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Passamaquoddy Bay & LNG

Passamaquoddy Bay

XNG building, expanding CNG hubs (Sep 24) — Mainebiz, ME

Nahill told Mainebiz the new facility will help the company meet a growing demand for its truck-delivered fuel. Nahill says the company's Baileyville hub had sold out since starting earlier this year, as the company brought on clients including paper mills in Madison and Lincoln and hospitals in Presque Isle and Caribou. Before the end of the year, Nahill says he expects to begin deliveries to Great Northern Paper mill in Millinocket and clients in New Hampshire.

To meet the immediate increase in demand, Nahill says the company plans to increase delivery capacity at the Baileyville distribution hub 40%, which would make the facility capable of delivering 40 truckloads of compressed natural gas a day. Plans for the new Eliot distribution hub call for the same capacity. Together, the plants would give the company the ability to displace up to 200,000 gallons of oil fuel, or around 300,000 gallons of propane fuel, per day.

"We offer transition services for a company until the pipeline gets there, and sometimes that's going to be a matter of months and sometimes a matter of years," Nahill says. [Red & bold emphasis added.]

Webmaster's comment: Pipeline expansion is the long-term solution to supplying Maine's natutral gas. Downeast LNG expensive imports from overseas are not required.

Maine

Will natural gas alleviate Maine's energy woes? (Sep 2) — Mainebiz, ME

"Until Marcellus Shale [extraction], New England was at the end of the [natural gas] pipeline, but now it's at the beginning," [says Daniel Quimby, vice president of Maine Natural Gas]. [Red & bold emphasis added.]

A guide to energy developments in Maine (Sep 2) — Mainebiz, ME

Maine's energy landscape continued to add capacity in the past couple years, notably in new wind and tidal projects. Natural gas is also coming into its own, with its low price compared to oil sparking conversions in homes and businesses. The interactive chart…is an update on the recent projects making the news. [Red & bold emphasis added.]

Webmaster's comment: Natural gas in Maine is coming into its own, with low price, and without importing LNG.

Passamaquoddy Bay

Canadian LNG faces race to access new markets (Sep 19) — Calgary Herald, Calgary, AB

[See the Sep 27 article refuting Downeast LNG president Dean Girdis.]

An American LNG facility developer on the panel said U.S. developers face a tougher regulatory burden than Canadians, because of the lack of political support for exporting natural gas and related opposition from those who dislike hydraulic fracturing or fracking needed to develop the shale gas plays that have created the gas surplus.

“Time is what kills projects,” said CEO Dean Girdis of Downeast LNG, adding: “Trust me, you do not want to do one in the States.”

Girdis said he founded Downeast in 2004 to import LNG to Maine because the U.S. was short of gas at the time.

He said Downeast applied for permission from the Federal Energy Regulatory Commission to build the project in 2005 and, seven and a half years later, despite having no major problems identified, he still has not been issued a final environmental impact statement. [Red, yellow & bold emphasis added.]

Webmaster's comment: Downeast LNG president Dean Girdis has disdain for US regulatory authority, and he is willing to express that disdain by being untruthful about it.

Downeast LNG has been unable to demonstrate it would comply with US Department of Transportation (USDOT) safety regulations — and that is what has held up the Final Environmental Impact Statement.

Downeast LNG's vapor dispersion modeling demonstrated that the terminal would violate USDOT regulations. FERC has requested — three times — data demonstrating that the project would comply. That demonstration has not been forthcoming.

Northeast

Company cancels plans for Southeast PA pipeline carrying imported LNG (Sep 27) — StateImpact Pennsylvania, PA

An energy company has cancelled its plans to build a pipeline to deliver natural gas to southeast Pennsylvania from a proposed import terminal at Sparrows Point in Baltimore, Maryland.

The Intelligencer/Lancaster New Era reports AES Corp. filed a motion to “vacate” its approval from the Federal Energy Regulatory Commission.

AES Corp.’s decision comes not long after the U.S. Department of Energy issued its approval for a liquified natural gas (LNG) export terminal in Cove Point, Maryland. Pending approval from FERC, the facility plans to export natural gas from Pennsylvania’s Marcellus Shale, representing a dramatic shift in the market.

“It was always a stupid idea. It took six years to prove it,” [said Bart Fisher, an attorney representing the LNG Opposition Team].

The Sparrows Point project and Mid-Atlantic Express pipeline were approved by FERC in 2009. But the projects failed to get the necessary water and air quality permits from the state of Maryland. [Red & bold emphasis added.]

Webmaster's comment: Downeast LNG also has failed to get state (Maine) water quality and air quality permits — and has announced it has no plans to reapply for those permits. That is clear indication that Downeast LNG is a phantom project making a worthless nuisance of itself.

Mid-Atlantic Express natural gas pipeline through Lancaster County is scrapped (Sep 26) — LancasterOnline.com, PA

The 88-mile Mid-Atlantic Express pipeline would have carried natural gas from a terminal in Sparrows Point in Baltimore to Eagle in Chester County. Plans were to bring in liquefied natural gas from overseas and distribute it to domestic markets.

"I just said, 'It's progress,' " [Little Britain Township resident Daniel Shanor] recalled. But, he said, when he started doing research he discovered AES "had an atrocious safety record all over the world."

"...In some cases, the pipeline would pass within 5 feet of the foundation of people's houses."

Since the project was envisioned, the dynamics of the natural gas industry have changed dramatically. With the tapping of Marcellus Shale and other natural gas formations through horizontal drilling, natural gas has become plentiful.

Amendment exempting liquefied natural gas facilities from Calvert zoning ordinance moves to public hearing (Sep 25) — Southern Maryland Newspapers Online, MD

The proposed ordinance exempts a liquefied natural gas facility from the requirements of the county’s zoning ordinance. The exemption also is proposed as an amendment to the International Building Code. Additionally, a definition for a liquefied natural gas facility is proposed to be added to the county ordinance. Construction of any buildings to be occupied and parking would still require commercial site plans be submitted to the county.

Dominion Resources gets permission to export liquefied natural gas (Sep 24) — Vindy.com, Youngstown, OH

The Energy Department on Wednesday gave Dominion Resources permission to export liquefied natural gas from its southern Maryland terminal to countries that don’t have free trade agreements with the United States. The department said that Richmond, Va.-based Dominion has received conditional approval to expand exports of natural gas from its Cove Point terminal in Calvert County, Md. Dominion had previously been authorized to export the fuel only to countries that have free trade agreements.

Webmaster's comment: US Department of Energy approval is a separate requirement from FERC permit approval.

British Columbia

Oregon LNG export proposals could help send Canadian gas to Asia (Sep 23) — Hydrocarbon Processing

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

The proposed Oregon projects could open a new door for Canadian LNG producers that would otherwise have to rely on proposed projects based out of Kitimat or Prince Rupert to tap overseas markets.

At least two companies, Oregon LNG and Veresen Inc., are proposing to build liquefied natural gas terminals in Oregon for which Canadian natural gas would be the primary supply source. It's not likely to be the silver bullet for Western Canada's struggling gas business, but it illustrates that Canada and the US won't always be competitors in the North America wide push to kick start the nascent LNG industry.

Oregon

Oregon LNG export proposals could help send Canadian gas to Asia (Sep 23) — Hydrocarbon Processing

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

The proposed Oregon projects could open a new door for Canadian LNG producers that would otherwise have to rely on proposed projects based out of Kitimat or Prince Rupert to tap overseas markets.

