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Passamaquoddy Bay & LNG

Passamaquoddy Bay & Nova Scotia

Houston firm acquires proposed Plaquemines LNG project (Apr 28) — The Acadiana Advocate, Baton Rouge, LA

[This article also appears under the Gulf of Mexico heading, below.]

Houston-based Parallax Energy has acquired Louisiana LNG Energy LLC, a liquefied natural gas export project planned in Plaquemines Parish. Terms of the deal were not disclosed.

“The addition of Louisiana LNG to our company sets the Parallax strategy firmly into motion. We have an innovative, efficient and cost-effective way to safely produce what customers want – smaller amounts of LNG that they can purchase incrementally,” said Martin J. Houston, founding partner and chairman of Parallax.

In February 2014, Louisiana LNG asked the Federal Energy Regulatory Commission for permission to export 2.2 million tons of LNG a year for the next 25 years. In May 2014, the company said it had secured funding from an affiliate of ArcLight Capital Partners LLC for the export terminal. The project was originally expected to be online in late 2017.

The proposed facility is the second LNG project Parallax has announced this year. The first, Live Oak LNG, is planned in Calcasieu Parish and could produce 5.7 million tons of LNG per year. [Colored & bold emphasis added.]

Webmaster's comment: This project is potentially direct competition to Dean Girdis's new Nova Scotia LNG export terminal proposal that is about the farthest northeast in North America as he can get. Shipping small quantities of LNG to the Caribbean would be more cost effective from Louisiana, roughly 1,000 miles closer to market than from Nova Scotia LNG.

"Wrong-Way" Girdis just can't ever get it right!

FERC releases Environmental Review schedule for Floridian Natural Gas LNG Storage project (Apr 27) — LNG Law Blog

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

FERC has released the schedule for its environmental review of Floridian Natural Gas Storage’s (FNGS) proposed liquefaction and LNG Storage project near Indiantown in Martin County, Fla. FNGS proposes to amend its existing authorizations by changing one 4 Bcf full containment storage tank to a 1 Bcf single containment tank and by reducing the associated vaporization capacity proportionately from 400 MMcf per day to 100 MMcf per day. FNGS has not constructed any previously authorized facilities to date. FERC plans to issue its environmental assessment for the amended project on June 10, 2015. Other federal agencies having jurisdiction over the project will then have until September 8, 2015 to complete their review.

Webmaster's comment: Floridian Natural Gas Storage is a credible competitor against Downeast LNG's interests. Floridian intends to place LNG into truckable containers, to be shipped via normal ship transport to small-volume customers. Caribbean nations would be the likely market for Floridian's LNG — about 1,000 miles closer than Dean Girdis's Nova Scotia LNG export proposal. Plus, Floridian is way ahead of Nova Scotia LNG.

What could Dean Girdis possibly be thinking?

LNG firm Pieridae high hopes for Goldboro project (Apr 27) — The Chronicle Herald, Halifax, NS

Pieridae expects Goldboro to start production in 5 to 6 years

“North American represents a secure and politically stable source of energy.”

The gas will come from offshore and onshore Nova Scotia, New Brunswick and an area of New York and Pennsylvania known as the Marcellus shale basin.

As for the transport of that natural gas from the United States to the Goldboro plant, Sorensen said the Maritimes & Northeast pipeline is already in place and would be used to pump natural gas to Goldboro.

The processing facility, storage tanks and marine works at the Goldboro site will come with a hefty price tag in the area of $10 billion, but construction would really only start after regulatory approvals in Canada and the U.S. are in place.

“Our province has embraced the notion of an LNG terminal and has the full support of the government of Nova Scotia,” [Energy Minister Michel Samson] said. [Colored & bold emphasis added.]

Southeast

FERC releases Environmental Review schedule for Floridian Natural Gas LNG Storage project (Apr 27) — LNG Law Blog

[This article also appears under the Passamaquoddy Bay & Nova Scotia heading, above.]

FERC has released the schedule for its environmental review of Floridian Natural Gas Storage’s (FNGS) proposed liquefaction and LNG Storage project near Indiantown in Martin County, Fla. FNGS proposes to amend its existing authorizations by changing one 4 Bcf full containment storage tank to a 1 Bcf single containment tank and by reducing the associated vaporization capacity proportionately from 400 MMcf per day to 100 MMcf per day. FNGS has not constructed any previously authorized facilities to date. FERC plans to issue its environmental assessment for the amended project on June 10, 2015. Other federal agencies having jurisdiction over the project will then have until September 8, 2015 to complete their review.

Webmaster's comment: Floridian Natural Gas Storage is a credible competitor against Downeast LNG's interests. Floridian intends to place LNG into truckable containers, to be shipped via normal ship transport to small-volume customers. Caribbean nations would be the likely market for Floridian's LNG — about 1,000 miles closer than Dean Girdis's Nova Scotia LNG export proposal. Plus, Floridian is way ahead of Nova Scotia LNG.

What could Dean Girdis possibly be thinking?

Gulf of Mexico

Houston firm acquires proposed Plaquemines LNG project (Apr 28) — The Acadiana Advocate, Baton Rouge, LA

[This article also appears under the Passamaquoddy Bay & Nova Scotia heading, above.]

Houston-based Parallax Energy has acquired Louisiana LNG Energy LLC, a liquefied natural gas export project planned in Plaquemines Parish. Terms of the deal were not disclosed.

“The addition of Louisiana LNG to our company sets the Parallax strategy firmly into motion. We have an innovative, efficient and cost-effective way to safely produce what customers want – smaller amounts of LNG that they can purchase incrementally,” said Martin J. Houston, founding partner and chairman of Parallax.

In February 2014, Louisiana LNG asked the Federal Energy Regulatory Commission for permission to export 2.2 million tons of LNG a year for the next 25 years. In May 2014, the company said it had secured funding from an affiliate of ArcLight Capital Partners LLC for the export terminal. The project was originally expected to be online in late 2017.

The proposed facility is the second LNG project Parallax has announced this year. The first, Live Oak LNG, is planned in Calcasieu Parish and could produce 5.7 million tons of LNG per year. [Colored & bold emphasis added.]

Webmaster's comment: This project is potentially direct competition to Dean Girdis's new Nova Scotia LNG export terminal proposal that is about the farthest northeast in North America as he can get. Shipping small quantities of LNG to the Caribbean would be more cost effective from Louisiana, roughly 1,000 miles closer to market than from Nova Scotia LNG.

"Wrong-Way" Girdis just can't ever get it right!

With full financing complete, Freeport LNG chugs forward with construction (Apr 28) — San Antonio Express-News, San Antonio, TX

Freeport LNG has secured the final piece of financing for its $12.5 billion liquefied natural gas export terminal, placing the company on track to begin producing within three years.

The first two trains have been under construction since the fall, when the company announced that it had been cleared by federal regulators to start work. Tuesday’s announcement allows Freeport LNG to begin full construction of the project, which has been nearly five years in the making, CEO Michael S. Smith said in a statement.

Alaska

Gov. applauds passage of Interior Energy Bill (Apr 28) — Alaska RealEstateRama

Governor Bill Walker applauded the Alaska Legislature today for passing his Interior Energy Project bill, HB 105, which will allow the Alaska Industrial Development and Export Authority to pursue options other than trucking liquefied natural gas from the North Slope to provide low-cost energy to Interior residents.

Webmaster's comment: Natural gas pipeline projects are being proposed as part of LNG export planning.

British Columbia

Brain takes LNG Go Plan to Parliament Hill (Apr 28) — Northern View, Prince Rupert, BC

[Prince Rupert Mayor Lee Brain] and city manager Robert Long spent four days in Ottawa last week to speak with various officials about the [LNG Go Plan], which will be released in draft form in the coming weeks, and seek support for Prince Rupert’s plan to manage the growth related to the liquefied natural gas industry.

“Our main message to them was that we want to be the model for how to handle rapid growth because, unfortunately, no community in the world has really done this right. There is (sic) a lot of issues that happen on the ground without proper planning and no community has been able to handle proper growth,” he said, noting city leaders will be meeting with the District of Kitimat to discuss their plans for growth.

“We feel we can be the model so all residents are taken care of, housing and social issues are taken care of and environmental needs are taken care of and that those things are thought out and planned out before there is a major influx.”

Canada

Canada’s federal budget 2015: a significant boost to Canadian LNG and resources (Apr 28) — JDSupra, Sausalito, CA

In its last budget before a fall election, the Canadian federal government made a number of new spending commitments in energy and resources area, and also made significant changes to the tax and financing regime for liquefied natural gas (LNG) facilities proposed for the British Columbia coast.

There were two significant changes with respect to LNG:

1. Accelerated Capital Cost Allowances for LNG
• The announced rates are 30% depreciation for equipment used in natural gas liquefaction (including controls, cooling equipment, compressors, pumps, storage tanks, and ancillary equipment, pipelines used exclusively to transport liquefied natural gas from the facility, and related structures), and 10% for buildings at a facility that liquefies natural gas.
2. National Energy Board Will Be Able to Issue Longer Terms for Natural Gas Export Licenses
   • The budget also provides for the amendment of the National Energy Board Act to permit the NEB to issue natural gas export licences for 40 years instead of the current 20 year term.

Harper is a climate disaster in the making (Apr 28) — rabble.ca

The Globe and Mail reports, "Canada has historically matched its [greenhouse gas emission] targets with those set south of the border, a bar that was raised late last month when the U.S. said it would cut emissions by 26 per cent to 28 per cent by 2025, relative to 2005 levels, and is on track for an 80-per-cent cut by 2050. However, at a media event in Winnipeg on Thursday, [Prime Minister Stephen] Harper suggested the lock-step approach with the U.S. is about to end."

This direction would be a departure from Harper's August 2013 offer to U.S. President Obama of "joint action to reduce greenhouse gas emissions in the oil and gas sector" if Obama approved the Keystone XL tar sands pipeline. It would also be a departure from the notion that since Canada and the United States are NAFTA partners that climate policies should be harmonized, the logic employed when vehicle emission standards were put in place. Harper now says, "It's unlikely our targets will be exactly the same as the United States'. But they will be targets of similar levels of ambition to other major industrialized countries."

The Harper government's agenda of tar sands expansion, LNG development and pipeline construction is clearly incompatible with the math of climate change. The federal government that Canada elects on October 19 will be the government that negotiates Canada's post-2020 emission reduction pledge just six weeks later at the UN climate summit in December. It's time for a change. [Colored & bold emphasis added.]

United States

Newly installed FERC Chairman Norman Bay’s past opinions signal preference for energetic use of Commission authority (Apr 27) — JDSupra, Sausalito, CA

On April 15, 2015, Norman Bay assumed the chairmanship of the Federal Energy Regulatory Commission (“FERC”). Prior to taking the chairman’s role, Chairman Bay was appointed to the Commission in July 2014 after five years of service as director of FERC’s Office of Enforcement. In his nine months on the Commission, he has signaled his preference for employing the full power and authority vested in FERC to regulate the interstate electricity and natural gas sectors. Because he will have significant authority to shape the Commission’s agenda over the course of his term as chairman, regulated entities should take note of his views on the extent and requirements of FERC’s jurisdiction over key portions of electric power and natural gas industries.

