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Passamaquoddy Bay & LNG

New Brunswick

GDF Suez close to buying Repsol's LNG unit- report — MarketWatch

French power company GDF Suez SA is close to seal a deal to buy the liquefied natural gas unit from Spain's oil company Repsol SA , French website Wansquare said Friday, citing banking sources.

Repsol put its natural gas unit, which operates in Canada, Peru and Trinidad and Tobago, after the Argentine government seized its oil activities in the country. [Red & bold emphasis added.]

Caribbean

Government hoping for re-opening of Russian funded bauxite company — Antigua Observer Newspaper, St John’s, Antigua

“The supply of LNG from Trinidad was a key strategy in the provision of a cheaper source of energy from the Jamaica Public Service. In light of talks that Jamaica may no longer be pursuing LNG from Trinidad, the JMA is demanding answers from the Government. Is it a done deal?” the JMA asked.

Not cheap enough - Gov't still searching for other energy source as LNG remains too costly — The Gleaner, Kingston, Jamaica, West Indies

The Government is exploring the possibility of an energy source cheaper than liquefied natural gas (LNG) as it tries desperately to cut the cost of electricity to Jamaicans.

At the same time, the administration has no intention of abandoning the plan to have the Jamaica Public Service Company (JPS) introduce LNG through its soon-to-be-built plant in Old Harbour, St Catherine.

Why Trinidad LNG deal might be abandoned — Go-Jamaica, Kingston, Jamaica, West Indies

There are indications that Trinidad will not be able to honour its agreement to supply Jamaica with Liquified Natural Gas (LNG), despite its recent discovery of one trillion cubic feet of natural gas.

[Former Minister of Energy Conrad Enill] said Trinidad and Tobago’s reserves have been depleting for some time now and the [recent offshore] find is an indication that the country is back in exploration mode. [Red & bold emphasis added.]

British Columbia

Gitga'at First Nation raises LNG concerns — CFTK-TV, Terrace, BC

The Gitga'at First Nation at Hartley Bay says a new report by the David Suzuki Foundation has reinforced its view that plans to export liquefied natural gas through their traditional territories from proposed plants at Kitimat could harm people's health and hurt the environment.

On Tuesday, supporters of the Unis'tot'en clan of the Wet'suwet'en First Nation held small rallies across the country, objecting to gas and oil pipeline development through the Northwest.

Band says B.C. LNG plan will increase greenhouse gases, tanker traffic — (The Canadian Press) Brandon Sun, Brandon, MB

The Gitga'at First Nation of Hartley Bay, says the plan to build four LNG plants in Kitimat is not as "green" as people might believe, and it could result in air pollution that makes its way downwind to their community.

Canada's Petronas acquisition decision will impact North American LNG exports — AOL Energy

"The explosive growth of [US] shale gas has pushed back from the US market some of the imports from Canada, and that process will continue over the coming years," Bentek Energy analyst Javier Diaz told AOL Energy. "So, there is a lot of incentive for Canada to find new markets."

"So," Diaz continued, "I still expect that, even if there's an upward revision in cap-ex, the Canadian projects will be competitive with US exports to Asia because their shipping costs will be less than those from the Gulf of Mexico – especially if US producers have to pay additional fees for using the expanded Panama Canal, although it's not clear how expensive that's going to be."

United States

Report warns against increased LNG exports — UPI

"The Department of Energy should look at the full picture of what exporting LNG will mean for Americans' health, communities and check books," Deb Nardone, Sierra Club's Beyond Natural Gas campaign director, said in a release.

New Brunswick

New Brunswick energy minister says shale gas could power province for a century (Nov 28) — CTV

He said that amount of shale gas would be able to heat every home in the province for 630 years or serve the province's power needs for the next 100 years.

"It's not natural gas that New Brunswickers are afraid of, it's fracking that New Brunswickers are afraid of," [Liberal energy critic Chris Collins] said.

New England

In shale-deprived New England, natgas prices rise sharply (Nov 28) — Reuters

The abrupt price spike runs counter to the prevailing trend in recent years as a surplus of shale gas oozes across the country, flattening out the so-called "basis spreads" that once offered savvy traders roller-coaster volatility.

That trend is not as pronounced in New England because the hefty pipeline build-out in much of the Mid-Atlantic and Northeast U.S. that complemented the U.S. shale production bonanza has so far passed the region by.

New York, by contrast, has seen the fruits of more shale gas supply as pipeline expansions and planned projects have eased prices....

Kinder Morgan's Tennessee Gas Pipeline also delivers gas to the Boston area and has made at least one expansion to deliver more supply from the giant gas-producing Northeastern bedrock known as the Marcellus Shale to markets in New York and New England, but Algonquin serves as the baseline.

Webmaster's comment: The optimum solution is pipeline expansion, not yet another idle LNG import terminal. There is a vast sea of natural gas virtually on New England's doorstep.

Northeast

LNG export a bad bet for Md. [Op-ed column] — The Baltimore Sun, Baltimore, MD

Arguing that the U.S. Department of Energy should allow the market to drive LNG export decision-making is a terrible policy choice. "The market" does not protect the public interest — that is the Energy Department's responsibility. Taken together these uncertain economics, unsustainable jobs, and a huge environmental price-tag should make everyone think very hard about whether LNG export is right for Marylanders and America. [Red & bold emphasis added.]

Gulf of Mexico

Pangea LNG begins seeking regulatory clearance for South Texas LNG export project [Press release] — The Sacramento Bee, Sacramento, CA

South Texas LNG Export will be located on a portion of a 550-acre site which includes half a mile of frontage on the federally-maintained deepwater ship channel. Pangea has had the site under option since June. A separate pipeline project would connect the LNG plant to the extensive interstate and intrastate natural gas transmission pipeline network in South Texas.

Kathleen Eisbrenner, Pangea LNG's chief executive officer, said, "We expect there to be several successful LNG export projects on the Texas Coast in the coming years because of the large new natural gas reserves in North America. Exporting LNG will help stabilize U.S. natural gas prices, sustain drilling and production jobs in South Texas, and stimulate investment in developing additional gas reserves." [Red & bold emphasis added.]

Webmaster's comment: This is the 17th US LNG export proposal. The US already has 12 idle import terminals — but Downeast LNG wants to build yet another one!

Permits sought for South Texas LNG export — Oil & Gas Journal, Houston, TX

Pangea LNG (North America) Holdings LLC, Ingleside, Tex., has begun seeking approvals to build an LNG export plant on Corpus Christi Bay in South Texas.

The project—South Texas LNG Export—will be in the city of Ingleside on the La Quinta Ship Channel, part of the Port of Corpus Christi. It will sit on a portion of 550 acres that include ½ mile of frontage on the federally maintained deepwater ship channel.

Pangea LNG files for DOE LNG export authority to FTA nations — LNG Law Blog

Pangea LNG (North America) Holdings, LLC (Pangea) filed an application with the U.S. Department of Energy to export up to 398.5 Bcf/year of LNG (approximately 8 million metric tons) over a 25-year term to nations with a Free Trade Agreement with the United States. Pangea proposes to export the LNG from its planned South Texas LNG Export Project to be located at the Port of Corpus Christi in Ingleside, Texas.

Panama Canal Authority to propose LNG toll fee in mid-2013 — ICIS Heren, London, England, UK

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

Work to deepen and widen the 77km-long canal, which links the Atlantic and Pacific basins in Central America, is now 50% complete, and is on track to begin commercial operations in the second quarter of 2015. However, the commercial viability of most of the proposed liquefaction projects in the US Gulf will depend to some degree on the Panama transit fee.

The canal could, for instance, save Japan-bound cargoes out of Trinidad from having to transit through the Suez Canal - a saving of 5,302 nautical miles that, at 19.5 knots, translates to an 11-day shorter voyage. However, some market participants have expressed concerns that the Panama toll could be close to prohibitive, with some industry observers predicting that the fee could be as high as $1m per transit. [Red & bold emphasis added.]

Caribbean

JMA unsettled Gov't could abandon LNG deal with Trinidad — Go-Jamaica, Kingston, Jamaica, West Indies

Responding to questions in Parliament on Tuesday, Energy Minister Phillip Paulwell suggested that Jamaica could give up on getting Trinidad to honour a 2004 MOU to supply Jamaica with LNG.

Jamaica aiming to generate 30 percent of energy from renewables by 2030 (Nov 28) — Caribbean Journal, Miami, FL

“We are also examining other fuel sources,” he said. “The LNG project is on the way; the government’s role has changed, but we are committed to having LNG in the country hopefully by 2015.”

Trinidad ships LNG cargo to Puerto Rico — LNG World News

The cargo is being hauled by the 138,000 cbm Sestao Knutsen, and it is due to arrive at the Peñuelas LNG terminal on December 3.

Webmaster's comment: This cargo's destination is the same LNG import terminal that Downeast LNG confused with itself in its October 12 filing to the FERC docket.

Panama Canal Authority to propose LNG toll fee in mid-2013 — ICIS Heren, London, England, UK

[This same article appears under the Gulf of Mexico heading, above.]

Work to deepen and widen the 77km-long canal, which links the Atlantic and Pacific basins in Central America, is now 50% complete, and is on track to begin commercial operations in the second quarter of 2015. However, the commercial viability of most of the proposed liquefaction projects in the US Gulf will depend to some degree on the Panama transit fee.

The canal could, for instance, save Japan-bound cargoes out of Trinidad from having to transit through the Suez Canal - a saving of 5,302 nautical miles that, at 19.5 knots, translates to an 11-day shorter voyage. However, some market participants have expressed concerns that the Panama toll could be close to prohibitive, with some industry observers predicting that the fee could be as high as $1m per transit. [Red & bold emphasis added.]

Alaska

Expert tells Alaska to get moving on pipeline if it wants to sell gas to Asia (Nov 28) — Alaska Dispatch, Anchorage, AK

A pipeline from Alaska's North Slope -- which if constructed is expected to deliver the trillions of cubic feet of natural gas known to exist beneath Alaska's northern coast -- has been discussed for decades. But conditions have changed.

