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News Articles
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Passamaquoddy Bay & LNG

2011 September

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2011 Sep	27	Natgas Production, Cargo Diversions, Re-Exports, and Exports Growing: LNG Imports Dying Official: GDF Suez diverting LNG cargos from United States to Asia, Europe (Sep 21) DOE sets deadline for public comments on Cove Point LNG re-export application (Sep 21) Texas CEQ submits comments on Freeport LNG liquefaction proposal (Sep 21) Editorial: LNG shift needs hard look (Sep 24) Jordan Cove developers inform FERC of potential shift to LNG exports (Sep 26) Prospects look dimmer for LNG terminal (Sep 26) Gas pipeline export talk not a surprise to LNG opponents More pipe, more trains: the oil production boom in North America requires it (Sep 26) New boom reshapes oil world, rocks North Dakota One LNG project still in the works? (Sep 13) FERC authorizes Gulf LNG terminal to begin service FERC invites American Indian tribes to participate in Freeport LNG liquefaction project review Financial analyst suggests LNG exports could encourage investment in renewable energy (Sep 23) Sanders: War on energy at home creates disasters abroad [Opinion] (Sep 25)
	22	Flood of US Natgas to Drown Out LNG Natural gas outlook (Sep 21) Flood of US shale to drown out LNG, LNG will endure globally Abundant US natural gas supply slakes Asian demand Official: GDF Suez diverting LNG cargos from United States to Asia, Europe (Sep 21) DOE sets deadline for public comments on Cove Point LNG re-export application (Sep 21) Company spokesperson: Cove Point LNG export application prompted by inquiries from potential customers (Sep 14) Texas CEQ submits comments on Freeport LNG liquefaction proposal (Sep 21) Cheniere offers shares to raise capital for LNG liquefaction project (Sep 15) Japan encourages U.S. Secretary of Energy to approve LNG export applications (Sep 15) Japan to start buying LNG from U.S. by 2015: report (Sep 13) So much for energy independence as the U.S. stumbles toward the export of natural gas (Sep 17) Governor LePage outlines legislative priorities LePage looking to expand natural gas in Maine (Sep 19) Cheniere’s Sabine Pass to receive LNG cargo, vessel data show (Sep 16)
	13	Maine Has Ample US-Source Natural Gas Official touts power of gas pipeline Porter Stansberry: U.S. shifts to gas export role A couple of jobs at a time [Editorial] Govt seeks to import liquefied natural gas from U.S. Encana sees renaissance in natural gas, while others more bearish on prospects Shale gas in today's context (Sep) Guest opinion: Columnist off the mark on Green Futures' plan for Weaver’s Cove Cheniere Energy Partners LP reports operating results (10-K/A) LNG group promotes U.S. exports
	12	Shale Natgas Eliminates Need to Import LNG Industry analyst predicts shale gas could significantly limit need for LNG imports to the United States LNG industry hurt by global competition, overestimated demand (Sep 11) Industry consultant offers comprehensive study of U.S. LNG export potential T&T leads Qatar in LNG markets (Sep 7) Expert predicts decline in demand for natural gas (Sep 9) Industry analyst: Liquefaction infrastructure adds additional costs for U.S. LNG exports (Sep 9) LePage names DEP, insurance heads Amalgamation urged for Saint John Mayor forms Weaver’s Cove development task force (Sep 9) Concerns alter Chatham County lobbyist's LNG contract (Sep 9) Protecting the area’s waterway, industry has changed since Sept. 11 (Sep 9) A bright future for China-Caribbean cooperation Trinidad invites Venezuela to resume talks on sharing gas Atlantic LNG expects scheduled maintenance on two liquefaction trains over next two months Sinochem looking to invest in Alberta (Sep 9) As U.S. LNG export proposals line up, Kitimat remains a competitive project The No. 1 export for the future (Sep 9) Carib Energy wins DOE authorization to export LNG Osaka Gas to tap LNG imports via long contracts (Sep 8) Russia reportedly planning to build tunnel under Bering Strait (Sep 8)
	8	Task force will recommend new use for Weaver's Cove land (Sep 6) Dominion makes plans to export regularly (Sep 7) Chart Energy & Chemicals sponsors Zeus Modular & Mid-Scale LNG Conference [Press release] (Sep 7) Company spokesperson offers update on Port Dolphin LNG Deepwater Port project (Sep 7) Trinidad & Tobago LNG Strategy Analysis & Outlook to 2020 [Press release] The ways to harvest natural gas are getting more unconventional (Sep 7) BC Oil and Gas Conference kicks off in Fort Nelson BC's clean electricity same price as BC Hydro's new electricity [Press release] (Sep 7) Oil sands buffeted by economic headwinds BP official discusses economic considerations of U.S. LNG exports Start-up of Manzanillo LNG terminal is delayed (Sep 6)
	5	US Natgas Prices Lowest In World USA: Dominion applies for Cove Point LNG export A 2011 guide to energy developments in Maine Emergency rule extended for three months in Trinidad
	2	Calais LNG Former Investor Sued For Fraud US Natgas Supplies Are Over-Abundant Federal government sues major banks over Fannie and Freddie losses Dominion developing plans to export U.S. natgas Dominion seeks to export liquefied natural gas to (sic; from) Maryland Dominion makes plans to export regularly US imports of LNG at 8-year low due to surplus supplies (Sep 3) El Paso Corp. cuts the ribbon on 680-mile natural gas pipe line from Wyoming to Oregon Jamaican Government issues requests for proposals for LNG supply, regasification terminal LNG barge project takes another step forward Natural gas pipeline connects Oregon with Wyoming
	1	Maine Natgas Plentiful East Millinocket leaders hope to set mill buyers’ tax rate Yedlin: Selling in May and going away Update 1-US LNG imports dive 44 pct, hit 8-1/2 year low-DOE Group outlines Weaver's Cove development proposal WikiLeaks: Washington and Brasilia monitoring Chávez in the Caribbean Colombia, Jamaica eye joint oil exploration Atlantic’s CEO disputes Ryder Scott report Québec Solidaire: A Québécois approach to building a broad left party (Aug 31) Shell Canada sizes up LNG options offshore B.C. Vote now to help us select Oilweek’s 2011 Producer of the Year! [Blog] (Aug 31) Encana and NW Natural to address joint venture and the future of natural gas at North America Gas Summit in October [Press release] Chevron CEO not convinced LNG export projects "economic"

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2011 September 27

One LNG project still in the works? (Sep 13) — The Saint Croix Courier, St. Stephen, NB [Paid subscription required; no link is provided below.]

Save Passamaquoddy Bay/ Canada did not hold a public meeting this year because there has been little progress on the three LNG projects originally proposed for the bay.

Webmaster’s Comments: Calais LNG is, for all practical purposes, dead, even though it is still present in the FERC permitting process. Quoddy Bay LNG is irrevocably dead. Downeast LNG is the only project with any life left, and is currently awaiting a US DOT decision regarding new vapor-gas dispersion modeling and the resulting LNG terminal Exclusion Zone. It may be that the newly-calculated Exclusion Zone will be too large for the amount of land at the Downeast LNG proposed site. If not, then we can expect Downeast LNG to continue with its federal permitting.

FERC authorizes Gulf LNG terminal to begin service — LNG Law Blog

FERC has granted a request filed by Gulf LNG Energy, LLC to commence service at the company's LNG regasification terminal and associated natural gas pipeline.

Webmaster’s Comments: The US now has 14 LNG terminals — including one export terminal in Alaska that is due to shut down in October, and one import terminal in Puerto Rico. That results in 12 LNG import terminals in the lower 48 states — increasing US import capacity well over 15 times the need.

FERC invites American Indian tribes to participate in Freeport LNG liquefaction project review — LNG Law Blog

FERC has invited the Caddo Nation as well as the Alabama-Coushatta, Tonkawa and Wichita and Affiliated Tribes to participate in the Commission's review of the Freeport LNG liquefaction and export project.

Webmaster’s Comments: For once, the federal government is being appropriate regarding tribal rights and interests.

Financial analyst suggests LNG exports could encourage investment in renewable energy (Sep 23) — LNG Law Blog

Speaking in Washington, D.C., [September 22nd], Michael Ware of Advance Capital said that LNG exports could encourage investment in renewable energy. Ware suggested that LNG exports could provide an outlet for relatively inexpensive domestic natural gas and allow renewable energy technologies like wind and solar to compete for domestic energy market share.

Webmaster’s Comments: The article's logic: Selling America's energy future via LNG exports would increase the cost of domestic natural gas, creating a better competitive position for renewables.

Sanders: War on energy at home creates disasters abroad [Opinion] (Sep 25) — The Washington Times, Washington, DC

Not only has the U.S. natural gas snafu produced a temporary domestic surplus — with technology pointing toward vast new production — but it also prevents potential liquefied natural gas exports to high priced-markets such as East Asia. U.S. sales to South Korea, for example, would block a proposed Moscow-Seoul gas project whose transit fees through North Korea would bolster the bankrupt, peace-threatening regime in Pyongyang. [Brown emphasis added.]

Webmaster’s Comments: One can find any kind of goof-ball opinion, if one looks hard enough.

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2011 September 22

Governor LePage outlines legislative priorities — MPBN

The Governor also repeated his call from earlier in the week that natural gas use should be expanded in the state, with large companies acting as the anchors on pipeline spurs that will eventually allow for residential use. He said without lower energy costs, businesses will not move to Maine.

Webmaster’s Comments: Natural gas is abundant in Maine. The problem is gaining access to it via delivery pipelines to homes and businesses.

LePage looking to expand natural gas in Maine (Sep 19) — Bangor Daily News, Bangor, ME

AUGUSTA, Maine – Gov. Paul LePage said he will meet with natural gas companies over the next few months to see what the state can do to expand use of the fuel throughout Maine. He is convinced natural gas will be the “queen” of energy sources for at least the next decade.