Chairman Bay on Natural Gas and LNG

To date, Chairman Bay has voted in line with the other FERC commissioners to approve natural gas interstate pipeline and liquefied natural gas (“LNG”) projects, including conditional approvals of the Constitution Pipeline, the Dominion Cove Point, and Sabine Pass expansion LNG projects.

However, as a commissioner, Chairman Bay issued several notable dissents in FERC proceedings to determine the extent of FERC’s jurisdiction over small-scale compressed natural gas (“CNG”) and LNG facilities from which CNG or LNG would be transported by truck to existing port facilities for eventual export overseas. In this series of dissents, Chairman Bay disagreed with the other commissioners’ finding that these CNG and LNG facilities did not fall within FERC’s jurisdiction under the Natural Gas Act (“NGA”). Strictly construing the NGA, Chairman Bay explained in his dissents that transportation of natural gas by pipeline, a prerequisite for NGA-jurisdiction that the majority imposed, should not be determinative of whether a facility is FERC-regulated. These dissents have been Chairman Bay’s most significant departures from FERC’s other commissioners and in all instances, he would have extended FERC’s jurisdiction beyond the limits imposed by the other commissioners. [Colored & bold emphasis added.]

Gulf of Mexico

InsideClimate News wins SPJ award for 'Big Oil + Bad Air' infographics — InsideClimate News

The informational graphics in the "Big Oil + Bad Air" investigative series by InsideClimate News in conjunction with the Center for Public Integrity have been awarded a Sigma Delta Chi award by the Society of Professional Journalists.

The graphics, by ICN's Paul Horn and reporter Lisa Song, detail the process of fracking the Eagle Ford Shale in south Texas and how its toxic air emissions have created a public health threat in the region. The investigation showed how little Texas officials knew about the pollution and its impact on the people of the region and how the state government remains intent on keeping regulations to a minimum despite those impacts. The award was given for the main story in the series, "Fracking Boom Spews Toxic Air Emissions on Texas Residents." [Colored & bold emphasis added.]

Annova LNG files resource reports with FERC — LNG World News

The company is looking to construct an LNG export facility located on the southern bank of the Brownsville Ship Channel, in Cameron County, Texas.

According to the company’s filing, the project will include six liquefaction trains, each with a nameplate capacity of 1.0 million tonnes per annum, for an aggregate nameplate capacity of 6 mtpa and a maximum output at optimal operating conditions of 6.95 mtpa. The facility will also include two 160,000 cbm storage tanks and associated marine facilities.

United States

Standing up by sitting down: student sit-ins demand divestment — InsideClimate News

Swarthmore and nine other colleges with endowments totaling $72 billion have been beset by sit-ins since January, escalating the fossil-free movement.

Last month, more than 30 students at Swarthmore College tried an increasingly popular tactic to pressure their school to divest its $1.9 billion endowment of fossil fuels: a sit-in in the hallway of the administration's office.

Thirty-two days and more than 200 protesters later, officials at the 151-year-old liberal arts college near Philadelphia finally agreed to discuss divestment at a board meeting in May.

Since January, Swarthmore and nine other schools with endowments totaling more than $72 billion have been beset with campus sit-ins. Those students are urging their universities to join the 30 schools worldwide—along with 41 cities, 72 religious institutions, 30 foundations and hundreds of individuals—that have divested or pledged to divest from fossil fuels. Most recently, the staff at SOAS, University of London pledged April 24 to divest their fossil fuel holdings over the next three years.

The primary argument for divestment is: "If it is wrong to wreck the climate, then it is wrong to profit from that wreckage," according to 350.org's website. Divestment involves selling off stocks and bonds tied to oil, natural gas and coal companies, and can take months to years. [Colored & bold emphasis added.]

US may become LNG global leader — Maritime Executive, Fort Lauderdale, FL

The United States is on track to saturate the global energy market with liquefied natural gas (LNG) exports by as early as this year putting itself on course to become one of the world’s largest LNG suppliers. [Colored & bold emphasis added.]

Webmaster's comment: Since the US will saturate the LNG market this year, there is no room for Downeast LNG's foot-dragging project. In fact, there has never been a market need for Downeast LNG's import or export pipe dreams.

For U.S. LNG, is the window half open or half closed? — E&E Publishing

After years of work behind the scenes, the United States has four liquefied natural gas export projects under construction, several more facing final investment decisions in the coming months and the first LNG cargo slated to ship from Cheniere Energy's Sabine Pass, La., terminal before year's end.

But despite that visible progress for the industry, there is growing concern that weak oil prices, disappointing world economic growth and a global gas glut have turned the economics of U.S. exports on their head.

"The drop in international oil prices relative to U.S. natural gas prices has wiped out the price advantage of U.S. LNG projects, reversing the wide differentials of the past four years that led Asian buyers to demand more Henry Hub-linked contracts for their LNG portfolios," warned Moody's Investors Service in a widely quoted assessment earlier this month.

"Despite the hype over the past few years about gas-linked contracts, oil-linked contracts still dominate the industry, causing LNG revenues to fall for existing suppliers," Moody's said. "Lower oil prices are causing LNG suppliers to curtail their capital budgets. This will result in the cancellation of a majority of the almost 30 proposals in the U.S., 18 in western Canada and four in eastern Canada."

Jensen calculates that with the oil price plunge the premium has about disappeared. Today, he said, the cost to purchase natural gas in the United States, liquefy it and ship to Asia is about what it costs to buy the LNG in Japan -- eliminating the enticing arbitrage opportunity that has fueled U.S. LNG export interest.

"In new supply areas such as Australia and the U.S., the winners are the early movers that already have their liquefaction projects under construction, have ready access to developed sources of natural gas supply and are assured a new source of cash flow longer term," they wrote. [Colored & bold emphasis added.]

Webmaster's comment: Downeast LNG has no realistic hope for success.

Passamaquoddy Bay, New Brunswick, Nova Scotia & Canada

Two new small-scale LNG facilities planned for Nova Scotia: developer (Apr 24) — Platts

Halifax-based Nova Scotia LNG is planning to build two small LNG facilities in the Atlantic Canadian province with a total capacity of 180,000-260,000 mt/year, its director Dean Girdis said Friday.

A 30,000-60,000 mt/year plant and another 150,000-200,000 mt/year project will be constructed, with the former targeting bunkering demand along the US and Canadian East Coast and the latter facility being more focused on diesel displacement markets in the Caribbean, he said in an email.

Nova Scotia LNG is developing the facilities under a partnership with Nitrogas, a specialized LNG/LPG broker with maritime expertise, Girdis said, noting it will develop a tolling facility with gas liquefaction charges of $3.50/MMBtu to $5/MMBtu.

Nova Scotia LNG has optioned a site from the provincial government, he said, that was once identified by ExxonMobil (then Mobil Oil) for its own planned LNG export facility.

The company will utilize LNG carriers with a capacity of 10,000 cu m to 25,000 cu m to send cargoes to the Caribbean, while for bunkering "we would have the ability to dock ships directly at our berth for refueling."

Prime reasons for Nova Scotia LNG deciding to build its facility in the province, rather than the US East Coast, include ease of permitting, access to offshore gas in Atlantic Canada and support from stakeholders, he said.

The two projects will need a total of 24 MMcf/d of feedstock gas, to be sourced from offshore Nova Scotia, which has an output of 250 MMcf/d, he said.

"If required, we [also] have access to the Maritimes pipeline from where we could source Canadian gas from Quebec," Girdis said. [Colored & bold emphasis added.]

Webmaster's comment: Is this an indication that Dean Girdis is preparing for Downeast LNG's failure, setting himself up with a new developer's job in Nova Scotia?
 
Note that Girdis claims he would obtain natural gas from Canada, not the United States.

David Alward named Canadian consul general in Boston (Apr 24) — CBC News

Former New Brunswick premier named to post by Foreign Affairs Minister Rob Nicholson

Foreign Affairs Minister Rob Nicholson named Alward to the post on Friday.

Alward says he's looking forward to the new challenge as Canada's top diplomat in the northeast United States.

‎"We are pleased to have a New Brunswicker and a former premier of our province representing our country in such an important position," [Premier Brian Gallant] said in a statement.

The Canadian government has 12 consulates general offices in the United States to provide services and resources to Canadians and Americans.

The Boston office covers Massachusetts, Maine, New Hampshire, Rhode Island and Vermont.

The Boston consulate post has been held by other Maritime ex-premiers, including Nova Scotia's Donald Cameron and P.E.I.'s Patrick Binns, whom Alward is replacing. [Colored & bold emphasis added.]

New England

NE Governors pledge regional energy cooperation, despite challenges (Apr 23) — MPBN

HARTFORD, Conn. - Five of the six New England governors met in Hartford, Connecticut, today to talk about regional energy concerns. While the governors are pledging to cooperate on a strategy that will benefit all, they acknowledge that crafting a regional energy plan will present a challenge.

During the public forum both [Connecticut Gov. Dannel Molloy] and [Maine Gov. Paul LePage] stressed that there is no single solution to the cost issue. At one point, as they talked about the need for additional natural gas pipeline capacity, they were briefly interrupted by anti-fracking protesters.

After a closed meeting, Molloy told reporters that the marketplace has failed the region and that it will take regional policies to address the high cost of energy.…

Gulf of Mexico

Demonstrators stage LNG protest (Apr 24) — Port Isabel-South Padre Press, Port Isabel, TX

A group of protesters comprised of concerned citizens, the Sierra Club, the Lower Laguna Madre Foundation and the local chapter of the Audubon Society gathered at the foot of the Queen Isabella Memorial Causeway on South Padre Island on Sunday, April 19 for two hours to show their opposition to the development of five liquefied natural gas (LNG) terminals slated for the Port of Brownsville.

The event drew a crowd of approximately 75 people holding banners, waving signs, wearing costumes and chanting slogans such as “Not fair! Fresh air!” and “Hand in hand, RGV, take a stand!” According to the advertisement for the demonstration, the group, calling itself Save RGV from LNG, stated on its Facebook page that they “will be protesting the five liquefied natural gas export terminals proposed for the Port of Brownsville. We have chosen this date to coincide with the 5th anniversary of the BP Deepwater Oil Spill, the worst environmental disaster in U.S. history.” The post goes on to say, “Fossil fuel companies are bad for coastal communities, and we want to show them that they aren’t welcome here. We are not willing to sacrifice our clean air, clean water and biodiverse wildlife habitats for corporate profits.” [Colored & bold emphasis added.]

Alaska

Community peppers Alaska LNG staff with questions (Apr 23) — Peninsula Clarion, Kenai, AK

How much noise is it going to make? How will Nikiski handle the influx of people and resulting crime if the Alaska LNG project goes forward? Will the project hire local companies to do some of the construction work on the mega-project? When will the community know if the project will go forward and Nikiski will get a pipeline?

While the finished project is more than 10 years out, organizers said they were happy to see the volume of community interest.

British Columbia

LNG secrecy stirs legislators (Week of Apr 26) — Petroleum News, Anchorage, AK

British Columbia’s Natural Gas Development Minister Rich Coleman is trumpeting the chances that Malaysia’s Petronas will formally sanction its Pacific NorthWest LNG project just as his government is coming under fire for shielding more of its negotiations with LNG proponents from public scrutiny.

NDP leader John Horgan said that instead of developing its natural resources in the “public interest,” the province shows signs of using LNG as a “partisan tool.”

