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Gas problem passes [Editorial] — Saint Croix Courier, St. Stephen, NB

Passamaquoddy Bay’s uncomfortable gas problem has passed...for now. While at times over the past few years there have been as many as three liquefied natural gas projects in the works on the Maine shore of the bay, there are currently zero.

Smith said he’ll file again at an undetermined date — a fitting sentiment on Halloween. Just when you thought it was dead... LNG is backfrom the beyond! It’s alive! [Red emphasis added.]

Webmaster's Comments: All humor aside, the truth is that there are still two remaining LNG projects in Passamaquoddy Bay — Downeast LNG and Calais LNG Project Co. Downeast LNG continues its formal permitting before FERC and Calais LNG is in the FERC pre-filing process (a required step prior to filing a formal application).

Downeast LNG's related takeaway pipeline company, Downeast Pipeline, has been warned by FERC to hold an "open season," hinting that if not done, FERC may suspend or dismiss Downeast's permits. Downeast Pipeline has since indicated it will be holding its open season in November, to see if there are any potential customers for its expensive LNG-source natural gas.

Regulator issues warning to pipeline builder — Saint Croix Courier, St. Stephen, NB

ROBBINSTON, Me. — The Federal Energy Regulatory Commission (FERC), which last week dismissed Quoddy Bay LNG from the federal permitting process for failing to provide answers to their questions, [has] also issued a warning letter to Downeast Pipeline.

“We are pleased that Downeast LNG project remains under active consideration by FERC,” said Girdis. “The open season is simply one more step on the road to project approval.” [Red emphasis added.]

Webmaster's Comments: Dean Girdis's remaining under FERC's active consideration appears to be "by a hair's breadth." FERC's warning was a serious indication of their displeasure and impatience at Downeast's companies' lack of progress.

In truth, Downeast LNG (and related companies) have no hope of success, for the following reasons:

The natural gas market has been turned upside down. There is so much available domestic natural gas (over 100 years' worth) that LNG can't compete financially. The US LNG bubble has burst, leaving Downeast LNG and Calais LNG in the dust.

There are already far too many LNG import projects that have been built and permitted than could survive the marketplace, even if LNG were affordable to the US market. Plus, three of those new LNG import terminals — either operational, or soon will be — along with the Deep Panuke gas well in Nova Scotia, are supplying this market area, providing more natural gas than the market requires.

Passamaquoddy Bay is unfit for LNG transit and infrastructure, according to the very LNG industry Dean Girdis would like to join (see LNG Terminal Siting Standards Organization and SIGTTO). Girdis made an inept, inappropriate terminal site selection.

The Maritimes & Northeast Pipeline cannot be expanded (beyond its current permit application to accommodate the Deep Panuke natural gas well off Nova Scotia). An entirely new pipeline — at a cost of around $2 billion — would be required in order to accommodate Downeast LNG's gas (or Calais LNG's, or Quoddy Bay LNG's gas). It's financially impractical.

Canada won't allow LNG ships to enter Passamaquoddy Bay, because Passamaquoddy Bay is unfit for LNG infrastructure and transit.

No Maine LNG applications pending — Saint Croix Courier, St. Stephen, NB

ST. ANDREWS — Opponents of liquefied natural gas developments in Passamaquoddy Bay are relishing the news this week that, as of now, there are no LNG facilities with any applications pending before State of Maine agencies.

The Federal Energy Regulatory Commission (FERC) has dismissed Quoddy Bay LNG from the federal permitting process, stating that they cannot proceed with their engineering review or with the preparation of the draft environmental impact statement due to the company’s incomplete responses.

Smith said the company still has not been able to firm up the likely BTU content of their LNG and has not been able to determine whether it will have to build a nitrogen mitigation facility. [Red emphasis added.]

Webmaster's Comments: Smith tries to obscure his failure's real cause by ignoring one basic reality of the LNG industry:

No LNG liquefaction facility is going to commit its supply to Quoddy Bay LNG, since Quoddy Bay LNG has no permit to construct.

Rather than the excuses Smith has been making to the public, it is his cockamamie project, irresponsible site selection, and technical ineptness that have caused Smith's Quoddy Bay LNG project failure.

Quoddy Bay ducks out — MaineBiz, Portland, ME

Oklahoma-based Quoddy Bay LNG withdrew its request this week for state permits for an LNG terminal on the Passamaquoddy Indian reservation at Pleasant Point, according to the Associated Press. The company notified the state after the Federal Energy Regulatory Commission dismissed Quoddy Bay's application because the company hadn't provided the agency with required information. (Oct 29)

Firm's application withdrawn for Maine LNG project — Telegraph-Journal, Saint John, NB

Quoddy Bay LNG withdrew its applications this week from the Maine Board of Environmental Protection.

The decision follows a development last week, when energy regulators in the United States dismissed the company's application.

Quoddy Bay has now told the Maine board that, given global energy and economic trends that have emerged in the past month, it is not in a position to update its application. (Oct 29)

LNG opponents lobby Maine environmental agency to dismiss Quoddy Bay LNG application — Saint Croix Courier, St. Stephen, NB

ST. ANDREWS — Save Passamaquoddy Bay, the three nation alliance opposed to any LNG development in the bay, have filed a request with Maine’s Board of Environmental Protection (BEP) asking for an immediate affidavit from Quoddy Bay LNG addressing the question of whether their applications to the BEP should be dismissed.

Last week the Federal Energy Regulatory Commission (FERC) dismissed Quoddy Bay from the federal permitting process, which means that if they plan to continue with their LNG project at Split Rock they will have to re-apply.

They also point out that FERC had already suspended its review of the company’s application in April….

“Based on these developments at FERC and Quoddy Bay's conflicting statements as to whether it is or is not altering its project design and application, we respectfully request that Quoddy Bay be required to immediately submit an affidavit….” [Red & bold emphasis added.] (Oct 29)

Webmaster's Comments: As a result of SPB's and Nulankeyutomonen Nkihtahkomikumon's request, Quoddy Bay LNG withdrew its state applications on Oct 26, as was reported by numerous news media on Oct 28.

Quoddy Bay LNG is not dead, says company president — Saint Croix Courier, St. Stephen, NB

“Canadian political leaders have said they will not let ships through but have not produced any scientific information that says our ships would not be safe.” (Oct 29)

Webmaster's Comments: Canada doesn't need to come up with any separate scientific proof, since the world LNG industry, itself — in its publication, "Site Selection and Design for LNG Ports and Jetties" — indicates that Passamaquoddy Bay is an inappropriate location for LNG infrastructure. (See LNG Terminal Siting Standards Organization and Society of International Gas Tanker and Terminal Operators [SIGTTO].)

There is no ignoring that…

• Don Smith's Quoddy Bay LNG;
• Dean Girdis's & Rob Wyatt's Downeast LNG; and
• Arthur Gelber's, Ian Emergy's, Jim Lewis's, and Carl Myers's Calais LNG Project Co. …

…all violate world LNG industry standards, and therefore, cannot be justified.