At least two companies, Oregon LNG and Veresen Inc., are proposing to build liquefied natural gas terminals in Oregon for which Canadian natural gas would be the primary supply source. It's not likely to be the silver bullet for Western Canada's struggling gas business, but it illustrates that Canada and the US won't always be competitors in the North America wide push to kick start the nascent LNG industry.

United States

FMC Commissioner gives keynote on Panama Canal (Sep 20) — MarineLink.com

Not long ago the United States was positioning itself to be the world’s largest importer of natural gas. In 2006 there were approximately 50 proposed liquefied natural gas (LNG) import projects in some stage of regulatory review. The U.S. was on the verge of becoming ever more reliant on the Middle East for its natural gas.

Today, the U.S. has not only slashed its imports of natural gas from overseas, but we are on the verge of becoming a major competitor on the supply-side of natural gas through our LNG exports. [Red & bold emphasis added.]

New Brunswick

Canaport stake stable (Sep 17) — The Chronicle Herald, Halifax, NS

“Repsol has no plans to sell its interest in Canaport,” Repsol USA vice-president Jan Sieving said in an email Tuesday.

Increased North American natural gas production resulting from new drilling techniques, including controversial hydraulic fracturing, has lowered prices and reduced demand for imported liquefied natural gas that the Canaport terminal is designed to process.

The terminal, co-owned by Irving Oil Ltd., is reportedly operating at about 35 per cent capacity. [Red & bold emphasis added.]

Webmaster's comment: The truth is that Repsol was unable to unload Canaport LNG when the Spanish company sold off its other world LNG assets, since importing LNG into Canada and the US has no future.

Passamaquoddy Bay

Permit process explained — Calgary Herald, Calgary, AB

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

U.S. Downeast LNG import terminal developer and Canada LNG Export Forum panel participant Dean Girdis claimed that no U.S. environmental impact statement has been issued for his project even though no major problem has been found with his proposed project.

The environmental impact statement has been delayed by Downeast LNG's inability to demonstrate compliance with U.S. Department of Transportation regulatory safety requirements. The U.S. government has made three requests to Downeast LNG for data that it can check to verify regulatory compliance. That data have not been forthcoming. Previous to those requests, Downeast LNG demonstrated that the project would violate those regulatory standards.

In addition, Downeast LNG's own failings have delayed State of Maine permitting. The company went completely through Maine Board of Environmental Protection permitting in 2007, but upon realizing they would fail, Girdis's company withdrew from the permitting process prior to the state making a decision. That was over six years ago, and Girdis has made no attempt to re-enter state permitting. In fact, Girdis recently told The Quoddy Tides newspaper that Downeast LNG would not seek state permits. [Red, yellow & bold emphasis added.]

Robert Godfrey, Eastport, Maine, is a researcher with Save Passamaquoddy Bay 3-Nation Alliance.

Maine

Maine governor likes Canadian pipeline idea (Sep 9) — Burlington Free Press, Burlington, VT

LA MALBAIE, QUEBEC — The governor of Maine is lending his support to a proposal to build an oil pipeline from western Canada to a New Brunswick refinery and port, saying his state would welcome oil from the province of Alberta.

Maine Gov. Paul LePage said Monday that making more oil available to the eastern United States would be a good thing.

“I think it’s a great project,” LePage said at the annual meeting of New England governors and eastern Canadian premiers in La Malbaie, Quebec. “I think we need the oil and I think we need gas. Although I would prefer it to be natural gas, it is oil and it’s needed.” [Red emphasis added.]

Webmaster's comment:LePage made no mention of importing LNG in his desire for natural gas.

Natural gas: The best path forward for Maine? [Seminar] — HalfMoon Education, Inc.

[This is a seminar to occur in Portland on Oct 10.]

View from the Pipelines
Adequacy of capacity to serve New England
How to assure adequate customer commitment
Lessons from other states

LNG and CNG – Part of The Path Forward?
Alternatives to pipeline delivery
Sustainable or interim business model
State regulatory jurisdiction
Costs and environmental issues

Northeast

USA: Environmental groups oppose Cove Point LNG export terminal (Sep 19) — LNG World News

Standing outside the Public Service Commission office in downtown Baltimore, the group declared its intention to challenge an upcoming series of federal, state and local permits needed by Virginia-based Dominion Resources before it can begin construction. Against a backdrop of posters saying “No LNG Exports on Chesapeake Bay,” they unveiled a letter signed by more than 120 groups urging Governor Martin O’Malley to stand with them against the project, given the great harm it could inflict on Maryland communities, the climate and the Chesapeake Bay.

Coalition members said Governor O’Malley should, as a minimum first step, demand that the federal government prepare a full Environmental Impact Statement (EIS) that carefully considers the implications of building an LNG export terminal on the Chesapeake Bay. Much to the dismay of local citizens, the Federal Energy Regulatory Commission (FERC) has indicated that it will only prepare an Environmental Assessment, which is a far less detailed impact review.

Groups urge Maryland governor to fight Dominion LNG export plan (Sep 17) — Platts

Less than a week after the US Department of Energy approved Dominion Cove Point LNG's proposal to ship liquefied natural gas from its proposed Maryland facility, the state's governor is facing growing pressure to fight the project.

Residents say Sparrows Point may be saved from liquefied natural gas plant (Sep 25) — Dundalk Patch, Dundalk, MD

A Virginia company filed a motion to vacate its FERC authorization for a controversial liquefied natural gas [terminal] opposed by residents who want to see cleaner, safer uses of the land.

AES Sparrows Point LNG LLC filed a motion Sept. 19 with the Federal Energy Regulatory Commission to vacate its authorization and certificate to build the plant on former steel plant property in Sparrows Point on the North Point peninsula, according to online FERC records.

Dundalk-Edgemere residents and elected leaders from the local level to the U.S. Senate have been fighting the AES proposal for more than seven years, according to Donnelly. [Red & bold emphasis added.]

Webmaster's comment: With no demand to import, one more FERC-approved LNG import terminal project bites the dust.

British Columbia

Permit process explained — Calgary Herald, Calgary, AB

[This same article appears under the Passamaquoddy Bay heading, above.]

U.S. Downeast LNG import terminal developer and Canada LNG Export Forum panel participant Dean Girdis claimed that no U.S. environmental impact statement has been issued for his project even though no major problem has been found with his proposed project.

The environmental impact statement has been delayed by Downeast LNG's inability to demonstrate compliance with U.S. Department of Transportation regulatory safety requirements. The U.S. government has made three requests to Downeast LNG for data that it can check to verify regulatory compliance. That data have not been forthcoming. Previous to those requests, Downeast LNG demonstrated that the project would violate those regulatory standards.

In addition, Downeast LNG's own failings have delayed State of Maine permitting. The company went completely through Maine Board of Environmental Protection permitting in 2007, but upon realizing they would fail, Girdis's company withdrew from the permitting process prior to the state making a decision. That was over six years ago, and Girdis has made no attempt to re-enter state permitting. In fact, Girdis recently told The Quoddy Tides newspaper that Downeast LNG would not seek state permits. [Red, yellow & bold emphasis added.]

Robert Godfrey, Eastport, Maine, is a researcher with Save Passamaquoddy Bay 3-Nation Alliance.

United States

Is natural gas ‘clean’? [blog] (Sep 24) — New York Times, New York, NY

One reason natural gas is called “clean” is because it emits 50 percent less carbon dioxide than coal when you burn it. Thus it’s seen by some as a “bridge” fuel until zero-carbon-producing renewables can take over. But natural gas isn’t clean in the way that solar is clean. It’s clean-er than coal. It’s better than the worst; that’s all.