[NDP’s LNG spokesman Bruce Ralston] warned the government is positioning itself to negotiate LNG-related royalties for up to 40 years “in the privacy of the cabinet room,” noting that Coleman had previously declared that “under no circumstances could project development agreements be disclosed.”

Hawaii

Hawaii Gas chief backs bill curbing use of LNG (Apr 24) — Eaglefordtexas.com, TX

Alicia Moy, president and CEO of Hawaii Gas, said she supports a bill sitting on Gov. David Ige’s desk that would limit the use of liquefied natural gas in Hawaii, despite the utility looking to supply the resource to the state in bulk.

House Bill 1286 mandates that the use of LNG in Hawaii does not slow the development and use of renewable energy sources, reaffirms Hawaii’s need to cut its dependence on imported fuels and encourages utilities to make the social and financial interests of ratepayers a priority.

Moy said the gas utility’s LNG plans would align with the state’s goals to increase the use of renewable energy.

United States

USGS models predict severity of man-made earthquakes (Apr 23) — UPI

WASHINGTON, April 23 (UPI) -- Man-made earthquakes are on the rise in Middle America, where industrial practices like fracking and deep-well wastewater storage are increasingly common.

The report highlights 17 areas within eight states -- Alabama, Arkansas, Colorado, Kansas, New Mexico, Ohio, Oklahoma and Texas -- which have experienced increased seismicity over the last several years. Researchers constructed the new prediction models by looking at earthquakes in these areas and plotting their size and power relative to nearby industrial triggers.

"This new report describes for the first time how injection-induced earthquakes can be incorporated into U.S. seismic hazard maps," explained Mark Petersen, who is heading up the USGS National Seismic Hazard Modeling Project.

"These earthquakes are occurring at a higher rate than ever before and pose a much greater risk to people living nearby," Petersen said. "The USGS is developing methods that overcome the challenges in assessing seismic hazards in these regions in order to support decisions that help keep communities safe from ground shaking."

The study pins most of the blame for a rise in man-made ground-shaking on wastewater injection practices. Though fracking has been linked with slight tremors (noticed only by seismic needles), USGS say it is only occasionally responsible for felt earthquakes. [Colored & bold emphasis added.]

Scientists convinced of tie between earthquakes and drilling (Apr 23) — San Antonio Express-News, San Antonio, TX

LOS ANGELES (AP) — With the evidence coming in from one study after another, scientists are now more certain than ever that oil and gas drilling is causing hundreds upon hundreds of earthquakes across the U.S.

So far, the quakes have been mostly small and have done little damage beyond cracking plaster, toppling bricks and rattling nerves. But seismologists warn that the shaking can dramatically increase the chances of bigger, more dangerous quakes.

On Thursday, the U.S. Geological Survey released the first comprehensive maps pinpointing more than a dozen areas in the central and eastern U.S. that have been jolted by quakes that the researchers said were triggered by drilling. The report said man-made quakes tied to industry operations have been on the rise.

Scientists have mainly attributed the spike to the injection of wastewater deep underground, a practice they say can activate dormant faults. Only a few cases of shaking have been blamed on fracking, in which large volumes of water, sand and chemicals are pumped into rock formations to crack them open and free oil or gas.

Earthquake activity in Oklahoma in 2013 was 70 times greater than it was before 2008, state geologists reported. Oklahoma historically recorded an average of 1.5 quakes of magnitude 3 or greater each year. It is now seeing an average of 2.5 such quakes each day, according to geologists. [Colored & bold emphasis added.]

Nova Scotia

TAYLOR: LNG’s challenge in N.S. is gas source — The Chronicle Herald, Halifax, NS

The idea of building liquefied natural gas export facilities in Nova Scotia has been lingering for a while.

The only thing that seems to be holding everything back is an abundant source of gas available for export.

So far, there have been three LNG export plants proposed, all in the Strait of Canso area.

…The proponents of the Nova Scotia facilities seem to be banking on the ability to import natural gas from the United States, where hydraulic fracturing techniques have created a plentiful supply of gas.

While there are skeptics who doubt that any plants will be built in Nova Scotia, there are signs it may happen. There are efforts to extend the pipeline network in the U.S. from Pennsylvania, where the natural gas is found, to markets in the northeast.

Bringing the gas to the Maritimes isn’t such a big stretch, after it reaches New England. [Colored & bold emphasis added.]

Webmaster's comment: Exporting natural gas to Canada for re-export as LNG, so that it depletes the US resource more quickly, makes no energy-security sense.

British Columbia

Tracey Saxby: Is Woodfibre LNG worth the risk? [Op-ed] (Apr 22) — The Georgia Strait, Vancouver, BC

The environmental tragedies of the last two weeks have made one thing clear: accidents happen.

On April 8, an estimated 2,800 litres of toxic bunker fuel was spilled in English Bay, and the black tar-like sludge has been washing up on Vancouver’s beaches. A little over a week later a dock fire at Squamish Terminals blazed out of control, with toxic smoke from the burning creosote pilings lingering over town.

The details of the emergency response for these two accidents show that the provincial and federal governments don’t have the capacity to deal with these kinds of accidents. Even Premier Christy Clark admitted: “We don’t have world class spill response on our coast.”

Woodfibre LNG and its associated tankers, pipelines, and compressor stations pose an unacceptable safety risk for people in Squamish and other communities along the shores of Howe Sound. We need to stand up and say enough is enough. [Colored & bold emphasis added.]

Herring spawn at risk from Woodfibre LNG: biologist — The Squamish Chief, Squamish, BC

Recent data shows spawn within 2 km radius of proposed plant

Stan Proboszcz, a biologist with Propeller Strategy, a non-profit marine advocacy group, says that herring and everything that eats them are at risk from the underwater intake system of the proposed facility.

“The proposed Woodfibre LNG marine cooling system will put Howe Sound herring and everything that feeds on them at risk,” Proboszcz said in the release. “It’s unclear whether the proponents looked for herring spawn two kilometres in all directions from the proposed site, and at the appropriate time of year.”

Woodfibre LNG states in its Environmental Assessment application that there was no herring spawn within 3.5 kilometres across the channel from the proposed site and references DFO monitoring data, said Proboszcz..

“I have very solid field data I have gathered over the last four to five years that clearly shows the Woodfibre area is smack dab in the middle of Howe Sound herring spawn central,” Buchanan told The Squamish Chief. “The herring shift a bit to the south or to the north depending on the year, but… always centred on Woodfibre,” he said. “I believe this seawater-cooling tower is a clear threat to the herring larvae that hatch out and therefore a threat to the recovery of the Howe Sound eco system. A seawater-cooling system in the middle of the Howe Sound herring engine is just simply put, irresponsible and reckless.” [Colored & bold emphasis added.]

Oregon

Editorial: LNG rears its scary head — The Daily Astorian, Astoria, OR

Do we want to be a West Coast colony for a New York company?

…[T]he Columbia River bar remains dangerous despite a robust Coast Guard presence, late autumn and winter wind storms fairly often reach hurricane strength, and the Columbia estuary is jammed with small commercial and recreational fishing boats for weeks at a time. This is the migratory bottleneck for migrating salmon, steelhead, smelt, shad and other species. A large new industrial site in the midst of all this warrants strict examination.

Whether FERC is genuinely able to objectively weigh all these considerations is an open question. Like all such bodies, it both draws personnel from the industry it regulates and cycles employees into those industries. They are not in the business of saying “no.”

…Oregon LNG, a subsidiary of Leucadia National Corp., a New York-based holding company, has long since abandoned any pretense of community outreach or inclusion. A corporation that does not return local phone calls cannot be expected to become a respectful and accommodating new neighbor. [Colored & bold emphasis added.]

Webmaster's comment: Similarly, Downeast LNG wants the Passamaquoddy Bay area to be New Jersey. Downeast LNG disrespects the Passamaquoddy Tribe and Government of Canada in its attempt to force its project into an inappropriate location, even according to the LNG industry's own best practices.

Maine

On energy, lower prices can’t be Maine’s (and LePage’s) sole guiding principle [Op-ed] (Apr 21) — Bangor Daily News, Bangor, ME

On the first Earth Day on April 22, 1970, the most pressing environmental problems were worsening air, water and toxic pollution. Today, the issues affecting Maine’s environment — from ocean acidification, extreme weather events, air pollution, higher risks of diseases such as Lyme, and alarming threats to our fisheries and forests — stem from carbon pollution and resulting climate disruption.

To address such huge challenges requires clear, farsighted leadership. Unfortunately, our governor’s current energy policies are part of the problem, even in terms of his own stated priority of reducing energy prices.

But our governor’s energy policies are not based on the reality and urgency of the climate crisis. He has said that the science behind global warming is a “hoax” and a “scam,” and that “conservation is just another word for a Ponzi scheme.”

That’s why he supports expanding natural gas infrastructure, pumping dirty tar sands from Canada, drilling offshore for oil and natural gas and, ironically, the world’s most expensive source of energy, nuclear power.

It is inevitable that our nation and state will move beyond dirty energy towards an economy powered by efficiency and clean power. Gov. Paul LePage’s dirty energy agenda is only delaying this necessary transition in Maine, making it more costly for us all. This Earth Day, we should all contact the governor and urge him to change course and put Maine on the path to becoming a climate and clean energy leader. [Colored & bold emphasis added.]

New England Governors to meet in Hartford April 23 to discuss ways to reduce energy costs [Press release] (Apr 20) — Maine.gov

AUGUSTA – Governor Paul R. LePage and other New England governors will meet in Hartford, Connecticut April 23 to pursue next steps in their efforts to develop and implement a cooperative strategy to address energy infrastructure challenges facing the region. The Governors will meet at the Connecticut Convention Center for a private roundtable organized by the Coalition of Northeastern Governors (CONEG).

At their roundtable, the Governors will discuss a variety of resources to address the energy challenges facing the region – including cost-effective investment in new natural gas infrastructure, the continued integration of clean energy resources, aggressive investment in energy efficiency and distributed generation. The Governors will be focused on regional solutions and individual state efforts that can help the region reduce energy costs, reduce carbon pollution, and ensure the economic competitiveness of the New England region. [Colored & bold emphasis added.]

Nova Scotia

Mi’kmaq urged to look at LNG, fracking links (Apr 20) — The Chronicle Herald, Halifax, NS

SYDNEY — The federal government’s process for aboriginal consultation is working fairly well, but it is fraught with some ethical dilemmas that First Nation negotiators in Nova Scotia will have to address, says a prominent Mi’kmaq lawyer.

That includes the possibility of opposing hydraulic fracturing, or fracking, for petroleum products, while accepting benefits from an industry that profits from the process.

Talks over divestiture of Sydney Harbour broke down last fall between Cape Breton Regional Municipality and Transport Canada over inadequate consultation with First Nations, which have a land claim covering the entire province.

Northeast

Dominion Cove Point LNG submits construction status report — LNG Law Blog

Dominion Cove Point LNG has submitted a report to FERC on the status of construction of its LNG export terminal in Lusby, Md. As of the period ending March 2015, engineering is 77.7% complete, procurement is 78% complete, and construction is less than 2% complete.

Gulf of Mexico

Louisiana LNG Energy re-evaluating gas market — LNG Law Blog

Louisiana LNG Energy (LLNGE) has submitted a report to FERC regarding the status of its proposed LNG export terminal (Project) on the Mississippi River downstream from the Port of New Orleans near Mile Marker 46. LLNGE states that it is “currently re-evaluating the natural gas market and working with potential new investors for the Project” and the “Project schedule is anticipated to be moved back to Q3 of 2015.” [Colored & bold emphasis added.]