As domestic shale gas drilling has boomed, the prospect of a Lower 48 gas shortage faded. That left Alaska looking to export one of its most abundant natural resources. And the big North Slope producers agreed.

Exporting natural gas is just one piece of a tricky Alaska energy situation. In southcentral Alaska, the state's population center, utilities are looking to import natural gas, despite trillions of cubic feet remaining undeveloped in the region. Utilities are warning customers, who have basked in relatively low energy prices for decades, that costs will rise once imports begin. In rural Alaska, electricity can cost up to 50 cents a kilowatt-hour and diesel fuel averages $6 a gallon. [Red & bold emphasis added.]

British Columbia

BC's plan to wipe away climate progress [Opinion] — The Tyee, Vancouver, BC

The National Energy Board and B.C. government are both backing a major fossil fuel development plan that would have more than twice the greenhouse gas emissions impact as the Northern Gateway pipeline project. A proposal to extract and export liquefied natural gas (LNG) to Asia from B.C.'s unconventional natural gas reserves directly undermines the province's climate targets for 2020. This increase in emission exports will be so significant that British Columbia, once a champion of climate change policy, will become second only to Alberta in terms of export emissions.

The government's climate change goal is to reduce emissions to roughly where they were in 1990 by the year 2020. This will not be possible under an LNG export scenario. Natural gas industry emissions would rise to 30 megatonnes (up from 16 now) and, all else being equal, B.C.'s energy emissions would increase from 60 to just under 90 megatonnes. The province will become one of Canada's major greenhouse gas producers and exporters. (All figures in this article and infographic, see below, were developed using the CanESS energy simulator from Whatif Technologies) [Red & bold emphasis added.]

Ministry of Energy and Mines : B.C. to host first LNG international conference — 4-Traders

The conference, "Fuelling the Future: Global Opportunities for LNG in BC," will be held at the Vancouver Convention Centre on Feb. 25 and 26, 2013. The Province of British Columbia and natural gas LNG proponents will join First Nations leaders, local governments, learning institutions, global investors, and domestic and international consumers to discuss the status of B.C.'s LNG industry. Multiple panel discussions are planned, with topics focusing on global market developments, regulatory best practices and skills development for future labour needs.

Government of British Columbia : Skills training supports liquefied natural gas sector in B.C. — 4-Traders

Under the BC Jobs Plan, the Province is working toward three liquefied natural gas (LNG) plants becoming operational by 2020, with one up and running as early as 2015. The Canadian Energy Research Institute estimates direct employment in B.C.'s natural gas sector will grow to as many as 40,000 people by 2035, a significant increase from 12,000 people employed in the natural gas industry as of 2010. An increase in natural gas jobs will support B.C. families, and strengthen local businesses and communities.

Hawaii

FERC releases Environmental Assessment for Hawaii LNG proposal — LNG Law Blog

Yesterday, FERC released its environmental assessment (EA) for The Gas Company, LLC's proposal to operate proposed Phase 1 facilities as an LNG terminal in Hawaii to receive LNG from the continental United States. The EA concludes that the environment is not involved in the proposal since there is no proposed construction of facilities and operation of the Phase 1 facilities would not require the disturbance of any land or modification of any existing structures.

Webmaster's comment: FERC actually believes there would be no air emissions, ballast water and engine cooling water uptake and resulting biota entrainment, or impact on human lives (human environment) from a potential LNG release.

United States

Disruptive energy technology: GTL promises gas revolution — AOL Energy

The nation is flooded with natural gas. For the last twelve months, the amount of gas available to the market exceeds five-year averages. With more gas than anyone can use, producers are now looking for new consumers. Two new opportunities have emerged and one could disrupt th

Less than five years ago it looked like North America's natural gas market was going to become highly dependent on foreign imports. Anticipating a growing need to offset declining natural resources, investors built eleven liquefied natural gas (LNG) import terminals along the east coast and the Gulf of Mexico. Seven more were approved by federal regulators. But during the last 12 months, very little LNG was imported. [Red & bold emphasis added.]

Sierra Club releases new report on natural gas exports [Press release] — Sierra Club

The report, titled “Look Before the LNG Leap,” cautions against the rubber stamp approval of proposed liquefied natural gas export facilities, and refutes the Department of Energy’s claim that it cannot predict where new fracking will occur as a result of approved LNG exports. The DOE has been using this argument as its main reason against performing a thorough environmental impact statement to study the full effects of exporting natural gas. The report shows that DOE's own energy models can and do make those predictions.

Caribbean

Jamaica could abandon Trinidad LNG deal — Go-Jamaica, Kingston, Jamaica, West Indies

[Opposition Spokesman on Energy, Gregory Mair] wanted to know if Jamaica will again be pushing for the twin-island republic to honour a decades-old Memorandum of Understanding to supply natural gas to Kingston.

Paulwell said the Administration has been in discussions with Trinidad on the matter, but he said those talks have not been fruitful.

British Columbia

LNG crew faces BC blocklade — HazMat Magazine, Toronto, ON

A First Nation clan in northern British Columbia (B.C.) has blocked access to a natural gas pipeline site after declaring the gas line crew to be trespassers on its territory.

The Unis’tot’en clan of the Wet’suwet’en Nation set up a roadblock that prevented surveyors for Apache Canada’s Pacific Trails Pipeline from accessing the ongoing project northwest of Kitimat, B.C.

“The Unis’tot’en clan has been dead-set against all pipelines slated to cross through their territories, which include PTP (Pacific Trails Pipeline), Enbridge’s Northern Gateway and many others,” Freda Huson, a spokesperson for the clan, said in a statement to media.

The $1-billion Pacific Trails Pipeline would deliver natural gas from northern B.C. and Alberta to the LNG terminal for shipment overseas.

Hawaii

Hawaii Gas executive takes his LNG message to Washington (Nov 27) — Pacific Business News, Honolulu, HI

“Hawaii relies on oil for nearly 90 percent of its energy needs,” [Hawaii Gas President and CEO Jeffrey M. Kissel] said in a statement. “Gas from LNG has the potential to lower energy costs, contribute to a cleaner environment, and support Hawaii’s drive to move toward integrating energy from renewable sources into its portfolio as soon as possible.”

Webmaster's comment: Free geothermal heat has set Kissel's shoes on fire and is melting his tires, but he'd rather pay to import LNG.

United States

Sen. Landrieu says Congress might need to ‘step in’ on natural-gas exports — The Hill, Washington, DC

The Energy Department is weighing a suite of proposals to export natural gas at a time of record U.S. production. Officials in the department are working on a closely watched — and delayed — economic analysis of the proposed exports.

But the idea faces skepticism from Wyden and some other lawmakers who fear that domestic manufacturers benefiting from low gas prices could be harmed by increased foreign sales.

Top senators push for natural gas exports — FuelFix

As the top Republican on the Senate Energy and Natural Resources Committee, Murkowski is well positioned to make the case on Capitol Hill. And she can draw on support from House lawmakers from states with robust natural gas production, who have implored Energy Secretary Steven Chu to swiftly approve export licenses.

But the incoming chairman of that panel, Sen. Ron Wyden, D-Ore., has been vocal in raising concerns that exporting more natural gas would hike prices inside the United States. Wyden has also been critical of the long-standing federal law that already allows companies to export U.S. natural gas to the nation’s free trade partners. The United States already exports some natural gas — mostly by pipelines — to Mexico, Canada, Brazil and other countries.

US should allow LNG exports to go forward - senators (Nov 29) — The Business Times, Singapore

"I just don't think blocking our exports of LNG makes any sense given out country's economic situation," [Senator Lisa Murkowski of Alaska] said at a policy briefing on natural gas hosted by The Hill, a newspaper that covers Congress.

With its gas unable to easily reach the rest of the country, Alaska is home to the nation's only operating LNG plant, which was first authorized to send LNG to Japan in 1967 but may close down. Future plants will require new export authorization.

Webmaster's comment: Paradoxically, Alaska has exported domestic LNG to Asia since 1969, and the Alaskan communities near the LNG export terminal that depend on natural gas for heating homes are now faced with running out — and are now planning to import LNG. Whose interests is Murkowski protecting?

Research projects addressing technical challenges to environmentally acceptable shale gas development selected by DOE — US Department of Energy

Fifteen research projects aimed at addressing the technical challenges of producing natural gas from shales and tight sands, while simultaneously reducing environmental footprints and risks, have been selected to receive a total of $28 million in funding from the U.S. Department of Energy’s Office of Fossil Energy (FE).

Webmaster's comment: The federal government is once again giving tens of millions of corporate welfare dollars to the hydrocarbon industry that is already hauling in boxcars full of profits — instead of to environmentally friendly renewable energy projects.

Gulf of Mexico

Cambridge Energy subsidiary receives DOE FTA LNG export authority (Nov 26) — LNG Law Blog

The U.S. Department of Energy (DOE) has granted the application of CE FLNG, LLC (CE FLNG), a subsidiary of Cambridge Energy Holdings, LLC, for long-term, multi-contract authorizations to export up to 8 million metric tons per year (approximately 389.6 Bcf) of domestically produced LNG over a thirty-year period from a floating terminal it intends to construct, own, and operate in nearshore Plaquemines Parish, La. DOE's order grants CE FLNG authorization to export LNG to nations that have a Free Trade Agreement (FTA) with the United States. CE FLNG's application to export LNG to non-FTA nations remains pending at DOE.

Sabine Pass LNG files monthly construction progress report — LNG Law Blog

Sabine Pass LNG, LP, filed a report at FERC on construction activities for its LNG export terminal, stating that as of the end of October, engineering was 28% complete, procurement was 25.9% complete, and overall project completion is 14.7%. Sabine Pass added that the overall project schedule is progressing ahead of the contractual schedule basis. Early targets for Train 1 substantial completion and Train 2 substantial completion are 43 and 47 months, respectively, against the contractual basis of 49 and 58 months for Train 1 and Train 2.