To see natural gas as even semi-clean, then, you have to burn all you take out of the ground. Because at least one study found that if as little as 3 percent of the methane produced escapes, you might as well be burning coal, from a climate perspective. All that talk of a bridge to a renewable future … forget it. That’s why Anthony R. Ingraffea, professor of civil and environmental engineering at Cornell University, refers to natural gas as a “gangplank.”

USA: AEA files LNG export motion (Sep 19) — LNG World News

In a major new development in the debate over LNG exports, America’s Energy Advantage (AEA) filed a formal motion to intervene in the Department of Energy’s (DOE) proceeding for the Freeport LNG Expansion, L.P. and FLNG Liquefaction (FLEX) export application.

AEA is seeking a more formal rulemaking process based on current data and assessments of today’s supply and demand environment, and noted that current applications are being granted based on guidelines developed for gas imports in the 1980s. AEA’s motion also indicates that the legal standards that DOE used to analyze the public interest in two previous grant applications were not “adequate, appropriate, or sustainable.” [Red & bold emphasis added.]

U.S. Senator Wyden: FERC does not pick energy winners and losers (Sep 18) — LNG World News

Binz also committed to work with Wyden and other committee members on speeding up and improving natural gas pipeline permitting.

“Natural gas, with 50 percent less carbon than other fossil fuels, is giving our consumers and businesses a pricing advantage in a tough global economy,” Wyden said. “Pipelines are key to the infrastructure that gets the gas to market. My hope for future, new pipelines, is America gets a win-win solution, not just more pipelines, but better, new pipelines, that save consumers and businesses money as they save energy, and offer an added boost by emitting less methane.” [Red & bold emphasis added.]

Webmaster's comment: Downeast LNG's Dean Girdis wants the country to believe it is nigh impossible to improve natutral gas pipeline infrastructure. The rest of the country is going about doing what Girdis says cannot happen.

New Brunswick — Birds Killed

Thousands of songbirds killed at LNG plant: Unusual, but not unprecedented (Sep 20) — National Geographic

[P]erhaps the most horrifying fate you could imagine for migratory birds would be flying into the range of a giant flame.

Sadly, that’s exactly what happened last weekend, when between 5,000 and 10,000 migrating songbirds were killed when they apparently flew too close to a burning flare at a liquefied natural gas (LNG) plant in Saint John, New Brunswick, according to Canadian news outlets.

The birds flew into the approximately 100-foot-high gas flaring stack at the Canaport LNG facility, which enables LNG that has boiled off to be released before it poses a safety risk to the plant. Don McAlpine, head of zoology at the New Brunswick Museum, said in an interview Thursday that while the mass bird kill was a “very unusual event,” it was probably predictable.

“If you have a large flare around the coast on a foggy night when birds are flying at low altitude during migratory season, you’re asking for trouble,” he said. Though the birds probably didn’t fly directly into the flame—which he said is actually down inside the stack—if they got close enough, they would be singed or burned, he said.

McAlpine said that, while relatively rare, mass bird kills have occurred before at energy facilities that using flaring. Perhaps the worst previous incident occurred in northwest Alberta in May 1980, when 3,000 birds from at least 26 different species were found dead within 250 feet of an oil industry facility stack where flaring had been occurring. According to a study published in 1987, however, the birds in that event apparently were killed by emissions from the stack, rather than the flames. (See related post: “Federal Study Highlights Eagle Deaths at Wind Farms.”)

There also have been reports of mass bird kills linked to flaring at oil platforms in the North Sea, and in the Niger delta in Africa, he said.

Forsythe explained that the flaring had been necessitated in part by the changes in the energy market. Originally, the plant was designed to move large amounts of gas on a continuing basis, but now, gas is being stored so that it can be shipped during peak demand times. [Red, yellow & bold emphasis added.]

7,500 birds die in flare at plant (Sep 20) — The StarPhoenix, Saskatoon, SK

A manager at the Canaport liquefied natural gas facility in Saint John says there's little it can do in the next few weeks to prevent more migrating birds from flying into a flare that's burning at the plant.

"We find ourselves in a dilemma here. The flare system is a safety-release system to ensure we can maintain normal operating pressures in the plant," he said. [Red, yellow & bold emphasis added.]

Gas flare incinerates thousands of songbirds in shocking incident in Canada (Sep 19) — AllVoices, San Francisco, CA

Environment Canada officials refused to say if the company will face charges, the [CTV] news agency said.

Mass bird kill at LNG plant investigated (Sep 19) — The Chronicle Herald, Halifax, NS

SAINT JOHN, N.B. — An investigation is underway today after thousands of birds were killed or injured when they flew towards a large flare at the Canaport liquefied natural gas terminal in Saint John.

7,500 bird deaths at gas plant unusual, expert says (Sep 19) — CBC News

Smithsonian scientist suggests future Canaport LNG environmental assessments consider flare impact

A research scientist with the Smithsonian Migratory Bird Center in Washington says he's never heard of flaring at a natural gas facility killing thousands of migratory birds before.

The Canadian Wildlife Service and the Atlantic Wildlife Institute are expected to make recommendations to prevent similar incidents.

Webmaster's comment: All LNG facilities should be assessed for environmental impacts from flaring.

7,500 songbirds flew into a giant flame and died (Sep 19) — TreeHugger

What's frustrating about this is that natural gas flaring is not always necessary and is a huge waste of money, fuel and contributes to global warming.

According to 2011 numbers, annually natural gas flaring wastes 5% of all the natural gas produced in the world, emitting 400 million metric tons of CO2 into the atmosphere -- the equivalent of 77 million cars -- and now has been shown to have the potential to kill migrating songbirds. [Red, yellow & bold emphasis added.]

7,500 songbirds killed by flare at Canadian gas plant (Sep 19) — Energy Live News, Tonbridge, Kent, UK

It’s not clear why exactly the birds were drawn to the flame but it’s thought they may have been using the light to navigate in the dark, particularly as it was a foggy night. While most were killed directly by the fire, hundreds more were injured and had to be down later.

Thousands of migrating birds killed after flying into gas plant flare (Sep 19) — (The Canadian Press) Metro News

The plant is in the middle of making changes to equipment at the facility to reduce the amount of flaring, Forsythe said, but completion of the project is still several weeks away.

As the liquefied natural gas boils off, some of it has to be released or it poses a safety risk to the facility, added Forsythe.

“All of these things when you combine them contribute to a decline in bird life,” he told radio station News 88.9 in Saint John. “Every time one of these things happen it’s significant.” [Red, yellow & bold emphasis added.]

New Brunswick

Investigation underway after thousands of birds killed at gas plant — CTV News

An investigation is underway after thousands of songbirds flew into a flare at the Canaport LNG Terminal in Saint John. Between 5,000 and 10,000 birds were killed.

Most of the dead birds were either burned or singed. Canaport employees collected thousands of them around the terminal property. Some have been turned over to the Atlantic Veterinary College on Prince Edward Island for examination.

Bette Shannon lives next to the terminal. She says the extent of flaring has taken neighbours by surprise.

“It’s not what it was supposed to be,” says Shannon. “It’s not as I was informed it would be. It would be a temporary thing, when necessary things needed to be burned off, but this is becoming more prominent, much, much bigger in the sky.” [Red, yellow & bold emphasis added.]