Freeport LNG to make train 3 FID next week — LNG World News

A final investment decision for the Freeport LNG export facility’s third liquefaction train will be reached next week.

Freeport LNG already made final investment decision on liquefaction trains 1 and 2 in November 2014. Train one is expected to commence production in the third quarter 2018, with the second liquefaction train following five months thereafter. As soon as the FID on the third liquefaction train is made, the construction will begin.

LNG firm holds first community meeting (Apr 21) — Valley Morning Star, Harlingen, TX

Houston-based Annova LNG’s first community open house for its proposal to build a liquefied natural gas export terminal at the Port of Brownsville attracted local residents for, against and somewhere in between.

Brownsville resident Judy Watson, sporting an anti-LNG sticker, took a firm stand against the project, as well as those proposed by other LNG companies with similar plans for the port.

Watson, a member of the group SaveRGVFromLNG, said she was there to demonstrate that some people oppose the plan. She’s worried about the effect of an LNG plant on air and water quality, wildlife, human health and local industries, she said.

“I’m opposed, absolutely, especially where they’re putting them,” Watson said. “They’re putting them in places that are critical habitat for fisheries. They support the shrimp industry here because that’s a shrimp nursery. The place they’re putting them couldn’t be worse. And the money’s not staying here.”

Alaska

Governor Walker’s gas pipeline bill passed (Apr 21) — LNG World News

Once signed into law, SB70 will authorize the issuance of a right-of-way lease for a natural gas pipeline through a corridor in the Denali State Park, Willow Creek, Nancy Lake, and Captain Cook State Recreation Areas, according to the governor’s media statement.

SB70 allows of the leasing of a corridor that will be adequate for either the Alaska LNG or Alaska Stand Alone pipeline project. The right-of-way within the authorized area will be approximately 120 feet wide for construction and 53 feet wide for operation under the ASAP project, and approximately 180 feet wide for construction and 100 feet wide for operation under the AKLNG project. Additionally, the bill requires the corridor to be managed as parkland and recreation areas until a lease is issued, and returned to original park and recreation land upon termination of the lease.

British Columbia

Council expressing concerns on proposed LNG projects (Apr 21) — The Squamish Chief, Squamish, BC

The District of Squamish has drafted a letter to the Environmental Assessment Office outlining concerns about the proposed Woodfibre LNG export facility and associated FortisBC Eagle Mountain – Woodfibre Gas Pipeline Project.

"While the District understands that this is a complex project and that establishing an LNG export industry in British Columbia is a significant objective of the provincial government, we have many substantial and well considered concerns as highlighted in this submission that we believe should be adequately addressed prior to issuance of any EA Certificate,” reads the conclusion of the letter to be signed by Mayor Patricia Heintzman.

Concerns outlined in the draft include: local issues such as possible harm to the marine environment from the seawater cooling system proposed for the Woodfibre LNG facility, and concern over protection of the Squamish Estuary and Wildlife Management Area from the proposed FortisBC natural gas pipeline.

Other issues include cumulative effects of the projects on Howe Sound at a time when there is evidence the Sound is recovering.

PGRT, Gitanyow First Nation sign project agreement — LNG World News

TransCanada’s Prince Rupert Gas Transmission unit said it has confirmed a project agreement with the Gitanyow First Nation of northern British Columbia.

PRGT is proposing to design, build, own and operate a 900 km natural gas pipeline to deliver natural gas from a point near Hudson’s Hope to the proposed Pacific NorthWest LNG facility at Lelu Island, off the coast of Port Edward, near Prince Rupert.

Oregon

Feds set target date for Oregon LNG review (Apr 21) — The Daily Astorian, Astoria, OR

WARRENTON — The Federal Energy Regulatory Commission could complete its final environmental review of the Oregon LNG project by next February.

Oregon LNG wants to build an 87-mile pipeline between Washington state and Oregon and a liquefied natural gas export terminal on the Skipanon Peninsula in Warrenton.

Dan Serres, the conservation director for Columbia Riverkeeper, a Hood River-based environmental group, said that regardless of FERC’s decision, Oregon will have the final say on whether the project conforms with its environmental laws.

“Along with thousands of Oregonians and Washingtonians, we will be urging the state of Oregon and federal agencies like the Army Corps of Engineers to deny permits that would allow Oregon LNG to harm salmon habitat, threaten public safety, and condemn private forest and farm lands,” Serres said in an email.

California

United States: PG&E fined a record $1.6 billion by California PUC for role in San Bruno pipeline explosion (Apr 21) — Mondaq

On April 9, 2015, the California Public Utilities Commission ("CPUC") voted unanimously to assess Pacific Gas & Electric Company ("PG&E") a $1.6 billion penalty for its role in the San Bruno pipeline explosion.† The explosion, which occurred on September 9, 2010, resulted in the deaths of eight people and injuries to 58 people, as well as the destruction and/or damage to many homes and city infrastructure. The transmission pipeline was owned and operated by PG&E.

The penalty to be assessed against PG&E is the highest that has been imposed in California's history. The CPUC ultimately approved the recommendation made by CPUC President Michael Picker, which was $200 million more than a penalty proposal made by the administrative law judge presiding over the proceedings last year. The penalty includes allocations of: $850 million for gas transmission pipeline safety infrastructure improvements; $300 million to the state's General Fund; $400 million in a one-time bill credit spread across PG&E's gas customers and approximately $50 million for other remedies to enhance pipeline safety.

Canada & United States

Canada proposes to extend gas export licenses to 40 years — LNG Law Blog

Bloomberg reports that the Canadian budget for 2015 released yesterday includes a proposal to extend gas export licenses from the current 25 years to 40 years and provide tax breaks on investment in LNG facilities. [Colored & bold emphasis added.]

Obama Administration releases Quadrennial Energy Review on energy infrastructure (Apr 21) — LNG Law Blog

Today, the Obama Administration, through the U.S. Department of Energy, has released its first installment of its Quadrennial Energy Review, which “examines how to modernize the Nation’s energy infrastructure to promote economic competitiveness, energy security, and environmental responsibility and take full advantage of American innovation and the new sources of domestic energy supply.” As related to LNG, the report recommends that Congress approve funds to promote renewable energy and LNG projects in Caribbean nations, and notes that a 2014 study commissioned by the Inter-American Development Bank determined that small-scale LNG transport and floating regasification infrastructure could be an economical method of displacing fuel oil and achieving a 30% reduction in carbon dioxide emissions by 2032 in eight Caribbean nations. [Colored & bold emphasis added.]

EIA: LNG export terminals under construction, more planned (Apr 17) — OilOnline

East Coast and Gulf Coast LNG terminals are moving closer to operational status.

Four of the five LNG terminals are brownfield projects that are being constructed on existing regasification sites already in operation. That allows them to share functions with existing LNG import facilities to conserve on construction and operating expenses. [Colored & bold emphasis added.]

CERAWeek: Weaker LNG projects could “lose their nerve” amid a slowdown, Parallax CEO says — mySanAntonio.com

Falling oil prices are pumping the brakes on the global liquefied natural gas market, forcing a much-needed cooling-off period for a white hot market that has rapidly expanded in recent years, a panel of LNG experts said Wednesday.

The crude collapse has paralyzed the market, forcing sellers to reevaluate pricey new projects and presenting buyers with an overwhelming amount of choices, said Martin Houston, CEO of Parallax, a Houston-based LNG company.

As the new low-price environment forces out the “crazy ideas” that never made economic or commercial sense, it also forces the industry to innovate while offering new opportunities for investment, said Gordon Shearer, CEO of consulting firm Metis Energy. [Colored & bold emphasis added.]

Webmaster's comment: Downeast LNG is one of the "'crazy ideas' that never made economic or commercial sense."

East Coast & Gulf of Mexico

U.S. LNG export terminals on the move towards commercial operations — Public Services Knowledge Network, Bulgaria

These East Coast and Gulf Coast facilities, representing nearly 9 billion cubic feet per day (Bcf/d) of LNG export capacity, are expected to begin operations in late 2015

Cheniere Energy's Corpus Christi, Texas, liquefaction export facility, approved by the Federal Energy Regulatory Commission (FERC) this past December, is moving toward construction with an anticipated start-date during the second quarter of 2015. If it occurs as planned, there will be five liquefied natural gas (LNG) export facilities in varying stages of construction in the Lower 48 states, EIA noted in a recent news release.

Four of these LNG terminals are brownfield projects being developed on existing regasification sites already in operation, which allows them to share functions with existing LNG import facilities to conserve on construction and operating expenses. Cheniere's Corpus Christi facility, being developed on Cheniere's La Quinta Channel property previously approved for a regasification facility (but not constructed), is the first greenfield project approved by FERC. These East Coast and Gulf Coast facilities, representing nearly 9 billion cubic feet per day (Bcf/d) of LNG export capacity, are expected to begin operations in late 2015. All of them are scheduled to be in service by 2018. [Colored & bold emphasis added.]

Webmaster's comment: Downeast LNG is a greenfield project with ensuing environmental baggage that brownfield projects do not have.

Oil prices challenge Cheniere's LNG export plan (Apr 19) — USA Today

The collapse in oil prices has shaken up executives from oil and natural gas companies, large and small — among them, Charif Souki.

…[T]he president, CEO and chairman of the Houston-based company knows that building his business further will be more difficult now that the price of oil has fallen by about half since last June, and oil and gas markets seem likely to remain volatile for some time.

In a recent report, Moody's Investor Service said the drop in oil prices will not interrupt projects already under construction, like Cheniere's Sabine Pass site in Louisiana. But lower oil prices will lead to the cancellation of most of the nearly 30 proposed projects in the U.S.

Alaska

Walker vetos bill to limit Alaska LNG competition (Apr 18) — Peninsula Clarion, Kenai, AK

JUNEAU, Alaska (AP) — Gov. Bill Walker vetoed legislation Friday that sought to temporarily restrict participation of a state-sponsored corporation in an alternate gas pipeline project that he proposed.

Supporters of the bill, sponsored by Chenault, said Walker’s proposal cast uncertainty over Alaska LNG, the major liquefied natural gas project the state is currently pursuing with oil and gas companies, TransCanada Corp., and the state-sponsored Alaska Gasline Development Corp.

British Columbia

Canada: Reality bites: Status of BC LNG — Mondaq

…[C]ertain realities regarding fundamental elements of these projects came into sharp focus, raising serious doubts as to whether some of the proposed projects will proceed on schedule, or at all. These include:

• The fall in the price of oil: LNG pricing has historically been effectively linked to the price of oil, and at least some project proponents expect to price their LNG on that basis if their BC LNG projects proceed.
• The challenges of controlling costs, securing sites and entering into the necessary commercial arrangements and alliances with First Nations and other stakeholder groups.
• The risk that LNG demand will be diverted from Canada to brownfield LNG projects on the US Gulf Coast, which have proceeded far more rapidly than expected as a result of fewer regulatory hurdles and their use of existing infrastructure.
• Increased competition for the Chinese market that will result from the massive gas export deals entered into between Russia and China.
• The possibility of Japan turning back on various nuclear powered generating stations, reducing the demand for LNG in the intermediate term

A number of BC LNG Project proponents have delayed or retrenched in part as a response to these developments:

• Petronas recently announced that its Final Investment Decision would be delayed beyond 2014 citing falling oil prices, rising construction costs and pending regulatory approvals that have not yet been obtained.
• Chevron and Shell have reduced global capital expenditures except for a few priority projects (which have not included their BC LNG investments) and Chevron has specifically reduced the pace of investment and expenditure on its BC LNG Facility.
• BG has delayed a Final Investment Decision, indefinitely, on its Prince Rupert LNG Export Terminal. The timing for its Final Investment Decision may be further complicated as a result of the recent announcement that it will be acquired by Shell.
• Apache sold its JV interest in Chevron's Kitimat LNG Project to Woodside Petroleum.
• According to recent Environmental Assessment Filings, Exxon and CNOOC/Nexen do not anticipate beginning construction on their respective LNG projects until next decade.

