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Passamaquoddy Bay & LNG

Passamaquoddy Bay

FERC reviews Maine LNG plans — UPI

WASHINGTON, March 29 (UPI) -- The U.S. government issued a draft assessment of a liquefied natural gas project for New England, saying it was looking at reliability issues.

FERC said it found the preliminary engineering design would be acceptable "provided the mitigation measures relating to the reliability, operability and safety of the proposed design are addressed by Downeast." [Brown, red & bold emphasis added.]

Webmaster's comment: FERC indicates that the project does not comply with the USDOT vapor dispersion Exclusion Zone requirements, but that's ok — they'll issue a permit, but construction cannot commence until DeLNG satisfies FERC that mitigation has occurred. In other words, FERC is willing to issue permits to applicants that have not satisfied public safety regulations.

Passamaquoddy Bay

FERC releases Supplemental Draft EIS for Downeast LNG import project — LNG Law Blog

Today, FERC released a Supplemental Draft Environmental Impact Statement (SDEIS) [a.k.a., Revised DEIS] for the Downeast LNG Project, a proposed LNG import terminal and interconnected pipeline to be constructed in Washington County, Maine. The SDEIS addresses new information regarding the reliability and safety analysis of the proposed LNG terminal and related carrier transit. The SDEIS concludes (1) that the preliminary engineering design of the terminal would be acceptable provided Downeast addresses mitigation measures relating to reliability, operability, and safety; (2) that the terminal site would meet the thermal radiation exclusion zone requirements, but that the vapor dispersion analysis would not meet the requirements of other Department of Transportation regulations; and (3) that the waterway along the proposed carrier transit route would be suitable for the proposed LNG marine traffic, contingent on the implementation of measures to manage maritime safety and security risks. Comments on the SDEIS are due May 20, 2013. [Red, yellow & bold emphasis added.]

Webmaster's comment: The absurdity of FERC's opinion is that the engineering design is acceptable — even as FERC states the engineering design also violates the US DOT Exclusion Zone requirements, and takes the position that Canada's prohibition of LNG transits does not exist!

FERC issues Supplemental Draft Environmental Impact Statement (EIS) on the Downeast LNG project (Docket Nos. CP07-52-000 and CP07-53-000) — Federal Energy Regulatory Commission (FERC)

Based on the new information from the DOT, DOE, Coast Guard, and Downeast, FERC staff revised the reliability and safety analysis of the LNG terminal and carrier transit that was presented in the May 2009 draft EIS and prepared the Supplemental draft EIS. This document presents FERC staff’s: technical review of the proposed facility’s preliminary design; siting analysis, prepared with the cooperation of the DOT; and conclusions on the waterway suitability based on input from the Coast Guard. The DOT participated as a cooperating agency in the preparation of this document.

The Supplemental draft EIS has been prepared in compliance with the requirements of the National Environmental Policy Act (NEPA), the Council on Environmental Quality regulations for implementing NEPA (40 CFR 1500–1508), and FERC regulations implementing NEPA (18 CFR 380).

Comments on the Supplemental draft EIS must be received in Washington, DC on or before May 20, 2013. If you previously filed comments on the 2009 draft EIS, it is not necessary to re-submit them. All the comments on the 2009 draft EIS, along with any comments on the Supplemental draft EIS, will be addressed in the final EIS. Once the final EIS is issued, the FERC Commissioners will take into consideration staff’s recommendations when they make a decision on the Project.

Passamaquoddy Bay & New Brunswick

Future of Canaport, Downeast LNG in question (Mar 22) — The Quoddy Tides, Eastport, ME

What a difference a few years can make. Five years ago, the liquefied natural gas (LNG) debate was raging Downeast, as three proposals for Passamaquoddy Bay were moving forward, along with the Canaport LNG development in Saint John. Now not only is the possibility of the one remaining Passamaquoddy Bay proposal, Downeast LNG in Robbinston, looking increasingly doubtful, but the future of the Canaport facility, which began operating in 2009, is in question because of the large amount of natural gas now being extracted from shale rock. The failure of Canaport to be included in a recent sale package to Royal Dutch Shell is the latest indication of the challenges facing LNG facilities in the U.S. and Canada.