Business Digest — The Providence Journal, Providence, RI

LNG proposal withdrawn, for now, in Maine

The Oklahoma company notified the state last week following a decision by federal regulators to dismiss its application. Federal regulators said Quoddy Bay failed to provide information needed to move forward with an engineering review and environmental assessment. Company president Donald Smith said it still plans to pursue the project. (Oct 29)

Quoddy Bay withdraws Maine LNG permit request — (AP) The World, Coos Bay, OR

[This is the same AP story that has been reported by numerous international media outlets.]

The Oklahoma company notified the state this week following a decision by federal regulators to dismiss its application. Federal regulators said Quoddy Bay LNG failed to provide information needed to move forward with an engineering review and environmental assessment. (Oct 29)

FERC dismisses Quoddy Bay LNG application in Maine — (AP) KSWO-TV, Lawton, OK

The Federal Energy Regulatory Commission has dismissed an Oklahoma developer's application to build a liquefied natural gas terminal at the Passamaquoddy Indian reservation at eastern Maine's Pleasant Point. (Oct 18)

Stopping ship-whale collisions — Technology Review, MIT, Boston, MA

Ten whale detection buoys are now in place in the busy shipping lanes leading into Boston Harbor, a hot spot for ship strikes. When the buoys pick up the calls of North Atlantic right whales, warnings are sent to ships in the area so that they slow down. It's the first time that a listening system has been coupled with real-time warnings.

FERC encourages affected property owners to comment on Sparrows Point LNG project pipeline — Sutherland LNG Law Blog, Washington, DC

FERC has sent letters to property owners who may be affected by the construction of the proposed pipeline associated with the Sparrows Point LNG project. The letters encourage property owners to provide the Commission with comments, particularly about environmental concerns, on the natural gas pipeline proposal.

Jamaica goes for coal - Supply problems move LNG from top of energy mix — Jamaica Gleaner, Kingston, Jamaica, West Indies

"LNG (liquefied natural gas) is not an option now, " Mullings said. "... For LNG to become viable, international research has shown that you need 600 megawatts ... . We would have to switch the entire system to LNG."

Added Mullings: "We don't want to switch wholesale to one energy source because you are then tied to that and when that price moves, you have no options." (Oct 29)

FERC hears Connector concerns — The News-Review, Roseburg, OR

WINCHESTER — Opponents of the proposed liquefied natural gas terminal in Coos Bay and its 230-mile long pipeline across southwest Oregon and Douglas County packed the Umpqua Community College’s campus center Tuesday night to express dismay at the projects’ latest review by a federal agency.

Only three spoke in favor: a representative of Jordan Cove, an elected official and a director of a local economic development organization. (Oct 29)

LNG meeting held in Medford — KDRV-TV, Medford, OR

"There's been a good showing of people. Most people seem to be opposed to the project," says Lonnie Lister with FERC. (Oct 29)

US natural gas use to rise under next president — Alibaba.com, Hangzhou, China

"Any introduction of greenhouse gas legislation is going to create demand for natural gas because there are very limited ways to meet the targets," said Dean Girdis, president of Downeast LNG. (Oct 29)

Webmaster's Comments: Unfortunately for Dean Girdis and Downeast LNG, there is plenty of domestic natural gas — over 100 years' worth — so his ill-sited, poorly-timed LNG project still has no future.

Ability of the United States to compete in the global LNG marketplace — American Gas Foundation, Washington, DC

[Details in the link below require downloading PDF documents.]

U.S. LNG imports in late 2007 and through mid-year 2008 have been less than 50% of year-earlier periods as a result of stronger year-on-year demand in Europe.

Webmaster's Comments: The American Gas Foundation goes through some interesting gyrations to justify its generalization that the US won't have sufficient domestic natural gas, that growing liquefaction capacity will make LNG affordable in the US compared to domestic natural gas, and the growing industrial development in China, India, and elsewhere — and thus their natural gas demand — won't grow as fast as US natural gas consumption.

No FERC No BEP No LNG — We Take Care of Our Land, Sipayik

While it is a welcomed news, Quoddy Bay LLC's withdrawal from the BEP process was an inevitable outcome to an otherwise impossible proposal.

Quoddy Bay LNG withdraws from Maine permitting process — Energy Current, Houston, TX

EASTPORT, MAINE: Oklahoma City-based Quoddy Bay LLC has withdrawn its state permit application for a proposed liquefied natural gas (LNG) terminal from the Maine Board of Environmental Protection (BEP) process.

In a letter to Quoddy Bay, FERC said that its staff could not proceed with its engineering review or prepare the project's draft Environmental Impact Statement due to Quoddy Bay's incomplete responses.

FERC also dismissed Quoddy Bay Pipeline LLC's applications for the construction and operation of the Quoddy Bay pipeline. [Red & bold emphasis added.]

Quoddy Bay LNG withdraws Maine permit requests — Natural Gas Intelligence, Intelligence Press [Paid subscription required]

After receiving a devastating blow from FERC earlier in the month with relation to its proposal to build a liquefied natural gas (LNG) terminal in Washington County, ME, Quoddy Bay LNG LLC told Maine regulators over the weekend it is withdrawing its request for state permits to build the project, but expects to refile them in the future. [Red & bold emphasis added.]

Maine company withdraws request for permits to build LNG terminal — The Canadian Press

AUGUSTA, Maine — A U.S. company that planned to build a liquefied natural gas terminal in eastern Maine, not far from the New Brunswick border, has withdrawn its request for state permits.

Earlier this month, the U.S. Federal Energy Regulatory Commission said it had suspended its review of the project, saying the company didn't provided sufficient information for environmental and engineering reviews.

The Canadian government has said it would forbid tankers from entering the passage, [an] area Ottawa considers as internal waters.

Applications for LNG withdrawn — iStock Analysis, Salem, OR

[Source: Bangor Daily News]

…Smith said an economic analysis predicts that supply will outstrip demand in New England by 2013 or 2014. [Red emphasis added.]

Webmaster's Comments: Domestic supply has already outstripped demand for natural gas in the US — which is precisely why Smith's Quoddy Bay LNG project has no economic future, now or ever.

There's so much domestic natural gas that seven US LNG export projects have already popped up.

Quoddy Bay withdraws request for Maine permits — (AP) Forbes

The Oklahoma company notified the state this week following a decision by federal regulators to dismiss its application. Federal regulators said Quoddy Bay LNG failed to provide information needed to move forward with an engineering review and environmental assessment. [Red emphasis added.]

Quoddy Bay withdraws request for state permits — (AP) The Boston Globe, Boston, MA

AUGUSTA, Maine—Quoddy Bay LNG has withdrawn its request for state permits to build a proposed liquefied natural gas terminal on the Passamaquoddy Indian reservation at Pleasant Point in eastern Maine.

Quoddy Bay withdraws request for state permits for LNG terminal in eastern Maine — (AP) Canadian Business Online

Linda Cross Godfrey from Save Passamaquoddy Bay said Smith made a prudent decision given the changing economic climate that's reducing demand for fossil fuels.

Gas terminal terminated — WABI-TV, Bangor, ME

Plans to build a liquefied natural gas terminal in Eastern Maine are now off the table...

Quoddy Bay LLC has withdrawn its request for state permits.

It happened after federal regulators dismissed the company's application.

Members of Save Passamaquoddy Bay call it welcome news, saying the withdrawal was "an inevitable outcome to an otherwise impossible proposal." [Red emphasis added.]