[Colored & bold emphasis added.]

Increase in drilling could be staggering if LNG plants move forward (Apr 19) — EnergeticCity.ca, Fort St. John, BC

Drilling in the Montney region will need to increase significantly if only a handful of the proposed LNG plants move forward. According to an article on platts.com, Tourmaline Oil CEO Michael Rose said the number of addition drilling that has to happen is staggering.

Those four plants would need 6.3 Bcf of natural gas a day. Geoff Morison of the Canadian Association of Petroleum Producers told platts.com, companies would need to drill 105 to 115 new wells a year to supply just 1 Bcf a day.

Oregon

FERC sets Oregon LNG final EIS date — LNG World News

According to the notice, FERC expects to issue the final EIS on February 12, 2016, while other Federal agencies will have a 90-day period to complete the review of the project components under their jurisdiction. The period ends May 12, 2016.

Oregon LNG’s proposed bidirectional LNG terminal would be located on the East Bank Skipanon Peninsula near the confluence of the Skipanon and Columbia Rivers in Warrenton, Clatsop County, Oregon.

United States

After dropping for a few years, U.S. greenhouse gas emissions creep up again in latest EPA tally (Apr 17) — Summit County Citizens Voice, Frisco, CO

FRISCO — U.S. greenhouse gas emissions have dropped 9 percent in the last 10 years, the EPA said this week, releasing its 20th annual national greenhouse gas inventory.

The latest tally is current through 2013, which shows a 2 percent increase from the previous year, due to increased energy consumption across all economic sectors and increased use of coal for electricity generation.

Greenhouse gas emissions are driving climate change, which threatens the health and well-being of Americans and future generations through decreased air quality; extremes in heat and other weather events; increased incidence of food-, water-, and insect-borne diseases; and other impacts. Comprehensive greenhouse gas emissions data are an essential tool to help understand the primary sources of emissions and identify cost-effective opportunities to reduce them. [Colored & bold emphasis added.]

Nova Scotia

FE calls for comments on Bear Head LNG export application (Apr 16) — LNG World News

Bear Head LNG requests to export the natural gas by pipeline to Canada at the United States-Canada border on the Maritimes & Northeast pipeline in a volume of 440 billion cubic feet per year, or approximately 1.2 Bcf per day. It is also requesting to use approximately 42.4 Bcf/yr of the U.S.-sourced natural gas as feedstock in a Canadian natural gas liquefaction and export facility currently being developed by Bear Head within the Point Tupper/Bear Head Industrial Park near the town of Port Hawksbury, on the Straight of Canso, Nova Scotia, and to export a portion of the U.S.-sourced natural gas in the form of LNG in a volume equivalent to approximately 397.6 Bcf/yr of natural gas to countries with which the United States does not have a free trade agreement.

The notice reveals that Bear Head stated that its proposed Project and LNG exports will not involve the construction of any facilities in the United States giving rise to cognizable effects under the National Environmental Policy Act, but may require modification and expansion of the M&N Pipeline system, which Bear Head LNG expects will interconnect with the project’s proposed pipeline header near Goldboro, Nova Scotia, for the delivery of natural gas feedstock to the project. [Colored & bold emphasis added.]

New England

New England needs 2 new natural gas pipelines (Apr 16) — CommonWealth Magazine, Boston, MA

Long-term, LNG is not the answer

There are myriad proposals in play right now – gas pipelines, electric transmission lines, wind farms, the list goes on and on. So how do we get to a sustainable long-term energy future where we can still afford electricity and groceries? The inconvenient truth is, there is no single silver bullet that will deliver what we need and want. Rather, it will take a portfolio of solutions.

Two pipelines have been proposed to bring more gas to New England. There has been much discussion about the design and capabilities of both projects, including whether one or the other might better alleviate high electric prices, maintain continued reliable delivery of natural gas to existing residential and business customers, and allow new customers to make natural gas their fuel of choice over oil.

But hope is on the horizon. Massachusetts, Rhode Island, and Connecticut recently announced a joint request for proposals for clean energy projects to serve all three states. And next week, Massachusetts Governor Charlie Baker will host all of the New England governors for a summit on regional energy issues. We hope that meeting will result in a proposal that will make these energy truths a lot more convenient. [Colored & bold emphasis added.]

Northeast

Anti-drilling protest interrupts Drexel energy forum (Apr 16) — Philly.com, Philadelphia, PA

A group of vocal anti-drilling activists Thursday night briefly disrupted a Drexel University symposium on exporting liquefied natural gas, giving the city a flavor of the opposition that LNG might arouse.

Shale gas opponents shout down industry speaker at Philadelphia LNG session — StateImpact Pennsylvania

Anti-fracking protestors late Thursday disrupted a public information session on the possibility of building a liquefied natural gas export terminal in Philadelphia, shouting down speakers from the industry and finally being ejected by security officers.

French made several attempts to restart his talk but was repeatedly shouted down by protestors who accused the company of wanting to “poison” air and water; of operating a “ponzi scheme” to profit from the people of Philadelphia, and of ignoring a “list of the harmed” containing names of some 6,000 people who say their health has suffered from unconventional gas development.

Although Philadelphia is well positioned to process and distribute Marcellus gas, that is unlikely to be in the form of LNG exports, argued Stephen Mullin, president of Econsult Solutions, which consults on public finance and policy analysis.

British Columbia

Canadian pipeline tolls ruling raises LNG export costs — Natural Gas Intelligence [Paid subscription]

A tall new cost hurdle has popped up on the path of liquefied natural gas (LNG) exports from British Columbia (BC), in the form of a restrictive ruling Wednesday by Canada’s National Energy Board (NEB) on pipeline tolls.

After taking the time to digest the NEB's 188-page decision, TransCanada-NGTL and Petronas-Progress steered clear of direct comment on the tolling aspect in statements. While praising the B.C. and federal governments for concessions granted to date, the companies remained non-committal about final investment decisions. The B.C. government, meanwhile, raised a possibility of additional concessions offsetting the new toll hurdle by introducing legislation enabling special provincial royalty deals to be cut with favored projects.

Expert gasses LNG myths (Apr 16) — The Prince George Citizen, Prince George, BC

An energy expert is in town to talk myths that mess with our understanding of the natural gas industry.

"… We're looking at how to liquidate our resources as fast as possible in the name of the economy of the government of the day."

"My thinking is we have to reduce consumption quite a lot," he said, adding Canada outpaces even Americans for energy consumption. "I would look at slowing the liquidation of the resource because we're likely to need it in the long term." [Colored & bold emphasis added.]

Canadian National Energy Board recommends approval of upstream feeder pipeline to Pacific NorthWest LNG terminal (Apr 16) — LNG Law Blog

Canada’s National Energy Board has recommended approval of the North Montney Mainline, which, according to the press release, will substantially increase capacity on TransCanada’s Nova Gas Transmission System. Once in operation, the North Montney Mainline will provide transportation service from Progress Energy’s upstream natural gas reserves to the proposed Prince Rupert Gas Transmission Line, which will supply the Petronas-sponsored Pacific NorthWest LNG export terminal near Prince Rupert, British Columbia.

B.C. minister ‘optimistic’ about LNG deal with Petronas despite delays (Apr 16) — The Globe and Mail, Toronto, ON

Rich Coleman expects a liquefied natural gas project led by Malaysia’s Petronas to forge ahead, but cautions that any final investment decision will be delayed by a lengthy federal environmental review.

The Canadian Environmental Assessment Agency (CEAA) launched its review of the Petronas-led Pacific NorthWest LNG joint venture in 2013. Since then, there have been delays as a result of the regulator seeking more information related to the project’s impact on salmon habitat at Flora Bank. Pacific NorthWest LNG is proposing to build an LNG export terminal on Lelu Island, located near Prince Rupert.

There are 19 B.C. LNG proposals, though experts say there is only room for a handful of projects provincially in a global industry where Canada lags countries such as Australia and the United States. “There’s a lot of competition out there,” Katherine Chance, a director in Navigant Consulting Inc.’s global energy practice, said Wednesday at Canadian Business Conferences’ LNG gathering in Vancouver.

Woodfibre LNG plant in Squamish likely won’t be up and running by 2017 (Apr 16) — The Georgia Strait, Vancouver, BC

There likely won’t be a single liquefied natural gas (LNG) plant operating in B.C. by the next provincial election in 2017.

… [Woodfibre vice president of corporate affairs Byng Giraud ] acknowledged that the original timeline of going into operation in early 2017 is “probably not achievable”.

Woodfibre LNG Limited, a subsidiary of Pacific Oil & Gas Limited, which is part of the Singapore-based RGE group of companies, has not made a final investment decision.

According to Giraud, his company expects to secure an environmental assessment certificate around summer. It will make a final investment decision before the end of 2015.

Here in the Lower Mainland, the District of West Vancouver passed a resolution in 2014 calling on the federal government not to allow LNG tankers in the Howe Sound.

Opposition from Aboriginal groups could delay LNG projects in Canada's British Columbia (Apr 16) — Platts

"With some 203 First Nations groups, BC [British Columbia] is primarily Indian land and we control the resources and also have rights guaranteed by the [Canadian] constitution," Stewart Phillip, president of the Union of BC Indian Chiefs said at the 3rd Annual Canadian LNG Exports Conference in Vancouver.

"The land we have should not be used by companies to extract resources and make money. The jury is still out for the development of LNG facilities in BC and we feel it will be a fading opportunity unless they consult us," Phillip said.

Phillip's statement came in the wake of Calgary-based Progress Energy stating last week that it was facing a 40% cost escalation of a gas feedstock pipeline for its LNG project in British Columbia following severe opposition from the Gitxsan First Nations group.

Oregon

FERC releases schedule for environmental review of Oregon LNG terminal — LNG Law Blog

FERC has released the schedule for its environmental review of Oregon LNG’s proposed import/export terminal in Warrenton, Ore. FERC expects to release its Final Environmental Impact Statement for the project on February 12, 2016. Other federal agencies will then have until May 12, 2016 to complete their review of the project components under their jurisdiction.

Maine, New England & Maritimes

Nova Scotia company wants to move LNG north through Maine for export — Bangor Daily News, Bangor, ME

PORTLAND, Maine — The first approved exporter of liquefied natural gas in Eastern Canada has asked U.S. energy regulators for permission to bring the fuel from central and western Canada through New England before shipping to foreign markets.

The company Bear Head LNG, a subsidiary of the Australian company Liquified Natural Gas Limited, has asked federal energy regulators for the ability to enter 25-year contracts for natural gas pipeline capacity of up to 1.2 billion cubic feet per day.