Four LNG regasification facilities can provide LNG to New England — Canaport, Distrigas of Massachusetts in Everett, Neptune Deepwater Port and Northeast Gateway, both off Massachusetts. Neither Neptune nor Northeast Gateway has imported any LNG for the past two years. The LNG sendout from Canaport and the Everett facility, near Boston, had been an important source of supply into the constrained New England market during the winter, but between this winter and the previous one those two facilities' sendout as a percent of consumption had declined by more than half. The LNG sendout from Canaport is 42% lower this winter than last winter.

...A report from the EIA states that "significant natural gas production increases in the Marcellus Shale region over the past few years have displaced Canadian imports into the northeastern United States."

Unlike the shale gas debate and Canaport, the smaller Downeast LNG proposal for Robbinston, which would have a capacity of 0.5 bcf/day, has kept a low profile for the past few years. However, the company's application with the Federal Energy Regulatory Commission (FERC) slowly has been proceeding through the licensing process. After a four-year delay, the issuance of a final environmental impact statement (EIS) for the project has been scheduled by FERC. In a March 1 notice, FERC states that the final EIS will be available on July 19, 2013, for a 45-day comment period. The federal agency will be issuing a supplement to the 2009 draft EIS that presents its revised reliability and safety analysis. The deadline for a decision by FERC is set for October 17, 2013.

Concerning Downeast LNG's future, Girdis says, "We will finish the permitting and see where we are." He admits that the natural gas market is different now, adding, "Maybe we don't do anything." He says Downeast LNG is not intending to proceed with state permitting, having withdrawn its applications in 2007.

"...The price would have to be very high to justify importation" of LNG now, [Downeast LNG president Dean Girdis] notes. [Red, yellow & bold emphasis added.]

Webmaster's comment: As Dean Girdis says, Downeast LNG does not intend to re-enter State of Maine permitting — he intends to continue wasting time and taxpayer money on FERC permitting, but if he can obtain those permits, he plans to sit on his hands.

This is good indication that the intent is to try to sell the permits to someone dumber than Downeast LNG — someone too dumb to realize that importing LNG makes no sense, and too dumb to realize that they cannot even receive LNG by ship to the proposed fantasy terminal.

Maine

Proposed Maine agency would advance natural gas pipelines (Mar 26) — Portland Press Herald, Portland, ME

AUGUSTA — A new government agency with the power to issue bonds and designate pipeline corridors could help the state increase natural gas supplies and lower electricity prices, according to a bipartisan group of lawmakers.

The group is sponsoring a bill that would create a quasi-governmental entity called the Maine Energy Cost Reduction Authority. The proposed agency would have the power to enter into contracts with companies to expand pipeline capacity in Maine or upgrade pipelines in southern New England.

The new agency could either finance pipeline upgrades in Maine or partner with other New England states already involved in pipeline projects.

Increased natural gas supplies in the Northeast have already lowered electricity prices in New England. The state has saved $230 million a year since 2008, according to the PUC.

[E]ven if more natural gas doesn't flow directly into the state, Maine could still benefit from increased supplies to Massachusetts where many gas-burning plants are located.

A project designed to increase capacity on the Algonquin Gas Transmission pipeline through Connecticut and Massachusetts is due for completion in 2016. [Red, yellow & bold emphasis added.]

Nova Scotia & New Brunswick

Canada’s LNG tempo rises — Petroleum News, Anchorage, AK

Meanwhile, Pieridae Energy Canada has registered its Goldboro LNG project with the Nova Scotia government as it prepares to file for an environmental assessment, while partners Contact Exploration and Pieridae Energy are creating a new natural gas-focused exploration and production entity to develop gas for the project.

Pieridae Production Limited Partnership, PPLP, will source, develop and produce gas to supply a significant portion of feedstock for the Goldboro terminal, which is expected to export about 10 million metric tons per year and have onsite storage of 690,000 cubic meters.

The initial assets acquired by PPLP include about 50,000 acres of prospective gas lands in New Brunswick, initially held by Contact, which has received an initial cash payment of C$1.3 million from Pieridae.

New England

NE grid chief says more natural gas capacity needed (Mar 20) — Mainebiz

Power production from the lower-cost and lower-emission natural gas has provided economic and environmental benefits, van Welie said, but New England still pays more for natural gas — up to eight times more that other regions during a period in late January — because of an insufficient pipeline infrastructure to transport the gas.

Van Welie suggested to federal leaders that the estimated $7 billion regional savings in wholesale power costs from increased use of natural gas be used to expand infrastructure.

Webmaster's comment: The most reasonable, long-term, economic solution to solving natural gas constraints is to expand pipeline delivery infrastructure. Downeast LNG would have us pay, on an ongoing basis, for expensive LNG from overseas.

Northeast

EIA: Over half of U.S. 2012 gas pipeline projects were in Northeast — LNG World News

More than half of new pipeline projects that entered commercial service in 2012 were in the Northeast. Excluding gathering, storage, and distribution lines, project sponsors in the United States added 4.5 billion cubic feet per day of new pipeline capacity and 367 miles of pipe totaling $1.8 billion in capital expenditures in 2012.

Natural gas production in the Marcellus shale formation continues to drive northeast regional pipeline expansions. In 2012, project sponsors completed 245 miles of new pipeline in this region, representing the second highest annual additions since 1997, and 8% higher than in 2011. Miles of pipe added to the Northeast accounted for two-thirds of all new pipeline in the United States starting service in 2012. The two largest projects added to the Northeast in 2012, the Appalachian Gateway Project and the Sunrise Project, both move natural gas from Marcellus production fields to northeastern markets.

The industry added 3.2 Bcf/d of new capacity to the Northeast grid system in 2012, representing two-thirds of total capacity additions in the nation, and this was the second highest level of regional capacity additions since 1997. Together, the two largest projects—the Inergy Marc I Hub Line Project (partially completed) and the Appalachian Gateway Project—added about 1 Bcfd of new capacity to the Northeast. [Red & bold emphasis added.]

Webmaster's comment: Downeast LNG president Dean Girdis's pants are on fire; he claims that pipeline expansions are nigh impossible.

EIA: Pennsylvania gas production up by 66 pct in 2012 (Mar 21) — LNG World News

Natural gas production in Pennsylvania averaged 5.8 billion cubic feet per day (Bcf/d) in 2012, up from 3.5 Bcf/d in 2011, according to Pennsylvania Department of Environmental Protection (DEP) data released in February 2013. This 66% increase came in spite of a significant drop in the number of new natural gas wells started during the year. [Red & bold emphasis added.]

United States

EIA: Pennsylvania's natgas production rose 69% despite less drilling — Shale Daily [Paid subscription]

The U.S. Energy Information Administration (EIA) said natural gas production in Pennsylvania increased 69% in 2012, despite a reduction in drilling activity. [Red & bold emphasis added.]

Webmaster's comment: The Northeast ocean of domestic natural gas continues to grow — something Downeast LNG would like the public to ignore.

Unconventional gas: Opportunities abound [Press release] (Mar 15) — Technology News Room

An early ramp-up of unconventional gas production will make the United States a net gas exporter two years earlier than previously expected, bringing on-stream 1.3 million new job opportunities and global trade.

With overall gas production outstripping domestic consumption, the Energy Industry Administration (EIA) Annual Energy Outlook 2013 now predicts the U.S. will become a net exporter of gas in 2020, with liquefied natural gas (LNG) exports commencing as early as 2016. [Red & bold emphasis added.]

Chemical and gas suppliers battle over LNG exports (Mar 11) — Chemical & Engineering News (C&EN)

[T]he shale gas industry has grown to massive scale in short order. More than a half-million gas wells are operating in the U.S., a 50% increase since 2000, according to the Energy Information Administration, an independent research arm of DOE. EIA says the U.S. has 300 trillion cu ft of gas in proven reserves and potentially 10 times that amount in unproven reserves, much of which is in shale deposits. By comparison, the U.S. currently consumes about 25 trillion cu ft of natural gas annually. If current trends continue, EIA estimates, the U.S. will be producing more gas than it consumes within the next seven years. [Red & bold emphasis added.]

Canadian Maritimes & Maine

Goldboro LNG sees support at open house — Guysborough Journal, Guysborough, NS

“Where we are now is in the middle of the environmental process,” Brown told the packed room. “What that means is the Nova Scotia Environment Department is leading a process by which they are going to set the terms of reference which then will guide us to file an environmental assessment report which ultimately will lead to us getting a permit for the project...If you have any concerns on that front, you have until March 29, a set process, to make any comments on the draft terms of reference after which the Department of the Environment will get everybody's comments together and we will have three weeks to respond to those comments, after which the final terms of reference will be issued...After that point in time we will look to make our final environmental assessment report regarding this project.

Brown outlined the timeline for the project, including the completion of the environmental assessment report later this year. After the public presentation, Brown explained to the media that the project had two years to complete the environmental assessment but due to recent environmental assessment reports prepared for earlier proposed projects, Maple and Keltic LNG, at the same site, most of the information needed for the report was already in hand.

Webmaster's comment: Goldboro LNG is a Nova Scotia export project that plans on obtaining natural gas from the United States as well as from the Maritimes. They plan on reversing the flow of the Maritimes and Northeast Pipeline in order to obtain natural gas from the United States.

Naturally, reversing the pipeline's flow would make Downeast LNG's impossible import terminal project even more impossible since Downeast LNG's imported gas would be sent to Goldboro LNG for export — a circular-firing-squad arrangement.

Perhaps Goldboro LNG would export its LNG back to Downeast LNG, keeping both terminals busy with each other's natural gas and LNG while losing ever-increasing amounts of money. After all, Downeast LNG's investors already seem untroubled by continuing to throw good money after bad on an economically sunken LNG import project.

Maine paper industry turns to natural gas to cut costs (Mar 11) — MPBN, ME

"This pipe is coming from the Maritimes Northeast Pipeline that is running trans-state, out of Canada," says Clyde Coleman, who heads up engineering at Xpress Natural Gas, or XNG. He's showing me the natural gas processing and distribution site the start-up is leasing from Woodland Pulp LLC.

In a few weeks, Great Northern Paper will begin converting one of its oil boilers to natural gas. The East Millinocket Mill isn't near a pipeline. That's where XNG comes in. Coleman leads me over to a filling station, where a long red hose is attached to a valve on the back of a tractor trailer.

Webmaster's comment: Do you see any mention of having to import LNG to do this? No. There's plenty of natural gas in the Maritimes and Northeast Pipeline. Downeast LNG just doesn't want the public to believe it.

Southeast

$1 billion natural gas plans progress (Mar 12) — Savannah Morning News, Savannah, GA

Poster boards set up around Eckburg Auditorium showed how the current ability to import about 40-50 ship tankers full of LNG a year will be turned around to allow Elba to export about the same amount of gas. Instead of vaporized natural gas flowing inland through pipelines, it will flow to the coast through those same pipelines and be liquefied at the Savannah River facility before being loaded onto tanker ships for export.

The congenial tone in the room was in contrast to a previous series of public meetings about plans to truck LNG out of Elba and across DeRenne Avenue for distribution as a vehicle fuel throughout the Southeast. Those contentious plans, drawn up by previous owner El Paso, were withdrawn in late March 2012. And they’re not coming back with this new plan, said Richard Wheatley, director of corporate communications/public affairs for Kinder Morgan. [Red & bold emphasis added.]

Alaska

Impacts from LNG license decision mostly unknown — Peninsula Clarion, Kenai, AK

Yet to be determined.

That phrase may best sum up the immediate and long-term future of ConocoPhillips’ Kenai natural gas liquefaction facility now that the company has decided to let its export license expire on March 31. The phrase could also describe what effects the decision might have on the area’s economy, its oil and gas industry and tax base.

“It brings another issue in and that’s funding for some of the critical services that we have in Nikiski like the fire service area, the senior service area and the recreation service area,” he said. “With that facility going away, that means the tax base will be smaller, which will mean that the people in that region will have to ... either lower the expectations of what the service areas provide, or raise some form of new revenue to pay for the services that they currently receive.” [Red & bold emphasis added.]

United States

Eco-groups ask Obama to take a timeout on LNG exports (Mar 12) — Ohio.com, OH

WASHINGTON, DC-The Center for International Environmental Law, Clean Water Action, Earthjustice, Earthworks, Environment America, Friends of the Earth, League of Conservation Voters, Sierra Club, The Wilderness Society has sent a letter to President Obama strongly pushing for a timeout on natural gas exports until critical national economic, environmental, and trade concerns are thoroughly analyzed and carefully addressed.

In the letter to the President, the groups highlighted shared concerns that natural gas exports will raise domestic energy prices, disproportionately harming the middle class and manufacturing, while further exacerbating the climate crisis and leading to more dirty and dangerous fracking and drilling on our nation’s lands.

United States: Inspector General requests EPA collect more data on air emissions from natural gas and oil production sector (Mar 11) — Mondaq

The expansion of the oil and gas industry in the United States led the Inspector General to investigate whether EPA was equipped to regulate and evaluate the air emissions coming from this particular industry. The U.S. Environmental Protection Agency (EPA) Office of Inspector General (OIG) released a report on Feb. 20, 2013 recommending that the EPA improve its data on air emissions originating from the oil and gas production sector. The EPA has 60 days to respond to the report and provide the OIG with a list of corrective actions, agreed-upon actions, and milestone dates. EPA's response will be of public record.

The Inspector General concluded that EPA is lacking directly-measured air emission data on both criteria and toxic air pollutants for the oil and gas production industry. Perceived problems with EPA's emission factors and National Emissions Inventory (NEI) data gaps were specifically cited as areas needing improvement. According to the report, EPA's 495 emission factors potentially applicable to the oil and gas production largely have low quality ratings due to inadequate data; furthermore, emission factors need to be developed for more oil and gas production processes – most of the existing emission factors are related to process heaters and internal combustion engines. [Red & bold emphasis added.]

Northeast

Pennsylvania shale gas production exceeded 2 Tcf in 2012 — Shale Daily [Paid subscription]

Natural gas production from unconventional sources in Pennsylvania hit a record 2.04 Tcf in 2012, as the state's Marcellus/Utica shale gas for the first time edged ahead of the granddaddy Barnett Shale in Texas. [Red & bold emphasis added.]

Columbia Gas pursues expansions to accommodate Marcellus development — Shale Daily [Paid subscription]

Columbia Pipeline Group is seeking to expand the eastern side of its Columbia Gas Transmission system to provide Marcellus Shale gas to growing markets in the Northeast and Mid-Atlantic. It is also pursuing an expansion of the western side of its system to give producers an additional path out of the Marcellus/Utica region and to help avoid continued basis erosion. [Red & bold emphasis added.]

Webmaster's comment: Columbia Gas is seeking to do what Downeast LNG claims cannot be done — pipeline expansion to deliver more natural gas to the Northeast.

Marcellus drilling backlog could keep production growing in '13 — Shale Daily [Paid subscription]

Although drilling activity in the Marcellus Shale has slowed and some producers have dropped rigs, there is enough of a drilling backlog that, if wells were brought online over a one-year period, production would continue to grow but at a slower pace, energy analysts with Barclays Capital said. [Red & bold emphasis added.]

United States

Chemical and gas suppliers battle over LNG exports — Chemical & Engineering News

...More than a half-million gas wells are operating in the U.S., a 50% increase since 2000, according to the Energy Information Administration, an independent research arm of DOE. EIA says the U.S. has 300 trillion cu ft of gas in proven reserves and potentially 10 times that amount in unproven reserves, much of which is in shale deposits. By comparison, the U.S. currently consumes about 25 trillion cu ft of natural gas annually. If current trends continue, EIA estimates, the U.S. will be producing more gas than it consumes within the next seven years. [Red & bold emphasis added.]

New Brunswick & Maine

LNG terminal's property value jumps, taxes frozen (Mar 6) — CBC News, Canada

Saint John's Canaport LNG facility — New Brunswick's most expensive piece of property — continues to grow in value, but its taxes are holding steady because of an eight-year-old property tax deal it cut with the city.

The [liquefied] natural gas terminal is New Brunswick's most valuable piece of assessed property at just under $300 million.

A 25-year property tax deal struck by former Saint John mayor Norm McFarlane for the LNG development froze its bill at $500,000 a year.

Last year, Walter Peterson did energy efficiency renovations on his 30-year-old eastside bungalow, including new windows and vinyl siding.

The province added $148,000 to his assessment.

His house, valued at $121,000 each of the last two years, is now assessed at just under $270,000 with a $4,300 property tax bill to match.

Webmaster's comment: Canaport LNG gets the tax breaks while the rest of the public pays the bill.

Taylor: Irving touts natural gas deal (Mar 5) — The Chronicle Herald, Halifax, NS

On Tuesday, Irving Oill announced it has signed up McCain Foods as its first customer for compressed natural gas, which it will truck to McCain plants in New Brunswick and Maine. [Red & bold emphasis added.]

Alaska

ConocoPhillips to suspend LNG exports from Alaska — Alaska Dispatch, Anchorage, AK

One of Alaska's big three oil producers, ConocoPhillips, has said it will not seek to ship liquefied natural gas overseas from its Southcentral Alaska facility after March 31, when its current export license is due to expire. [Red & bold emphasis added.]

Webmaster's comment: ConocoPhillips' export terminal has been exporting LNG to Asia since 1969 — to make the US natural gas industry lots of money. But now, it's nearly all gone, and the Anchorage area is hoping to import LNG in order to heat homes! Will US natural gas history repeat itself? Will the US export today tomorrow's heat?

Conoco says Alaska gas supply not enough for exports — Energy Tribune

The company, whose export license expires March 31, will apply for a renewal only if there is enough gas at its Kenai plant in south-central Alaska after meeting local demand, Amy Burnett, a company spokeswoman, said in an e-mail. The terminal is the only U.S. plant in operation that’s authorized to sell domestically produced fuel to countries with which the nation has no free trade agreement. [Red & bold emphasis added.]

United States

Potential surge of US LNG exports from shale natural gas boom splits corporate America; one side gets allied with environmentalists (Mar 1) — International Business Times

In other words, the U.S. is in for nearly three more decades of low natural-gas prices, which concerns drilling contractors such as the Parker Drilling Co. and well-service firms such as Schlumberger Ltd.... [Red & bold emphasis added.]

Exporting natural gas positive for the United States (Feb 28) — Energy Tribune

It is no secret that an oil and gas shale revolution is taking place around the world. Right here in the United States, more than a dozen shale plays are being explored. Companies are drilling for oil and natural gas from South Texas to North Dakota. We have gone from a declining 60-year supply to a 100-year-and-growing supply. However, just six years ago, there were 45 LNG import projects in North America. [Red & bold emphasis added.]

Webmaster's comment: Right now there is only 1 LNG import-only terminal project in North America — "Wrong-Way Girdis's" proposed Downeast LNG.

Nova Scotia

Contact Exploration and Pieridae Energy announce partnership to focus on natural gas production for LNG export [Press release] (Mar 5) — Sys-Con Media

CALGARY, ALBERTA -- (Marketwire) -- 03/05/13 -- Contact Exploration Inc. ("Contact") and Pieridae Energy Limited ("Pieridae") are pleased to announce the creation of a new natural gas-focused exploration and production entity - Pieridae Production Limited Partnership ("PPLP").

PPLP has been formed by Pieridae and Contact to source, develop and produce natural gas to serve as significant portion of the feedstock for Pieridae's proposed Goldboro LNG Terminal in Guysborough, Nova Scotia. The proposed terminal is anticipated to receive, liquefy and export up to about ten million metric tons of natural gas per year and have on-site storage capacity of 690,000 cubic metres of liquefied natural gas ("LNG"). Upon completion of the terminal, North American natural gas supplies are to be transported to Goldboro, Nova Scotia, using existing pipelines and exported by ship to international markets. The Partnership will focus on securing and developing natural gas assets onshore Atlantic Canada and the eastern United States for the Goldboro terminal and, upon completion, the Partnership's production and reserves are to be dedicated to the facility. [Red & bold emphasis added.]

Webmaster's comment: Look out, Downeast LNG! "Wrong-way" Girdis doesn't realize he's running backwards!

Maine

Bucksport’s relationship with Bangor Gas Co. remains icy — Bangor Daily News, Bangor, ME

BUCKSPORT, Maine — Town officials are not optimistic about reaching a deal with Bangor Gas Co. to extend natural gas service in town, according to a report to councilors on Thursday.

The town and the utility company have been negotiating a plan to expand service in Bucksport for 13 years. A plan last year to install pipeline, at least to the town’s schools, fell through, with the town skeptical over hidden math the company used to calculate the town’s expected contribution in aid of construction. [Red & bold emphasis added.]

Webmaster's comment: There is an existing natural gas pipeline to the Verso paper mill in Bucksport. This article demonstrates that having an close-by natural gas pipeline is no assurance that residents, institutions, or businesses will ever receive natural gas. Building distribution pipelines to residents and small businesses requires a solid return on the debt incurred to build such pipelines. Small communities are simply not profitable.

There is also a natural gas pipeline running to the paper mill in Baileyville, but homes and businesses there are unlikely to receive natural gas. The same goes for communities near the proposed Downeast LNG terminal and pipeline — if there were actually any chance they would be built.

British Columbia

Japex to buy 10% of Petronas Canada LNG project — Rigzone

Its preliminary agreement to join the British Columbia Pacific Northwest LNG scheme and buy into the associated North Montney gas development is the latest in a string of moves by Japanese energy companies seeking to line up relatively cheap gas in North America to ship home to meet rising LNG demand caused by a shift away from nuclear power.

The Japanese upstream company, also known as Japex, will find ways to price the LNG at "reasonable levels," said Man Saito, Japex's Managing Director told reporters.

Japex to take 10 percent stake in Petronas' Canada shale gas project — Reuters

Japanese firms have been investing in shale gas projects in North America to export cheaper LNG to Asia. Asian LNG long-term prices are typically oil-linked, making them pricier than LNG from the United States, where the country's shale gas boom has helped lower natural gas prices.

Asked whether Japex plans to use Henry Hub gas prices in North America, Mitsuru Saito, Japex's managing director, told a media briefing it is considering using a mix of price-setting benchmarks to realize stable but less costly LNG prices, but declined to comment on a rough price target.

Japex to buy 10% of Petronas C$11 billion LNG project in Canada — Bloomberg Businessweek

The company known as Japex will acquire 10 percent of the plant to be built in the port of Prince Rupert, which will have an annual capacity of 12 million metric tons, it said in a statement today. It will also buy 10 percent of a shale gas field in the North Montney area of British Columbia,

Japex will buy 1.2 million tons a year of LNG from the plant and ship it to a receiving terminal it will build at Soma port in Fukushima prefecture, northern Japan. The Canadian plant and the Fukushima terminal will start operations by the end of 2018.

United States

Better out than in [Commentary] (Mar 2) — The Economist

ON AMERICA’S Gulf coast, massive industrial facilities stand idle. Miles of twisting stainless-steel pipes and huge storage tanks gleam uselessly in the sun. They are a reminder of the hundreds of billions of dollars that America has invested in terminals for handling imports of liquefied natural gas (LNG). Thanks to the boom in domestic shale gas, those imports are no longer needed. America produces nearly as much gas as it consumes, and will soon produce far more.

Most of America’s two dozen LNG import terminals have applied for export licences. Yet only one, Sabine Pass in Louisiana, has actually started retooling its kit. Gas from there will start flowing onto global markets by the end of 2015. Why has every other terminal been so slow to seize this opportunity? [Red & bold emphasis added.]

Japan interest in U.S. gas threatens 50 projects, Hartland says — Bloomberg Businessweek

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

Japan’s interest in importing U.S. natural gas from shale with contracts linked to the U.S. benchmark at Henry Hub threatens as many as 50 liquefied natural gas projects in Australia that rely on oil-indexed prices, Hartland Shipping Services Ltd. said. The following are comments from the London-based shipbroker in a report dated March 1.

“Japanese, Korean and Chinese buyers are pulling back from supporting pricey Australian and other LNG projects that need the old Asian pricing formula to turn a profit, preferring instead to exploit the arbitrage of buying cheaper U.S. exports.” [Red & bold emphasis added.]

Australia

Japan interest in U.S. gas threatens 50 projects, Hartland says — Bloomberg Businessweek

[This same article appears under the United States heading, above.]

Japan’s interest in importing U.S. natural gas from shale with contracts linked to the U.S. benchmark at Henry Hub threatens as many as 50 liquefied natural gas projects in Australia that rely on oil-indexed prices, Hartland Shipping Services Ltd. said. The following are comments from the London-based shipbroker in a report dated March 1.

“Japanese, Korean and Chinese buyers are pulling back from supporting pricey Australian and other LNG projects that need the old Asian pricing formula to turn a profit, preferring instead to exploit the arbitrage of buying cheaper U.S. exports.” [Red & bold emphasis added.]