic natural gas resources are overpowering any need to import additional LNG. Calais LNG Project Co., especially, has made an untimely, poorly-sited, and expensive project decision. Even Quoddy Bay LNG and Downeast LNG were late entering the race. The investors in all three of these projects must be considering cutting their losses and moving on.

Freeport LNG seek LNG export authorization from DOE — Sutherland LNG Law Blog, Washington, DC

The application seeks authorization to export up to 24 Bcf of LNG on a cumulative basis over a two-year period and states that the facility will export previously imported LNG, not domestically produced natural gas. [Red, large, and italic emphasis added.] (Aug 13)

Webmaster's Comments: Freeport LNG — the newly-completed import terminal, — now joins Chesapeake Energy in wanting to EXPORT LNG from the US. It should be perfectly clear by now to Downeast LNG, Calais LNG Project Co., and Quoddy Bay LNG that their dreams are ruined and it's beyond time to call it quits.

CRD backs ban on gas-tanker traffic — Canada.com, Times Colonist, Victoria, BC

LNG traffic deemed too hazardous for Inside Passage route

Liquefied natural gas tankers have no place travelling up and down the Inside Passage, Capital Regional District directors say.

The CRD yesterday endorsed a resolution supporting the Powell River Regional District in calling on the federal government to ban LNG tankers from using the Inside Passage -- one of the most heavily travelled waterways in North America.

"It is extraordinarily significant. We don't want those kinds of vessels in restricted, busy waterways unless you have absolutely no other option and I don't think that's the case here."

A similar resolution has been passed by the Islands Trust. [Red emphasis added.]

CRD supports fight against tanker traffic off Texada Island — C-Fax 1070, Victoria, BC

The Capital Regional District is supporting a resolution by the Powell River Regional District that Westpac LNG Corporation not be allowed to build a liquid (sic) natural gas facility on Texada Island. (Aug 13)

Palomar says FERC lists come from many sources — The Hillsboro Argus, Hillsboro, OR

The suit, filed by Columbia and Willamette riverkeepers last week in U.S. District Court in Portland, alleges that the Federal Energy Regulatory Commission is either illegally withholding or illegally destroyed its mailing lists related to the Palomar pipeline. [Red emphasis added.] (Aug 12)

Short-term energy outlook — U.S. Energy Information Administration, Washington, DC

Production and Imports

Total U.S. marketed natural gas production is expected to increase by 8.0 percent in 2008 and by 3.7 percent in 2009.  Robust growth from unconventional production basins in the Lower-48 onshore region is expected to continue, while production is projected remain unchanged in the Federal Gulf of Mexico in 2008.  Marketed natural gas production from the Federal Gulf of Mexico is projected to increase by 3.5 percent in 2009 while sustained drilling activity is expected to lead to production growth next year of 3.9 percent in the Lower-48 onshore region.

Imports of liquefied natural gas (LNG) remain low as demand for natural gas in Asia-Pacific and Europe continues to attract cargoes with higher relative prices. … LNG imports are expected to total 390 billion cubic feet (Bcf) in 2008, and 480 Bcf in 2009, compared with 771 Bcf in 2007. [Red & bold emphasis added.] (Aug 12)

Webmaster's Comments: The U.S. LNG import industry is getting hit hard, very hard. The LNG goldrush bubble has burst.

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12 Aug 2008

NN opposes Baldacci’s nominee to PUC — We Take Care of Our Land, Sipayik

[The following link is not working properly. It should be fixed by afternoon on Wednesday Aug 13.]

On behalf of our members and families, Nulankeyutomonen Nkihtahkomikumon (NN) opposes the confirmation of Jack Cashman as a member of the Public Utilities Commission (PUC). During the past four years our grassroots group has worked tirelessly against a proposed Liquefied Natural Gas (LNG) terminal slated for our coastal community. This LNG proposal was officially introduced to our community during an impromptu meeting held at Pleasant Point by Maine’s executive officials on June 22, 2004. Mr. Cashman attended this meeting and was a prominent member of Maine’s delegation. On that day, their message was simply LNG is good for you. None of the difficult or complex questioning by our elders, and members was even remotely answered. Nor has there ever been any direct apology or rationale offered outlining why the state’s design for LNG was beyond question. [Red & bold emphasis added.] (Aug 8)

Quoddy Bay, tribe at odds over payment — The Quoddy Tides, Eastport, ME

Quoddy Bay LNG, after first informing the Passamaquoddy Tribe that it would seek the tribal council's agreement on its proposal to suspend its quarterly lease payments to the tribe, has now informed the council that it is putting a temporary hold on the payments. The tribal government has responded that it believes the company is required to make the lease payments under the land lease agreement for the proposed liquefied natural gas facility at Split Rock, Pleasant Point. (Aug 8)

Webmaster's Comments: Surprisingly, QBLNG is arguing that the lease isn't final, despite the Bureau of Indian Affairs’ July 1st testimony in US District Court that lease is final. QBLNG's Don Smith wants it both ways.

LNG firm cuts payments to Passamaquoddy — Indian Country Today, Canastota, NY

During the course of the federal government's appeal to dismiss the lawsuit, the BIA conceded that in approving the lease it had actually approved the entire LNG project.

But Smith is now claiming in his press release that the BIA has not yet approved the contract and, therefore, the company is not obligated to make payments to the tribe.

[According to a Save Passamaquoddy Bay spokesperson], ''Either they do have a lease and they owe the money to the tribe, or they don't have a lease at all and they can't do anything.'' [Red & bold emphasis added.]

Webmaster's Comments: Quoddy Bay's Don Smith has painted himself into a corner and the only way out is to pack up and return to Oklahoma.

LNG company holds open house in Calais — The Quoddy Tides, Eastport, ME

A display that attracted much interest was a chart showing the proposed route tankers would take to reach the terminal berth. The tankers at times would be traversing in Canadian waters. The Canadian government has expressed objections to LNG proposals that would involve ships passing through Canada's Head Harbour Passage. (Aug 8)

Webmaster's Comments: Not only does Canada object, they have declared that LNG traffic into Passamaquoddy Bay is prohibited. Calais LNG Project Co. is wasting its time, effort, and money.

Canaport LNG reconsidering no-fly zone application — Telegraph-Journal, Saint John, NB

OTTAWA — Canaport LNG is reconsidering a commitment to apply to Transport Canada for a no-fly zone around the country's first liquefied natural gas plant.

No-fly zones ban aircraft from flying in a specified area and are typically declared for public safety reasons.

They are not common: Transport Canada does not require them even for nuclear power plants in Canada.

The Federal Aviation Administration in the United States also does not require no-fly zones for nuclear power plants, or for that country's eight liquefied natural gas plants.

Proposed liquefied natural gas transshipment facility passes federal environmental assessment — The Telegram, Saint John's, NL

The federal government has approved the environmental impact assessment for the liquefied natural gas (LNG) transshipment terminal planned for Grassy Point, Placentia Bay.

Newfoundland LNG Ltd. wants to build, and eventually decommission, an LNG transshipment and storage terminal, which would include a marine terminal, a tug basin, eight LNG storage tanks, an access road, office facilities, security fencing, and utilities such as water and power. (Aug 11)

Information sessions on LNG pipeline — The Baltimore Sun, Baltimore, MD

If the proposed liquefied natural gas pipeline from eastern Baltimore County to Pennsylvania is approved, Mike and Pat Liberatore face two daunting possibilities.

Under one scenario, the Harford County couple could lose most of the trees on their property. Under the other, they say, the LNG pipeline could come through their bedroom.

The kicker? "We can't get our home connected for natural gas," says Mike Liberatore, a builder who has lived in the Street area for 13 years. "We won't see the benefits of this."

By increasing the natural gas supply in the region, prices for gas customers should drop, said Richard Hoffmann, executive director of the Interstate Natural Gas Association of America Foundation.

Webmaster's Comments: Passamaquoddy Bay-area residents may recall the public Downeast LNG meeting at the Robbinston (Maine) Elementary School. When asked about the potential for injury from thermal-flux exposure from an LNG terminal catastrophe, then-FERC official Richard Hoffmann callously responded:

"Someone could argue that a child might be playing in a ball field nearby, and wouldn't know enough to run, but that wouldn't be a fair question. —Just kidding!"

— Richard Hoffmann, Director
Division of Gas
Environment and Engineering
Office of Energy Products
Federal Energy Regulatory Commission
2005 September 30

Residents, officials rail against proposed natural gas port off Fort Lauderdale — Sun-Sentinel, Fort Lauderdale, FL

Elected officials and coastal residents denounced the proposed Calypso natural gas port at a meeting Monday in Fort Lauderdale, increasing pressure on Gov. Charlie Crist to reject the project.

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10 Aug 2008

Surviving rough seas — The Boston Globe, Boston, MA

GLOUCESTER — Some fishermen are bitter about making a deal with gas companies. Others said they had no choice. All said they'd rather not have to take the $12.6 million from the two liquefied natural gas companies that are planning terminals off the North Shore coast. [Red emphasis added.]

Putting water ahead of natural gas — The New York Times, New York, NY

Natural gas vs New York City's untreated water supply

It has slowly dawned on people, among them Mr. Gennaro, chairman of the Council’s Environmental Protection Committee, that there’s one very big local angle to the distant and still exotic notion of major energy companies descending on upstate New York to drill for natural gas in the Marcellus Shale formation.

“This is an activity that is completely and utterly inconsistent with a drinking water supply,” he said. “This cannot happen. This would destroy the New York City watershed, and for what? For short-term gains on natural gas? We’re not saying no exploration for natural gas anywhere in New York State. We’re saying the part of New York State that is the New York City reservoir system should be off limits to this kind of activity.”

“Unlike natural gas, which we can get from other places in the Marcellus Shale, we have no other place to go for our drinking water. This is it. We have one and only one drinking water system.”

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9 Aug 2008

AES 'tired' of waiting for govt approval — The Nassau Guardian, Nassau, Bahamas

The AES company is 'getting a little tired' of waiting on approval from the government for the controversial liquefied natural gas (LNG) plant they are seeking to build on Ocean Cay.

Local professionals, artisans hope to benefit with LNG — The Nassau Guardian, Nassau, Bahamas

Bahamian contractors, architects and construction workers are hoping to benefit during the construction and development phases of a Liquefied Natural Gas regasification facility — if the government approves a proposal by Virginia-based AES to build one at Ocean Cay in The Bahamas.

In fact, the Bahamian Contractors Association is petitioning the government to make it mandatory for the developers to utilize Bahamian contractors.

Samson said the construction side of the project would be complicated, but he assured the group that the operational side of the business would primarily employ Bahamians.

Webmaster's Comments: After waiting seven years (see AES 'tired of waiting for govt approval) — and with the current abundance of domestic natural gas in the US — insisting on using local contractors to build a facility as specialized as an LNG terminal may help AES reassess their position and motivate their departure.

Bigger LNG ships mean bigger risks — The Daily Astorian, Astoria, OR

The largest ship that can deliver to the Bradwood facility under the rules outlined in the Coast Guard's report is one that carries 148,000 cubic meters of LNG. A new assessment could result in more safety precautions being added onto the existing requirements.

LNG opponents sue energy commission over mailing list — Oregon Public Broadcasting

The Federal Energy Regulatory Commission rejected a Freedom of Information Act request sent in January.

It asked for the names and addresses of people FERC is communicating with about a proposed natural gas pipeline between a possible LNG terminal and existing pipelines in central Oregon.

Dan Serres: “Their direct response to the FOIA request was ‘we don’t have a list’ despite transcripts from public meetings indicating that they do have a list and that they’re developing this list all the time.” [Red emphasis added.] (Aug 8)

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8 Aug 2008

Patrick signs law that would ban LNG terminal for Fall River — The Standard-Times, New Bedford, MA

BOSTON — Gov. Deval Patrick has signed legislation that in effect bans an LNG terminal from being located in Fall River.

"Liquefied natural gas continues to be an important part of the commonwealth's statewide energy plan, but there are also serious potential health and safety risks posed by LNG terminals and tankers," said Rebecca Deusser, a spokeswoman for the governor. "Governor Patrick questions the wisdom of siting new LNG terminals in close proximity to densely populated areas, and he is particularly concerned about the project proposed in Fall River."

Debate focuses on proposed LNG facilities — Asbury Park Press, Neptune, NJ

"If we finish building what we have under construction, we'll have almost 20 billion cubic feet of capacity" on the East Coast, Beyer said. "So we're set for the next 20 years."

"There is already a glut, a huge glut, of LNG import facilities," Zipf said. "LNG is foreign — that's why you put it onto ships — and it's expensive." [Red & bold emphasis added.]

Webmaster's Comments: Calais LNG, Downeast LNG, and Quoddy Bay LNG are unneeded. The US already has permitted, under construction, or already built an over-abundance of LNG import infrastructure to meet the country's natural gas needs long into the future — and that is in addition to vast abundantce of domestic natural gas resources.

Environmental groups can't agree on offshore liquefied natural gas structures — The Press of Atlantic City, Pleasantville, NJ

Some environmental groups suggested that it would be a good, productive way to provide cleaner energy to the state, while others denounced the plans as completely unnecessary and a threat to the environment.

Liquefied natural gas terminals spark debate in N.J. — (AP) Daily Record, Parsippany, NJ

"Our dock does $6 million to $10 million a year in seafood landings," he said. "Each of these terminals would be located in prime fishing grounds. That's where the fish are, and that's where we fish. It would put us out of business."

Lovegren and other opponents of the proposals said existing natural gas terminals on the East Coast are operating far below capacity, and he questioned the economic sense of building new ones.

Jasper Port, LNG hazardous mix, activists say — (Morris News Service) Savannah Morning News, Savannah, GA

Even as two enormous storage tanks are being built to double the capacity of the El Paso Corp.'s liquefied natural gas terminal on Elba Island, a local environmental group continues to call for the facility to move offshore.

The latest concern of Citizens for Clean Air and Water is the proposed siting of the Jasper Port.

A spill or a release from Elba or from an incoming tanker — whether accidental or as a result of terrorism — could put anyone within a mile, or even farther, in grave danger.

Citing industry standards from the Society of International Gas Terminal and Tanker Operations, Jennings noted that LNG terminals are discouraged from being constructed where vapors from a spill could affect civilians, on long narrow inland waterways, on the outside curve of a waterway, and where they conflict with other current and future waterway uses.

Elba flunks on all measures, she said. [Red bold emphasis added.] (Aug 7)

Webmaster's Comments: See Society of International Gas Tanker and Terminal Operators (SIGTTO) and LNG Terminal Siting Standards Organization.

U.S. Coast Guard, MARAD announce availability of FEIS and public hearing — Sutherland LNG Law Blog, Washington, DC

The U.S. Coast Guard and MARAD announced today that the Final Environmental Impact Statement (FEIS) for the proposed TORP Terminal LNG project is now available and that a public hearing will be held in Mobile, Ala., on August 26, 2008.

Agencies issue final EIS for offshore LNG terminal in US Gulf — Platts

The US Maritime Administration and Coast Guard on Friday released a final environmental impact statement on Norwegian developer Torp's proposal to build Bienville Offshore Energy Terminal, a 1.2 Bcf/d liquefied natural gas import terminal in federal waters of the US Gulf of Mexico.

The company's proposed terminal would be located 63 miles off the coast of Alabama in water about 425 feet deep. It would be capable of simultaneously mooring two LNG carriers with capacity of up to 250,000 cubic meters each.

Webmaster's Comments: Offshore, safely away from civilian populations.

Mitsubishi drops California LNG plan, eyes Alaska — Oil & Gas Journal, Houston, TX

…Mitsubishi signed an agreement with the Alaska Gasline Port Authority (AGPA) to develop an LNG project in southern Alaska aimed at shipping Alaska North Slope gas to the Lower 48.

According to reports, Mitsubishi's interest lies in the liquefaction, transport, and marketing of LNG to Asia and possibly the US West Coast in conjunction with Sempra LNG, a subsidiary of Sempra Energy, San Diego.

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7 Aug 2008

Patrick signs LNG buffer bill into law — The Herald News, Fall River, MA

The bill, authored by state Rep. David Sullivan, D-Fall River, and cosponsored by the entire Fall River delegation along with others, requires that an LNG terminal have a minimum distance of 5,000 feet from the center of the LNG tank to the nearest residential home, elderly housing complex, school, hospital, health care facility, business or developments.

An LNG tanker must also have a 1,500-foot clearance along the shore as it travels any Massachusetts waterway from the hull to the nearest residential home, elderly housing complexes, schools, hospitals, health care facilities, businesses or developments. [Bold red emphasis added.]

Webmaster's Comments: This bill conforms with the world LNG industry's own best practices philosophy, at least in part, as published by Society of International Gas Tanker and Terminal Operators (SIGTTO) in their publication, Site Selection and Design for LNG Ports and Jetties. (See LNG Terminal Siting Standards Organization for an abbreviated list of those standards.)

Incredibly, FERC has less-stringent permitting standards than does the LNG industry.

Feds still open to comments on LNG — The Dundalk Eagle, Dundalk, MD

While the Federal Energy Regulatory Commission’s stated deadline for public comment was June 16 for the terminal and pipeline proposed by AES Corp. of Virginia, FERC will still consider responses from the community.

FERC staff will also attend a meeting organized by U.S. Rep. Joe Pitts (Pennsylvania, 16th District) in Atglen, Pa., on Aug. 12.

Gabe Neville, Pitt’s chief of staff, said it took some limited effort to set up the meeting because it is outside of standard FERC procedures.

Maryland Historical Trust responds to Sparrows Point LNG project DEIS — Sutherland LNG Law Blog, Washington, DC

The Maryland Historical Trust has submitted its response to the Draft Environmental Impact Statement prepared by FERC for the Sparrows Point LNG terminal project. The response is available in the FERC eLibrary under Docket No. CP07-62.

Environmental groups sue FERC for LNG pipeline documents — News-Times, Portland, OR

Riverkeepers say federal agency is withholding mailing lists

A pair of environmental groups filed suit against the Federal Energy Regulatory Commission today seeking the release of a mailing list that the FERC claims does not exist.

A form called “mailing list retention form” was included in a mailing that FERC sent the News-Times on July 21. The form references an environmental mailing list for the Palomar pipeline project.

“We know they have it,” said Dan Serres, spokesman for Columbia Riverkeeper, “they talk about the mailing list in public meetings, they say, ‘please get on our list.’” [Red emphasis added.]

Rising energy prices stoke natural gas proposals — The Oregonian

Despite a political debate over terminal projects, there's no guarantee consumers will get a break

Wyden, saying the regulatory agency [FERC] needs to be reined in, has co-sponsored a bill that would push regulatory authority for siting LNG terminals back to state control, which was preempted by the Energy Policy Act of 2005. Other influential U.S. senators, including Barack Obama, have signed on. [Red emphasis added.]

Webmaster's Comments: Global commodification of natural gas via LNG has actually caused the price of natural gas to skyrocket, since Asia has no alternative than to pay more in order to get its energy. LNG is a cause of higher natural gas prices, not a solution to it.

LNG push “poll” angers opponents — The Daily Astorian, Astoria, OR

The Portland-based polling company RDD Field Services is calling county residents and asking them how they plan to vote on ballot measure 4-131, a referendum that will determine whether the pipeline for the Bradwood Landing project can follow its proposed route.

But several residents who have completed the poll say the 10- to 20-minute quiz is loaded with rosy information about the value of LNG as a clean fossil fuel and the improvements Bradwood Landing developer NorthernStar Natural Gas Inc. will bring to the region.

Several county residents who told pollsters they planned to vote "no" on the measure were given a list of reasons to support LNG: increased tax revenue, job creation, cheaper natural gas and salmon population enhancement. (Aug 6)

Sempra posts lower profit; raises outlook — MarketWatch, New York, NY

Sempra LNG, its liquefied natural gas import business, posted a $28 million loss, wider than the $13 million year-ago loss. [Red & bold emphasis added.]

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6 Aug 2008

Indian country reports on Quoddy Bay LNG's renege

LNG cuts off flow of money to Maine tribe — News From Indian Country, Hayward, WI

Donald Smith, president of Quoddy Bay LNG, says the payments were never a requirement. He says they were voluntary because Quoddy Bay is not obliged to begin making payments until the federal Bureau of Indian Affairs has given its final approval to the project.

Webmaster's Comments: The BIA argued in US District Court on July 1 that its initial ground lease approval was their final approval.

LNG cuts off flow of money to Maine tribe — PowWows.com

[News alert links to News From Indian Country story, above.]

Quoddy Bay LNG suspends payments to tribe — NativeBiz, Banning, CA

Attorneys on each side of the lawsuit, which is still pending, have indicated in court documents that they are willing to negotiate for a possible settlement in the case, which could lead to the bureau revisiting the lease agreement between Quoddy Bay and the tribe. (Jul 28)

LNG firm cuts payments to Passamaquoddy Tribe — Indianz.com, Winnebago, NE

The Passamaquoddy Tribe of Maine will no longer receive quarterly payments from a company that wants to build a liquefied natural gas terminal on the reservation. (Jul 28)

Open-space threats discussed at conservancy forum — Daily Local News, Exton, PA

Diniman said the pipeline companies didn't notify in advance the Brandywine Valley Authority, Chester County or the Chester County Water Resources Authority about critical aspects of the project that would affect streams and water quality.

A gas market profile of Maryland [Press release] — StreetInsider.com

Research and Markets has announced the addition of the "Gas Market Profile: Maryland" report to their offering.

This series of market profiles covers 5 key markets in North America. Each profile provides insight into market structures, regulatory environments, supply and demand balances, assets, market concentration and wholesale sources of energy.

NATS: Unplanned disruptions to natural gas supplies could alter global LNG market — Sutherland LNG Law Blog, Washington, DC

In comments released yesterday, NATS said that significant disruptions to natural gas supplies, such as a hurricane in the U.S. Gulf of Mexico, which would have the potential to affect more than 8 Bcf/d of gas production, could alter the global LNG market. However, barring a supply disruption, the global LNG market is unlikely to change dramatically for the rest of this year.

Mustang receives patent for LNG concept — Energy Current, Houston, TX

LNG [liquefied natural gas] Smart Small Scale, Short Haul concept is the fourth Mustang Engineering patent in the LNG Smart series.

It includes a floating liquefaction unit receiving gas associated with oil production or from a reservoir in a remote location, an LNG shuttle vessel for carrying liquefied gas, and a floating regasification unit for receiving the LNG, vaporizing it and sending it out to a local market distribution system.

Wyden asks feds to slow LNG decision — The Oregonian, Portland, OR

FERC has issued its final environmental review of the project, and state officials fear the agency has already written its decision and is about to issue a decision without additional public notice or input.

Wyden has sponsored legislation to return licensing authority for LNG terminals to state authorities, which was pre-empted by federal authorities with the passage of the Energy Policy Act of 2005. He says he want to blow the whistle this fall on FERC's "outrageous behavior."

Webmaster's Comments: Maine's senators Olympia Snowe and Susan Collins publicly claim to want LNG terminal licensing authority returned to the states, but so far, they haven't joined as co-sponsors of Wyden's proposed legislation. Encourage them to do so.

Mitsubishi ends plans for California LNG site, Nikkei reports — Bloomberg

Mitsubishi Corp. scrapped plans to build a liquefied natural gas terminal in California because of community concerns that it could be a terrorist target and pose other risks, Nikkei English News reported, without citing anyone.

California authorities froze proceedings for the terminal after it was approved by a local harbor commission in 2003, and Mitsubishi decided not to appeal, the news service said. (Aug 7)

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5 Aug 2008

The Haynesville Shale — The Energy Law Blog, New Orleans, LA

In March 2008, several oil and gas companies announced the finding of what could potentially be the fourth largest deposit of natural gas in the world underneath northwestern Louisiana, southwestern Arkansas, and eastern Texas: the Haynesville Shale.   

The Louisiana Natural Resources Department has now created a website to provide information to the public related to the Haynesville Shale formation. [Red emphasis added.]

Cheapeake's massive shale find in Louisiana — Platts

Chesapeake, which said it had hoped to keep Haynesville secret but largely devoted a conference call to its initial findings in the play after the two smaller operators leaked out news of its existence, has been by far the most vocal on the Haynesville's potential. Chesapeake CEO Aubrey McClendon said the play, a relatively deep formation found at depths of 10,500 to 13,000 feet , "has a chance of being the most significant shale play in the company's history." For a company the size and breadth of Chesapeake, which has its hand in every significant US shale play and is the third-largest Barnett producer with 410,000 Mcfe/d there, that's saying something. [Red emphasis added.] (Mar)

Haynesville Shale: News, map, videos, lease and royalty information — Geology.com

Quote: Chesapeake Energy: “Based on its geoscientific, petrophysical and engineering research during the past two years and the results of three horizontal and four vertical wells it has drilled, Chesapeake believes the Haynesville Shale play could potentially have a larger impact on the company than any other play in which it has participated to date." [Red emphasis added.]

Tropical storm not expected to affect U.S. gulf coast LNG terminals — Sutherland LNG Law Blog, Washington, DC

According to Platts LNG Daily, officials with three of the four terminals operating on the U.S. coast of the Gulf of Mexico said that they do not expect to be affected by Tropical Storm Edouard.

Protesters voice opposition to new bridge, LNG pipeline — Oregon Public Broadcasting, Portland, OR

Jen Angel: "On one hand it's about dealing with the fossil fuels issue, but it's also about dealing with communities and individuals that are negatively impacted as a direct result of projects." (Aug 4)

Kuwait LNG deal ‘in final stage’ — Gulf Times, Doha, Qatar

KUWAIT CITY: Kuwait has almost completed a contract to import liquefied natural gas from Qatar, Oil Minister Mohamed al-Olaim said. [Red bold emphasis added.]

Webmaster's Comments: Even oil-rich countries — and even those who export oil to the US — are importing LNG, competing with the US for LNG on the world market.

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4 Aug 2008

Eastport pilot: Lots of planning, a few close calls — The Working Waterfront, Rockland, ME

The departure of the Hawes on July 6 was routine and on schedule. But the frigate's arrival on July 2 was not quite so routine when the vessel encountered fog — a common occurrence downeast but a factor that makes Navy commanding officers cautious, and Cdr. Kristin Jacobsen was no exception. It was clear to Peacock aboard the pilot boat that the ship wouldn't arrive at the pilot station on schedule, and he agreed to meet her off West Quoddy Head.

Peacock himself has had a close call. "This was when the Eastport pilot boat was the old Chester T. Marshall. Well, due to a passenger leaning against the kill switch, her engine quit. The ship's captain stopped his engines, put her hard over and swung the stern away from us, and the pilot boat's captain diving below to start the engine, That saved us." Then he added, "There have been many instances when it was just too rough to get aboard."

Webmaster's Comments: There's no question that the local pilots are excellent; however, as with the killing-the-engine incident, related above, accidents do happen — even in the presence of excellent pilots. There's no guarantee against human error.

Hydromet Conference upcoming — VOCM Radio, St. John’s, NL

Some of the matters up for discussion include: labor implications regarding industrial development in Placentia Bay; Vale Inco's nickel processing facility; LNG Plant; the second refinery being planned by Newfoundland and Labrador Refining Corporation; and a presentation by Newfoundland Labrador Building Trades Council on labor supply.

Bursting the energy bubble — Connecticut Business News Journal, New Haven, CT

For the past four years, energy companies have been trying desperately to open up new markets for what is a growing supply of North American and internationally produced natural gas.

Shell estimates Broadwater could supply as much as one-quarter of all the natural gas used in the New York metropolitan area. There are no significant shortages right now, and those shortages that do occur are seasonal and related to distribution problems — not supply. [Bold red emphasis added.]

A push to wrest more oil from land, but most new wells are for natural gas — The New York Times, New York, NY

[W]hile those hoping to lower prices at the pump are clamoring for new oil, most of the new onshore drilling of the past seven years has produced natural gas, not oil. (Aug 3)

Analysts offer differing predictions for 2009 U.S. LNG imports — Sutherland LNG Law Blog, Washington, DC

…Zach Allen of Pan EurAsian Enterprises, said that he expects 2009 LNG import volume will be "more like this year than last year."

Is natural gas the answer to energy needs of US? — CNBC

Are we entering the golden age of natural gas?

That's the case being made by Chesapeake Energy.

CEO Aubrey McClendon, who recently sang the virtues of natural gas before Congress: It’s cheaper and cleaner than other fossil fuels, and available in vast quantities right in the US.

… McClendon acknowledges current gang-buster unconventional gas production, should keep supply growing five percent a year for the next decade — even without opening up more public land. [Bold red emphasis added.]

Webmaster's Comments: Dow Chemical's criticism of McClendon's assessment is flawed if the push to replace natural gas-fired electrical generation with wind power a la T. Boone Pickens's proposal is successful.

GCC [Gulf Cooperation Council] demand for gas growing faster than for oil — AME Info, Dubai Media City, United Arab Emirates

Dubai's demand for gas is rising by 15% a year, but in spite of possessing some 214 trillion in gas reserves the UAE does not supply enough gas domestically to power its electricity and desalination plant requirements.

… Bahrain … needs to double its gas supply in the next ten years….

Qatar meanwhile, even with its huge gas resources and status as the world's biggest LNG exporter, has declared a pause on new export projects declaring that domestic requirements will take priority.

All of Saudi Arabia's already substantial gas production is for domestic use, but much more is urgently needed and so far little has come from gas exploration projects with international oil companies in the Empty Quarter. [Red emphasis added.]

Webmaster's Comments: Fortunately, the US has sufficient domestic natural gas reserves for the next 100 years, according to Chesapeake Energy.

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3 Aug 2008

County to appeal LNG ruling to Supreme Court — The Capital, Annapolis, MD

TOWSON, Md. (AP) — Baltimore County Executive Jim Smith says the county will take its opposition of a proposed liquefied natural gas terminal to the Supreme Court.

Smith says the county plans to appeal the decision of a federal appellate court that ruled the county overstepped its authority when it imposed zoning regulations that would prevent the terminal from being built.

Markets and federal agencies, not AGIA, will steer pipeline — Alaska Journal of Commerce, Anchorage, AK

For many years I've advocated maximum economic benefits from public resource development, but in his misguided haste to paint AGIA (Alaska Gasline Inducement Act) as evil and LNG (liquefied natural gas) as the white knight, Dominic Lee (July 20, 2008) just muddies the water. (Aug 2)

Multiple players still in gas pipeline fray — KTUU TV, Anchorage, AK

ANCHORAGE, Alaska -- A license for TransCanada to build a gas pipeline may have passed the Alaska Legislature, but there is more than one company planning to build the long-awaited pipeline.

TransCanada has a few rivals out there: BP and ConocoPhillips created Denali, and they want to build their own pipeline.

Northeast of here in Tok, Denali is doing fieldwork. (Aug 1)

Nuclear energy must replace natural gas in power plants [Op-ed column] — The Fresno Bee, Fresno, CA

Although natural gas is now the fuel of choice in electricity generation, its price has quadrupled in recent years and supplies are extremely tight. Not too long ago, the expectation of rising imports of liquefied natural gas led many to conclude that more abundant gas supplies and greater use of alternative fuels would end the long run of soaring gas costs.

But the pause in increased gas costs proved temporary.

Natural gas prices are once again rising rapidly -- 93% since last August. Major industries that require large amounts of gas for space heating and as a feedstock in making consumer products are once again in crisis.

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