Spectra Energy, which owns the Maritimes and Northeast Pipeline, is seeking regulatory approval to reverse the direction of that pipeline, which has run north to south.

It plans to use natural gas harvested in Canada and the United States to feed the processing plant, but noted in its July presentation that there are various other potential sources of gas, including from offshore drilling sites south of Nova Scotia.

The company received approval from the Nova Scotia Utility and Review Board to begin construction in February and needs one remaining regulatory approval from the province’s environmental agency to begin construction there, according to a document filed with the U.S. Department of Energy earlier this month. [Colored & bold emphasis added.]

Webmaster's comment: Bear Head LNG has beat Downeast LNG to the punch. Downeast LNG's entire history has been as a project laggard.

Gulf of Mexico

Liquified gas meeting slated (Apr 15) — Valley Morning Star, Harlingen, TX

Annova LNG and its parent company, Exelon Generation, will hold a free community “open house” in Brownsville on April 21 to discuss its plans for construction of a liquefied natural gas export terminal at the Port of Brownsville.

Houston-based Annova is one of three companies that have proposed LNG plants at the port and have begun the required Federal Energy Regulatory Commission permitting process.

A group calling itself “Save RGV From LNG” has launched a grassroots campaign to keep LNG out of the Valley.

Alaska

Walker outlines gas pipeline plans in letter to lawmakers — Alaska Journal of Commerce

JUNEAU — Gov. Bill Walker says he can do the engineering for a scale-up for a state-led natural gas pipeline for $85 million and have the work done within a year. That’s in time to have it ready in case the state’s industry partners in the larger Alaska LNG Project decided not to proceed to final engineering in 2016.

Walker’s letter also acknowledged, possibly for the first time, that a liquefied natural gas, or LNG, partner will be needed for the state project, which is now only a pipeline from the North Slope to the Matanuska-Susitna Borough north of Anchorage.

British Columbia

Pacific NorthWest LNG welcomes B.C. gas pipe OK — Calgary Herald, Calgary, AB

On Wednesday, the National Energy Board said it will recommend federal approval of the North Montney Mainline Project proposed by Calgary-based TransCanada Corp. as part of its Nova Gas Transmission Ltd. (NGTL) system.

The $1.7-billion project will consist of two 42-inch pipeline sections totalling about 301 kilometres. It would allow transport of gas from northeastern B.C. and Alberta through an interconnection with TransCanada’s proposed Prince Rupert Gas Transmission Project to provide gas to the Petronas-led liquefied natural gas export facility on Lelu Island, near Prince Rupert.

TransCanada said construction cannot proceed until after the Pacific NorthWest LNG project has been sanctioned and it is proceeding with the Prince Rupert pipeline project.

In its announcement, the NEB said one of its panellists had the dissenting view that part of the project should not proceed as it crosses a natural area of significance to First Nations.

There are 19 B.C. LNG proposals, though experts say there is only room for a handful of projects provincially in a global industry where Canada lags countries such as Australia and the United States.

Oregon

‘It’s a high-risk game': Veresen Inc puts everything on the line with Jordan Cove LNG bet — Financial Post, Don Mills, ON

Don Althoff is betting the fate of his $5 billion company on a natural gas export project that — seven months before a potential positive investment decision — has yet to secure a single buyer.

“It’s a high-risk game,” the chief executive officer of Calgary-based Veresen Inc. said about his greenfield liquefied natural gas export project on the Port of Coos Bay in Oregon.

Veresen is working on a new LNG model, borrowed from Texas-based natural gas player Cheniere Energy Inc., focusing on tolling agreements with buyers rather than embedded investors the kind being pursued by Malaysia’s Petronas Bhd. and Royal Dutch Shell Plc. on Canada’s West Coast.

Apart from buyers, the company also has to tick off a few other boxes including a permit from the U.S. Federal Energy Regulatory Commission by June, which has been in the works for three years and cost the company $150 million. Veresen has already secured a license to export LNG to U.S. non-Free Trade Agreement countries, and is waiting to secure a siting permit from Oregon state for the power plant.

United States

DOE should just approve all LNG exports, trade group says — Natural Gas Intelligence [Paid subscription]

The U.S. Department of Energy (DOE) should give blanket liquefied natural gas (LNG) export approval to anyone who wants it and let projects queue up at FERC for their environmental reviews, America's Natural Gas Alliance (ANGA) CEO Marty Durbin said Thursday.

Applications to export LNG to free trade agreement (FTA) countries have always been presumed to be in the public interest and are routinely approved. Non-FTA export applications currently require a review at DOE that ANGA maintains is unnecessary. All exports -- FTA and non-FTA -- should be deemed to be in the public interest, Durbin told reporters during a conference call to introduce the group's latest pro-export whitepaper, "Carpe Diem, LNG Exports Are America's Once-in-a-Generation Opportunity." [Colored & bold emphasis added.]

Passamaquoddy Bay

LNG: Is anyone listening? – The Head Harbour Passage – Cobscook Bay Area is the single most important site along the North Atlantic Coast. — Fundy Tides

It has been repeated over and over for decades now as developers continue their attempts to establish heavy, polluting coastal fossil fuel industries in the Passamaquoddy – Cobscook Bay area and the unique entrance through Head Harbour Passage. For the benefit of the decision makers who are still allowing Downeat LNG to proceed with their proposed development application for Robbinston, Maine across from the resort town of St. Andrews-by-the-sea, here is a video that graphically shows how important this area is to marine mammals. This video maps actual whale reports for 10 common and not-so-common species and clearly demonstrates the importance of these areas to these species including the endangerd North Atlantic right whale. [Colored & bold emphasis added.]

Nova Scotia

Bear Head LNG fuels hope in Strait area — Cape Breton Post, Sydney, NS

PORT HAWKESBURY — A liquefied natural gas project that would bring industry and jobs to Cape Breton is getting closer to reality now that the majority of regulatory approvals and permits have been issued, according to the company behind the undertaking.

[Bear Head LNG project director John Godbold] said the only outstanding approval still required is an updated and modified registration document that is awaiting approval from the Nova Scotia Environment Department.

New England

LNG suppresses New England wholesale electricity prices — Energy Manager Today, Fort Collins, CO

New England saw an even colder winter this year than last reports the Hartford Courant, yet wholesale electricity costs were lower than last winter. The Courant reports temperatures across New England averaged 25.5 degrees this winter, versus 26.5 last winter. ISO New England data show that wholesale energy costs averaged $77 per MWh (or 7.7 cents per kWh) this winter.

Webmaster's comment: LNG imports at existing, underused LNG terminals — while one underused terminal (Neptune LNG) remained unused and out of service — resulted in lower electricity prices, demonstrating that there is no need for additional underused terminals in New England. Downeast LNG is a pipe dream.

Northeast

Fracking protesters turn attention to Port Ambrose project (Apr 14) — Capital New York, New York, NY

New York State's successful anti-fracking movement has found a new cause: Port Ambrose.

On Monday, in what was likely an unwelcome feeling of deja vu for Governor Andrew Cuomo, the familiar cast of environmental protesters who dogged him for years over the issue of fracking were on his trail again, this time demanding that he use his veto power to kill Port Ambrose.

The project has drawn opposition from thousands of residents in the city and Long Island as well as political leaders ranging from city Comptroller Scott Stringer, a Democrat, to Senate Republican leader Dean Skelos.

"It's not only Port Ambrose—it's the infrastructure" of fossil-fuel consumption, said Ling Tsou, an early critic of Port Ambrose. "If they keep building pipelines and transmission capacity, this is going to increase the pressure to do fracking."

For now, there's little reason for Cuomo to act on Port Ambrose. Federal regulators suspended the review process for the project, citing overwhelming public comment and new federal rules regarding pipeline construction. Once the hearing process is completed, either Cuomo or New Jersey governor Chris Christie will have the option to veto the project, stopping it in its tracks. [Colored & bold emphasis added.]

Gulf of Mexico

Cheniere plans final investment decision on U.S. LNG project within 30 days — Hellenic Shipping News, Hellas (Greece)

Cheniere aims to take a final investment decision on its planned Corpus Christi liquefied natural gas (LNG) export project in the United States within the next 30 days, undeterred by weak oil and gas prices worldwide.

Cheniere is already building the United States’ first LNG export plant at Sabine Pass, Louisiana, which is due to come on stream towards the end of the year.

“We will be the biggest LNG producer in the Atlantic … with 40 million tonnes of annual production,” once Sabine Pass and Corpus Christi are built, he added.

British Columbia

Thousands of LNG responses — The Squamish Chief, Squamish, BC

Council mulls 2,700 replies to engagement process

The district received more than 2,700 public comments from more than 500 citizens during the March 9 to 23 engagement period. About 85 per cent of respondents said they were Squamish residents, and the remaining 15 per cent were either from out of town or chose to remain anonymous, Verlaan said.

The top concerns expressed about the projects, according to Verlaan, included impacts to the marine environment from sea water and from the discharge of warmer chlorinated sea water from the LNG site, the relationship of the two projects to fracking, and impacts to the estuary from the pipeline construction and operation. Other concerns included pollution from the LNG operations, impacts to air quality and other health-related concerns.

Reflecting on the public engagement process, Councillor Doug Race said the public’s lack of trust in government institutions was palpable throughout the process and something that might have impacted Squamish residents’ perspective on the projects.

The Squamish Nation is also doing its own independent assessment of the project. A decision by chief and council is expected in late spring.

Green Party MLA challenges senior government’s clean energy claims — EnergeticCity.ca

The development of a liquefied natural gas industry in B.C. is under attack again by the lone Green Party member of the legislature.

This is not a new argument but Andrew Weaver is critical of the Clark government for promoting the LNG industry development, which he claims would make it impossible for the province to reach the already legislated target of a 33 per cent reduction in emissions by 2020.

The government continues to insist it is a leader in fighting climate change, but Mr. Weaver says that claim no longer has any credibility.

Editorial: LNG players need aboriginal answers (Apr 14) — Business Vancouver, Vancouver, BC

The treaty claims industry is more than a First Nations financial burden

The province … faces another wild card unique to B.C.: uncertainty over aboriginal involvement and land claims. As illustrated by the controversy over the provincial government’s 11th-hour about-face on the appointment of former Liberal cabinet minister George Abbott as the BC Treaty Commission’s new chief, B.C.’s aboriginal land claims process remains dysfunctional.

As outlined in EY’s Competing in the Global LNG Market report, gaining First Nations support is one of five critical competitive factors facing Canadian LNG projects.

Failure to secure that support will trump government optimism and incentive – no matter how generous – when it comes to international resource development megaprojects.

Oregon

Army Corps of Engineers requests FERC to consider alternatives in Jordan Cove Energy terminal Final EIS — LNG Law Blog

U.S. Army Corps of Engineers, Portland District, (COE) has submitted extensive comments on FERC’s draft Environmental Impact Statement (EIS) for Jordan Cove Energy Project’s (JCEP) proposed LNG import/export terminal in Coos Bay, Ore. COE requested, among other things, that (1) FERC consider the proposed Oregon LNG export terminal in Warrenton, Ore., and proposed LNG export terminals in British Columbia as possible alternatives to JCEP’s proposal, and (2) FERC’s environmental analysis consider the JCEP and Oregon LNG projects “collectively and in contrast to each other” since both projects have “identical Purpose[s] and Need[s]” and are occurring in the same timeframe.