Quoddy Bay LLC withdraws request for LNG terminal — (AP)

WMTW-TV, Portland, ME

WCSH-TV, Portland, ME

Dominion Transmission reports its portion of Cove Point expansion complete — Sutherland LNG Law Blog, Washington, DC

In a letter to FERC, Dominion Transmission, Inc. (DTI) states that construction of its portion of the Cove Point LNG facility expansion is complete and in accord with all applicable conditions set by the Commission.

Oregon LNG takes another step forward in approval process — BusinessWire

WARRENTON, Ore.--(BUSINESS WIRE)--The Federal Energy Regulatory Commission (FERC) has officially accepted Oregon LNG’s formal application. Oregon LNG is a proposed liquefied natural gas import facility located on the Skipanon Peninsula in Warrenton, Oregon.

Rally against LNG pipeline scheduled for tonight — KPIC-TV, Roseburg, OR

A rally against the pipeline is planned for Tuesday night at Umpqua Community College in the student center. The rally is planned for 5:30 p.m., and a meeting on the LNG pipeline is at 6:30 p.m. Public comments will be taken at the meeting.

Guest column: DEIS fails to mention many important facts about LNG [Op-ed column] — The News Review, Roseburg, OR

This DEIS is a 1,500-page, pre-cooked justification for approving the Jordan Cove/Pacific Connector project. Jordan Cove Energy Partners, a Canadian energy conglomerate, is proposing to send expensive natural gas from potentially unfriendly foreign countries through a 230-mile pipeline over the Cascade Mountains to the California border. After dismissing alternatives to this complicated scheme in two or three conclusory sentences each, the DEIS says the Jordan Cove/Pacific Connector project is just what we need.

Interestingly, that’s what FERC said about the competing proposed Bradwood Landing LNG project on the Columbia River. It’s what FERC likely will also say about the three current competing proposals to build pipelines from the Rockies into Oregon. That’s because FERC’s approach is to issue approvals regardless of the real needs and impacts and leave the actual decisions to the financial wizards of the marketplace. [Red emphasis added.]

Webmaster's Comments: There are numerous insightful observations regarding FERC's DEIS shortcomings contained in the above article.

Jordan Cove picks LNG facility contractors — The World, Coos Bay, OR

Black & Veatch, of Kansas City, Mo.; Kiewit Energy Co., of Omaha, Neb.; Vinci Construction Grands Projects, of Paris, France; and Entrepose Contracting S.A., of Paris, entered into a project development agreement with Jordan Cove last week, said the energy company’s project manager, Bob Braddock.

The project still requires federal approval before construction can begin. The Federal Energy Regulatory Commission is expected to issue a ruling on Jordan Cove’s LNG terminal application in May. [Red emphasis added.] (Oct 27)

FERC misses first LNG hearing — KCBY-TV, North Bend, OR

NORTH BEND, Ore. — In what was suppose to be the first formal public hearing in front of the Federal Energy Regulatory Commission, supporting LNG, turned out to be nothing more than a community debate.

Nearly 200 local residents who have a stake in the proposed Liquefied Natural Gas Terminal at Coos Bay's North Spit., came together Tuesday night at the North Bend Community Center to voice their comments and concerns to FERC, but [FERC] didn't show. [Red emphasis added.] (Oct 27)

U.S. able to compete in global LNG market in long-term — Energy Current, Houston, TX

The U.S. will need these increased LNG imports to supply growing gas demand for electricity generation in new U.S. power plants and to help the nation comply with climate change strategies.

Webmaster's Comments: But, that's not what other players in the natural gas industry are saying. They've indicated that there's so much domestic natural gas that there is no need for additional LNG import terminals for over 100 years.

US LNG imports seen at 13 BCF/D by 2016, flat in short term — CNN Money

Although massive new domestic discoveries in unconventional geological plays have boosted reserves, U.S. production won't be able to meet demand in the coming decade and will need to take advantage of the expansion in international LNG production in places such as South America, Algeria, Norway and West Africa.

But once environmental and lower-carbon energy policies expected from the Democratic-controlled Congress — and possibly the White House — begin to gather momentum in the early years of implementation, "U.S. domestic supplies aren't going to be able to keep up," Schlesinger said.

Recent discoveries in northern Louisiana and Texas, along with discoveries in an area that stretches from western New York to Virginia, are changing that, the industry argues. A recent report financed by The American Clean Skies Foundation — a group started and now chaired by Chesapeake Energy (CHK) Chief Executive Aubrey McClendon — said in July that the country has more natural gas than previously thought. U.S. reserves total some 2,247 trillion cubic feet, according to the study by Navigant Consulting Inc. The country consumed around 20 trillion cubic feet of gas last year.

The [American Gas Foundation-sponsored report] didn't take into account a new domestic natural gas reserves accounting published by the Energy Information Administration and the possibility of a major new natural gas pipeline that could come online late in the next decade, with supplies from Alaska, both of which combined could change the nature of LNG demand. [Red emphasis added.]

Another Maine LNG project faces uncertain fate — Natural Gas Intelligence, Intelligence Press [Paid subscription required]

One week after FERC dismissed Quoddy Bay LNG LLC's application to build a liquefied natural gas (LNG) terminal in Maine, agency staff indicated Friday that the proposed pipeline that would serve rival Downeast LNG's terminal project in Maine also faces an uncertain future due to its failure to conduct an open season, which could put the entire LNG project in jeopardy. [Red & bold emphasis added.]

FERC dismisses LNG application but Quoddy Bay plans to refile — The Quoddy Tides, Eastport, ME

Donald Smith, commenting on the letter from FERC, says, "It's a little embarrassing."

On October 21, attorneys representing Save Passamaquoddy Bay 3-Nation Alliance and other intervenors, in a letter to the Maine Board of Environmental Protection (BEP), requested that the board require an immediate affidavit from Quoddy Bay LNG addressing if Quoddy Bay's BEP applications should be dismissed. [Red & bold emphasis added.] (Oct 24)

Politics, common sense, and right whales — Quoddy Google Group

The USA has finally stepped up to protect right whales.

Hopefully Canada can follow the US lead on this to ensure adequate protection as "Fundy Superport" and challenges arise from proposals that pop up continuously in coastal communities such as Passamaquoddy Bay. (Oct 25)

Whale still in Bay of Fundy — Quoddy Google Group

Humpbacks, finbacks and a right whale were also seen along the ferry route to Grand Manan. (Oct 25)

Suffolk County challenges FERC orders in Broadwater LNG proceeding — Sutherland LNG Law Blog, Washington, DC

Suffolk County (N.Y.) has filed a Petition for Review of two FERC orders in the Broadwater LNG proceeding with the Second Circuit Court of Appeals.

Labor scolds Wu on LNG — The Daily Astorian, Astoria, OR

Wu fired back a strong statement in response today. "I have been consistent and up-front about my position on LNG," Wu said. "There was a legitimate community choice to be made here, and my role is to back the community in the future that they chose. Those who know my record on fighting for working families know that I am a strong supporter of bringing living-wage, good-benefits jobs to all Oregonians. In fact, in 2007 I voted pro-labor 96 percent of the time, according to the AFL-CIO.

"However, the Bradwood Landing facility is only estimated to provide 50 to 70 on-site jobs in the long-term, and those may very well be filled by the company's existing non-union employees who relocate here."

Wu is running for re-election against Joe Haugen, an independent who won the Republican primary then changed his party affiliation. During the campaign, Haugen also changed his view on LNG - opposing proposed terminals on the Columbia River and saying that he became convinced that the gas was not needed. [Red emphasis added.] (Oct 24)

FERC gathers comments on LNG terminal — Mail Tribune, Medford, OR

"There is enough domestic natural gas available."

LNG study: Terminal safe from tsunamis — The World, Coos Bay, OR

Even in the worst-case scenario, the report said, the waves would only reach an elevation of 22 feet on the 55-foot elevation berms.

“With the current suite of earthquake scenarios it is found that tsunami waves do not inundate portions of the site founded above the proposed tank containment berm elevation of 55 feet ... during such an event,” a draft report of the study said. (Oct 25)

Add "unreliability' to LNG [Opinion column] — Press-Telegram, Long Beach, CA

The idea [in 2004] was that some domestic supplies would be replaced by LNG, which would arrive at prices guaranteed to be competitive with whatever might be the current price of domestic gas.

Oops. The Sempra contract with Tangguh gives that outfit the right to "divert a portion of the cargoes to another market so long as they continue to pay our costs as described in the contract," says Sempra spokesman Art Larson.

And even before Costa Azul could begin pumping gas into any part of California, that happened. Tangguh will send half the gas that previously was earmarked for Sempra's facility at Costa Azul for the years 2010-2012 to South Korea, which will pay about $4 per million British thermal units more for it than the Indonesians and their partners could get from Sempra. [Red emphasis added.]

Webmaster's Comments: Committing the same contractual mistake as was made by Tangguh — paying Sempra its costs, even when no LNG is shipped to them — is unlikely by potential suppliers to Downeast LNG or Calais LNG (Quoddy Bay LNG is out of the picture), since it is now obvious to foreign LNG liquefaction facilities that there is no growing market for LNG in the US.

Chesapeake Energy analyst day update: Company moves to resource conversion — Seeking Alpha

On previous calls, McClendon has brought up the possibility of LNG to export US nat gas.  Such a move would be a boon to the nat gas market, perhaps to the detriment of a country supposedly focused on “energy independence.”

Webmaster's Comments: If allowed by regulators to do so — and because Chesapeake owns such a large stake in domestic shale gas deposits — Chesapeake Energy is eminently positioned to make more money by exporting LNG to Asia than in selling their natural gas domestically. The above story's author is also correct that not exporting LNG would increase US energy independence.

Doomsday in an oil barrel — The Cutting Edge

Radical Islamist have emerged in South America (on Brazil’s southern border with Paraguay) and in Trinidad-Tobago, the latter posing a threat to the more than 80% of the liquefied natural gas (LNG) which we import to fuel our power plants and petrochemical industry. [Red emphasis added.]

"Gas OPEC": is it a good idea? [Opinion] — RNA NOVOSTI (Russia News & Information Agency)

[T]he very idea of establishing some sort of gas cartel is bound to raise concerns with European consumers, further complicating Gazprom's investments in Europe, as if European partners weren't already wary of dealing with the Russian monopoly.

The Russian government must certainly realize that "gas OPEC" is a harmful idea. (Oct 24)

FERC to reassess its continued review of Downeast LNG — Sutherland LNG Law Blog, Washington, DC

This morning FERC issued a letter ordering Downeast LNG to provide the Commission with a schedule for conducting an open season for  the pipeline associated with its proposed LNG terminal. FERC's letter gives Downeast LNG 20 days to comply with this request or to explain why it does not need to conduct an open season before the Commission completes its Draft Environmental Impact Statement for this project. FERC noted that the lack of an open season and the uncertainty of the environmental analysis has forced FERC to "reassess whether Commission staff's continued efforts and analysis are appropriate under these circumstances." [Red emphasis added.]

FERC reconsiders Downeast Pipeline assessment — Energy Current, Houston, TX

WASHINGTON, D.C.: The Federal Energy Regulatory Commission (FERC) told Downeast LNG that it will reconsider its ongoing efforts and analysis of the Downeast Pipeline project if the company does not submit to FERC a schedule for conducting open season on the project.

"Considering the uncertainty of the outcome of the environmental analysis, the fact that you have not attempted to garner the critical project information that you would obtain through holding an open season, and the passage of nearly two years since the filing of the application, we must reassess whether Commission staff's continued efforts and analysis are appropriate under these circumstances," FERC said in the Oct. 24 letter. [Red emphasis added.]

Brief prequel to discussion on FERC's dismissal of Quoddy Bay LNG application — WERU-FM, Blue Hill, ME

[The following link leads to an mp3 sound file.]

We will follow up on this story in greater detail in the following weeks. We spoke briefly before air time with Robert Godfrey of the Save Passamquoddy Bay 3 Nation Alliance.

Rare whales latest obstacle to LNG terminal — Providence Business News, Providence, RI

It is the latest complication for Weaver’s Cove Energy’s proposal to build an LNG terminal in Fall River, which has encountered staunch community opposition in both Massachusetts and Rhode Island.

Sabine Pass LNG files application with FERC to re-export LNG — Sutherland LNG Law Blog, Washington, DC

Today Sabine Pass LNG filed an application with FERC to re-export foreign sourced LNG. Earlier this month, FERC determined that Sabine Pass LNG would not be required to follow the NEPA pre-filing process for its application to re-export LNG.

Webmaster's Comments: Unable to unload their expensive (relative to prolific supplies of domestic natural gas) foreign LNG-source natural gas, Sabine Pass LNG must re-export in order to keep from losing money.

Agencies ask for Bradwood re-hearing — The Hillsboro Argus, Hillsboro, OR

The governor said the state will take the issue to U.S. District Court if the commission does not re-hear Bradwood's application.

FERC denies request for comment period extension — Energy Current, Houston, TX

On Aug. 29, FERC issued a DEIS for the project. Wyden requested the 45-day extension beyond the 90-day comment period, saying the public had either limited time or no opportunity at all to review the National Environmental Policy Act (NEPA)-required information because it was either not yet available to the public and would not be available until shortly before or after Dec. 4 of this year, the deadline for the comment period.

This data includes the airspace review which will determine how flights out of North Bend, Ore. will be affected and what effect the project might have on currently tenuous air service to the area. This review has not been completed. Planes currently taking off from the North Bend airport's most frequently used runway typically fly directly over the site of the proposed LNG storage tanks; planes taking off from the other runway unavoidably cross the navigation channel LNG tankers would use. [Red emphasis added.]

Oregon labor leaders attack Wu for coming out against LNG — The Daily Astorian, Astoria, OR

Organized labor reacted strongly to Wednesday's statement by U.S. Rep. David Wu that he is against the Bradwood Landing liquefied natural gas terminal. (Oct 23)

Webmaster's Comments: Construction jobs don't justify unsafe terminal siting of unneeded LNG terminals.

Shale plays could offset decline in Canadian gas production: NEB — Platts

The report added that while Canada's gas potential remains high, the development of the resources still depends on North American natural gas markets. It warned that the current global economic situation could result in declining demand. Meanwhile, natural gas production in the US has increased by 8%, the report said, adding that declining production in Canada has also been the result of the high cost of production there and falling gas prices. [Red emphasis added.]

Industry Analyst: U.S. domestic gas production likely to soften short-term demand for LNG imports — Sutherland LNG Law Blog, Washington, DC

Porter Bennett, president and CEO of Bentek Energy, told an industry conference in Toronto that he believes that increased U.S. domestic natural gas production, particularly from shale gas plays, will continue to soften demand for both LNG imports and imports of Canadian natural gas. [Red emphasis added.]

Canaport LNG nears completion — Telegraph-Journal, Saint John, NB

Energy Irving/Repsol partnership plans to send first natural gas down pipeline in March

It will take several weeks after the end of construction before the plant can begin steady deliveries to the 145-kilometre Brunswick Pipeline that will carry natural gas from Saint John almost to the American border to connect to the Maritimes & North East Pipeline before it crosses the St. Croix River north of St. Stephen.

Webmaster's Comments: In addition to the recent natural gas supply reversal — where industry players indicate the US has an over-100-year supply of natural gas reserves — Canaport is the second of three new LNG import terminals that will satisfy natural gas needs in the Northeast US. The other are: Northeast Gateway (offshore from Gloucester, MA), already in operation; and Neptune LNG (also olffshore from Gloucester), to be completed late in 2009. Also, the Deep Panuke natural gas well in Nova Scotia will be contributing to the Maritimes & Northeast Pipeline. The pipeline expansion permitting is currently underway to accept Deep Panuke gas.

FERC denies Wyden's request for comment extension on LNG terminal — The News-Review, Roseburg, OR

Douglas County-based Oregon Citizens Against The Pipeline said that FERC allows project applicants to withhold too much information during formulation of environmental impact statements, thus keeping the public unaware of later conclusions.

“This means the project proponents can provide that information at the very end of the comment period, thereby effectively preventing members of the public from having detailed substantive input,” Diane Phillips, director of the Oregon Citizens Against The Pipeline, wrote in an e-mail.

Appeals court sides with LNG developer in Coos Bay — (AP) KTVZ TV, Bend, OR

The appeals court affirmed a state Land Use Board of Appeals decision that validated a Coos County zoning policy.

Court strikes down LNG project appeal — The World, Coos Bay, OR

The land-use agency did find several faults with the LNG terminal application regarding wetland mapping and archaeological preservation. Once Prince’s legal question is resolved, the other issues will be remanded to Coos County.

Obama and McCain share energy goals — Ventura County Star, Camarillo, CA

Both voted in 2005 for an energy bill that pre-empted state authority for licensing of liquid natural gas terminals and gave it to the Federal Energy Regulatory Commission.

But Obama also supported a failed amendment to that bill that, had it passed, would have given states the sole authority over LNG siting. Obama also has backed other proposals that would return LNG siting authority to the states.

Gazprom considering additional options for expansion into North American LNG market — Sutherland LNG Law Blog, Washington, DC

A Gazprom official said earlier this week that his company is considering a number of options for expansion into the North American LNG market in addition to the Rabaska LNG regasification terminal in Canada. Platts LNG Daily [subscription required] also notes that Gazprom has cast doubts on recent reports that the company will take an equity position in the  Rabaska facility.

Natural Gas cartel is nothing to fear — Seeking Alpha, New York, NY

"…They can try and get more control over gas, but it's not OPEC."

European Commission attacks gas cartel — UPI [Free registration required]

Following news that Russia, Iran and Qatar were forming a joint commission on natural gas, European Commission officials voiced their opposition to the creation of what possibly could become a cartel.

Leaders in the commission voiced concern that the new natural gas group would become the OPEC of gas and end up in control of world prices, the European Voice reported. (Oct 22)

FERC requests that Weaver's Cove address new right whale rule — Sutherland LNG Law Blog, Washington, DC

Yesterday FERC issued an Environmental Information Request to Weaver's Cove Energy LLC seeking information on how Weaver's Cove will address vessel speed restrictions and other operational aspects to reduce ship strikes of the endangered North Atlantic right whale that are contained in the recently issued final rule by NOAA.

Groups join forces to fight LNG terminal — The Daily News, Longview, WA

The state of Oregon, the Columbia River Inter-Tribal Fish Commission and a coalition of environmental groups all asked the Federal Energy Regulatory Commission to reconsider its Sept. 18 decision to permit NorthernStar’s $650 million LNG terminal on the Lower Columbia River.

The Washington State Department of Ecology made a similar request earlier this month and has threatened to sue the federal agency over its decision.

A coalition of LNG opponents, including Columbia Riverkeeper, the Oregon Chapter of the Sierra Club, Wahkiakum Friends of the River and the Cowlitz County-based Landowners and Citizens for a Safe Community, also announced Monday that they had filed to overturn FERC’s decision. (Oct 21)

Parties file for rehearing of FERC authorization of Bradwood Landing — Sutherland LNG Law Blog, Washington, DC

Parties that filed for rehearing include the State of Washington, the National Marine Fisheries Service and a coalition of interest groups, including Columbia Riverkeeper, and the Sierra Club. 

Oregon Rep. Wu stands against LNG — The Daily News, Longview, WA

ASTORIA, Ore. — U.S. Rep. David Wu says he’s opposed to liquefied natural gas terminals and pipelines in Oregon because the fuel won’t be used locally, and Oregon shouldn’t be an “energy farm” for California.

More LNG terminals may be equipped with export facilities - Executive — CNN

Webmaster's Comments: The following link no longer leads to the indicated story.

SINGAPORE -(Dow Jones)- More liquefied natural gas import terminals may be equipped with facilities to store and export gas as global spot trade grows, an industry executive said Wednesday.

Two terminals in the U.S. have approached the Department of Energy to operate as storage and export terminals, Gerard Schuppert Jr., manager of global LNG marketing and sales at ConocoPhillips (COP), said here at an LNG conference organized by Conference Connection.

"By 2015, up to a quarter of all contracted supplies may be diverted," said Schuppert.

Russia, Iran, Qatar talk of 'Gas OPEC' — The Globe and Mail, Toronto, ON

Yesterday, Russia, Iran and Qatar, the world's three leading natural gas producers, said that they were forming a "big gas troika" that could become a permanent body.

For years, industry observers have said gas markets will become more global as more LNG terminals are built. However, new extraction techniques are opening up new North American shale gas basins, driving U.S. output to all-time highs this year and potentially making LNG imports less necessary. [Red emphasis added.]

Natural gas cartel would fail in bid for OPEC-like impact — Calgary Herald, Calgary, AB

It's not enough that oil prices are subject to the vague inner workings of the Organization of Petroleum Exporting countries, but if things go according to plan, a natural gas-focused organization is in the process of being established.

Key energy officials from Qatar, Russia and Iran met Tuesday to discuss this very subject. This is significant because these countries are the three largest in the world in terms of natural gas reserves.

Group welcomes nixing of LNG terminal permit — Telegraph-Journal, Saint John, NB

Young-Allen said during the federal process Quoddy Bay LNG was asked to submit information about its terminal plans and potential impact on the environment but did not submit the information needed.

"We had been processing this application for two years, which is generally the time it takes the commission to make a decision," said Young-Allen. "Because of lack of information we couldn't even get an environmental impact statement prepared and this is the first step we take. We felt we gave them adequate time to respond for data and it didn't appear to be forthcoming." [Red emphasis added.]

Webmaster's Comments: In the above article FERC External Affairs Director of Press Services Tamara Young-Allen refutes the claim that Quoddy Bay LNG was the first LNG terminal applicant to be dismissed by FERC. Save Passamaquoddy Bay today spoke with FERC External Affairs Assistant to General Council Mark Hershfield who initially made the same claim, saying that SES in Longbeach California had been previously dismissed; however, when he referred to FERC's SES docket, he discovered that — like Quoddy Bay LNG — FERC had suspended the SES application. However, unlike Quoddy Bay LNG, rather than FERC dismissing the SES application, SES withdrew their application.

Quoddy Bay LNG is the first LNG terminal applicant to have their application dismissed by FERC.

San Pedro de Atacama Chili — We Take Care of Our Land (Nulankeyutomonen Nkihtahkomikumon; "NN"), Sipayik

[NN member David Moses Bridges] is scheduled to talk with Mapuche and Atacameono leaders today in San Pedro, Chili.

Webmaster's Comments: Earlier this year, David Moses Bridges was a participant in the United Nations Permanent Forum on Indigenous Issues. He is the artist-craftsman who constructed and donated the Passamaquoddy birchbark canoe we are offering for sale.

Gazprom considering Alaska opportunities, including liquefaction facility — Sutherland LNG Law Blog, Washington, DC

Following his visit to Alaska last week, Gazprom CEO Alexei Miller told a Russian television station that his company has "received invitations to conduct exploration on the Alaska shelf." Platts LNG Daily reports that Miller also said that an LNG liquefaction facility could be built in either northern or southern Alaska. [Red emphasis added.]

Palin backs shipping Alaskan LNG to Japan — The Seattle Times, Seattle, WA

"If America is really so short of energy that we need to drill in national wildlife refuges and other sensitive areas, why should energy supplies, sitting in U.S. terminals, be sent back out of the country simply because these energy companies can get a higher price from a foreign buyer?" Sen. Ron Wyden, D-Ore., said.

Webmaster's Comments: The fact is that the US is a-glut with domestic natural gas reserves (over 20 enormous shale gas fields) — enough to supply the country for over 100 years, according to some industry members. There's no need to drill for natural gas in previously-prohibited areas, and there's no need to import LNG.

FERC's LNG OK challenged — The Daily Astorian, Astoria, OR

World's top 3 gas holders launch 'Gas Opec' — Energy Intelligence [Paid subscription required]

Russia, Iran and Qatar, the world's three largest holders of natural gas reserves, have taken the initial steps in forming an organization that some are describing as an Opec for gas producers -- sparking fears in Europe and the US that Opec-style control over gas prices could be on the horizon.

EKG and a Save Passamaquoddy Bay Trip! — Quoddy Link Marine, St. Andrews, NB

[This is a report on the Oct 18 boat trip in Head Harbour Passage donated by Quoddy Link Marine.]

Our afternoon trip was a regularly scheduled whale watch which turned out to be a Hat Trick! We saw EKG, a humpback whale we have been watching since 2006, 3 finback whales, all close to the entrance of Head Harbour Passage and a very young minke whale between White and Nubble Island. It was a great trip! Below is EKG, note the distinct upturned flukes. (Oct 19)

Canadian election continues resolve against LNG projects [Editorial] — Save Passamaquoddy Bay

Canada's recent election has continued Prime Minister Stephen Harper in office (see election results by party; results by party leader), as well as New Brunswick Southwest Member of Parliament Greg Thompson (see election results), who is also Minister of Foreign Affairs. PM Harper and MP Thompson have unwaiveringly and repeatedly stated that Canada will prohibit LNG ship transits into Passamaquoddy Bay, and they will use every legal and diplomatic means to enforce that prohibition. They are responsibly protecting Canadian lives, economy, and environment. (Oct 18)

U.S. regulator shoots down LNG terminal — Times & Transcript, Moncton, NB

FERC, the American body dealing with at least two proposed LNG facilities in the area, quashed the request because the company did not provided sufficient information for either an engineering or environmental impact review.

New Brunswick Premier Shawn Graham's office, in a released statement, said, "We feel that today's decision by FERC to dismiss the Quoddy Bay application is indicative that the review process, in this instance, has respected our interests," read the statement.

"We will continue to intervene in the review of another LNG terminal currently being considered by FERC and any other LNG proponent seeking permission to build facilities that may negatively impact the quality of life of the residents of southwestern Charlotte County." (Oct 18)

FERC dismisses Quoddy Bay LNG application in Maine — The Boston Globe, Boston, MA

"The project has been under suspension until today's announcement by FERC of complete dismissal from the federal permitting process -- FERC's first such dismissal in history. This is the logical -- if not late -- end to a poorly sited and ill-conceived project, clearly one that the developers themselves -- along with a host of consultants -- could not technically accomplish." [Red & bold emphasis added.] (Oct 18)

LNG Plans Delayed — MPBN Maine News

"The siting of any LNG terminal in Passamaquoddy Bay would be imprudent." (Oct 17)

Webmaster's Comments: In this news report, Quoddy Bay LNG's Don Smith claims that LNG will be less expensive for New England than domestic natural gas. Smith ignores the three LNG terminals that will be satisfying northern New England's additional need for natural gas: Northeast Gateway (off Gloucester, MA; completed), Canaport (Saint John, NB; to be complete later in 2008), and Neptune LNG (off Gloucester, MA; to be completed late in 2009), plus the Deep Panuke natural gas well in Nova Scotia that will be supplying the Maritimes & Northeast Pipeline (pipeline looping permitting currently in progress).

Pleasant Point Tribal Council member Ed Basset is reported to be "very optimistic the project will go forward." It should be noted that Quoddy Bay LNG has stopped making lease payments to the tribe, and according to our sources, hasn't paid the $1 million it agreed to pay the tribe for the 300 acres in Perry it bought.

FERC dismisses Quoddy Bay LNG application — Bangor Daily News, Bangor, ME

The Federal Energy Regulatory Commission has dismissed an application by Oklahoma-based Quoddy Bay LNG to build a liquefied natural gas terminal and pipeline in Perry.

FERC suspended review of Quoddy Bay’s application in April, requesting more information on the safety and reliability of the LNG transfer line at the proposed terminal and storage facility. The agency also requested additional information on the proposed vaporizer, which converts fuel from a liquid to a gas. [Red emphasis added.] (Oct 18)

Webmaster's Comments: This article is fraught with factual errors and omissions.

The Bangor Daily News refers to the Maritimes & Northeast Pipeline by writing about the "existing LNG pipeline in Baileyville that pipes LNG from Canada to Boston." The fact is, there is no existing LNG pipeline (liquefied natural gas pipeline) in Baileyville (or anywhere in the world, to our knowledge) — it's a natural gas pipeline. LNG runs through piping within the confines of LNG ship offloading facilities and LNG terminals only.
 


The article quoted Tribal councilor Fred Moore as if he were an impartial spokesperson regarding the Quoddy Bay LNG (QBLNG) project. The article failed to disclose personal business ties to QBLNG and to the Calais LNG project. Moore — along with Gov. John Baldacci and Maine attorney and lobbiest Jim Mitchell — brought QBLNG to Pleasant Point/Sipayik. Moore has been employed by QBLNG. Moore was also a business partner in "BP Consulting," one of the predecessors to what is now Calais LNG Project Co.
 


QBLNG's president Don Smith says in the article, "When we reapply we’re not going to change the project ... It is going to be the same project, the same engineering, the same everything." The article also reports that Don Smith "was uncertain whether Quoddy Bay would have to start over." Smith and the Bangor Daily News failed to quote FERC Office of Energy Projects Director J. Mark Robinson's letter of dismissal that clearly states, "...in accordance with the Commission’s regulations, it will be examined as a new proceeding."
 


Don Smith says, "…Now they’ve sent us a letter that they are dismissing the applications which operationally doesn’t change anything for me." And, "When we reapply we're not going to change the project ... It is going to be the same project, the same engineering, the same everything.…" The article failed to report that of the 47 terminal applications that have gone, or will be going, before FERC, QBLNG is the first and only one ever to be dismissed.
 
The fact is, the project has been dismissed for poor site selection, poor planning, technical ineptness, and failure to respond to FERC's required application process. Don Smith doesn't want to publicly admit to the project's fatally-flawed nature — so flawed that FERC has made Smith's project an historic bad example in dismissing it.
 


Smith says, "I think if we get everything permitted in two years and then build it in three years it will come on line 2013-2014, when we see the need for LNG gas into New England." Again, Smith fails to grasp reality. The natural gas market has been turned on its head. There are vast, untapped domestic natural gas reserves in the US -- over 100 years' worth, according to the US natural gas industry. Domestic natural gas is cheap and available, compared to expensive imported LNG. Plus, there is a surplus of permitted LNG import terminals, with projects cancelling (Crown Landing LNG being the most recent one) due to the lack of market need. Already, six new North American LNG export projects (Freeport LNG -- re-export; Sabine Pass LNG -- re-export; Chesapeake Energy; Kitimat LNG, BC; LNG Partners, BC; Mitsubishi, Valdez, AK) have popped up recently. The leadership of QBLNG (president Don Smith and project manager Brian Smith) are attempting to revive and ride a dead dinosaur — the project failure is obvious.
 
Smith's project website (www.quoddylng.com) still contains the reckless prediction that QBLNG would begin construction by the fourth quarter of 2008 (now!), and be fully operational in 2012; The Smiths have even handed out terminal job applications — all pointing to QBLNG's irresponsible promises and their willingness to build false expectations.

Quoddy Bay LNG developer pledges to refile application — Sutherland LNG Law Blog, Washington, DC

[Donald] Smith noted that FERC suspended its review of the Quoddy Bay LNG application earlier this year and that the company would refile its application at some point in the future.

Webmaster's Comments: Smith also claims that he won't change his project one bit. The Smiths have made a lot of false claims in the past. Just add this one to the pile.

Virus threat at Quoddy Bay LNG's website — Fundy Whale, St. Andrews, NB

I just tried to access Quoddy Bay LNG's website and got a virus threat alert as it defaulted to quoddylng.com. (Oct 17)

Webmaster's Comments: The above writer has indicated to me that when going to the URL http://www.quoddybaylng.com, that address forwards to http://www.quoddylng.com, but prior to downloading the quoddylng.com homepage, he receives a virus warning (he is using AVG — Windows-only anti-virus software) that downloading will infect his computer. This webmaster has not confirmed the problem.

Whales a little safer tonight as FERC dismisses Quoddy Bay LNG — Google Groups - Quoddy, St. Andrews, NB

Whales in the Bay of Fundy became a little safer today when FERC dismissed the application of Quoddy Bay LNG. Depending on which part of their application you reviewed, they planned on having as high as one LNG tanker transit a day into their proposed terminal at Sipayak near Eastport, Maine.

While Quoddy Bay LNG at Sipayak/Pleasant Point made little sense, the two remaining proposals make even less sense. The most frequent question around the Bay is "Why would they continue to waste money on a dead issue?" [Red emphasis added.] (Oct 17)

First phase of LNG project complete — Marblehead Reporter, Marblehead, MA

The second phase, scheduled to begin in early May 2009 and continue into September 2009, includes connecting the new pipeline to the HubLine and installing two off-loading buoys. Upon completion, the LNG facility will consist of a buoy system where specially designed vessels will moor and offload their natural gas, after which it will be delivered it to customers in Massachusetts and throughout New England.

Webmaster's Comments: This is one of four new projects supplying New England with natural gas. The other three are: Northeast Gateway (like the Neptune project, is off Gloucester, MA; already in operation), Canaport (Saint John, NB; to be online late in 2008), and the Deep Panuke natural gas mine in Nova Scotia (Maritimes & Northeast Pipeline expansion permitting is currently in prograss to accommodate this gas). These four projects — along with natural gas already coming by pipeline from the Gulf of Mexico — will satisfy all of northern New England's natural gas needs.

Governor seeks LNG permit hearing — Portland Business Journal, Portland, OR

The move to pursue a rehearing is the state’s last step before taking legal action.

“FERC’s decision to license the facility before the state has approved required water quality, air quality and coastal consistency permits, before the effects on fish have been studied and before environmental mitigation plans have been fully developed shows a complete disregard for the state’s role and our concerns with the project,” Kulongoski said in a statement. “By requesting a rehearing, FERC has one final opportunity to do this right. If Oregon is not afforded a rehearing, legal action is imminent.”

State of Oregon tells feds to put the brakes on LNG — The Daily Astorian, Astoria, OR

Meyers argues FERC should have waited for the state of Oregon to finish its permitting process before approving a license for Bradwood. In making the decision too soon, FERC failed to consider alternatives to the LNG facility, ignored public comments on the project, omitted environmental and safety impacts from its final review and wasn't clear about exactly what conditions NorthernStar would have to meet before the company can start construction, he said.

"More importantly, the evidence we've submitted clearly shows that relying on foreign LNG is more expensive and more volatile than homegrown renewable energy or domestic gas."

The Umatilla, Nez Perce, and Columbia River Inter-Tribal Fish Commission filed their own request for rehearing asserting that FERC violated its responsibility to the tribes by failing to analyze the project's effects on treaty-reserved rights. The tribes are worried the project will cause irreversible harm to the Columbia River's already fragile salmon populations. [Red emphasis added.]

Bradwood opponents jubilant after latest LNG news — The Daily Astorian, Astoria, OR

The National Marine Fisheries Service, a division of the National Oceanographic and Atmospheric Administration, criticized FERC's approval of the Bradwood project as "not consistent with the requirements of the Endangered Species Act."

Simultaneously, Washington's Department of Ecology has asked federal authorities to slow down the process, saying that FERC violated the law by "failing to take a hard look at the environmental impacts of the project."

"Unlike FERC, NMFS is doing its job in trying to evaluate this project more thoroughly." [Red emphasis added.] (Oct 18)

NOAA Fisheries says FERC violates species act in LNG approval — The Oregonian, Portland, OR

The nation's top fisheries agency on Friday told U.S. energy regulators that their Sept. 18 decision to issue conditional approval of the controversial Bradwood Landing liquefied natural gas terminal was illegal under the Endangered Species Act.

The National Oceanic and Atmospheric Administration Fisheries Service said the Federal Energy Regulatory Commission was out of line in issuing its license without necessary state and federal permits in hand. Before FERC can issue a license, NOAA Fisheries Service says it must be formally consulted on how to minimize the project's impact on endangered species.

The agency stopped short of asking FERC to withdraw or redo its decision, instead asking it to halt any proceedings on the project, proposed for 20 miles east of Astoria on the Columbia River. [Red emphasis added.] (Oct 17)

Webmaster's Comments: FERC already has multiple lawsuits against it for issuing LNG permits prior to state permits. States still hold the LNG terminal trump cards.

FERC dismisses Quoddy Bay LNG — Federal Energy Regulatory Commission (FERC), Washington, DC

The link below leads to FERC's eLibrary download page for the Quoddy Bay LNG project.

To date, Quoddy Bay has not provided the previously requested information; nor has Quoddy Bay provided any further information regarding the possible revisions to the project design disclosed in its February 29, 2008 filing. Therefore, I am dismissing your application for the construction and operation of an LNG import terminal in Docket No. CP07-38-000, in accordance with Section 157.8(c) of the Commission’s regulations. In addition, I am dismissing Quoddy Bay Pipeline LLC’s applications for the construction and operation of the Quoddy Bay pipeline, a blanket certificate to perform certain routine activities and operations, and a blanket certificate to provide open access firm transportation services in Docket Nos. CP07-35-000, CP07-36-000, and CP07-37-000, respectively, as they are dependent on the application in Docket No. CP07-38-000. [Red & bold emphasis added.]

Webmaster's Comments: Quoddy Bay LNG is the first LNG project FERC has ever dismissed from the permitting process.

FERC dismisses Quoddy Bay LNG applications — Sutherland LNG Law Blog, Washington, DC

Today FERC formally dismissed the applications  of Quoddy Bay LNG LLC to build and operate an LNG import terminal and associated pipelines. FERC cited Quoddy Bay LNG's failure to provide previously requested information and failure to offer further information regarding the possible changes to the project design. [Bold red emphasis added.]

Quoddy Bay LNG dismissed from Fed review — WQDY FM, Calais, ME

The feds got tired of waiting.

In a letter to Quoddy Bay LNG officials, dated Oct. 17, the Federal Energy Regulatory Commission [FERC] has dismissed their application for construction and operation of an LNG import terminal. [Red emphasis added.]

FERC dismisses Quoddy Bay LNG applications — Energy Current, Houston, TX

In a letter to Quoddy Bay, FERC said that its staff could not proceed with its engineering review or prepare the project's draft Environmental Impact Statement due to Quoddy Bay's incomplete responses.

In April of this year, FERC suspended its review of the project due to lack of information requested from Quoddy Bay concerning the terminal's proposed vaporizer revision as well as the safety and reliability of the proposed cryogenic transfer line.

Save Passamaquoddy Bay, an alliance of citizens from the U.S., Canada, and the Passamaquoddy Indian tribe who oppose the citing of LNG facilities in Passamaquoddy Bay, described Quoddy Bay's July announcement about the reconfigurement as its "long list of excuses about why they are asking the BEP to postpone or to allow withdrawing their application for a proposed LNG facility at Pleasant Point." [Red & bold emphasis added.]

Good move, Gov. Riley [Editorial] — The Anniston Star, Anniston, AL

Concerns already expressed by the governor had brought an offer of $30 million from TORP to offset any damage to sea life, but that was not enough. Last week, after again reviewing the plan and concluding that there were simply too many unknowns in the process, the governor announced that he believed "the potential benefits of the LNG terminal off our coast do not outweigh the consequences and the potentially negative effect this could have on our coastal environment."

Gulf LNG Energy to break ground — Your Oil and Gas News, Aberdeen, Scotland, UK

Gulf LNG Energy plans an official groundbreaking today at the Port of Pascagoula for its estimated $1.1 billion liquefied natural gas terminal, which it expects to have in service by September 2011.

Webmaster's Comments: With all the competition from prolific and low-priced domestic natural gas, how will Gulf LNG Energy keep from losing its shirt?

Sound off [Op-ed column] — The Mississippi Press, Pascagoula, MS

When the LNG company came into Pascagoula three years ago to propose this terminal, their frontline position was that they'd seek no tax reductions. Thursday's paper says the Board of Supervisors has given them a 10-year, 35 percent reduction. My property taxes just went up 40 percent this year. The Pascagoula and Jackson County citizens have gotten hosed again by the Board of Supervisors, who think it's a mandate and a right to reduce taxes for large companies.

US natural gas reserves increased by record 46.1 Tcf in 2007: EIA — Platts

US proved natural gas reserves increased by a record 46.1 Tcf in 2007, more than twice the 19.5 Tcf actually produced last year, according to the US Energy Information Administration.

The agency, in a report out late Thursday, said the additions left total gas reserves as of December 31 of 237.7 Tcf, 13% above year-end 2006 and the highest level in the 31 years EIA has published annual reserves data. [Red & bold emphasis added.]

Suez LNG subsidiary completes pipeline construction for Neptune offshore LNG facility — The Earth Times, New York, NY

BOSTON - (Business Wire) SUEZ LNG NA LLC (GDF SUEZ Group) announced today that it has completed pipeline construction for its offshore LNG project, Neptune.

Pipeline installation activities for 2008 included: (1) laying the pipeline, consisting of both a natural gas transmission line and a flowline that connects the buoys, on the sea bottom; (2) plowing a sub-sea trench and placing the pipeline in the trench; and (3) backfilling the trench and hydrotesting to ensure pipeline integrity. Next year, the company will focus on installing the buoy system, which will connect the LNG vessels to the sub-sea pipeline, and the connection between the new pipeline to the existing Spectra Energy HubLine^SM.

Bail out could help Jefferson County [Opinion column] — Hartselle Enquirer, Hartselle, AL

[Alabama Governor] Riley said he believes the potential benefits of the proposed liquefied natural gas (LNG) terminal do not outweigh the consequences such a facility could have on our coastal environment. The proposed terminal would have accepted natural gas chilled to minus 260 degrees, called LNG. With the open-loop technology, massive amounts of seawater would be used to convert the solid gas to liquid gas; a process fisheries experts say would devastate fragile sea life. The governor said he was not opposed to an LNG project in the Gulf, but not one with the "open-loop" technology." [Red emphasis added.]

Official start to LNG terminal — SunHerald TV, Gulfport, MS

The remote location for the Gulf LNG terminal was touted as ideal. It's 1.7 miles by water from the Singing River Yacht Club, at the end of a road lined with industry, near a web of existing gas pipelines.

It was John Howland, senior vice president of Crest Investment Company in Texas, who remembered the site from decades ago when he was in the rice business. The site was selected for a terminal in the 1980s but the market for natural gas went flat and the expensive LNG process wasn't cost-effective. [Red & bold emphasis added.]

Webmaster's Comments:

Satayana’s Aphorism on Repetitive Consequences* —
“Those who cannot remember the past are condemned to repeat it.”

— George Santayana (1863–1952)
“The Life of Reason,” Volume 1: “Reason in Common Sense,” 1905