Webmaster’s Comments: Gov. LePage made no mention of LNG import terminals. Perhaps he has finally recognized US natural gas vast supply realities and Maine's access to it.

Cheniere’s Sabine Pass to receive LNG cargo, vessel data show (Sep 16) — Bloomberg

The tanker Golar Arctic is to arrive at the terminal on Sept. 24, the data showed. The vessel can move as much as 140,648 cubic meters of LNG, or about 3.03 billion cubic feet of gas, equivalent to 4.6 percent of estimated daily U.S. gas production.

Bloomberg data showed yesterday that another ship, Seri Balhaf, is to reach the terminal Sept. 20.

Webmaster’s Comments: It has actually become news when a US LNG terminal is expecting to receive cargo.

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2011 September 13

Guest opinion: Columnist off the mark on Green Futures' plan for Weaver’s Cove — The Herald News, Fall River, MA

With LNG now gone (we hope), we again asked ourselves how could the redevelopment of the Weaver’s Cove site make the city a better place to live. We concluded that the site should maximize both job creation and the quality of life in the city.

Cheniere Energy Partners LP reports operating results (10-K/A) — GuruFocus.com

We intend for Sabine Pass Liquefaction, LLC ("Sabine Liquefaction"), our wholly owned subsidiary, to enter into long-term, fixed-fee contracts for at least 3.5 mtpa (approximately 0.5 Bcf/d) of bi-directional LNG processing capacity per LNG Train, for a fee between $1.40 and $1.75 per MMBtu, before reaching a final investment decision regarding the development of the LNG Trains. As of February 25, 2011, Sabine Liquefaction had entered into eight non-binding memoranda of understanding (“MOU”) with potential customers for the proposed bi-directional facility representing a total of up to 9.8 mtpa of capacity. Each MOU is subject to negotiation and execution of definitive agreements and certain other customary conditions and does not represent a final and binding agreement with respect to its subject matter. We are negotiating definitive agreements with these and other potential customers.

LNG group promotes U.S. exports — HartEnergy, Houston, TX

The Center for Liquefied Natural Gas (CLNG) sent a letter to congressional energy leaders urging them to support the congressionally established regulatory process for considering LNG export applications.

"The regulatory process for considering LNG exports is working," [Center for Liquefied Natural Gas president Bill Cooper] continued. "DOE should be allowed to do its job within the boundaries established by the Congress as set forth in the Natural Gas Act. Unless DOE finds that an export application is not consistent with the public interest, then the burden is on those opposed to LNG exports to provide evidence beyond mere conjecture and innuendo." [Bold brown emphasis added.]

Webmaster’s Comments: Center for LNG (CLNG) president Bill Cooper — the same guy who opposes public participation in LNG terminal Exclusion Zone decision making (see his 2011 May 24 filing to the US DOT) — argues out of both sides of his mouth. He delivers safety and energy security misinformation to the public when it is suits his purposes (see 2006 November 7 item, "CLNG's Cooper fears complacency as natural gas prices drop this winter [TV transcript]," and the 2008 July 30 article, "CLNG: LNG ships study reveals minimal public safety risk").

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2011 September 12

LePage names DEP, insurance heads — Mainebiz

LePage on Friday nominated DEP [Department of Environmental Protection] acting Commissioner Pattie Aho to permanent commissioner, according to a press release. Aho has been serving as interim commissioner since June, when she replaced previous acting Commissioner Jim Brooks, who took a job at Verso Paper Corp. Brooks stepped in to replace Commissioner Darryl Brown, who resigned in April over concerns about a conflict of interest. Aho, a former Pierce Atwood attorney, was previously serving as deputy commissioner.

Webmaster’s Comments: Alarm bells should be ringing all over Maine with DEP Commissioner Brooks leaving to go to work for an industry he was responsible for regulating without having to first wait a couple of years before accepting such employment.

Prospects for conflict of interest in government regulatory bodies loom large in Maine.

Amalgamation urged for Saint John — CBC News

Saint John Fire Chief Kevin Clifford, however, contends outside agencies have reviewed the size of the department and determined it needs all of its firefighters to deal with such threats as old housing stock and industry.

"An LNG (liquefied natural gas) facility would require a response of 16 to 30 people," he said.

Mayor forms Weaver’s Cove development task force (Sep 9) — The Providence Journal, Providence, RI

Fall River Mayor Will Flanagan has appointed a 15-member task force to decide how to develop waterfront property on Weaver’s Cove.

The property was the planned site of a liquefied natural gas facility but the owner, Weaver’s Cove Energy, a unit of Hess LNG, abandoned those plans in June.

Concerns alter Chatham County lobbyist's LNG contract (Sep 9) — Savannah Morning News, Savannah, GA

When Chatham County’s long-time lobbyist Lee Hughes signed a contract in January to also lobby for a company with controversial plans to truck LNG through the county, the affiliation seemed like a conflict of interest to some.