Webmaster's comment: Unfortunately, FERC does not like to consider actual alternatives to a project. What FERC likes to consider is alternatives at a particular proposed terminal, by the same applicant.

United States

United States: Coast Guard proposes to revise LNG deepwater port regulations — Mondaq

Changes would affect regulations governing LNG imports and exports from offshore

• The proposed revisions are expected to help expedite licensing reviews by clarifying the regulatory process and cooperating agency requirements.
• The proposed rule would also update the regulations to account for new technologies and uses, including LNG exports.

On April 9, 2015, the U.S. Coast Guard issued a Notice of Proposed Rulemaking (NPRM) in the Federal Register seeking public comments on a proposed overhaul of its existing regulations implementing the Deepwater Port Act of 1974 (DWPA). The proposed revisions should, among other things, help expedite licensing reviews by clarifying the regulatory process. The rulemaking also updates the regulations to account for recent trends in the natural gas industry, including facilitating the licensing of deepwater ports as liquefied natural gas (LNG) export terminals.

The proposed revisions also clarify the jurisdictional roles between the Coast Guard and PHMSA with respect to deepwater port pipelines and subsea components. The rulemaking also updates the regulations to account for licensing export terminal facilities and for technologies such as submerged turret loading buoys, which are commonly used in floating LNG regasification terminals. Finally, the proposed rule updates and revises a number of design and operational requirements regarding facility equipment and safety.

The Coast Guard is accepting public comments on the proposed rule until Wednesday, July 8, 2015. [Colored & bold emphasis added.]

Fracking waste puts public at risk, study says — InsideClimate News

Three decades after EPA left regulation to states, they're still taking a 'see no evil' approach to oil-and-gas-waste, Earthworks says.

Weakness in state regulations governing hazardous oil-and-gas waste have allowed the leftovers to be disposed of with little regard to the dangers they pose to human health and the environment, according to a recent study by the environmental organization Earthworks.

In its report, "Wasting Away: Four states' failure to manage gas and oil field waste from the Marcellus and Utica Shale," Earthworks studied rules governing disposal of the often toxic waste––and the gaps in those regulations in New York, Pennsylvania, West Virginia and Ohio.

The EPA granted the exemption from federal hazardous-waste laws even though the agency estimated that without the exemption, 10 to 70 percent of oil-and-gas waste could be considered hazardous. The EPA reasoned that states could adequately regulate the waste.

U.S. energy imports and exports to come into balance for first time since 1950s (Apr 16) — Hellenic Shipping News, Hellas (Greece)

Projections in EIA’s Annual Energy Outlook 2015 (AEO2015), released April 14, show the potential to eliminate net U.S. energy imports sometime between 2020 and 2030. This reflects changes in both supply and demand, as continued growth in oil and natural gas production and the use of renewables combine with demand-side efficiencies to moderate demand growth. The United States has been a net importer of energy since the 1950s.

In most of these cases, natural gas is the dominant U.S. energy export, while crude oil and liquid fuels continue to be imported. In all cases, the United States transitions from a net importer of natural gas to a net exporter in 2017. These natural gas exports are mostly sent by pipeline to Mexico or in the form of liquefied natural gas (LNG) to other countries.

World

Fossil fuels just lost the race against renewables — (Bloomberg) Renewable Energy World

This is the beginning of the end.

The race for renewable energy has passed a turning point. The world is now adding more capacity for renewable power each year than coal, natural gas, and oil combined. And there's no going back.

"The electricity system is shifting to clean,'' Michael Liebreich, founder of [Bloomberg New Energy Finance], said in his keynote address. "Despite the change in oil and gas prices there is going to be a substantial buildout of renewable energy that is likely to be an order of magnitude larger than the buildout of coal and gas." [Colored & bold emphasis added.]

Passamaquoddy Bay

Downeast LNG, Inc.; Application for long-term authorization to export liquefied natural gas produced from domestic natural gas resources to Non-Free Trade Agreement Countries for a 20-year period (Mar 16) — Federal Register, Washington, DC

This document has a comment period that ends in 31 days (05/15/2015)

The Office of Fossil Energy (FE) of the Department of Energy (DOE) gives notice of receipt of an application (Application), filed on October 15, 2014, by Downeast LNG, Inc. (DELNG), requesting long-term, multi-contract authorization to export domestically produced natural gas in a volume equivalent to approximately 168 billion cubic feet (Bcf) per year, or approximately 0.46 Bcf per day. DELNG seeks authorization to export the natural gas as liquefied natural gas (LNG) by vessel from its proposed LNG terminal to be located in Robbinston, Maine, referred to as the Downeast LNG Import-Export Project.

DELNG requests authorization to export LNG to any country with which the United States does not have a free trade agreement (FTA) requiring national treatment for trade in natural gas and with which trade is not prohibited by U.S. law or policy (non-FTA countries). DELNG requests this non-FTA export authorization for a 20-year term to commence on the earlier of the date of first export or eight years from the date the authorization isgranted. DELNG requests this authorization both on its own behalf and as agent for other entities who hold title to the LNG at the time of export. The Application was filed under section 3 of the Natural Gas Act (NGA). [Colored & bold emphasis added.]

Nova Scotia

Session sparks hopes of jobs at Point Tupper LNG project — The Chronicle Herald, Halifax, NS

The partially built LNG site already includes roads, cleared land, some site preparation and foundations for two LNG tanks.

If the project gets approved this year, the company expects to make a final investment decision in 2016 and will begin construction after that, with commercial operation to start in 2019.

Anyone wishing to comment can do so to the Environment Department by May 8. The minister is expected to decide on the approval by May 28.

Gulf of Mexico

DOE vacates Pangea LNG (North America) Holdings’ FTA export authority — LNG Law Blog

The U.S. Department of Energy (DOE) has issued an order: (1) vacating Pangea LNG (North America) Holdings’ (Pangea) authority to export LNG to nations with a Free Trade Agreement (FTA) with the United States from Pangea’s proposed South Texas LNG Export Project, (2) withdrawing Pangea’s pending Non-FTA export application, and (3) vacating DOE’s notice authorizing a change in control. The order was issued in response to Pangea’s request, which stated that Pangea had never exported any LNG under its authority, that it did not intend to pursue efforts to export LNG, and that the proposed acquisition of Pangea by NextDecade Partners, LLC, never materialized and is no longer being contemplated. [Colored & bold emphasis added.]

FERC issues draft EIS for Lake Charles LNG (Apr 13) — LNG World News

The project proposed by Lake Charles LNG includes construction of three liquefaction trains, each with a production capacity sufficient to produce 5.48 million metric tons per annum of LNG for export, modifications and upgrades at the existing LNG terminal and about 0.5 mile of 48-inch-diameter feed gas line to supply natural gas to the liquefaction facility from existing gas transmission pipelines together with several other modifications and upgrades to existing facilities, FERC said in its notice.

FERC’s environmental staff concludes that construction and operation of the project would result in adverse environmental impacts, but most impacts would be reduced to less-than-significant levels.

Webmaster's comment: FERC still hasn't seen an LNG terminal project it doesn't like — no LNG project has ever resulted in significant adverse environmental impacts. How likely is that?

FERC approves Rio Grande LNG’s request to initiate Pre-Filing procedures — LNG Law Blog

Yesterday, FERC issued an order approving Rio Grande LNG, LLC’s (RGLNG) request that FERC initiate the pre-filing environmental review process for RGLNG’s proposal to construct a natural gas liquefaction and LNG export terminal facility in Cameron County, Texas, along the north embankment of the Brownsville Ship Channel. The facility would have an LNG production capacity of approximately 3.6 Bcf/day and would receive gas from the proposed Rio Bravo Pipeline, which would have a capacity of up to 4.5 Bcf/day.

FERC initiates Pre-Filing review for Texas LNG Brownsville LLC facility — LNG Law Blog

Today, FERC issued an order approving Texas LNG Brownsville LLC’s (Texas LNG) request for initiation of pre-filing environmental review procedures for its proposed 4 million tonnes per annum (approximately 0.5 Bcf/day) LNG production, storage and export facility to be located in the Port of Brownsville, Texas.

British Columbia

Shell’s B.C. LNG project in jeopardy after $70-billion merger with BG Group, analysts say — Financial Post, Don Mills, ON

British Columbia, already facing the possibility of losing BG Group Plc’s natural gas export project on the West Coast, could also see Royal Dutch Shell Plc.’s own LNG proposal slip away, as analysts examine the fallout from the two companies’ $70 billion merger.

United States

Moody's forecasts cancellation of many U.S. LNG export projects (Apr 7) — Natural Gas Intelligence [Paid subscription]

Cheniere Energy Inc. has a first-mover advantage that some might not have anticipated at the time it got in front of the pack of would-be U.S. liquefied natural gas (LNG) exporters: two of the company's projects are advancing while dozens of projects by others could flounder in a market weakened by cheap oil and LNG oversupply.

"Lower oil prices are causing LNG suppliers to curtail their capital budgets. This will result in the cancellation of a majority of the almost 30 proposals [to export LNG] in the U.S., 18 in western Canada and four in eastern Canada," Moody's Investors Service said in a note Tuesday titled "Lower Oil Prices Cause Suppliers of Liquefied Natural Gas to Nix Projects."

"These early movers already have their liquefaction projects under construction and ready access to developed sources of natural gas, and are assured a new source of cash flow longer term." Besides Cheniere, others with U.S. projects under construction are Sempra Energy (Cameron LNG LLC) and Dominion Resources Inc. (Cove Point LP) and Freeport LNG.

With Henry Hub gas at below $3/MMBtu and Brent crude at about $50/bbl, U.S. LNG linked to U.S. gas prices would cost about $10/MMBtu to deliver to East Asia, slightly more than the almost $9/MMBtu estimated for LNG under traditional oil-linked contracts, Moody's said. "With spot LNG prices in East Asia currently about $10/MMBtu and about $7/MMBtu in Europe, U.S. gas-linked supplies would be near breakeven levels in Asia and unprofitable in Europe." [Colored & bold emphasis added.]

Webmaster's comment: Downeast LNG is swimming in bad news.

Hearing to examine status of rail, pipeline, & hazmat safety rules (Apr 9) — Transportation & Infrastructure Committee, US House of Representatives

Washington, DC - The Subcommittee on Railroads, Pipelines, and Hazardous Materials, chaired by U.S. Rep. Jeff Denham (R-CA), will hold a hearing … on the status of current federal railroad, pipeline, and hazardous materials safety rulemakings.

[The] hearing, entitled “Oversight of Ongoing Rail, Pipeline, and Hazmat Rulemakings,” is scheduled to begin at 10:00 a.m. on Tuesday, April 14, 2015, in 2167 Rayburn House Office Building.

Passamaquoddy Bay, Maritimes & Northeast

North American LNG export dream evaporating (Apr 8) — OilPrice.com

[This article also appears under the Canada, United States & North America heading.]

The rush to export natural gas from North America was nice while it lasted.

But the spot prices for liquefied natural gas (LNG) in Asia have collapsed, leaving a shrinking opportunity on the table for the plethora of export proposals. Much of that has to do with oil prices falling by half over the past year because LNG prices are linked to the price of oil in much of the world. The latest data from Platts shows that the Japan/Korea Marker (JKM) – the benchmark for LNG in northeast Asia – fell to just $7.279 per million Btu (MMBtu) for April delivery, or nearly 60 percent lower than they were at this time in 2014.

…The problem is that while each individual project makes sense to complete if it is already underway, collectively they are running head on into a buzz saw.

Fortunately for developers in North America, the vast majority of the projects on the drawing board have not received final investment decisions. That will limit the losses when they are ultimately scrapped. Cheniere Energy’s Sabine Pass is already under construction, and its Corpus Christi project may move forward as well. Other brownfield sites could also proceed, owing to their lower costs. But new greenfield projects in North America are as good as dead. [Colored & bold emphasis added.]

Global supply glut threatens British Columbia’s LNG projects (Apr 7) — The Globe and Mail, Toronto, ON

[This article also appears under the British Columbia & Oregon heading.]

Most liquefied natural gas export projects are at risk of being cancelled in North America as a result of a looming global glut of LNG, putting a damper on British Columbia’s energy dreams.

Moody’s said the “vast majority” of North American proposals face outright cancellation. “Many sponsors – including those in the U.S., Canada and Mozambique that have missed that window of opportunity as oil prices have declined – will face a harder time inking the final contracts, most likely resulting in a delay or a cancellation of their projects,” the credit rating agency said.

Moody’s warns that the prospects appear bleak for the bulk of B.C. projects and most of the ventures elsewhere in North America, notably nearly 30 proposals in the United States and a handful in Central and Eastern Canada.

LNG ventures on Canada’s East Coast face greater challenges than those in British Columbia. “We believe that Eastern Canadian projects are less likely to go forward because of the difficulty in importing sufficient gas supplies through the already gas-constrained New England region of the U.S.,” Moody’s said. [Colored & bold emphasis added.]

Moody's sees vast majority of U.S. LNG projects cancelled; Cheniere's (LNG) Corpus Christi project likeliest to move forward (Apr 7) — StreetInsider.com

[This article also appears under the Gulf of Mexico, British Columbia & Oregon, Canada, United States & North America headings.]

Moody's says low LNG prices will result in the cancellation of the vast majority of the nearly 30 liquefaction projects currently proposed in the US, 18 in western Canada, and four in eastern Canada.

"The drop in international oil prices relative to US natural gas prices has wiped out the price advantage US LNG projects, reversing the wide differentials of the past four years that led Asian buyers to demand more Henry Hub-linked contracts for their LNG portfolios," says Moody's Senior Vice President Mihoko Manabe.

However, projects already under construction will continue as planned, which will lead to excess liquefaction capacity over the rest of this decade. Notably, through 2017, Australia will see new capacity come online from roughly $180 billion in investments, which will result in a 25% increase in global liquefaction capacity. Likewise, the US is poised to become a net LNG exporter after the Sabine Pass Liquefaction LLC (Ba3 stable) project goes into service in the fourth quarter of 2015.

Greenfield projects on undeveloped property are much more expensive, involve more construction risk, and take longer to build than brownfield projects, which re-purpose existing LNG regasification sites. Greenfield projects are also frequently challenged by local opposition and occasionally by untested laws and regulations. Based on the public estimates of companies building new LNG liquefaction capacity, the median cost to build a US brownfield project is roughly $800 per ton of capacity, compared with the more advanced Australian greenfield projects, now estimated at around $3,400 per ton. [Colored & bold emphasis added.]

Webmaster's comment: Downeast LNG president Dean Girdis is hoping his project's investors are blissfully ignorant of these realities.

More LNG than market needs for a while, bank says (Apr 6) — Natural Gas Intelligence [Paid subscription]

[This article also appears under the Canada, United Staters & North America heading.]

A spate of new liquefied natural gas (LNG) supply is slated to be brought online in the coming months, just when the market really doesn't need any more, which makes for a "frosty outlook for liquid gas," Bank of America Merrill Lynch said in a note last week.

"As a result, we believe the stars are aligned for lower European gas prices in 2H15 on higher LNG inflows, higher volumes from Russia and shrinking domestic demand due to efficiency gains," the bank's global commodity research analysts said.

All that gas won't be getting a warm welcome in the market. Spot LNG prices in Asia fell from about $15/MMBtu last September to about $7.50 currently. "Prices averaged just $9/MMBtu from November to March, a big step down from the average of $16+ realized in each previous winter since the 2011 earthquake shut down nukes in Japan." Bank of America said. "Global LNG supply has finally caught up with demand...and the recent price action was exacerbated by the sharp decline in crude oil prices." [Colored & bold emphasis added.]

Webmaster's comment: This is exactly the kind of news that Downeast LNG doesn't want to hear.

Southeast

FERC disclaims jurisdiction over Pivotal LNG facilities (Apr 7) — LNG World News

The U.S. Federal Energy Regulatory Commission has issued an order declaring that Pivotal LNG and its affiliates that produce the chilled gas for export by a third party would not be subject to the Commission’s NGA section 3 jurisdiction.

In addition to its Trussville, Alabama LNG facility, Pivotal requested the commission declare four other existing liquefaction and storage facilities, operated by its affiliates, will be nonjurisdictional. The affiliated facilities are the Riverdale LNG facility in Riverdale, Georgia; the Cherokee LNG facility in Ball Ground, Georgia; the Macon LNG facility in Macon, Georgia; and the Chattanooga LNG facility in Chattanooga, Tennessee, FERC said in its notice.

On September 4, 2014, the commission issued an order determining that the transportation of LNG by nonpipeline means would not subject Pivotal and its affiliates to the commission’s jurisdiction and that the LNG facilities owned by Pivotal and its affiliates would not be “LNG Terminals” as defined by NGA section 2. However, the September 2014 Declaratory Order was limited to transactions in which LNG was subsequently transported by waterborne vessel to end users in noncontiguous states and territories.

Pivotal now seeks a declaratory order finding that the LNG facilities it identifies would not be deemed “LNG Terminals” subject to the commission’s NGA section 3 jurisdiction when engaging in transactions which ultimately result in any of the LNG they produce being exported. Specifically, Pivotal expects it or its affiliates to sell LNG that is produced at the identified inland LNG facilities or supplied by a third party, transported by Pivotal, an affiliate, or third party in interstate and intrastate commerce by means other than interstate pipeline and subsequently exported, or resold for ultimate export, by a third party. [Colored & bold emphasis added.]

Webmaster's comment: All of Pivotal's LNG facilities are inland; thus, FERC considers them not to be marine LNG terminals. However, the pending new Chair of the FERC Commission disagrees. See the following article, below.

United States: Once again, Commission disclaims jurisdiction over LNG facilities (Apr 9) — Mondaq

On April 2, the Federal Energy Regulatory Commission (FERC, or the Commission) issued another order regarding the Commission's regulation of liquefied natural gas (LNG) activities (the Recent Order). We have previously described the Commission's responses to similar requests for findings of nonjurisdictional status concerning planned natural gas operations. The Recent Order was not surprising, based on the Commission's responses to those prior requests. Again, the Commission disclaimed jurisdiction over operations contemplated by Pivotal LNG, Inc. (Pivotal), and again, Commissioner and soon-to-be Chairman Norman Bay issued a vigorous dissent expressing a more expansive view of FERC jurisdiction under the Natural Gas Act (NGA).

Based on Shell and Emera, and its analysis of the NGA Section 2(11) definition of "LNG Terminal," the Commission determined in the Recent Order that, in order to be subject to Commission jurisdiction under Section 3 of the NGA, a facility must be (1) connected to a pipeline that delivers gas to or sends gas from the facility and (2) located at the point of import or export such that LNG is directly transferred to or from an ocean-going, bulk-carrier LNG tanker. Because Pivotal's facilities are located inland and are therefore not capable of transferring LNG directly onto ocean-going tankers, the Commission disclaimed NGA Section 3 jurisdiction.

In his dissent, Commissioner Bay argued that the majority failed to address the plain language of the Natural Gas Act. Quite simply, according to Bay, the NGA requires any person engaged in the importation or exportation of natural gas in foreign commerce to first secure an order from the Commission authorizing it to do so. Bay argues that the majority conflates Section 3(e), which relates to "LNG terminals," and Section 7, which covers "transportation facilities." Just because Pivotal's facilities do not fall under the definition of an "LNG terminal" does not, Bay insists, mean they completely escape Commission regulation. Bay further argues that "nothing in Section 3 conditions the Commission's jurisdiction upon the existence of a pipeline running to the point of export."10 In sum, Bay argues that the "majority . . . ignores the plain language of the [NGA], substitutes its policy judgment for that of Congress, and undermines national uniformity with respect to the import or export of gas." [Colored & bold emphasis added.]

Webmaster's comment: It appears that we may see a shift toward more thorough vetting of LNG facilities once Commissioner Bay steps into the Chairman's position.

Gulf of Mexico

Moody's sees vast majority of U.S. LNG projects cancelled; Cheniere's (LNG) Corpus Christi project likeliest to move forward (Apr 7) — StreetInsider.com

[This article also appears under the Passamaquoddy Bay, Maritimes & Northeast, British Columbia & Oregon, Canada, United States & North America headings.]

Moody's says low LNG prices will result in the cancellation of the vast majority of the nearly 30 liquefaction projects currently proposed in the US, 18 in western Canada, and four in eastern Canada.

"The drop in international oil prices relative to US natural gas prices has wiped out the price advantage US LNG projects, reversing the wide differentials of the past four years that led Asian buyers to demand more Henry Hub-linked contracts for their LNG portfolios," says Moody's Senior Vice President Mihoko Manabe.

However, projects already under construction will continue as planned, which will lead to excess liquefaction capacity over the rest of this decade. Notably, through 2017, Australia will see new capacity come online from roughly $180 billion in investments, which will result in a 25% increase in global liquefaction capacity. Likewise, the US is poised to become a net LNG exporter after the Sabine Pass Liquefaction LLC (Ba3 stable) project goes into service in the fourth quarter of 2015.

Greenfield projects on undeveloped property are much more expensive, involve more construction risk, and take longer to build than brownfield projects, which re-purpose existing LNG regasification sites. Greenfield projects are also frequently challenged by local opposition and occasionally by untested laws and regulations. Based on the public estimates of companies building new LNG liquefaction capacity, the median cost to build a US brownfield project is roughly $800 per ton of capacity, compared with the more advanced Australian greenfield projects, now estimated at around $3,400 per ton. [Colored & bold emphasis added.]

Webmaster's comment: Downeast LNG president Dean Girdis is hoping his project's investors are blissfully ignorant of these realities.

Proposed LNG plants fuel environmental debate (Apr 4) — The Monitor, McAllen, TX

BROWNSVILLE — Proposals for the construction of Liquefied Natural Gas export terminals at the Port of Brownsville have raised the hackles of local environmentalists.

The companies behind three proposed LNG terminals holding lease options on the Brownsville Ship Channel announced last month that they had submitted “prefiling” applications with the Federal Energy Regulatory Agency, the initial step in the roughly two-year FERC permitting process.

The three companies are Annova LNG, NextDecade and Texas LNG Brownsville, all headquartered in the Houston area. Their plan is to build facilities to convert natural gas into a liquid state (accomplished by chilling it to minus 261 degrees Fahrenheit) in order to shrink its volume for shipment aboard special LNG vessels to overseas markets in Asia and elsewhere.

FERC has permitted six LNG export terminals around the country to date: at Freeport and SabinePass in Texas, and also in Louisiana, