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Passamaquoddy Bay & LNG

Passamaquoddy Bay

Downeast LNG shifts plans, proposes import-export facility (Jun 25) — Bangor Daily News, Bangor, ME

ROBBINSTON, Maine — Downeast LNG has been trying to develop a liquefied natural gas import terminal in Robbinston since 2005, but now they are proposing a bi-directional facility that would handle both the import and export of natural gas.

The terminal and pipeline aspects of the original project would be retained, but one tank would be eliminated and liquefaction equipment would be added.

The company will need to go through the federal permitting process anew, which Girdis estimated would take 18 months — “I could be wrong,” he added. The approval process for the company’s original plan has taken years, but Girdis said one reason for the delay was attributed to issues relating to safety modeling that were not related specifically to the Downeast LNG proposal.

The company plans to begin the federal approval process with the Department of Energy and the Federal Regulatory Commission within a month. It hopes to begin construction in 2016, a process that would take three years.

Girdis said he briefed officials with the Maine Department of Economic and Community Development about the proposal in recent weeks.

“It still doesn’t make any sense,” [Save Passamaquoddy Bay spokesman Robert Godfrey] said. “It’s still an inappropriate location.”

Canada has said it will not allow tanker ships to transit the waters in the region to access the proposed terminal, Godfrey noted. Despite remarks by Girdis to the contrary, LNG tankers do not have the right to make the transit, he said.

“It’s nothing but bluster. They can make that pretension, and some people will believe it, but the fact is they don’t have the right to go through there,” Godfrey said. [Colored & bold emphasis added.]

Passamaquoddy Bay

Downeast LNG alters plans for Washington County natural gas terminal — Portland Press Herald, Portland, ME

Nine years after originally proposing an LNG import terminal, the company now says it wants to export natural gas.

The [US Energy Information Administration] expects domestic production to grow to 33.1 trillion cubic feet by 2040 because of the boom in shale gas production in places including Pennsylvania, West Virginia and portions of southern New York and eastern Ohio.

That kills the business case for importing natural gas into the region, but makes an export terminal attractive, Girdis said.

Federal law requires pipeline operators to have commitments from buyers before building new pipelines. Girdis said Downeast LNG would seek to contract for 300 million cubic feet of natural gas pipeline capacity, thereby supporting construction of new pipelines into the state.

“They had to know the market they intended to meet wasn’t there,” Godfrey said. “They’ve known this for quite a while and should have made their intentions known. So they’ve abused the permitting process and are abusing the intervenors in this case and the public. All parties of this preceding should have been notified long ago.” [Colored & bold emphasis added.]

Webmaster's comment: Girdis is apparently counting on receiving a permit to import, and will file with FERC to export within one month. Holding an import terminal permit would facilitate obtaining a FERC export permit.

Nova Scotia

CB&I wins FEED work for Pieridae on Goldboro LNG project in Nova Scotia (Jun 6) — Hydrocarbon Processing

Under the FEED contract, CB&I will design and engineer two LNG liquefaction trains and associated facilities in preparation for the engineering, procurement and construction phase.

Goldboro LNG will produce up to 10 million tpy of LNG and will have on-site storage capacity of 690,000 cubic meters of LNG. Pieridae is in advanced discussions with several natural gas producers, pipeline operators and LNG customers.

In June 2013, Pieridae entered into a 20-year sales agreement with E.ON Global Commodities, a subsidiary of one of the world's largest investor-owned power and gas companies, to deliver approximately 5 million tpy of LNG from Goldboro LNG to E.ON.

Webmaster's comment: Goldboro LNG is counting on obtaining one-third of its natural gas from the US, via reversal of the Maritimes and Northeast Pipeline (M&NE) — a change that spells disaster for Downeast LNG. Downeast LNG's purpose is to sell imported LNG-source natural gas to New England. M&NE reversal makes Downeast LNG's plans impossible to accomplish.

Canaport LNG is operating at below 9% of capacity, and is planning to add an LNG export facility. Sable Island natural gas well production is declining. US natural gas production in Pennsylvania is booming, negating the need to import LNG, with growing distribution pipeline infrastructure. M&NE sees both its current supply, and its customers, drying up. If you were M&NE, with a boodle of supply in Pennsylvania and a hungry customer in Nova Scotia, would you continue to ship natural gas south? Not likely.

Downeast LNG's Dean Girdis is in deep denial. D'ya know a good therapist you could recommend?