Hughes has maintained all along that no legal conflict of interest existed, in part because he’s registered to lobby for the county at the state level and was registered to lobby for the LNG company at the local level. He received a legal opinion from his attorney Thomas J. Mahoney Jr. backing up this position.

Protecting the area’s waterway, industry has changed since Sept. 11 (Sep 9) — The News, Port Arthur, TX

Two liquefied natural gas facilities flank the waterway leading to the Gulf of Mexico with Golden Pass LNG located on the Texas side and Chenier LNG located on the Louisiana side.

Mandates sent down from the Department of Homeland Security state first responders must be able to communicate locally and regionally, Owens said. A 9-11 report found both New York and the Pentagon had gaps in their communication lines hence the mandate to make communication all on the same level.

The U.S. Coast Guard could not provide enough manpower to escort every LNG shipment so the sheriff’s office stepped in to assist with boats and helicopters.

Webmaster’s Comments: The Passamaquoddy Bay communities' emergency responders on both sides of the international border do not have the ability to communicate with each other regarding an LNG incident — even responders from the potentially impacted communities on the Maine side of the border lack that capability.

As per federal LNG emergency response obligations, the Downeast LNG project would require New Brunswick and Maine emergency responders to have inter-responder communication capability. Since most New Brunswick communities on the bay that would be impacted by LNG transits, the Province of New Brunswick, and the Government of Canada have all indicated they will not cooperate — Downeast LNG has no hope for federally-mandated emergency management capability to coalesce.

Downeast LNG keeps on throwing cash down the project's money-pit, thinking that by doing so, somehow the results will change.

Earth-to-Downeast LNG president Dean Girdis and investor Yorktown Partners: Take a long, close look down the hole. There is no bottom.

A bright future for China-Caribbean cooperation — The Nassau Guardian, Nassau, The Bahamas

The two-way trade has enjoyed rapid growth. According to China Customs, it jumped from US$2.024 billion in 2004 to US$7.158 billion in 2010, an increase of 2.5 times. China has not only substantially increased its imports from the Caribbean region, but also diversified its import mix. Asphalt and liquefied natural gas from Trinidad and Tobago, Jamaica Blue Mountain Coffee, and Caribbean rum have become increasingly appealing in the Chinese market. With more exchanges between the two sides, it is expected that a growing number of competitive Caribbean products will be enjoyed by Chinese consumers.

Trinidad invites Venezuela to resume talks on sharing gas — Argus Media, London, England, UK

Trinidadian gas production last year was 4.1 billion ft³/d, compared with 3.8 billion ft³/d in 2009, according to the energy ministry. Half of the gas is used for LNG production, with the remainder for power generation, and for firing petrochemical plants and a steel mill.

Atlantic LNG expects scheduled maintenance on two liquefaction trains over next two months — LNG Law Blog

Platts LNG Daily [subscription required] reports that a spokesperson for Atlantic LNG said that scheduled maintenance will be conducted on liquefaction trains 3 and 4 in September and October respectively.

Sinochem looking to invest in Alberta (Sep 9) — Calgary Herald, Calgary, AB

The lure of Asian markets has oil and gas producers at home pushing for liquefied natural gas export terminals on B.C.'s West Coast - along with the associated required pipelines - and Enbridge Inc. has earned support for its proposed Northern Gateway pipeline .

As U.S. LNG export proposals line up, Kitimat remains a competitive project — JuneWarren-Nickel's Energy Group

Rising natural gas demand in Asia and increases in supply throughout North America -- including in the United States, Canada's traditional export market -- led to significantly higher natural gas prices in Asia than North America. This provided Kitimat LNG with a compelling opportunity to export natural gas across the water to the lucrative Asian market.

As for West Coast LNG proposals in Oregon and California, BENTEK's opinion is that none of these projects will come to fruition, either as import or export terminals. [Red bold emphasis added.]

The No. 1 export for the future (Sep 9) — The Motley Fool

Right now, there is no facility in North America capable of liquefying natural gas for export (sic), which makes the Kitimat [in British Columbia] facility incredibly important. Cheniere Energy also has a facility project in the works on the Gulf Coast, but its construction is subject to further federal regulatory approval. At a price tag of $6.4 billion, the company that hasn't made a profit in 13 years also needs to come up with financing, securing Kitimat as North America's most likely bet right now. [Brown emphasis added.]

Webmaster’s Comments: The ConocoPhillips LNG export terminal on the Kenai Peninsula in Alaska has been exporting US-source LNG to Japan since 1969. The liquefaction and export terminal is shutting down in October, the company says, due to lack of market for its gas.

Carib Energy wins DOE authorization to export LNG — Pipeline & Gas Journal

Carib Energy filed an application to the DOE earlier this year to export LNG from the U.S. It will transport the LNG from liquefaction facilities using approved 40-foot LNG ISO containers transported on ocean-going carriers. Carib is permitted to transport up to 11.53 Bcf of natural gas per year for a 25-year term.