British Columbia

Government of British Columbia : LNG provides new opportunities for jobs and skills [Op-ed] (Nov 24) — 4-traders

For the past year, our government has aggressively promoted B.C.'s LNG potential, and the world is taking notice. We've built strong business relationships in Asia, which are paying off. Private sector investments have increased, with major industry players announcing plans to build LNG plants in B.C.

Hawaii

Hawaii Gas CEO to brief industry leaders on LNG plans — Star-Advertiser, Honolulu, HI

Hawaii Gas filed an application in August with the Federal Energy Regulatory Commission to ship liquified natural gas, or LNG, to Hawaii in refrigerated tanks mounted inside shipping containers.

Groups question plan to import gas (Nov 26) — Star-Advertiser, Honolulu, HI [Paid subscription]

Several groups are challenging a push by Hawaii Gas to become the first company to bring liquified natural gas to Hawaii, contending that the company's plan has not undergone sufficient environ­mental review and will slow the state's quest for energy independence.

United States

Gas glut benefits US economy but will LNG exports push up prices? (Nov 28) — The Telegraph, UK

The glut of gas in the US has benefited the American economy at a time of economic crisis, giving industry access to cheap energy. Manufacturers have not been able to compete in the global market on labour costs or taxation – but subdued power costs have made them more competitive and the US economy has been performing better than anyone could have expected. [Red & bold emphasis added.]

Natural-gas exports could lift U.S. trade and economy [Editorial] (Nov 25) — Bloomberg

The U.S. is awash in natural gas, so much so that prices have fallen to historic lows and inventories are well above their five-year average. In fact, the price is so low that many energy companies no longer consider it profitable to drill: The number of rigs drilling for gas has fallen this year by almost half, according to data by Baker Hughes. [Red & bold emphasis added.]

U.S. to help meet Japan's gas needs (Nov 25) — The Asahi Shimbun, Tokyo, Japan

"We contacted (Russia's) Sakhalin, Indonesia and Malaysia, but they had all sold out," says Kakimi.

Fortunately, one country had not: the world's largest exporter of LNG, Qatar. In the end, Chubu Electric secured over 3 million tons of LNG from Qatar in fiscal 2011.

This was all possible, some say, because North America had ramped up shale gas production.

"With the boom in U.S. shale gas production, the Qataris lost this market," explains one informed source at a Japanese trading company. [Red & bold emphasis added.]

Deflating gas price threatens to explode boom [Opinion column] (Nov 25) — Launceston Times, Launceston,Tasmania, Australia

[W]e may have managed to blow the mining boom. Two-thirds of the investment has been in energy projects, namely gas.

Trouble is, gas prices are lower than when they were commissioned. And their costs are a lot higher, in part because of the strong dollar - they're all foreign-owned, and so count in depreciated US dollars.

Worse, there's a gas glut in the US supplied from shale, which will make it more than self-sufficient in just a few years.

If the [Australian] dollar stays strong, the US will probably be able to export LNG to Asia cheaper than we can. At the same time the gas glut is tipping coal no longer needed in the US onto the market. Our LNG contracts are indexed to the oil price, so fingers crossed it holds up.

North America

Star-studded line up for LNG 17 (Dec) — Pipelines International

The spotlight session on the North American LNG Market will cover the implications of North American LNG exports on global dynamics, with three speakers bringing insight and experience from very different parts of this region. Head of Global LNG, BG Group, Betsy Spomer will look at Gulf Coast imports and exports, President, Repsol Energy North America Phil Ribbeck, will concentrate on Atlantic Coast trade and Senior Vice President – Gas Monetisation, Apache Corporation Janine McArdle, will focus on Canadian West Coast exports.

Passamaquoddy Bay

Member of Canadian Parliament files letter opposing LNG development on Passamaquoddy Bay (Nov 20)— LNG Law Blog

John Williamson, member of the Canadian House of Commons representing the New Brunswick Southwest district, filed a letter at FERC stating his opposition to LNG development, terminals and traffic in Passamaquoddy Bay. Mr. Williamson stated that his position is consistent with the policy of the Government of Canada, and that "[w]e will continue to use all diplomatic and legal options to defend our interests, which is to reject the passage of LNG tankers through Head Harbour Passage." Mr. Williamson added that "proponents of any LNG projects in Passamaquoddy Bay should not expect these projects to go forward." [Red, yellow & bold emphasis added.]

Northeast

EIA: Rig count in Utica Shale doubles from year ago (USA) (Nov 21) — LNG World News

The decrease in drilling for Marcellus Shale gas in Pennsylvania only appears to be occurring for regions of the state that produce dry gas, or natural gas that contains low volumes of liquid byproducts such as ethane, propane, butane, and pentane.

Although the rig count in Marcellus has declined over the last year, average production of natural gas there rose by 72% between October 2011 and October 2012 to 6.8 billion cubic feet per day (Bcf/d), accounting for 26% of all U.S. natural shale gas production, according to EIA calculations based on LCI Energy Insight estimates. In 2011, Utica shale gas production in Ohio averaged 0.007 Bcf/d, while shale oil production averaged 127 barrels per day, according to the Ohio Department of Natural Resources Division of Mineral Resources Management. [Red & bold emphasis added.]

Gulf of Mexico

FERC approves pre-filing process for Excelerate’s Lavaca Bay project (Nov 21) — LNG Law Blog

FERC has approved use of its pre-filing environmental review process for Excelerate Liquefaction Solutions I, LLC and Lavaca Bay Pipeline System, LLC's planned floating LNG export terminal to be constructed in the Port of Port Lavaca-Point Comfort in Calhoun County, Texas.

Northwest

Somebody in the Northwest wants to export LNG (Nov 21) — Willamette Weekly, Portland, OR

Last year, a federal court vacated a license for a proposed liquified natural gas terminal at Bradwood Landing on the Columbia River, about 20 miles upriver from Astoria. That ruling came after developers abandoned their efforts to build a terminal but the abundance of natural gas in the mid-continent makes it likely there will be further attempts to site LNG export facilities on the Oregon coast.

Yesterday, the British Columbia provincial government made it known that BC wants an LNG terminal (there is already a coal export facility in the province).

Alaska

LNG project is linked to oil tax change, producers say (Nov 21) — Alaska Journal of Commerce, Anchorage, AK

All three major North Slope producing companies say progress on a large natural gas pipeline and liquefied natural gas project is linked to reform of the state’s oil production tax, an issue that will be before the state Legislature again in its 2013 session.

Alaska Gasline Port Authority replies to DOE Information Request on LNG export application (Nov 21) — LNG Law Blog

Alaska Gasline Port Authority (AGPA) filed a response to the U.S. Department of Energy's (DOE) letter requesting additional information related to AGPA's pending LNG export application. In its response, AGPA (1) stated that a process was in place for construction of a pipeline to deliver gas to Port Valdez for export as LNG, (2) identified Prudhoe Bay and the Point Thomson field in Alaska's North Slope as the source of supply proposed for export, and (3) clarified that Anderson Bay is the preferred site for the proposed LNG export terminal.

British Columbia

LNG terminal proponent holds open house in Prince Rupert — CFTK-TV, Terrace, BC

The UK based BG group was back in Prince Rupert this week to host open houses on their proposed LNG Terminal slated for Ridley Island.

LNG export industry could mean higher consumer gas prices, FortisBC warns (Nov 22) — Vancouver Sun, Vancouver, BC

Proposals to export liquefied natural gas to Asia could lead to higher prices for B.C. gas consumers if pipelines to feed plants on the northwest coast affect the flow of gas to the province’s relatively small domestic market, FortisBC has warned.

The FortisBC letter is in response to an application before the NEB by LNG Canada, a consortium of companies headed by Shell Canada, for a licence to export liquefied natural gas. Shell plans on building an LNG terminal at Kitimat.

B.C. gas distributor warns about LNG exports (Nov 21) — The Globe and Mail, Toronto, ON

The largest distributor of natural gas in British Columbia is warning that plans to export gas to Asia could hurt consumers in the province by boosting prices – raising a red flag over an industrial shift that has widespread political and corporate support.

...In Australia, for example, natural gas prices for local users have soared in regions that are pursuing LNG export. Now, FortisBC is warning that gas prices in B.C. could also rise.

Earlier this year, Reuters documented prices in western Australia that had risen to nearly four times prices in some other parts of the country, as even major corporations such as Rio Tinto struggled to secure sufficient natural gas for their needs. Local buyers were feeling enough of a pinch that Chris Hartcher, Resources and Energy Minister for New South Wales, told reporters: “We are looking at a gas supply shortage.” [Red & bold emphasis added.]

Kitimat wants answers on proposed projects' power sources (Nov 21) — CJFW-FM, Terrace, BC

"According to the calculations, BC ratepayers could be subsidizing the private interest of the Enbridge proposal by at least 50-70 million dollars per year. Of course the LNGs use much more power than the Enbridge project will"

BC LNG plans advancing (Week of Nov 25) — Petroleum News, Anchorage, AK

In the latest development, BG Group, with Spectra Energy as a pipeline partner, has provided its first outline of a timetable that points to a final investment decision about 2015 for a possible two-train LNG export facility at Ridley Island near Prince Rupert.

The project is locking horns with Apache-operated Kitimat LNG, Shell-operated LNG Canada, the BC LNG Export Cooperative and expectations that Imperial Oil and ExxonMobil will launch their own project, or take a partnership role in one of the established ventures.

In addition, Petronas and Progress Energy Resources are awaiting a final decision by the Canadian government on the Malaysian state-owned companies bid to take over Progress in advance of results from an LNG feasibility study by the two companies.