Maine

Maine is ground zero for determining the role of natural gas in New England’s energy future (Jun 10) — Conservation Law Foundation

One of the greatest energy and climate challenges facing Maine and the nation is making sure we get right the role of natural gas in our energy – and climate – future.

Right now, Maine is ground zero for this challenge. The Maine Public Utilities Commission (PUC) has opened a proceeding that could result in Maine electric customers paying up to $1.5 billion and three to four times their fair share of an interstate natural gas pipeline. Advocates for the plan say that those costs to Maine customers would ultimately be recovered through future savings on energy bills. Such a financing scheme for new infrastructure would mark an unprecedented and risky entry into the private energy markets by Maine and the other New England states. At the same time, even though natural gas is considered cleaner than coal and oil, it still releases significant greenhouse gas emissions, making the PUC’s proposal one that will have long-term impacts on our efforts to address climate change and to reform the energy markets.

Canada

Canada: Overview of current Indigenous conflicts in Canada (Jun 6) — Mondaq

Other projects affecting Treaty 8 First Nations are on the subject of liquefied natural gas ("LNG"). There are several companies that have development projects planned for extracting and transporting liquid natural gas across northern British Columbia. The Treaty 8 Tribal Association website states:

"Although LNG is unprecedented in BC, Treaty 8 is not opposed to development - in fact, new opportunities for development can bring success to communities as long as it is done in environmentally and culturally sustainable ways." The members of Treaty 8 seek to "participate in a meaningful way, whether that's ownership of business opportunities such as joint ventures, being stewards of the land, or being part of the solution to environmental concerns."

There appears to be disagreement among members of the Wet'suwet'en nation regarding support for the Pacific Trails Pipeline. Although some members of the Wet'suwet'en First Nation are partners in the project, the project is opposed by some members of the Unist'ot'en First Nation and the Likhts'amisyu First Nation. The Office of the Wet'suwet'en has expressed concern that proposed construction threatens land rights and raises environmental concerns about water quality and fish habitat.

Conflict between the Gitga'at First Nation and Chevron and Apache also arose through Kitimat LNG regarding the Pacific Trails Pipeline at the beginning of 2014 when the Gitga'at First Nation expressed concerns that the decision to award an engineering contract to a joint venture from the US and Japan was undertaken without consultation.

Northeast

Dominion receives Maryland Public Service Commission's approval of Cove Point LNG export project [Press release] (May 30) — MarketWatch, The Wall Street Journal

LUSBY, Md., May 30, 2014 /PRNewswire/ -- Dominion Dsaid today it has received from the Maryland Public Service Commission a Certificate of Public Convenience and Necessity related to the company's plan to add export capability at its Cove Point liquefied natural gas facility in Calvert County.

The certificate was needed for two 65-megawatt steam turbine generators that produce electricity. The waste heat from two combustion turbines, which are used to drive compressors to produce LNG, will be recycled to produce steam to drive the steam turbines. [Red emphasis added.]

Maryland PSC grants tentative OK to Cove Point project (May 30) — TheBayNet.com,MD

One of two major approvals needed in order for a multi-billion dollar project in Calvert County to move forward has been tentatively granted by a state entity. On Friday, May 30 the Maryland Public Service Commission (PSC) announced it was giving its conditional OK to Dominion Cove Point’s plan to build a liquefaction facility at its liquefied natural gas (LNG) plant in Lusby. The approval comes on the eve of a public meeting at Patuxent High School (PHS), which will be presided over by the Federal Energy Regulatory Commission (FERC).

Opponents of the project announced Friday evening they would appeal to Governor Martin O’Malley [D] and the Maryland Department of Natural Resources to conduct a “human safety study” of Dominion’s proposal. [Red emphasis added.]

British Columbia

Liberals vow 'cleanest LNG', then redefine 'cleanest' twice (May 31) — The Tyee, Vancouver, BC

Environmental standards for liquified natural gas keep dipping.

"A promise made. A promise kept." That's been a main message from the BC Liberals celebrating the one-year anniversary of their 2013 election victory. But when it comes to their promise to produce the "cleanest liquefied natural gas in the world," a better phrase might be: "A promise made. A promise redefined."

The most recent redefinition came from the province's Minister of Natural Gas Development, Rich Coleman. Earlier in May, he said the government is now setting its environmental standards for liquefied natural gas, or LNG, based on gas-powered terminals. Originally, the government said these terminals would rely on renewable electricity, which would have a lower environmental impact.

When announced in early 2012, "cleanest LNG in the world" didn't come with caveats, asterisks or fine print. It was a simple and potentially effective promise. [Red emphasis added.]