Osaka Gas to tap LNG imports via long contracts (Sep 8) — Reuters

Japan's No.2 natural gas distributor Osaka Gas Co said on Thursday it plans to obtain 5-10 percent of its imports of liquefied natural gas (LNG) until 2015 through the spot market and the remainder through long-term contracts.

Osaka Gas President Hiroshi Ozaki also told reporters that prospects for shale gas projects in Canada was more feasible for exports that those in the United States. [Red emphasis added.]

Webmaster’s Comments: Not only are US LNG interests attempting to sell US energy security out from under us, LNG speculation-failure history is about to repeat itself.

Russia reportedly planning to build tunnel under Bering Strait (Sep 8) — Forbes

The Wikipedia report cites a story in the U.K.-based newspaper, The Sunday Times, which appeared in 2007.

The Russian Government recently unveiled plans to build the world’s longest tunnel, as part of a $65 billion USD project to develop Siberia and warm Russian-U.S. relations. The tunnel will supply the US with oil, natural gas and even electricity.

Webmaster’s Comments: There was a flurry of news coverage in 2007 regarding Russia's proposed "World Link" project; however, the coverage then dried up. With the US natural gas supply turnaround, there is one less reason for Russia to consider actually doing this project.

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2011 September 8

Task force will recommend new use for Weaver's Cove land (Sep 6) — The Herald News, Fall River, MA

With the prospect of a liquefied natural gas terminal at Weaver’s Cove now dead, the city is trying to breathe some life into the land that Hess LNG left behind. [Red emphasis added.]

Dominion makes plans to export regularly (Sep 7) — South Maryland Newspapers Online, MD

Dominion applied to the Department of Energy earlier this summer to become a re-exporting facility, where shipments would come in, be stored on site and then re-exported, and then last week the company applied to be a regular export facility, “which would be a major investment in Calvert County,” Dominion Cove Point LNG plant spokesman Dan Donovan said. “It would turn Dominion Cove Point into a bi-directional facility, where at times we would import and at other times export.”

Chart Energy & Chemicals sponsors Zeus Modular & Mid-Scale LNG Conference [Press release] (Sep 7) — MarketWatch

CLEVELAND, Sep 7, 2011 (GlobeNewswire via COMTEX) -- Chart Industries, Inc. announced today that the Chart Energy & Chemicals Group will sponsor the Zeus Modular & Mid-Scale LNG Conference on September 15, 2011 at the Hilton Hotel in Lafayette, Louisiana. The conference will be preceded by a tour of Chart's cold box manufacturing facility in New Iberia on September 14th.

Company spokesperson offers update on Port Dolphin LNG Deepwater Port project (Sep 7) — LNG Law Blog

A company spokesperson offered an update on the Port Dolphin LNG deepwater port project, saying that the company continues to consider accepting U.S.-sourced LNG from liquefaction terminals in the Gulf of Mexico. An energy analyst noted to World Gas Intelligence [subscription required] that "[i]f Port Dolphin is not using U.S.-based LNG, it’s a pretty tough sell."

Webmaster’s Comments: It's a "pretty tough sell" because foreign-source LNG costs more than US-source.

Trinidad & Tobago LNG Strategy Analysis & Outlook to 2020 [Press release] — Your Industry News

The report provides profound analysis and complete data on each segment of Trinidad & Tobago LNG value chain including source fields, connecting pipelines, liquefaction plants, trains, storage tanks, jetty and LNG carriers for all the existing and planned LNG terminals in Trinidad & Tobago.

The ways to harvest natural gas are getting more unconventional (Sep 7) — Troy Media Corporation, Calgary, AB

[S]elling Canadian natural gas to those Asian markets is dependant upon construction of an the Kitimat LNG export facility in Kitimat, BC, now in the design phase with Encana, EOG and Apache.

BC Oil and Gas Conference kicks off in Fort Nelson — EnergeticCity.ca, Fort St. John, BC

Topics being covered in the conference include the impact to communities of a transient workforce, water resource management for unconventional gas exploration, and the evolution and future of the LNG markets.

BC's clean electricity same price as BC Hydro's new electricity [Press release] (Sep 7) — (CNW) Canadian News Wire, Bedford, NS

With trains 1 and 2 at the Kitimat LNG facility, the increase in demand will be at least 3,000 GWh. If Shell builds a facility, it is expected to use 4,000 to 5,000 GWh. Progress Energy and Petronas are also looking at LNG. Currently there is only 1,000 GWh in BC Hydro's load forecast for LNG use. LNG production costs and GHG risk will rise if LNG producers are forced to self-generate electricity, making Oregon an attractive location.

Oil sands buffeted by economic headwinds — Petroleum Economist

A second pipeline, Northern Gateway, to the British Columbia (BC) coast would help open markets to Asia, but its volume — 550,000 barrels a day (b/d) — amounts to less than one half of 1% of global demand. Likewise, proposals to export liquefied natural gas (LNG) from BC pale in comparison with the plans of countries such as Australia that are fighting for the same LNG Asian buyers.

BP official discusses economic considerations of U.S. LNG exports — LNG Law Blog

At a conference in Australia this week, Benjamin Kloss of BP discussed several economic considerations of U.S. LNG export projects, including natural gas supply markets, spot versus long-term supply arrangements, and market arbitrage potential.

Start-up of Manzanillo LNG terminal is delayed (Sep 6) — Argus Media, London, England, UK

Mexico City, 6 September (Argus) — The start-up of the 500mn ft³/d regasification terminal at Manzanillo, on Mexico's Pacific coast, has been delayed due to unfinished work on dredging a canal and re-routing a railroad line.

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2011 September 5

A 2011 guide to energy developments in Maine — Mainebiz

Here's a status update on the projects making news these days:

PROPOSED PROJECTS: Natural gas/LNG: Robbinston:

Developer Downeast LNG, based in Washington, D.C., is still working to finalize its environmental impact study with the Federal Energy Regulatory Commission, and is consulting with the U.S. DOT on recent changes to federal safety standards for LNG facilities. A revised draft will be issued after Downeast LNG completes consultations with the DOT.

STALLED PROJECTS: Natural gas/LNG: Calais:

Developer Calais LNG has pulled its state application to build a $1 billion LNG terminal here, after multiple requests for extensions to complete its application. Calais LNG said the “extreme turbulence of the capital markets” stalled the project, as it struggled to find a new investor after GS Power Holdings LLC, a subsidiary of Goldman Sachs Group Inc., backed out. It plans to refile its application in the future.

SCRAPPED PROJECTS: Natural gas/LNG: Pleasant Point:

Beleaguered by lawsuits, Quoddy Bay LNG’s proposal seems to be dead; it has no state or federal applications on file. [Red bold emphasis added.]

Webmaster’s Comments:

According to the US Energy Information Administration, FERC, America's Natural Gas Association, and others, the US is currently in a 100-year natural gas glut. Even Maine has no shortage of access, as is evidenced by the Baileyville and Millinocket paper mills' natural gas pipelines projects; they are building access to the Northeast & Maritimes Pipeline's copious natural gas supply. Verso Paper in Bucksport has had similar access for some years. Also, several Maine communities are adding natural gas delivery infrastructure.

Due to a lack of need for LNG imports, Canaport is operating at a mere fraction of its capacity. The same is true — with considerably less import activity — of the two newly-constructed LNG import terminals offshore from Gloucester, Massachusetts, Northeast Gateway Deepwater Port and Neptune LNG.

Dominion Cove Point LNG terminal in Maryland has received only four LNG ships this year, resulting in a near shutdown due to inability to keep the equipment cold. It is currently planning to add LNG export capability, accessing the vast natural gas supplies in the nearby Marcellus Shale fields.

Gulf Gateway Deepwater Port 116 miles offshore from Louisiana, the world's first offshore LNG receiving terminal, new in 2005, is being scrapped by its owner, Excelerate Energy, due to lack of need.

There are around 30 new pipeline and pipeline expansion projects in the works (or newly completed) to deliver abundant natural gas supply to the Northeast.

The US already has around 15 times the LNG import capacity than is needed; it is grossly overbuilt. There are no economic or energy-security reasons to construct LNG import infrastructure in Maine, the Northeast, or the lower 48 states.

Furthermore, siting an LNG terminal in Passamaquoddy Bay cannot satisfy the world LNG industry's own terminal siting best safe practices. (See LNG Terminal Siting Standards Organization for more on this issue.) Unfortunately, US laws and regulations ignore the industry's own terminal siting best practices in determining acceptable sites.

Proposed Projects: Natural gas/LNG: Robbinston
In July 2009, Downeast LNG went completely through the Maine permitting process, including week-long hearings. When the company realized it would fail permitting, it withdrew its permits before the DEP could render its decision. More than two years later, Downeast LNG has still not re-entered Maine permitting.

When Downeast LNG filed with FERC, its terminal site diagram indicated the site's federal Exclusion Zones would extend halfway across highway US-1. No other US LNG terminal Exclusion Zone extends onto a US highway. The recent US DOT requirement to develop more conservative vapor-gas dispersion computer modeling makes it likely that the Exclusion Zone is even greater than Downeast LNG previously indicated. Exclusion Zones must be kept within the LNG terminal fence line, with the exception of property controlled by the terminal owner or by the government if that location is not a public gathering place for 50 or more people. To date, the US DOT has never rendered an interpretation of such a condition as Downeast LNG's Exclusion Zone extending onto a US highway.

Computer modeling for thermal radiation from a terminal LNG tank-top fire has not yet been examined — a potential fatal issue for Downeast LNG. The thermal radiation model currently in use has been demonstrated to be less than conservative, ignoring significant variables (wind speed at the tank top, flame tilt, tank wall thermal spalling causing cascading containment failure, and thermal radiation impact on a downwind LNG storage tank) that could result in a significantly greater Exclusion Zone than the Downeast LNG's site can accommodate. In Downeast LNG's case — according to the thermal radiation, fire, and explosion expert who submitted comments to FERC on this issue in 2009 — new modeling indicates Downeast LNG's thermal radiation zone would extend more than 900 feet beyond US-1 — approximately doubling the Exclusion Zone distance. Since Exclusion Zones must remain within the terminal fence line, Downeast LNG's terminal site appears to be vastly undersized, and is "painted in" by US-1. Downeast LNG has been aware of this problem for years, but has chosen not to move to a more appropriate location.

In 2006, Canada announced it is prohibiting LNG ships from transiting through Canadian waters to the proposed terminal. Downeast LNG and the US State Department have argued that such transits are protected by the UN Convention on the Law of the Sea (UNCLOS) "innocent passage" provision. However, since the US is not a member of the UNCLOS treaty, and since the treaty clearly states that UNCLOS rights inure only to UNCLOS treaty members, the US has no rights under that treaty. Canada, alone, has the decision authority on LNG transits to the proposed Downeast LNG terminal.

Plus, the US Coast Guard's Waterway Assessment for LNG transits to Downeast LNG's terminal requires Downeast LNG to…

1. Obtain letters of agreement from Native American Tribes regarding use of the waterway — something Downeast LNG has refused to do, claiming Native Americans do not have rights in the waterway — and
    
2. Obtain cooperation and coordination from the Government of Canada to ensure safe and secure LNG transits through both Canadian and US waters. The Government of Canada has repeatedly and firmly stated from the highest level that they will provide no such cooperation or coordination; that LNG transits are banned.

Downeast LNG has known of these insurmountable obstacles for several years. And yet, the company has irresponsibly chosen to pick a fight with a sovereign foreign government — against the requirements of the US Coast Guard — and offending Native Americans, rather than moving the project to an appropriate site.

Stalled Projects: Natural gas/LNG: Calais
The article states that financial markets are the reason for Calais LNG's situation. In actuality, it is the US natural gas market that has been turned on its head that resulted in Goldman Sachs deserting the project. The US natural gas market has been turned on its head by a century-long natural gas glut. Goldman Sachs is an astute investor, and knows a bad investment when it sees one.

Calais LNG has no financial backing. Calais LNG has lost its option to purchase the required bulk of the proposed terminal site. Calais LNG has deserted its offices in Calais.

In order for Calais LNG to refile its state applications, it would have to obtain financial backing, and then obtain a terminal site. Since the previous site is no longer unavailable, Calais LNG would have to begin anew with a different site, requiring starting over at FERC in addition to the State of Maine. "Stalled Project" in this case really should be "Dead Project, but unwilling to admit it."

Scrapped Projects: Natural gas/LNG: Pleasant Point
On October 17, 2008, FERC kicked Quoddy Bay LNG out of the federal permitting process, killing the project. On June 9, 2009, the Pleasant Point Tribal Government cancelled its lease agreement with Quoddy Bay LNG. Prior to July 29, 2009, FERC removed Quoddy Bay LNG from its maps of potential and proposed LNG projects. On April 23, 2010, the Bureau of Indian Affairs cancelled its approval of the ground lease between the Passamaquoddy Tribal Government and Quoddy Bay LNG, although the tribe had already cancelled the lease.

For Quoddy Bay LNG to have a project, it would have to somehow acquire a site. There is no project site and no agreement with anyone to develop the project. Quoddy Bay LNG has no permit applications anywhere, and no agreements with anyone; although it is being sued for breaking agreements to pay suppliers. Quoddy Bay LNG is unquestionably dead.

Emergency rule extended for three months in Trinidad — Stabroek News, Georgetown, Guyana

PORT OF SPAIN, (Reuters) - Lawmakers in Trinidad and Tobago approved a three-month extension of a state of emergency yesterday after Prime Minister Kamla Persad-Bissessar said it had averted “a criminal uprising” in the energy-rich country.

Trinidad, a leading exporter of liquefied natural gas to the United States, has faced a growing crime problem stemming from heavily armed street gangs.

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2011 September 2

Jamaican Government issues requests for proposals for LNG supply, regasification terminal — LNG Law Blog

The Jamaican Government has issued two Requests for Proposals for its LNG import plans. One Request for Proposals seeks submissions for LNG supply contracts and the other requests submissions regarding a floating LNG regasification facility.

LNG barge project takes another step forward — Kitimat Sentinel, Kitimat, BC

Black and Veatch of Kansas, has begun work for the LNG plant that will be constructed on a barge and brought to a location on the west side of the Douglas Channel south of Rio Tinto Alcan’s aluminum smelter.

This would be the first barge-mounted export facility serving the Pacific Basin, as well as the first for exporting Canadian natural gas - assuming the project goes ahead as planned, it would be exporting LNG some 18 months before the proposed KM LNG plant.

Natural gas pipeline connects Oregon with Wyoming — Billings Gazette, Billings, MT

PORTLAND, Ore. - The El Paso Corp. is holding a ribbon cutting ceremony Friday in Malin, near the California border, to celebrate the completion of a 680-mile pipeline that carries natural gas from Wyoming.

The market for most of the natural gas is in California, but it lessens the need for a liquefied natural gas terminal in Oregon. [Red emphasis added.]

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2011 September 1

Group outlines Weaver's Cove development proposal — SouthCoastToday.com, Fall River, MA

Now that Hess LNG has abandoned plans to build a liquefied natural gas terminal at Weaver's Cove in Fall River, a city environmental group hopes to turn the site into a thriving commercial and residential development on the waterfront.

Hess LNG withdrew applications for the LNG project in Fall River earlier this year, ending a long and bitter battle over the proposal between the company, citizens and lawmakers. ….

WikiLeaks: Washington and Brasilia monitoring Chávez in the Caribbean — ZNet

Because Jamaica already participated in Chávez's so-called Petrocaribe program, which provided liquefied natural gas to the Caribbean nation, Golding feared that "it would be easy to imagine a scenario in which Chávez offered to write off or defer a portion of these debts in return for government of Jamaica support of his positions in international fora." In drawing closer to Chávez, Golding continued, Jamaica was "getting mixed up with something from which it will be difficult to extricate ourselves." In conclusion, Golding thought that Chávez had become a "godfather with money." Jamaica, he said, was "being sucked into an agenda not of our own making. Chávez waves cash, we're mesmerized, and cave in to anything he wants."

Colombia, Jamaica eye joint oil exploration — Fox News Latino

"In terms of hydrocarbons ... Jamaica at the moment has energy requirements and needs that make them see us as potential suppliers of oil, coal and gas," Holguin said.

Baugh, meanwhile, acknowledged that his country "has serious energy problems" and expressed interest in "liquefied natural gas as a main source" of energy from Colombia, as well as oil and coal.

Atlantic’s CEO disputes Ryder Scott report — Newsday, Port-of-Spain, Trinidad & Tobago

Despite projections by a leading international auditing company that the nation’s gas reserves had nine more years, Atlantic’s chief executive officer Oscar Prieto has instead offered an alternative projection saying the country had enough reserves to fulfil its contractual arrangement for the next 12- 15 years.

Québec Solidaire: A Québécois approach to building a broad left party (Aug 31) — Links International Journal of Socialist Renewal, Australia

The second program convention, held in March 2011, focused on environmental, economic and labour issues.

Environment. The 350 delegates voted for a major turn to “green energy,” including:

…

• An end to all exploration and development of fossil fuels, such as petroleum in the Gulf of St. Lawrence (Old Harry), shale gas and LNG ports. Elimination of Quebec’s nuclear reactor system and an end to the exploration and development of uranium mines.

….

Shell Canada sizes up LNG options offshore B.C. — Alberta Oil

In July, Shell Canada confirmed it was partnering with China National Petroleum Co., Korea Gas Corp. and Mitsubishi Corp. to look at building a liquefied natural gas (LNG) export facility on the coast of British Columbia. But of the four proposed LNG schemes under consideration for Canada’s West Coast, Shell’s could be a little different.

Although costs, production volumes and timelines haven’t been worked out, industry observers like FirstEnergy Capital are speculating that Shell and its partners are considering building a floating LNG structure off B.C.’s coast.

Vote now to help us select Oilweek’s 2011 Producer of the Year! [Blog] (Aug 31) — Oilweek, Calgary, AB

Progress Energy has amassed an estimated 900,000 net acres of land within the commercially productive Montney fairway of northeastern British Columbia and northwestern Alberta, which gives it one of the largest land positions among North American natural gas resources players. In the North Montney fairway of B.C., Progress controls 680,000 net acres of largely contiguous rights, and in the first half this year struck a joint venture with Malaysia state oil company PETRONAS to develop a significant portion of these North Montney assets and evaluate the feasibility of a liquefied natural gas export project.

Encana and NW Natural to address joint venture and the future of natural gas at North America Gas Summit in October [Press release] — (PRWeb) Yahoo News

The North America Gas Summit, which will take place October 3 – 5, 2011, in Washington, DC, is a unique gathering of senior-level energy executives, regulators and thought leaders from across the entire supply chain. The North America Gas Summit will serve as a platform for open dialogue between gas supply and demand - to address the latest regulatory issues shaping the future of the North American market, share best practices and discuss the impact of gas prices on shale gas development, public and media perception around hydraulic fracturing, demand creation through natural gas vehicle development and infrastructure needs, the potential of LNG exports and technology needs of liquefaction facilities, natural gas trading and pricing patterns, EPA regulations and expected outcomes of the current study undertaken, as well as the inherent realities of alternative energy.

Chevron CEO not convinced LNG export projects "economic" — LNG Law Blog

Speaking at an event in Houston yesterday, Chevron CEO John Watson said that "it remains to be seen whether [LNG export projects] will prove to be economic."

Webmaster’s Comments: LNG export projects also reduce North America's energy security.

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