Probe of 7,500 bird deaths at gas plant continues — CBC News

Birders worry about more deaths at Saint John's Canaport LNG with migration season far from over

As investigators continue to probe the deaths of about 7,500 songbirds at a Saint John gas plant over the weekend, some birders are worried about other possible deaths.

"A lot of our other birds will be migrating throughout September, and on through October, and even into November," he said.

"So the hazard isn't just a one night thing. It's, you know, continuous throughout the migratory season."

"There are many early accounts of lighthouse keepers seeing birds all around the lighthouse, just thick as flies on a misty night, on an overcast night," he said. [Red, yellow & bold emphasis added.]

UPDATE: 7,500 songbirds killed at Canaport LNG in Saint John — CBC News

About 7,500 songbirds were killed while flying over a gas plant in Saint John late last week, officials have confirmed.

The flare tower at the Canaport liquefied natural gas receiving and regasification terminal is about 30 metres tall and the size of the flame varies, depending on weather conditions. It is typically higher amid low-pressure systems.

Flaring is part of the standard operation at the east side plant, located on Red Head Road, and is designed as a safety release system. It is used to maintain normal operating pressure by burning off small amounts of excess natural gas.

Many of the birds were badly burned, but some appeared completely unscathed, said McAlpine. He suspects they became disoriented and hit the tower or the ground, but several have been sent to the Atlantic Veterinary College in Prince Edward Island for necropsies to determine if there were any underlying conditions or external factors that may have contributed to the bird deaths.

McAlpine said there is not a lot of information about bird mortalities involving flare towers. [Red, yellow & bold emphasis added.]

New Brunswick

7,500 songbirds killed at Canaport LNG in Saint John — CBC News

About 7,500 songbirds were killed while flying over a gas plant in Saint John late last week, officials have confirmed.

It appears the migrating birds flew into the gas flare at Canaport LNG between Friday night and Saturday morning, said Fraser Forsythe, the company's health and safety manager.

Some of the birds may have been endangered species, said McAlpine. He is examining several hundred of the dead birds to try to identify their species. [Red, yellow & bold emphasis added.]

 

New Brunswick

Shale-gas debate moves to New Brunswick (Sep 8) — The Globe and Mail, Toronto, ON

The thick layers of shale rock that lie beneath much of this province are believed to contain enormous amounts of natural gas, a prospect that has energy companies lining up to drill.

Webmaster's comment: This is another potential reason why Downeast LNG is moot.

Northeast

Gas plant foes plan protest — TheBayNet.com, Baltimore, MD

Opponents of a plan to build a multi-billion dollar natural gas liquefying and export facility in Calvert County are planning to protest the project Tuesday morning, Sept. 17 in Baltimore.

According to a news advisory from a group called the Chesapeake Climate Action Network (CCAN), a rally will be held at 11 a.m. outside the headquarters of the Maryland Public Service Commission (PSC).

According to the CCAN advisory, Dominion “still has significant hurdles to clear at federal, state and local levels, and coalition members are calling on Maryland leaders to weigh in at these critical junctures.” The advisory stated the proposed project would “trigger a domino effect of pollution impacts across Maryland and the region. It would fuel demand for a new wave of fracking, require an expanding wave of pipelines and gas processing plants, and draw a surge of tanker traffic into the Chesapeake Bay.”

New LNG export approval: an export opening for Marcellus gas (Sep 13) — The Christian Science Monitor

On Wednesday, the Department of Energy approved the application of Dominion Energy to export LNG from its Cove Point terminal in Maryland. Originally built as an import terminal, with this approval the facility will undergo extensive retrofitting and upgrading, at an expected cost of $3.4-$3.8 billion.

This approval is important for drillers because it is the first LNG export facility to be approved outside of the Gulf Coast. Cove Point is the terminus of a direct pipeline from Pennsylvania's Marcellus Shale region, allowing direct exports of the gas coming from Pennsylvania. This region has largely suffered because of a lack of natural gas pipeline interconnections with markets; there simply has not been enough capacity to use the record amounts of gas produced from the Marcellus in Pennsylvania. Once this facility is up and running (projected for 2017), Dominion has secured contracts with Japan's Sumitomo and India's GAIL to provide the full capacity of about 1 billion cubic feet per day over 20 years.

So far, the approved export licenses have been approved in order of application. They have gone to four significant terminals that have clear markets with signed contracts to import the gas, dedicated production to supply the gas, and the infrastructure to support major operations. Each of the applications approved so far were originally made in 2010 or 2011, before it was apparent that LNG would be the next boom.

Now, there are over 25 pending applications to DoE. Continuing along this track of approval in order that the application was made could end up approving some facilities that do not meet those requirements. The truth appears to be that a number of companies have put in applications because it is relatively cheap to put in an application. The Administration will have to clearly state what the order for the next round of applications will be, because there will be political pressure to place a cap on export approvals at some point. The DoE shouldn't reward a company simply for filling in a form early. [Red & bold emphasis added.]

Webmaster's comment: With 25 applicants already in the queue, Downeast LNG has no chance of exporting LNG.

Environmental implications of United States Department of Energy's (DOE) approval of fourth liquefied natural gas (LNG) export project (Sep 14) — The National Law Review, Western Springs, IL

In the Cove Point Order, the DOE clearly states that “persons wishing to raise questions regarding the environmental review of the present Application are responsible for doing so within the FERC proceedings.” The DOE then cautions that absent a showing of good cause for failure of interested persons to participate in the FERC environmental review proceeding, the DOE may dismiss such claims if raised out of time in the DOE proceeding. Those exact statements also appear in the Freeport Order and Lake Charles Order. The DOE apparently is seeking to avoid the situation faced in the Sabine Pass proceedings in which the Sierra Club attempted to raise new environmental challenges sixteen months out of time and after FERC had completed its environmental review and issued its final order authorizing the Sabine Pass Liquefaction Project. [Red & bold emphasis added.]

British Columbia

Veresen advances Jordan Cove plan (Sep 10) — UpstreamOnline.com

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

Veresen has applied for permission from Canada regulators to export natural gas to the US, a crucial step in lining up feedstock for its proposed Jordan Cove liquefied natural gas export terminal on the Oregon coast, the company said on Tuesday.

Webmaster's comment: So, Jordan Cove LNG wants to import natural gas from Canada to export as LNG to Asia. With six or more LNG export proposals in British Columbia, one wonders if Jordan Cove LNG's request will fly.

Oregon

Veresen advances Jordan Cove plan (Sep 10) — UpstreamOnline.com

[This same article appears under the British Columbia heading, above.]

Veresen has applied for permission from Canada regulators to export natural gas to the US, a crucial step in lining up feedstock for its proposed Jordan Cove liquefied natural gas export terminal on the Oregon coast, the company said on Tuesday.

Webmaster's comment: So, Jordan Cove LNG wants to import natural gas from Canada to export as LNG to Asia. With six or more LNG export proposals in British Columbia, one wonders if Jordan Cove LNG's request will fly.

Canada

Canada: Comparing U.S. and Canadian LNG projects — Mondaq

Tom discusses the similarities and differences between Canadian and U.S. LNG projects and whether or not they are competing with each other. He then goes on to discuss LNG projects in East Africa and Australia, and compares them to LNG projects in Canada and the U.S. Tom finishes with an overview of Canada's likelihood of being launched as one of the world's top leading LNG exporters. Canada has robust gas reserves, a strong legal and regulatory regime, and a pool of talent capable of developing gas reserves, but it also has modest LNG export experience and challenges with pipeline infrastructure. Tom explains that Canada must work quickly to develop and advance LNG projects in order to be a leader on the world's LNG stage.

BC Oil and Gas Commission update (Sep 13) — CJDC-AM Radio, Dawson Creek, BC

By 2020 to 2030 it is projected that the United States will have no use for Canadian gas which will change the sales of liquefied natural gas (LNG) across North America. [Red & bold emphasis added.]

Webmaster's comment: "No use for Canadian gas" also translates to "no use for imported LNG." Downeast LNG is chasing its own tail.

Study assesses ‘critical uncertainties’ of N. American gas (Sep 9) — Oil & Gas Journal, Houston, TX

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

The Canadian Energy Research Institute, in collaboration with ICF International, whatif? Technologies Inc., and Scenarios to Strategy Inc., projected gas market conditions under four sets of assumptions about LNG exports and gas demand for power generation.

Under the high-LNG/high power scenario, the Henry Hub gas price climbs above $6/MMbtu in 2017-18 and reaches nearly $8/MMbtu in 2030 (2010 money).

If growth in gas use for power is strong but that of LNG exports low, the price exceeds $4/MMbtu about 2021 but never reaches $5/MMbtu, the study says.

Under its two scenarios for high LNG exports, Canada becomes a net importer of pipeline gas from the US. With the lower assumptions about LNG exports, Canada remains a net exporter of pipeline gas to the Lower 48.

United States

US natural gas exports hit series of roadblocks — Energy Tribune, Houston, TX

[T]here are still 20 applications under review by the Department. The recently approved Cove Point LLC had been awaiting a decision for more than 600 days. It would take about 31 years for the Department to make it down its list at this current rate. More worrying is the suggestion by some like Senator Ed Markey of Massachusetts that the Department, having approved these applications, should somehow slow down and wait on further approvals because America has hit a “sweet spot” for natural gas exports. Senator Wyden defined this term in February as “some exports but not so much that the price goes up dramatically on American consumers and American manufacturers.” This so-called “sweet spot” has been loosely defined, but is largely reflective of the argument that too many exports would undermine domestic manufacturing. - See more at: http://www.energytribune.com/79195/us-natural-gas-exports-hit-series-of-roadblocks#sthash.W9L1DIr8.dpuf

The suggestion that too many LNG exports will hurt domestic consumers could not be further from economic reality. In reviewing this issue, the Department of Energy concluded the economic benefits from LNG exports outweigh the costs in all export scenarios. Furthermore, the net gains associated with LNG exports would be substantial. According to ICF International ICFI -0.41%, natural gas exports could create more than 450,000 net new jobs. And, according to NERA Economic Consulting, it would also add economic growth of as much as $73.6 billion per year. - See more at: http://www.energytribune.com/79195/us-natural-gas-exports-hit-series-of-roadblocks#sthash.W9L1DIr8.dpuf

Webmaster's comment: ...And, other studies have shown that too much LNG exported will harm domestic manufacturing, reducing manufacturing jobs, and cost homeowners more for heating and cooking — while lining the pockets of the natural gas industry, and while reducing US energy security by depleting the resource.

Study finds shale gas carbon footprint comparable to extraction from conventional sources — Offshore Technology International

A new report finds that shale gas extraction footprint will be lower than Liquefied Natural Gas and significantly lower than coal.

Professor David MacKay, chief scientific advisor at the Department of Energy & Climate Change, and Dr Tim Stone, Special Advisor to the Secretary of State, have completed a report into the subject of greenhouse gas emissions from shale gas operations.

The report indicates many of the previous studies in the area have been hampered either by the lack of pre-drill monitoring making it difficult to understand when and how emissions have taken place or by inconsistencies in the geology and regulations that govern operation.

Webmaster's comment: Here is another reason why Downeast LNG is an inappropriate proposal.

US LNG exports will be higher than expected (Sep 14) — Gulf Times, Doha, Qatar

Based on regulatory approvals so far and sales contracts already signed, the US will export much more liquefied natural gas (LNG) by the end of the decade than most analysts thought possible even a year ago.

While NERA argued unlimited exports would be best for the economy, the inclusion of the 6 bcf/d and 12 bcf/d scenarios strongly implied the government thought volumes would be in this range, and perhaps should be limited to it through the approval process.

However, the Department of Energy has so far received applications on behalf of 24 projects to be allowed to export up to 32.4 bcf/d, nearly three times as much as contemplated in the high NERA scenario.

[T]he assumptions that underpinned the department’s own export study and the economic study it commissioned from NERA already look out of date. [Red & bold emphasis added.]

Lower LNG prices could trigger U.S. export push (Sep 13) — Houston Chronicle, Houston, TX

Earlier this year, the Potential Gas Committee reported updated reserve estimates of 2,384 trillion cubic feet (tcf) of natural gas, meaning the U.S. currently enjoys well over a century's worth of supplies at current consumption rates. [Red & bold emphasis added.]

Study assesses ‘critical uncertainties’ of N. American gas (Sep 9) — Oil & Gas Journal, Houston, TX

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

The Canadian Energy Research Institute, in collaboration with ICF International, whatif? Technologies Inc., and Scenarios to Strategy Inc., projected gas market conditions under four sets of assumptions about LNG exports and gas demand for power generation.

Under the high-LNG/high power scenario, the Henry Hub gas price climbs above $6/MMbtu in 2017-18 and reaches nearly $8/MMbtu in 2030 (2010 money).

If growth in gas use for power is strong but that of LNG exports low, the price exceeds $4/MMbtu about 2021 but never reaches $5/MMbtu, the study says.

Under its two scenarios for high LNG exports, Canada becomes a net importer of pipeline gas from the US. With the lower assumptions about LNG exports, Canada remains a net exporter of pipeline gas to the Lower 48.

Maine

Cary Medical Center to transition to natural gas after TAMC realizes savings (Sep 10) — Bangor Daily News, Bangor, ME

CARIBOU, Maine — Last October, The Aroostook Medical Center became the first healthcare organization in the state and second in the nation to heat its facility with compressed natural gas.

On Tuesday, Xpress Natural Gas, or XNG, announced a similar partnership with Cary Medical Center in Caribou, which will have the hospital transition from heating oil to natural gas in the fall.

XNG is the only provider licensed to export trucked compressed natural gas by the U.S. Department of Energy, and licensed to import trucked compressed natural gas by the National Energy Board of Canada. XNG is the first company in Maine to haul compressed natural gas for heating use.

Webmaster's comment: Natural gas is going to Aroostook County without importing LNG. Plentiful natural gas supply is available without Downeast LNG's ill-timed and ill-fated proposed terminal project.

Lincoln considers giving Bangor Natural Gas a tax deal on pipeline to mill (Sep 10) — Bangor Daily News, Bangor, ME

LINCOLN, Maine — Town leaders will consider allowing Bangor Natural Gas to reinvest 90 percent of the town property taxes it would pay on a natural gas pipeline to Lincoln Paper and Tissue LLC into the line’s construction, officials said Tuesday.

Set to be completed next year, the pipeline connection to the mill is the first of three steps that could lead to residents, the town and businesses saving 35 to 50 percent on heating costs and new businesses flocking to the Lincoln Lakes region, Town Manager William Lawrence said. [Red & bold emphasis added.]

Gov. Paul LePage made extending a natural gas pipeline into Lincoln and the Katahdin region towns one of his administration’s goals in 2011. The paper mills in Lincoln, East Millinocket and Millinocket were expected to anchor the line. [Red & bold emphasis added.]

Webmaster's comment: Downeast LNG's proposed import terminal is being left in the dust. No LNG imports are needed to supply Maine with cheap, domestic, relatively-nearby natural gas.

Two hospitals enlist Summit Natural Gas to provide natural gas delivery services (Sep 10) — Bangor Daily News, Bangor, ME

AUGUSTA, Maine — Summit Natural Gas on Tuesday said it has signed deals to provide natural gas delivery services to two central Maine hospitals.

As part of its buildout of a natural gas distribution network in central Maine, Augusta-based Summit Natural Gas will supply natural gas line and utility service to Inland Hospital, a 48-bed hospital in Waterville, and Redington-Fairview Hospital, a 25-bed critical access facility in Skowhegan, according to a press release from the company.

Summit Natural Gas, which is in the process of building out the first phase of the company’s planned $350 million Kennebec Valley natural gas transmission and distribution project, is competing with Brunswick-based Maine Natural Gas, owned by Iberdrola USA, for market share in central Maine’s natural gas distribution market. Summit is owned by Colorado-based Summit Utilities. [Red & bold emphasis added.]

Webmaster's comment: Natural gas pipelines are being constructed in Maine — something Downeast LNG president Dean Girdis claims is nearly impossible to do. In actuality, the real impossible project is Downeast LNG.

State divides up natural gas distribution contracts among rival companies (Sep 9) — Bangor Daily News, Bangor, ME

The State of Maine on Monday awarded natural gas delivery contracts to both Maine Natural Gas and Summit Natural Gas, rival companies competing for market share in central Maine’s natural gas distribution market.

These distribution awards are the state’s first step in trying to connect state facilities to natural gas in hopes of reducing energy expenses. According to the state’s release, the bureau in the coming weeks will invite contractors to submit bids on converting the state-owned facilities to heat with natural gas. A third step will be to secure contracts for the purchase of natural gas supply. [Red & bold emphasis added.]

Webmaster's comment: All this is without relying on expensive fuel imported from overseas by Downeast LNG.

New England

USA: Three LNG cargoes imported in July (Sep 10) — LNG World News

All cargoes were shipped from Trinidad and Tobago and delivered to the Everett LNG terminal.

Webmaster's comment: Everett LNG continues to import as it is obligated to due under long-term contracts. Its overall import volumes are dropping significantly as it eliminates unneeded spot cargoes.

Northeast

Dominion wins U.S. approval for Cove Point gas-export hub (Sep 11) — Bloomberg

Dominion Resources Inc. won U.S. Energy Department approval to export liquefied natural gas from an existing import terminal in Maryland, the fourth such project authorized by the agency amid a natural-gas glut.

Dominion still requires approval from the Federal Energy Regulatory Commission to start construction at the facility at Cove Point, on the shores of the Chesapeake Bay, Dan Donovan, a spokesman for the company, said today in an interview.

“With today’s approval, the United States is now squarely in the range that experts are saying is the most likely level of U.S. natural gas exports,” [said Senator Ron Wyden, an Oregon Democrat and chairman of the Energy and Natural Resources Committee] in a statement. If the agency approves additional overseas sales, it must “prove to American families and manufacturers that these exports will not have a significant impact on domestic prices, and in turn on energy security, growth and employment,” he said.

The U.S. has previously approved liquefied natural gas exports from Cheniere Energy Inc. (LNG)’s Sabine Pass LNG terminal in Cameron Parish, Louisiana, and the Freeport LNG Terminal in Quintana Island, Texas. About 18 [export] applications are pending at the department. [Red & bold emphasis added.]

Webmaster's comment: The four LNG export terminals approved by the DOE thus far are:

1. Sabine Pass LNG, Louisiana (approved 2011);
2. Freeport LNG, Texas (approved 2013 May);
3. Lake Charles LNG, Louisiana (approved 2013 Aug); and
4. Cove Point LNG, Maryland (approved 2013 Sep)
   NOTE: The Cove Point LNG terminal has had so few LNG imports that it previously attempted to get FERC to force an LNG supplier to deliver there in order to prevent the Cove Point LNG facility from warming up, becoming inoperable.

Is anyone still not convinced that the US has a surplus of natural gas that devastates Downeast LNG's supposed purpose?

UPDATE 2-U.S. DOE approves LNG exports from Dominion's Cove Point (Sep 11) — Reuters

Dominion Resource Inc's conditional permit for liquefied natural gas exports from its Cove Point terminal on Maryland's Chesapeake Bay came just over a month after the Energy Department approved exports from a terminal in Lake Charles, Louisiana.

With domestic production of natural gas booming, about two dozen projects are seeking to send surplus gas abroad. But a group of industrial companies led by Dow Chemical has warned that expanded exports could raise energy prices for domestic consumers.

Just a decade ago, many were worried that the United States would have to import more gas to meet its energy demands. [Red & bold emphasis added.]

Dominion Cove Point LNG under fierce FERC scrutiny (Sep 12) — FierceEnergy

[J]ust last week, FERC asked Dominion for additional information about the project in order to better understand how the project might affect public safety, including more information about Dominion's plans to store a number of chemicals -- propane, ethane, acid gases, benzene, and flammable liquids -- at the site.

Dominion also needs approval from Maryland utility regulators as well as more than 60 permits and approvals before the $3.8 billion project can proceed. Further, litigation is still pending over whether Dominion has the right to build this facility or if it breaks an earlier legal agreement with the Sierra Club.

Webmaster's comment: "Fierce Scrutiny" is hardly what FERC is doing. The USDOT Pipeline and Hazardous Materials Safety Administration (PHMSA) carries the regulatory responsibility for LNG terminal thermal radiation and vapor dispersion Exclusion Zones. FERC holds applicants' hands, picking them up when they stumble in the permitting process. PHMSA is the agency providing Fierce Scrutiny. In fact, the only LNG terminal application ever to be denied by FERC was the Spectra LNG proposal for Providence, Rhode Island, denied in 2005. Spectra LNG's plan violated USDOT PHMSA Exclusion Zone regulations.

Southeast

Another LNG export approved (Sep 11) — Savannah Morning News, Savannah, GA

…Southern LNG wants to do the same thing from Elba Island. It's working through the federal approval process now. [Red & bold emphasis added.]

Alaska

State asks ConocoPhillips to reopen idle Kenai LNG plant (Sep 12) — Alaska Journal of Commerce, Anchorage, AK

State officials have asked ConocoPhillips to reopen its mothballed liquefied natural gas plant in south Alaska and resume exports of Cook Inlet LNG to Asia, and company spokeswoman Amy Burnett said the company is considering the request.

“Without market opportunities for gas discoveries, companies lack the incentive to invest in continued exploration. There are concerns that future exploration budgets may be cut back,” he said. “Diminished exploration budgets hurt the state’s interest in seeing its resources developed. State lands in Cook Inlet hold tremendous amounts of possibly recoverable natural gas, and the U.S. Geological Survey has estimated that the entire basin may hold trillions of cubic feet,” of undiscovered gas.”

Webmaster's comment: Earlier this year the Cook Inlet-Anchorage area was working to import LNG to heat their homes, since the local natural gas resource — since 1969 — had been sold as LNG to Asia! Now that additional natural gas has been discovered, they're madly back at it, rushing to export most of that gas to Japan.

United States

Obama DOE issues first Marcellus Shale fracked gas export permit [Opinion] (Sep 12) — PolicyMic, New York, NY

Located in Lusby, Maryland, the Dominion Cove Point LNG terminal will be a key regional hub to take gas fracked from one of the most prolific shale basins in the world (the Marcellus) and ship it to global markets. Shale gas exports are a key geopolitical bargaining chip with Russia, the biggest producer of conventional gas in the world. [Red & bold emphasis added.]

Webmaster's comment: The prolific Marcellus gas field is virtually at Maine's doorstep, devastating any need for Downeast LNG.

DOE Secretary approves fourth U.S. LNG export facility (Sep 12) — Maritime Executive, Ft. Lauderdale, FL

The development of U.S. natural gas resources is having a transformative impact on the U.S. energy landscape, helping to improve our energy security while spurring economic development and job creation around the country. This increase in domestic natural gas production is expected to continue, with the Energy Information Administration forecasting a record production rate of 69.96 Bcf/d in 2013. [Red & bold emphasis added.]

Sierra Club : Statement on conditional authorization of LNG exports from Cove Point, MD (Sep 11) — 4-Traders

"With the Department of Energy (DOE) today conditionally authorizing Dominion Resources to export gas from a liquefied natural gas terminal in Cove Point, Maryland, it is deeply disappointing to see that Secretary Moniz persists in leading the nation and the world into a dirty energy future. It's a bad deal all around: for public health, the environment, and America's working people. The economic study the DOE itself commissioned clearly states that LNG export will transfer wealth from wage earners to fossil fuel executives. LNG export is nothing but a giveaway to the dirty fossil fuel industry, at the expense of everyday Americans."

"As we have shown, once environmental impacts are evaluated, it becomes clear that the additional fracking and gas production exports would induce is unacceptable. DOE did not consider these impacts or any other impacts in today's conditional authorization. Instead, DOE is basing its decision on environmental reviews that the Federal Energy Regulatory Commission has yet to conduct. When these environmental impacts are considered, it is clear that natural gas needs to stay in the ground, and the administration needs to double down on clean energy like wind and solar that would protect us from the worst effects of climate disruption while putting Americans to work." [Red & bold emphasis added.]

America's Energy Advantage statement on DOE approval of Dominion Cove Point LNG export application (Sep 12) — OilVoice, UK

"We are now approaching a volume of LNG exports that many experts project will impact price and volatility for natural gas. We're increasingly concerned with the process and data DOE is using to justify more exports of American natural gas to our global competitors. DOE is making decisions that could have far-reaching and potentially irreversible impacts on our economy and American manufacturing based on 30-year-old guidelines for natural gas imports, not exports. No matter where one stands on this issue, surely we can agree that exports and imports are different, and that DOE needs to make rules based on the 21st century, not the 1980s." [Red & bold emphasis added.]

North American LNG suppliers court Asian buyers [Blog] (Sep 12) — JapanRealTime, Wall Street Journal

Roughly a dozen LNG exporting projects have been proposed on the U.S. East and Gulf coasts. Because feedstock gas is plentiful and can be bought from the market, these projects don’t cost as much as conventional LNG projects, which need to develop gas fields and build pipelines and liquefaction facilities to export it in liquid form, Mr. Smith said. “No dependence on upstream.” [Red & bold emphasis added.]

Webmaster's comment: Downeast LNG is at a supply and cost disadvantage compared with existing import-turned-export terminals that have a great portion of their infrastructure already in place at yesterday's prices.

Obama administration authorizes more natural gas exports (Sep 11) — FuelFix

The Obama administration on Wednesday authorized a fourth company to broadly export U.S. natural gas, giving Dominion conditional approval to sell the fossil fuel abroad after processing it at a Maryland facility. [Red & bold emphasis added.]

Webmaster's comment: Dominion's Cove Point LNG export terminal will be accessing the abundant supply of natural gas in the Marcellus formation in Pennsylvania — virtually on New England's doorstep.

LNG export critics call on Energy Dept. for time out (Sep 11) — FuelFix

With the Obama administration on Wednesday approving a fourth company’s plans to sell natural gas overseas, some lawmakers and manufacturers said it’s time for the federal government to reassess the economic risks of those export approvals.

The Energy Department has now authorized companies to export 6.37 billion cubic feet of liquefied natural gas daily, including Wednesday’s approval of foreign sales from Dominion’s Cove Point facility in eastern Maryland.

That puts the U.S. squarely within widely projected ranges for eventual natural gas exports — and past a 5 bcf/day threshold at which some manufacturers say domestic prices for the fossil fuel could be pushed upward. [Red & bold emphasis added.]

Webmaster's comment: Having reached the projected LNG export threshold, and with so many other export applicants already in line for a Department of Energy permitting decision, it now seems very unlikely that Downeast LNG could possibly switch to exporting even in the unlikely event it were able to obtain FERC and State of Maine permits to import.

ANGA welcomes federal approval of Maryland LNG terminal (Sep 12) — Akron Beacon Journal, Akron, OH

“Numerous experts have concluded that thanks to our abundant domestic supply, the United States can export natural gas while continuing to meet our growing demand for affordable energy here at home. By allowing the U.S. to compete in the global export market, a recent IHS Global Insight study found that our trade deficit could be reduced by more than $164 billion in 2020, which is equivalent to one-third of the current U.S. trade deficit." [Red & bold emphasis added.]

Webmaster's comment: Downeast LNG is eating the rest of the industry's dust.

USA: CLNG urges faster pace on LNG export applications (Sep 12) — LNG World News

“We welcome the announcement of DOE’s approval order for Dominion Cove Point LNG, which is a further step in the right direction towards realizing the economic benefits expanded LNG exports will bring to the U.S.

“However, we urge DOE to continue the momentum and move forward with the 20 applications that remain pending.…” [Red & bold emphasis added.]

Webmaster's comment: The Center for LNG (CLNG) pressed for approval of all LNG import applications, even though they were unneeded. Now, CLNG wants just as many LNG export applicants approved. The LNG industry is running madly in all directions without concern for what is best for the country or the public.

Column-U.S. LNG exports will be higher than expected: Kemp [Opinion column] (Sep 12) — Reuters

Based on regulatory approvals so far and sales contracts already signed, the United States will export much more liquefied natural gas (LNG) by the end of the decade than most analysts thought possible even a year ago.

If this continues, the total volume is likely to breach the 12 bcf/d level by March 2014, raising questions about what criteria the department will use to decide which ones to approve and how many it intends to authorise in total.

[T]he assumptions that underpinned the department's own export study and the economic study it commissioned from NERA already look out of date. [Red, yellow & bold emphasis added.]

Webmaster's comment: Downeast LNG was already several years too late when it proposed its LNG import project. Now, even if DeLNG is considering exporting, it is already way too late for that. What goofball thoughts can they possibly be thinking?

World

European, Asian LNG buyers teaming up to push cheaper prices (Sep 10) — Reuters

Gas buyers in Europe, Japan and other parts of Asia are teaming up to reduce the price of liquefied natural gas (LNG), which officials say is threatening a recovery in the European Union and growth in the Japanese economy, the world's third largest.

At a conference in Tokyo on Tuesday, LNG buyers used some of their most forceful language yet to push suppliers to delink gas prices from oil and free up contracts that prevent consumers from re-selling cargoes because of destination restrictions.

Asian prices are now more than four times the cost of natural gas in the United States, where a boom in shale oil and gas is taking place. Asia LNG is now about $15 per mmBtu versus $3.60 per mmBtu for U.S. piped gas. [Red & bold emphasis added.]

Webmaster's comment: Such a bargaining group could sharply reduce US LNG exporter profits, as well as the anticipated trade balance improvement being used to justify US LNG exports.

Japan and India plan LNG importers’ group (Sep 9) — Financial Post, Don Mills, ON

Japan and India are planning a liquefied natural gas importers’ group in a bid to reduce the ‘Asian premium’ and diversify their import sources.

Asian LNG importers such as Japan and China paid as much as $15.75 per million British thermal unit this month, compared to $2.97 paid by LNG buyers in U.S. Gulf Coast and $9.79 by British consumers, according to the U.S. Federal Energy Regulatory Commission. [Red & bold emphasis added.]

Henry Hub pricing gives US gas 'huge' advantage in Japan market: Freeport LNG CEO (Sep 10) — Platts

The CEO of Freeport LNG, one of three US Gulf Coast export projects looking to tap into Asian demand, said contracts linked to the Henry Hub price benchmark will revolutionize the Japanese market, even if oil-linked contracts continue to dominate the global LNG market.

"Our customers -- Osaka Gas, Chubu Electric and now Toshiba -- all are focused on getting US-based natural gas here on a Henry Hub-linked basis, because that's the cheapest gas they can get in the world," CEO Michael Smith said on the sidelines of the 2nd LNG Producer-Consumer Conference in Tokyo Tuesday.

Webmaster's comment: So, Freeport LNG will be selling US LNG at fire-sale prices, reducing the economic benefit to the US, while simultaneously reducing the US domestic energy supply. How is that in the public interest?

New Brunswick

Report on status of Canaport LNG import terminal — LNG Law Blog

The Globe and Mail provides a report on the status of the Canaport LNG import terminal in Saint John, New Brunswick, Canada. The report observes that due to U.S. shale gas production, Canaport "now operates at a small fraction of its name-plated 1.2-billion-cubic-feet-a-day capacity, with only the occasional ship docking at the site." [Red & bold emphasis added.]

Webmaster's comment: Even the LNG ships delivering to Canaport are doing so due to Canaport's long-term contract to accept those shipments. If you know Downeast LNG's Dean Girdis, do him a favor: give him a call and tell him to read the North America LNG importing news.

Canada to receive LNG cargo — LNG World News

The cargo is being hauled by the Madrid Spirit, a 135,423 m3 tanker, and it is expected to arrive a the Canaport terminal on September 15.

Northeast

What's Port Ambrose really all about? — LIHerald.com, Long Island, NY

Environmentalists fear LNG terminal could be used for exports

Liberty’s website states that Port Ambrose could not be used for exports, but Höegh’s website highlights the Norwegian company’s work to develop ships capable of converting natural gas into LNG onboard. Höegh claims that no other company “has the same competences and capacity,” and mentions that Höegh recently finished engineering work for a FLNG, or floating LNG production, off the coast of Israel and for an undisclosed project in Asia. [Red & bold emphasis added.]

Webmaster's comment: Liberty Natural Gas owns Port Ambrose LNG terminal project. In turn, Liberty is owned by West Face Long Term Opportunities Global Master L.P., that in turn is managed by West Face Capital Inc. West Face also owns Meridian Holding Co., which owns Port Meridian Energy Ltd., a subsidiary Höegh LNG. Höegh plans to build an offshore LNG import terminal in England. A logical conclusion might be that Port Ambrose would be exporting LNG to the Höegh LNG import terminal in England.

Related note about Downeast LNG:
Downeast LNG might be thinking of exporting LNG; however, to do that would require either…

1. Acquiring significantly more land (an unlikely prospect, since Downeast LNG's project site is painted in by highway US-1, the shore, and unwilling neighbors); or
2. Liquefying at the pier. That is just as unlikely, since Downeast LNG already cannot solve its vapor dispersion Exclusion Zone problem at the project's pier. That problem would be made worse by liquefying at the pier.

A few thoughts on winter and US natural gas [Blog] (Sep 4) — The Barrel, Platts

[C]ould this year be the one in which the New York market sits the [natural gas price] insanity out?

Reason: The 800,000 Mcf/d new pipelines from Spectra Energy that will directly connect Marcellus Shale supplies and transport them right into downtown Manhattan.

Already New York’s forward basis markets for prompt winter are 80 cents cheaper than the last year’s package. Next winter, they’re about 20 cents below even that. [Red & bold emphasis added.]

Webmaster's comment: Downeast LNG president Dean Girdis claims that natural gas pipeline expansion — such as the one mentioned in the above article — is nigh impossible. Whom do you believe?

Christie touts shore protection; undecided on LNG port (Sep 2) — The Hub, Manalapan, NJ

LONG BRANCH — Gov. Chris Christie has yet to decide whether he will once again veto a proposal for a natural gas port off the New Jersey coast.

LNG proposed the project, dubbed Port Ambrose, last year, following two previous attempts to build similar ports off the coast of New Jersey.

Christie vetoed the first of those applications in 2011, and LNG withdrew the second after Christie reaffirmed his opposition in 2012. He said last week that any decision he makes would be to protect the coastline, which generates $40 million in tourism dollars each year.

Canada

Canadian gas users express concerns over domestic price impacts of LNG exports (Sep 4) — LNG Law Blog

The Financial Post reports that the Industrial Gas Consumers Association of Alberta, a group of large Canadian gas users, has requested that the National Energy Board (NEB) undertake a comprehensive study on the potential impacts of Canadian LNG exports on domestic gas prices and supplies. The article also reports that the Chemistry Industry Association of Canada, representing Canadian chemical companies, recently submitted a letter to the NEB expressing concerns that existing LNG export orders could limit its members’ access to petroleum liquids such as propane, butane and ethane….

United States

America's LNG export debate to feature highly at Zeus annual conference [Press release] — MarketWire

Zeus Development Corporation will host its fourth annual North American LNG Exports (www.northamericanlngexports.com) conference, featuring presentations from leading LNG export developers, regulators and market analysts. Freeport LNG Chairman and CEO Michael S Smith; BG Group COO Martin Houston; and Texas Railroad Commission Chairman Barry Smitherman are among the speakers.

Webmaster's comment: Not too long ago, conferences such as this included presentations by Downeast LNG president Dean Girdis, who touted how important his proposed import project would be to the US. Girdis's conspicuous absence in current LNG industry conferences must be an embarrassment to Girdis.

U.S. could approve further LNG exports each year, Bernstein says (Sep 3) — Bloomberg Businessweek

U.S. approval each year of 1.5 billion to 2 billion cubic feet a day of liquefied natural gas export capacity would be “palatable” for consumers, according to analysts at Sanford C. Bernstein & Co.

The exports will raise gas prices as much as $1.02 per 1,000 standard cubic feet from 2010 levels, Bernstein said, citing estimates in a U.S. Energy Department-commissioned study.

World

U.S. gas via Panama frightens LNG exporters worldwide — Financial Post, Don Mills, ON

A surge in U.S. natural gas production thanks to the shale revolution means proposed new liquefied natural gas (LNG) projects in Australia, East Africa, Canada and Russia can no longer count on exporting to the United States and will now have to focus more on sales to Asia.

Now, the distance to ship U.S. LNG from the Gulf of Mexico to Asia is set to be fall to about 9,000 miles from 16,000 after expansion work makes the Panama Canal big enough for LNG tankers.