United States

United States: LNG exports continue to await DOE approval (Nov 19) — Mondaq

The discovery and accessibility of vast domestic shale gas reserves in the United States has motivated states and industry alike to lobby heavily for the approval of liquefied natural gas (LNG) exports. LNG exports to non-Free Trade Agreement (FTA) countries, including China and Japan, are of particular interest because estimates for exports to those countries are as high as 16 billion cubic feet per day, more than ten times greater than all U.S. LNG exports in 2011. So far, the U.S. Department of Energy (DOE) has approved only one LNG export project to non-FTA countries, and that approval is being challenged. Meanwhile, more than a dozen applications sit in DOE's queue pending the release of a critical study by the end of the year. The debate over exports to non-FTA countries is likely to become more intense in the coming months once that study is released and subjected to a public comment period prior to any decisions by the DOE on the pending applications. [Red & bold emphasis added.]

Shell: U.S. politics could limit North American LNG exports (Nov 20) — SmartBrief

Liquefied natural gas exports from North America could be as little as 60 million tons annually over the next 10 years, said Simon Henry, Royal Dutch Shell's chief financial officer. "If you get inflation, which you certainly would if everyone's building at once, that's going to be a constraint and the other constraint is going to be in Washington [D.C.], where at some point the [U.S.] government will decide that exporting cheap American energy and cheap American jobs to our competitors is no longer acceptable," Henry said. [Red & bold emphasis added.]

Analysis: Why US will allow more LNG exports (Nov 21) — The Christian Science Monitor

The DOE is currently in a holding pattern on these export permits, awaiting the results of a study on what gas exports will do to the domestic natural gas market. Currently, only Cheniere Energy's (NYSEAMEX:LNG) application to export LNG from a terminal at Sabine Pass in Louisiana has been approved. There are about 15 total other permit applications outstanding.

In fact, the proposed federal regulations on fracking are a case of the government trying to protect the industry from itself. If a major environmental case turned against fracking, there is a possibility that new, heavy-handed regulation could kill the goose that is laying the golden eggs. In my view, this administration wants to protect the goose; the permits will be issued.

Update 2-US LNG export study by NERA consulting -sources (Nov 19) — Reuters

A highly anticipated report being produced for the U.S. Department of Energy on the economic consequences of exporting U.S. natural gas, is being conducted by NERA Economic Consulting, industry sources said.

NERA, a unit of Marsh & McLennan Cos, said it does not comment on the identity of its clients. The Department of Energy declined to name the study contractor.

New Brunswick

Canada: LNG tanker due at Canaport terminal December 2 — LNG World News

Repsol YPF SA’s Canaport terminal in Canada is expected to get one liquefied natural gas cargo onboard the 138,000 cbm Bilbao Knutsen from Trinidad and Tobago on December 2, according to port data.

Northeast

Energy Solutions, Inc. releases Natural Gas Price Outlook: Projects significant price weakness in early 2013 — (MarketWire) Sys-Con Media

Natural gas prices are expected to fall below $3 per MMBtu in early 2013 as improved drilling rig efficiencies, lower operating costs, high production yields and new pipeline infrastructure keep production on the rise. According to Energy Solutions, Inc., a leading provider and publisher of information on natural gas markets and prices, producers are unlikely to significantly curtail drilling efforts in 2013 because of high rates of return and the race to reach new markets, particularly in the Northeast. [Red & bold emphasis added.]

Caribbean

Atlantic LNG’s markets safe says CEO (Nov 16) — The Trinidad Guardian Newspaper, Trinidad and Tobago, West Indies

“People believe the collapse of the Henry Hub price is killing T&T. It’s not killing Atlantic. Our revenue has not been materially impacted because of the Henry Hub price. Why? Three to four years ago, 80 per cent of Atlantic’s LNG was sold to the US. Today, it’s less than 20 per cent. We sell to China. We sell to Japan, Argentina, Spain, to over 20 countries and less than one in five of our cargos gets landed in the US. I keep saying this and it takes a while for this message to get through. We are not dependent on the US gas price anymore,” he said. [Red & bold emphasis added.]

Webmaster's comment: Trinidad and Tobago's energy minister has previously projected that the island nation's LNG exports to the United States will drop to zero.

Alaska

Hilcorp consent degree will cap gas prices, limit LNG sales (Nov 15) — Alaska Journal of Commerce, AK

The provision prohibiting Hilcorp from selling gas for export as LNG until local utility needs are met also applies to sales to companies “who intend to resell the gas for LNG export,” Sniffen said.

This issue may be moot if ConocoPhillips, which owns an LNG plant near Kenai, south of Anchorage, fails to renew the LNG export license for the plant that is due to expire next March.

There is increasing sensitivity to the Cook Inlet gas supply situation because existing fields are declining in production and local utility demand is expected to exceed annual production by the 2014-15 winter, requiring gas to be imported as LNG or compressed natural gas, utility officials told the state regulatory commission in a recent briefing.

Webmaster's comment: Cook Inlet has exported its future.

Alaska Gas Pipeline group targets key decision in Spring 2013 (Nov 16) — Energy Tribune, Houston, TX

BP, ConocoPhillips, ExxonMobil — the three major North Slope producers — and TransCanada Corp., a pipeline company, are working on plans for an 800-mile large-diameter pipeline to a south Alaska port, where a large LNG export project would be built.

“Our target is to have a concept selected by spring, 2013,” Nick Olds, ConocoPhillips’ vice president for North Slope operations and development, told Alaska business and community leaders at a conference in Anchorage sponsored by the Resource Development Council, an Alaskan group.

British Columbia

Shale gas: The ups and downs of a boom time — Financial Times

A glut in supply of shale gas in the USA may have driven prices down to bargain levels of just over $3 a unit compared with a high of $12.69 two year ago, hence denting revenues commanded by Canada that had traditionally exported about two thirds of its natural gas output south of the border. But if the shale gas boom has hit Canada in the short-term, it could also set to benefit in the long-run from the exploitation of hyrodraulic fracturing of its own shale gas and oil reserves – should market dynamics and public opinion allow. [Red & bold emphasis added.]

Natural gas: Asia beckons as promising market for LNG — Financial Times

The task of finding new export markets for Canada, the world’s third-largest producer of natural gas, is particularly pressing now that its dominant customer – the US – is awash with it.

Energy summit in Terrace talks LNG opportunities (Nov 16) — CFTK-TV, Terrace, BC

A packed house of northwest residents gathered at the Best Western Inn in Terrace on Friday to get a glimpse of some of the LNG projects on the horizon for northwest BC.

The main problem facing Canada’s push to beat others – including the US itself – in becoming a leading gas exporter is the cost of infrastructure rather than producing the gas itself.

United States

Duke University : North American self-sufficiency will realign energy markets — 4-traders

"Back in 2005 experts in both government and industry thought the United States was on a path to importing an increasing share of its natural gas, with much of those imports coming in the form of liquefied natural gas," or LNG, Newell said. Policymakers were concerned the United States would be unable to build LNG terminals fast enough to bring in the needed supplies.

"Over the last few years there has been a dramatic turnaround and now the United States is headed toward becoming a net natural gas exporter by the next decade," he said. "Whereas companies had been investing in multibillion-dollar LNG terminals to import critically needed supplies of gas, they are now investing in multibillion-dollar LNG export facilities." One of these facilities (Cheniere Energy's facility in Sabine Pass, La.) has already been permitted and could be exporting LNG within the next few years. [Red & bold emphasis added.]

Webmaster's comment: Downeast LNG continues to live in the past.

Senator tells Platts that LNG and offshore revenue sharing are priorities — Oil & Gas Financial Journal

Wyden said he wanted environmental impacts, such as the effects of hydraulic fracturing and methane emissions, to be considered when deliberating the export of LNG. He called gas a “strategic” resource and said the US should “wring every bit of value out of it.” But he also said he did not want approval of LNG exports to drive up gas prices in the United States.

US LNG exports study conducted by NERA Economic Consulting-sources — Reuters

The highly anticipated report laying out the economic consequences of exporting U.S. natural gas is being carried out by NERA Economic Consulting, industry sources said.

The Energy Department has not revealed the identity of the contractor it hired to conduct an analysis of liquefied natural gas exports.

Passamaquoddy Bay

Public denied access to new LNG filings (Nov 9) — The Quoddy Tides, Eastport, ME

Downeast LNG, a liquefied natural gas import terminal project proposed for Robbinston, has filed 54 additional documents with the Federal Energy Regulatory Commission (FERC) that are not available for public review. In an October letter to FERC, Downeast LNG President Dean Girdis states that the material should not be released to the public. "Certain information included in the attached filing is considered commerciallysensitive, business confidential proprietary information," he wrote. "Downeast requests confidential and proprietary treatment for this material." The documents are in response to a FERC request for additional engineering information about the company's "flashing and jetting" scenarios for its vapor exclusion zone fencing.

The Quoddy Tides has filed a request with FERC for access to this information, "given the nature of the Downeast LNG project" and the need for the public to be knowledgeable about the project's scope, said Editor and Publisher Edward French. [Red & bold emphasis added.]

Caribbean

Possible gas suppliers 13 firms competing to supply liquefied gas to WAPA (Nov 14) — Virgin Islands Daily News, St. Thomas, VI

The V.I. Water and Power Authority has begun the process of evaluating 13 proposals to supply the territory's utility company with liquefied natural gas or liquefied petroleum gas as its primary fuel source.

In the long-term, WAPA is seeking to convert entirely to liquefied natural gas, or LNG, but recognizing that the conversion "may take several years," it also is seeking companies to provide "a bridging supply" of liquefied petroleum gas, better known as propane, in the interim.

Alaska

Alaska gas pipeline group targets key decision in spring 2013 — Platts

BP, ConocoPhillips, ExxonMobil -- the three major North Slope producers -- and TransCanada Corp., a pipeline company, are working on plans for an 800-mile large-diameter pipeline to a south Alaska port, where a large LNG export project would be built.

The project is estimated to cost $45 billion to $65 billion. TransCanada and the producers previously focused on an all-land pipeline to Alberta to ship Alaska gas to the Lower 48, but the buildup of lower-cost shale gas has made that alternative uneconomic.

British Columbia

Gas pipeline comments wanted — Terrace Standard, Terrace, BC

[T]he Canadian Environmental Assessment Agency is asking the public for comments on the Coastal GasLink Pipeline Ltd. project regarding potential environmental effects, according to an agency release.

The proposed project is an approximate 650 km pipeline which would deliver natural gas from northeastern B.C. to a proposed LNG terminal in Kitimat.

B.C. to let natural-gas producers choose how to power their plants — The Globe and Mail, Toronto, ON

B.C. Energy Minister Rich Coleman says the proponents of liquefied natural gas plants will get to decide whether to use renewable energy to power their facilities.

Creating LNG in B.C. could put millions of tons of greenhouse gases into the atmosphere if the plants are driven by natural gas-powered turbines instead of using renewable energy. And under a recently minted government regulation, that won’t affect on the province’s targets to reduce carbon emissions. [Brown & bold emphasis added.]

United States

The EIA's winners and losers (Nov 13) — Petroleum Economist

The US will by 2017 overtake Saudi Arabia as the world’s biggest oil producer and, even sooner, surpass Russia in natural gas output. That was the headline-grabber today as the International Energy Agency (IEA) released its World Energy Outlook 2012, a dossier of energy trends for the next 23 years. [Red & bold emphasis added.]

Global energy's massive U-turn [Opinion] — The Market Oracle

Received wisdoms in global energy are falling like downed skittles as the world lurches into the biggest-ever U-turn in energy history. The US gas story shows the most dramatic and rapid changes. From the late 1990s until the past 2 years, billions of dollars were spent by developers of LNG regasification facilities in the United States, as well as most other OECD countries and by China and India. The received wisdom was that world gas resources were limited and depleting fast. The gas outlook for the US seemed especially dire: it was resigned to a future of declining domestic natural gas production, needing rapid growing LNG imports to fill a looming supply-demand gap. Outside the US, eyeing the world's largest single market for gas, developers of LNG projects were investing billions of dollars to meet the USA's projected import demand for LNG.

Now the US "energy patch" is confronted by chronic oversupply of gas and rock-bottom domestic prices, currently less than $20 per barrel equivalent of oil, with major gas producers such as Chesapeake Energy and XTO Energy, and smaller gas producers, forced to produce at below-cost, suffering heavily adverse trading conditions and strangled by accumulated debt. The new stampede is to export cheap US shale gas as LNG, to Asian and European consumers still paying as much as $90 per barrel equivalent for LNG and pipeline gas imports, with the inevitable implication this will heavily depress these current price levels for world traded gas.

For the US, the gas U-turn is the most dramatic. It has relatively well-developed infrastructures for LNG imports, in the form of now mostly-idle gas import regasification terminals built in the "Gas Cliff days" of the period from about 2004 to 2007, which can be quite rapidly and at non-punitive cost converted into export liquefaction facilities. To date in November 2012, 16 applications have already been filed with the US Department of Energy for gas export licences. Taking only these first applications, if all came into operation, their combined total capacity by 2020 would be 245 billion cubic metres per year, slightly more than one-half of Europe's total gas consumption in 2011.... [Red & bold emphasis added.]

New Brunswick

The shale gas revolution in America: An opportunity for India [Blog] — IBN Live, Noida, Uttar Pradesh, India

Meanwhile another option that can be pursued is to route gas via Canada (which already has an FTA with the US) by investing in the LNG import terminal at Saint John, New Brunswick and add liquefaction facilities. Saint John is rather close to the giant Marcellus shale play in the north-eastern US with two gas pipelines crossing the US-Canada border in the vicinity. Such a move would also require clearance from Canada's National Energy Board although this could probably be secured relatively quicker. [Red, yellow & bold emphasis added.]

Webmaster's comment: This is yet another suggestion that Canaport LNG in Saint John, NB, be converted to export prolific Marcellus Shale natural gas supplies to Asia. [NOTE: Downeast LNG's site is already too small even for an import terminal. There is no room to expand to add the liquefaction trains for LNG exporting.]

Northeast

Say yes to LNG [Opinion] — The Baltimore Sun, Baltimore, MD

Cove Point is well-positioned to benefit if the U.S. Department of Energy and the Federal Energy Regulatory Commission approve its LNG export permit. Before the surge in shale-gas production, the United States was destined to become a natural gas importer, with LNG terminals like Cove Point used for that purpose.

Gulf of Mexico

USA: Waller Marine to develop LNG terminal — LNG World News

Using small-scale liquefaction technology, the Company plans to install nominal 500,000 gallon per day LNG trains in phases as the market and demand for marine LNG fuels inevitably expands. The first trains are planned for the Waller Point™ LNG terminal in Cameron Parish, and additional trains are planned for a second terminal which it is developing through its subsidiary Waller Energy Partners at a site to be secured on the Mississippi River in the first quarter of 2013. These will be the first two of the initial seven small scale LNG terminals the Company plans to install at strategic locations on each US coast.

With the looming regulatory requirement for vessel’s to comply with new ECA emission control regulations when operating in the territorial waters of the United States, the Company’s focus is to supply LNG to the marine fuels market. To enable the supply and distribution of LNG to and from small scale LNG terminals and for bunkering LNG as a marine fuel, Waller has been the first to conceive and design a series of small LNG vessels ranging from its 2,000 to 10,000 cubic meter capacity river transport and bunker barges and its 10,000 to 30,000 cubic meter coastwise ATB LNG vessels. Waller’s innovative concepts are patent pending before the USPTO, and Waller has recently acquired Approval in Principle from the American Bureau of Shipping (ABS). [Red & bold emphasis added.]

Caribbean

Conduit looking for opportunity in Jamaican LNG - commissions convertible 66-megawatt plant — The Gleaner, Kingston, Jamaica, West Indies

Conduit Capital, an investment fund that owns energy assets in Jamaica, wants to invest domestically in liquefied natural gas (LNG).

Video: 40% drop in light bills unrealistic (Nov 13) — Jamaica Observer, Kingston, Jamaica, West Indies

Head of the Jamaica Public Service (JPS) Kelly Tomblin said the power company can no longer guarantee that customers will see as much as 40 per cent reduction in their electricity bills when it begins using liquefied natural gas (LNG) to operate its planned 360-megawatt power plant.

Alaska

AGIA: Exxon's conflict of interest (Nov 10) — Examiner.com

In the1980s, a proposal was put forth to the oil companies on the North Slope and the State by Yukon Pacific, a consortium of companies including Sempra Energy, attempted to promote a natural gas pipeline project to Valdez. Yukon’s project was a 2 bcf/da-2.5 bcf/da capacity pipeline to terminus LNG port at Valdez. Meeting stiff resistance from Alaska’s governors who had their own pipe dreams, Yukon failed to make any progress after spending hundreds of millions of dollars on permits. Yukon sold most of its permits to AGPA.

Exxon’s position with respect to building a natural gas pipeline to take Alaska North Slope natural gas to market has aways been to settle the Thompson Point lease controversy with the State, then move forward. Or, to do nothing.

Exxon’s conflict of interest where AGIA is concerned is in its foreign natural gas commitments.

British Columbia

Co-operation, not proliferation, key to B.C.’s LNG projects, analysts say (Nov 13) — Edmonton Journal, Edmonton, AB

With more than half a dozen Liquid Natural Gas (LNG) export projects planned for the British Columbia coast, a new report suggests promoters will have to collaborate in order to facilitate the development of a large project before 2019.

...Mohanty said the large LNG buyers in Asia “see a venture comprised of upstream independents who are not perceived as having the necessary LNG experience to carry such a project forward.”

BG Group outlines plans and employment for Prince Rupert LNG terminal — The Northern View, Prince Rupert, BC

Acting BG Canada president Steve Swaffield, who was joined by community relations advisor Herb Pond social performance coordinator Kathleen Williams, told council the terminal is still a long way from being a reality. Plans call for a final investment decision to come some time next year, with the environmental assessment to wrap up in 2014 and the feasibility and design phase to continue on through 2015.

“With a final decision not coming until mid-decade and with a four year construction window, we anticipate the first commercial LNG export to come in late 2019 or early 2020,” said Swaffield, noting that work is being done to address concerns raised by the board of directors.

Oregon

Park Service raises LNG alarm over Warrenton project (Nov 12) — The Daily Astorian, Astoria, OR

The letter expresses concerns about:
• safety of residents and visitors;
• impacts on threatened and endangered species and bald eagles:
• wetlands near or in the park;
• contaminants in groundwater;
• threats to historic sites and trails.

[Senator Wyden re addressing Energy Secretary Chu], "I've said to the Energy Secretary that you can't keep Congress and the country in the dark as to the factors you’ll use to green-light energy projects such as LNG terminals.”

Webmaster's comment: The Oregon LNG projects suffer from similar SIGTTO best safe practices violations as does Downeast LNG. (See LNG Terminal Siting Standards Organization for more.)

Hawaii

Liquid natural gas can be good option [Editorial] — Star Advertiser, Honolulu, HI [Paid subscription]

Overly reliant on imported oil as its main source of energy, Hawaii has set the laudable goal of receiving 40 percent from renewable sources such as wind, solar and geothermal by 2030. That should not preclude a less expensive fossil fuel from being used for power generation, and natural gas can become an obvious player. That, coupled with the crucial need to keep consumer energy costs in check, make a good case for approval of liquified natural gas (LNG) here, potentially to develop onto a larger scale.

Webmaster's comment: Hawaii has vast volcanic geothermal energy under its feet. Importing and burning LNG makes no sense.

Guam

GPA: Switch to natural gas (Nov 13) — Guampdn.com, Hagatna, Guam

The power agency for years had been considering the switch to natural gas, but Flores said new federal emissions standards -- which would require the power agency to spend about $400 million on cleaner smokestacks, made natural gas the obvious choice. The first new emissions requirements take effect in 2015, he said, and additional requirements take effect in 2017.

It would cost less to convert the power plants to natural gas, Flores said -- $250 million to $300 million -- as opposed to $400 million to fix smokestacks for generators that continue to burn oil. He said the island's smaller "fast-track" generators would continue to run on diesel, even if the larger power plants are converted to natural gas.

Webmaster's comment: Like Hawaii, Guam has access to vast volcanic energy beneath its feet. Importing and burning LNG makes no sense.

Canada

Shell expects to invest more than US$20B in gas by 2015 — Financial Post, Don Mills, ON

Shell, the largest LNG supplier, has also been examining plans to add more than 20 million tons of annual LNG capacity in Australia, Indonesia and North America as it predicts a fourfold increase in demand to 400 million tons a year by 2020 from 2000.

United States

Sierra Club requests that DOE employ modeling program to assess impacts of LNG exports on shale gas production (Nov 12) — LNG Law Blog

Sierra Club has requested that the U.S. Department of Energy (DOE) employ its National Energy Modeling System (NEMS) to assess the implications of LNG exports on shale gas production. Sierra Club argues that NEMS is specifically designed to project how supply will respond to demand and that use of NEMS will refute DOE's statements in its order approving Sabine Pass's LNG export application that the impacts of LNG exports on shale gas production are not foreseeable.

Piedmont Natural Gas to invest in Constitution Pipeline project, USA (Nov 13) — LNG World News

Piedmont Natural Gas announced its equity investment in Constitution Pipeline Company, a natural gas pipeline project slated to transport natural gas supplies from the prolific Marcellus supply region in northern Pennsylvania to major northeastern markets. [Red & bold emphasis added.]

Webmaster's comment: Northeast pipeline infrastructure — not Downeast LNG imported LNG from overseas — is the answer to supplying plentiful domestic natural gas to the Northeast market.

Deloitte survey: Oil, gas professionals see American self-sufficiency for gas — LNG World News

Looking at the issue of shale gas resource estimates, a majority (51 percent) of oil and gas insiders believe that current industry estimates for the amount of recoverable resources are “pretty much on target” – with 23 percent saying they are “somewhat overestimated” and the exact same amount saying they are “somewhat underestimated.” Extremely few think shale resources are “very overestimated” or “very underestimated” – 1 percent and 2 percent respectively.

Most survey respondents think that the abundance of shale gas will lead to liquefied natural gas (LNG) exports. A large majority (72 percent) expect that LNG export terminals will eventually receive government approval – with 36 percent believing this approval will occur before 2014 and the exact same percent expecting approval after 2014.

API: IEA report says domestic gas boom is unique opportunity for USA — LNG World News

API Chief Economist John Felmy said that IEA’s report reaffirms that record U.S. domestic oil and natural gas resources are a big opportunity to create jobs and government revenue that no one predicted even ten years ago. [Red & bold emphasis added.]

Black & Veatch report shows optimism across gas industry, USA — LNG World News

Black & Veatch’s Strategic Directions in the U.S. Natural Gas Industry Report shows optimism across the industry for future growth is as plentiful as domestic shale gas reserves. The report is based on a comprehensive survey of natural gas industry leaders and includes analysis from Black & Veatch industry experts. [Red & bold emphasis added.]

New U.S. LNG export approvals face long wait - Cheniere Energy (Nov 13) — Reuters

The United States will not fully permit additional liquefied natural gas export projects before late 2013 or 2014, a Cheniere Energy Inc executive said on Tuesday.

Interview-U.S. brings forward gas self-sufficiency forecast (Nov 13) — Reuters

The U.S. Energy Information Administration (EIA) 2012 Annual Energy Outlook (AEO) published this summer said exports would overtake imports in 2022. A revision due out in a few weeks will bring that date forward to the "late teens" of the century - as little as four or five years from now, EIA Administrator Adam Sieminski told Reuters in an interview.

He cited continued "robust" domestic production - despite the low prices that are causing pain to many domestic producers. Lower pipeline imports from Canada, a further slowing of liquefied natural gas (LNG) imports, and full export capacity at the country's only licensed LNG export terminal at Sabine Pass in Louisiana complete the picture.

There has been a dramatic turnaround in the U.S. natural gas market, which four years ago was still gearing up to be a major importer. [Red & bold emphasis added.]

Webmaster's comment: Downeast LNG still hasn't heard the news that the natural gas market has reversed.

U.S. confirms LNG export review by year’s end [Blog] — The Wall Street Journal

Chris Smith, a deputy assistant secretary at the Energy Department, said the analysis had been delayed on prior occasions because of the complex nature of exports and the agency’s desire to make sure the issue was being fully vetted.

Natural gas: Why are export terminal permits necessary? — The Christian Science Monitor

[T]here have been 18 permit applications to export LNG to countries with which the US has a Free Trade Agreement, of which 13 have been approved and 5 are pending.

[U]nder the Natural Gas Act of 1938, the Federal Power Commission (now defunct, with its powers transferred to the Secretary of Energy or the Federal Energy Regulatory Commission) was given jurisdiction over interstate trade of natural gas. As part of this act, it was made illegal to import or export natural gas without a permit. The law says the Department of Energy “shall issue” such a permit unless it finds the proposal to “not be consistent with the public interest.”

The Energy Policy Act of 2005 further updated the Natural Gas Act to include regulation of LNG import and export terminals – a technology that did not exist when the original legislation was being considered in 1938. The legislation included certain provisions meant to speed the approval process for LNG terminals. Ironically, the reasoning at that time was that the U.S. was due to begin importing LNG, and they would need to rapidly build new terminals.

Newfoundland

Ziff Energy report shows Grand Banks LNG not option to provide power to island, Canada — LNG World News

An independent report by Ziff Energy Group of Calgary has concluded that Liquefied Natural Gas (LNG) or the Grand Banks pipeline option are not viable alternatives to replace the existing oil-fired Holyrood Thermal Generating Station.

Ziff’s analysis confirmed that world-sourced LNG is not a viable alternative. The low and variable volumes of gas required to produce power at Holyrood would be a challenging economic barrier to securing long-term, firm LNG supply on world markets. The required investment in regasification and storage infrastructure, when amortized over such low and variable volumes, renders LNG as an uneconomic power generation option. [Red bold emphasis added.]

New Brunswick

Repsol says to seal LNG assets sale in January — Reuters UK

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

Spain's Repsol expects to seal the sale of liquified natural gas assets in January, its financial director said during a conference call on Thursday.

Caribbean

Repsol says to seal LNG assets sale in January — Reuters UK

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

Spain's Repsol expects to seal the sale of liquified natural gas assets in January, its financial director said during a conference call on Thursday.

Alaska

State deal with Hilcorp will cap gas prices, limit sales for LNG (Nov 8) — Peninsula Clarion, Kenai, AK

Cook Inlet oil and gas producer Hilcorp Energy agreed to terms of a consent decree to cap the price of gas sold to utilities and industrial customers for five years and not allow gas to be sold into LNG export markets until local utility needs are met, a state attorney said Thursday.

The U.S. Federal Trade Commission meanwhile agreed to drop its own investigation of the Marathon-Hilcorp sale and has deferred to the state of Alaska and the pending consent decree, the FTC said in an announcement Wednesday.

The parallel federal and state investigations have been under way for most of 2012. Sniffen said the state of Alaska is concerned because Marathon and Hilcorp currently produce about 70 percent of Cook Inlet gas sold to regional utilities, and having that much production controlled by one company could put utilities at a disadvantage in negotiations.

That issue may be moot if ConocoPhillips, which owns the Kenai LNG plant, fails to renew its LNG export license for the plant due to expire next March. [Red emphasis added.]

British Columbia

Wood Mackenzie: Western Canadian LNG – corporate positioning will impact winners and losers — LNG World News

Huge gas resources, established and emerging, are increasingly focusing developer attention on western Canadian Liquefied Natural Gas (LNG) exports projects according to an integrated analysis by Wood Mackenzie’s Upstream and Global Gas teams.

Wood Mackenzie notes that several LNG export projects have been proposed on the British Columbia coast, as Canada reaches for new gas markets in Asia. Primarily due to competition from US shale gas, Western Canada’s gas exports have reduced by 4 billion cubic feet per day (bcfd) in the last five years. This, combined with reduced gas prices, have contributed to the decline of annual gross revenue from western Canada’s gas exports by some US$26 billion, or 80 percent, since 2008. While US export growth could yet return, Asian markets offer Canadian upstream sellers a viable and attractive new monetization opportunity which has the support of provincial and federal governments in Canada.

Consultant: Stopping of Petronas purchase of Progress could lessen Asian appetite for Canadian LNG(update) — The Star, Malaysia

CALGARY, Alberta: The fate of a handful of liquefied natural gas projects planned for Canada's Pacific coast may depend on the Canadian government's willingness to spell out rules for foreign investment in the country's energy sector, according to a study released on Thursday.

[T]he federal government's decision last month to stall the C$5.2 billion ($5.2 billion) bid by Malaysia's state-owned Petronas C$5.2 billion for Canada's Progress Energy Resources Corp could lessen the appetite of Asian buyers for Canadian LNG, energy consultants Wood Mackenzie said.

Oregon

Groups file comments against Oregon LNG DOE export application — LNG Law Blog

Sierra Club and Columbia Riverkeeper, Citizens Against LNG, and the American Public Gas Association have filed comments with the U.S. Department of Energy (DOE) in protest of the application filed by LNG Development Company, LLC (d/b/a Oregon LNG) to export LNG. Issues raised in the comments include potential environmental damage resulting from increased hydraulic fracturing and higher natural gas prices to American consumers that could result from approval of the proposal.

Canada

Global LNG market to grow 4 pct a year, pivot to Asia — Reuters UK

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

LONDON, Nov 9 (Reuters) - The global market for liquefied natural gas (LNG) will shift further to Asia by 2020, where high prices will attract new supply sources, while Europe will remain dependent on pipeline supplies and North America will become a marginal LNG exporter.

While most of shale gas and LNG development in North America has been centred on the U.S., analysts say that Canada could become the new focus.

"Canadian LNG projects could leverage off the massive gas resource that has emerged in western Canada," said Hugh Hopewell, Senior Upstream Research Analyst for Wood Mackenzie.

"The U.S. is only going to be a marginal player in the LNG market. They are currently going through a 'dash for gas' just as Britain did 20 years ago and will most likely want to keep most of it to use themselves," Dominic Nash of UK investment bank Liberum Capital said.

Canada seen needing to spell out rules for natural gas projects (Nov 8) — (Reuters) Yahoo News

[T]he federal government's decision last month to stall the C$5.2 billion ($5.2 billion) bid by Malaysia's state-owned Petronas C$5.2 billion for Canada's Progress Energy Resources Corp could lessen the appetite of Asian buyers for Canadian LNG, energy consultants Wood Mackenzie said.

United States

Global LNG market to grow 4 pct a year, pivot to Asia — Reuters UK

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

LONDON, Nov 9 (Reuters) - The global market for liquefied natural gas (LNG) will shift further to Asia by 2020, where high prices will attract new supply sources, while Europe will remain dependent on pipeline supplies and North America will become a marginal LNG exporter.

While most of shale gas and LNG development in North America has been centred on the U.S., analysts say that Canada could become the new focus.

"Canadian LNG projects could leverage off the massive gas resource that has emerged in western Canada," said Hugh Hopewell, Senior Upstream Research Analyst for Wood Mackenzie.

"The U.S. is only going to be a marginal player in the LNG market. They are currently going through a 'dash for gas' just as Britain did 20 years ago and will most likely want to keep most of it to use themselves," Dominic Nash of UK investment bank Liberum Capital said.

Push-me/pull-you: Post-election energy policies — The Energy Collective

If Senator Wyden does replace the outgoing chairman, Senator Bingaman (D-NM), as expected, this would represent a shift in constituencies from a state with significant oil and gas production to one with essentially none. Senator Wyden thus brings mainly an end-user perspective to his Energy and Natural Resources role, and from that standpoint his concern about the potential price impact of gas exports, whether in the form of LNG or otherwise, is understandable, although I would argue it is also short-sighted and potentially detrimental to renewable energy, which he strongly supports.

[K]eeping a lid on the US gas market would compound the obstacles for renewable sources of electricity....

U.S. natural gas exports poised for takeoff (Nov 8) — Forbes

Consider this: according to the Energy Information Administration, total natural gas consumption for 2011 was 24.3 trillion cubic feet (Tcf), and 2012 consumption looks to be on the order of 26 Tcf. In the meantime, just since mid-August, US companies have filed for permits with the USDOE to export 7.8 Tcf of LNG – about 30% of current total domestic consumption. Total requests year-to- date equal 11.2 Tcf (though almost 1 Tcf is for re-export of Canadian gas). Add to that, the 5.3 Tcf of exports requested last year, and you get approximately 16.5 Tcf. That’s over 60% of current domestic consumption. It’s also more than the amount of US LNG export capacity from five brownfield and three Greenfield projects in play that are listed in a recent Wood MacKenzie report.

Obama win concerns natural gas producers (Nov 8) — Forbes

It’s well known that the U.S. shale boom has made the country self-sufficient in natural gas and sent prices to a decade low of under $2/million British thermal unit (mBtu). Shale gas has also flipped the LNG market on its head, turning the US into a likely exporter of natural gas – if the Department of Energy grants export licences – whereas it had been expected to be a significant importer as little as six years ago.

Webmaster's comment: Downeast LNG Dean Girdis and company investors Kestrel Energy Partners and York Town Energy Partners are the LNG industry's Rip Van Winkle. What does it take to wake them up?

US election results likely to limit new LNG projects to two, three: Macquaire (Nov 8) — Platts

"With this election, I think we're still going to be OK with two to three [export projects], but going far above that gets a little tougher," Dwivedi said during a presentation by Macquarie's energy markets division in Houston.

Dwivedi said that based on preliminary indications from the US Department of Energy, the agency seems to believe US LNG imports should not exceed 10% of domestic production, which is now in the range of 60-70 Bcf/d.

China vs. U.S.: Who is leading the natural gas transportation race? (Nov 8) — Seeking Alpha

The United States' #1 economic advantage against all other countries on Earth is its abundant natural gas reserves combined with its 1 million-plus mile natural gas pipeline distribution system. No other country has the combination of high natural gas production, low natural gas prices, and the ability to economically deliver natural gas to every major metropolitan city as well as to tens of millions of homes and businesses. It is an advantage the country cannot afford to squander

The difference here is China's policymakers are pragmatic and run by engineers, while U.S. policymakers are largely lawyers under the thumb of special interests. [Red, yellow & bold emphasis added.]

Japan power companies investment plans, fuel purchases -survey — Reuters

Comments on LNG use:
Signed contract in July to build U.S. LNG plant with Osaka Gas, aims to change the structure of Asia's LNG market by bringing in U.S. gas-linked LNG.

US shale gas won't even last ten years! — The Market Oracle

The shale gas "miracle" is overhyped and bound to disappoint. That's what energy expert Bill Powers argues in his upcoming book. But Powers tells The Energy Report that this could be a very good thing for oil and gas companies and their shareholders, and he is placing his bets accordingly.

Bill Powers: My thesis is that the importance of shale gas has been grossly overstated; the U.S. has nowhere close to a 100-year supply. This myth has been perpetuated by self-interested industry, media and politicians. Their mantra is that exploiting shale gas resources will promote untold economic growth, new jobs and lead us toward energy independence.

Webmaster's comment: If Bill Powers is correct, a lot of experts will have expensive egg on their faces. On the other hand, Powers' motive may simply be to make money on book sales.

Gulf of Mexico

Golden Pass Products files with U.S. DOE to export LNG to non-FTA countries (Nov 6) — LNG World News

The proposed project involves construction of natural gas liquefaction and export capabilities at the existing Golden Pass Terminal facility. A final investment decision will be made following government and regulatory approvals, and will be based on a range of factors.

The proposed expansion of Golden Pass Terminal is an opportunity to capitalize on America’s abundant natural gas resources. The U.S. is estimated to have nearly 100 years of natural gas supply at current consumption rates. The substantial gas supply creates an opportunity for the U.S. to meet domestic demand and support LNG exports. [Red & bold emphasis added.]

Excelerate requests that FERC initiate Pre-Filing process (Nov 6) — LNG Law Blog

Excelerate Liquefaction Solutions I, LLC, and Lavaca Bay Pipeline System, LLC, (collectively, Excelerate) have asked FERC to initiate the pre-filing environmental review process for Excelerate's proposed Lavaca Bay LNG Project (Project). Excelerate proposes to build, own, and operate two purpose-built floating liquefaction, storage, and offloading units ("FLSO") that will produce North American-sourced LNG for export. The FLSOs will be permanently moored at a proposed shoreside dock at the Port of Port Lavaca-Point Comfort, Calhoun County, Texas. The Project also involves a 27-mile pipeline to transport natural gas from existing pipeline systems to the shoreside facilities. [Red & bold emphasis added.]

British Columbia

PETRONAS reps hold open house on planned LNG terminal on Lelu Island — The Northern View, Prince Rupert, BC

Current plans for the terminal call for the Environmental Assessment to be submitted in late 2013, with a final investment decision coming in late 2014 pending government approval of the project. If approved, construction on the terminal and an underground pipeline from northeastern BC would get underway with the terminal taking four years to complete and the pipeline taking three and a half years. PETRONAS expects the first LNG to be handled in mid-to-late 2018.

Additional information on the project can be found at www.petronasprogresslng.com/

Hawaii

Hawaii's quest for cheaper energy collides with fracking debate (Nov 6) — Honolulu Civil Beat, Honolulu, HI

Gov. Neil Abercrombie announced this year that the state was turning to natural gas to help bring down rates for consumers who pay more than triple the national average for electricity. The administration expects to finalize a plan for moving forward with [LNG] imports early next year, according to Lt. Gov. Brian Schatz.

Recently, the [Sierra Club] intervened in an application before the Federal Energy Regulatory Commission, filed by Hawaii Gas, in the hopes of stopping the import of liquefied natural gas to the islands.

Webmaster's comment: Hawaii has vast volcanic geothermal energy available. Importing LNG for electricity generation makes no economic sense.

Hawaiian Gas Company responds to protests on LNG import proposal (Nov 6) — LNG Law Blog

The Company ... responded to comments filed by the Hawaii Department of Transportation, stating that (1) the Company will not be required to establish "exclusion zones," (2) the project will not significantly impact traffic on Nimitz Highway, (3) it has met its public outreach obligations, and (4) it will comply with all federal and state environmental and other regulatory requirements.

Canada

Tables turn on B.C.’s natural gas plans as energy-hungry Asia seeks cheaper prices (Nov 6) — Financial Post, Don Mills, ON

[T]he tables are turning as Asian consumers flex their muscle, and it could spell trouble for Canada’s nascent LNG industry.

Asian consumers — the world’s top LNG users — are growing tired of paying huge premiums for liquefied natural gas based on a historic link with oil prices and demanding a link to cheaper North American prices instead, lawyers with the global firm Norton Rose told a Calgary conference on LNG trends Tuesday

“If it is the case that gas is available in North America for US$2 or US$3 (per thousand cubic feet), why are we paying north of US$15? We don’t think that’s appropriate. And so a lot of buyers in Asia are saying, ‘We are happy to talk to you, but we want a new pricing mechanism to be put in place’.”

[Canada's] advantage won’t matter if Asia’s energy priority moves away from security toward affordable energy, which Canada’s high-cost industry can’t offer. [Red & bold emphasis added.]

Harper to approve CNOOC, Petronas deals after revising rules: Moody’s — (Financial Post) Canada.com

Stephen Harper will approve the two foreign state-owned enterprises’ bids to buy Canadian energy companies after revising the rules, according to Moody’s Investors Services.

Canada rejected a $5.2-billion bid by Malaysia’s Petronas Bhd. for Progress Energy Resources in October, but the companies are looking to resubmit the proposal. The government also extended its review of Beijing-based CNOO’s $15.1-billion bid for Calgary-based Nexen.

Canadian LNG projects are also facing delays as developers are unable to secure favourale prices, especially after rival Cheniere Energy on the Gulf Coast agreed to sell LNG to Korea Gas at prices linked to Henry Hub natural gas spot prices, rather than oil prices. [Red & bold emphasis added.]

United States

Update 1-EIA sees U.S. natgas output flat in 2013, trims demand estimate (Nov 6) — Reuters

The EIA expects imports of liquefied natural gas (LNG) to halve in 2012 to about 0.5 bcfd and remain near that level in 2013, as global shippers send more gas to higher-paying markets in Europe and Asia. [Red, yellow & bold emphasis added.]

Webmaster's comment: The projected daily import volume is equivalent to less than one-half the capacity of a single LNG import terminal. (Canaport LNG's capacity is 1.2 bcfd).

New regs – & LNG approvals – possible in Obama’s second term — Fuelfix

[T]he Obama administration also is weighing whether to boost U.S. exports of liquefied natural gas _ a politically fraught decision because it could boost prices and hamper a domestic manufacturing renaissance tied to a glut of the fossil fuel.

An Energy Department study of the economic effects of expanded liquefied natural gas exports was initially expected to conclude this spring but was delayed and is now likely to be issued before the end of the year.

Nova Scotia

Liquefied NG exports explored in Nova Scotia — HazMat Management, Toronto, ON

Calgary-based energy infrastructure firm Pieridae Energy Canada is examining the potential to liquefy natural gas (LNG) on Nova Scotia’s east coast and ship it overseas to markets in Europe and India.

Sorensen said he will propose to the Maritimes and Northeast Pipeline that the company will purchase supplies of natural gas from shale gas projects in the Maritimes and the U.S., and then ship the gas through the pipeline to Goldboro. [Red, yellow & bold emphasis added.]

Webmaster's comment: Reversing the Maritimes and Northeast Pipeline will eliminate Downeast LNG's ability to sell its unneeded natural gas from imported LNG it already knows it can never obtain. The project will be dead at both ends.

Gulf of Mexico

ExxonMobil affiliate files DOE application to export LNG to non-FTA nations — LNG Law Blog

Golden Pass Products LLC, an affiliate of ExxonMobil Corporation and Qatar Petroleum, filed an application with the U.S. Department of Energy (DOE) for authorization to export 740 Bcf equivalent per year of domestically produced LNG over a twenty-five year period to nations without a Free Trade Agreement with the United States. Golden Pass proposes to export the LNG from a proposed export terminal to be located at Golden Pass's existing LNG import terminal near Sabine Pass, Texas.

Caribbean

Jamaica's energy conundrum (Nov 4) — The Gleaner, Kingston, Jamaica, West Indies

IN 2010, the Jamaican Government, relying upon the wisdom of the Office of Utilities Regulation (OUR), handed the sole bidder, the major shareholders of the Jamaica Public Service Company (JPS), a licence to build a 360-megawatt gas turbine power plant which, while producing electricity efficiently, primary fuel source is liquified natural gas (LNG). Its alternative fuel, automotive diesel oil, is the most expensive liquid fuel for power generation.

Alaska

$65bn LNG mega-project proposed by Alaskan three — PennEnergy, Houston, TX

Alaska's three largest operators have joined forces to propose a major Alaska liquefied natural gas (LNG) project with the objective of offering to supply North Slope natural gas to Asian markets.

ConocoPhillips, ExxonMobil, and BP have submitted the project to Alaska governor Sean Parnell. They have teamed with Canadian pipeline company TransCanada to develop the project.

British Columbia

B.C. Hydro plan gets extension (Nov 3) — Times Colonist, Victoria, BC

Hydro was supposed to have the integrated resource plan ready by last December, but that was extended to this Dec. 3, and now the deadline has been pushed back again - to Aug. 3 next year.

LNG prospects delay BC Hydro mega-plan (Nov 3) — The Vancouver Sun, Vancouver, BC

BC Hydro is getting an extension on its mega-plan for new electricity development so it can calculate how a new liquefied natural gas export industry would impact British Columbia's power resources.

Many of the world's largest energy companies have indicated an interest in exporting LNG from B.C., and a half-dozen plants have already been proposed for Kitimat and Prince Rupert.

Hawaii

Gas concerns groundless, firm says — Star Advertiser, Honolulu, HI [Paid subscription]

The company proposing to bring in the first shipments of liquified natural gas to Hawaii told federal regulators that concerns about the project expressed by the state Department of Transportation and two nonprofit groups are either unfounded or have been resolved.

Webmaster's comment: All LNG developers seem to use the same playbook.

Senate candidates see LNG as part of Hawaii’s energy future — Pacific Business News, Honolulu, HI [Paid subscription]

Both Linda Lingle and Mazie Hirono say they favor importing liquefied natural gas to Hawaii from the Mainland, mainly Alaska.

Webmaster's comment: Hawaii has vast geothermal power generating capability. Importing LNG makes little sense.

United States

U.S. should reconsider rubber-stamping LNG exports, Senator Wyden says — LNG World News

“The provision of the Natural Gas Act that grants automatic approval of natural gas exports to countries that share free trade agreements with the U.S. was adopted before newly-accessible shale gas became a strategic asset for the U.S. This policy needs reconsideration,” Wyden said. “It could harm the nation’s ability to achieve energy independence, combat pollution and preserve the environment, and improve the economic competitiveness of American manufacturers. Any final agreement on a Trans-Pacific Partnership must not constrain the U.S. from reshaping its energy policy, which may include new treatment of natural gas exports.”

USA: Four LNG cargoes imported in September — LNG World News

The U.S. imported four liquefied natural gas cargoes in September, according to the U.S. Department of Energy data.

Two cargoes were delivered to Everett LNG terminal while the Elba Island terminal received two cargoes.

U.S. imports have been declining steadily as shippers send LNG to higher-paying markets in Europe and Asia. [Red & bold emphasis added.]

Newfoundland & Labrador

Government rules out natural gas — The Telegram, St. John’s, NL

Thursday afternoon, the provincial government continued its deluge of Muskrat Falls-related information, releasing a glossy 46-page report from an independent consultant looking at natural gas.

The conclusion was that whether the government tried piping it from the offshore reserves on the Grand Banks or bringing liquefied natural gas (LNG) in by tanker, the economics just don’t add up.

Alaska

Southcentral Alaska may have to import natural gas to heat and power homes (Nov 1) — Alaska Dispatch, Anchorage, AK

Despite reports that Cook Inlet may be awash in natural gas, leading to a surge of interest by smaller oil-and-gas companies, utilities are now looking elsewhere to ensure supply meets Southcentral Alaska’s growing demand in the face of aging fields whose output has dwindled precipitously. As a result, the state with the biggest supply of natural gas of any in the union will, within two years, find itself importing the very quantity of gas it has for decades intended to ship overseas or to the Lower 48 to secure its economic future.

...“We exported the bulk of our resource,” [Cook Inletkeeper executive director Bob Shavelson] said. “We knew this day would come, and here we are flat-footed.” [Red & bold emphasis added.]

British Columbia

Liquefied natural gas uncertainty delays B.C.’s electricity plan — The Globe and Mail, Toronto, ON

Crown-owned B.C. Hydro was due to deliver its integrated resource plan to Mr. Coleman by December, which would set out how to meet the province’s electricity needs into the future. But the province is still negotiating with four potential LNG suitors. If even two plants are built and they rely on B.C. Hydro to power their operations, the total electricity load for the province would increase by a staggering 25 per cent.

Government of British Columbia : BC Hydro’s 20-year power plan due date to be extended — 4-traders

Government, liquefied natural gas (LNG) proponents, and BC Hydro are currently negotiating electricity-supply agreements. By extending the submission date of the IRP, government, LNG proponents and BC Hydro will have time and flexibility to complete electricity supply agreements.

LNG prospects prompt province to extend BC Hydro mega-plan deadline — The Vancouver Sun, Vancouver, BC

BC Hydro is getting an extension on its mega-plan for new electricity development so it can calculate how a new liquefied natural gas export industry would impact British Columbia's power resources.

Energy Minister Rich Coleman said Friday that the deadline Hydro's Integrated Resource Plan or IRP, which was supposed to be submitted to his office by next month, has been extended to August 2013.

Hawaii

Hawaii DOT comments on LNG import proposal — LNG Law Blog

The Hawaii Department of Transportation (HDOT) filed comments at FERC on The Gas Company's application to import U.S.-produced LNG to Hawaii. HDOT requested that FERC require the applicant to provide more information on the project's safety exclusion zone, additional time to solicit public comments, and a written commitment that the applicant will comply with Hawaii's environmental regulatory requirements.

United States

Romney, Obama seen favoring U.S. LNG exports — Rigzone

The United States' future as an exporter of liquefied natural gas (LNG) will hinge on a number of factors, not just on which presidential candidate is elected next month.

Price differentials between North American and Asia Pacific Rim/Europe gas prices could begin to narrow as a result of the significant market resistance that has begun to develop in Asia and Europe to the linkage between oil and gas prices.

U.S. shale gas boom requires rethink of natgas export policy: Senator (Nov 1) — (Reuters) Chicago Tribune, Chicago, IL

The government should rethink a decades-old law that automatically allows companies to send U.S. natural gas to the country's free trade partners, argued Wyden, who is in line to be the top Democrat on the Senate energy committee next year.

"This policy needs reconsideration," Wyden said in a statement. "It could harm the nation's ability to achieve energy independence, combat pollution and preserve the environment, and improve the economic competitiveness of American manufacturers."

Shell says $450 billion in U.S. LNG exports is ‘optimistic’ (Nov 1) — Bloomberg Businessweek

“If that’s all going to happen without inflation and with the support of the American people to export all that American gas to industrial competitors and it’s all going to happen by 2020, I think it’s a little bit optimistic,” Henry told reporters today on a conference call. “Today’s headlines usually become tomorrow’s challenged projects.” [Red & bold emphasis added.]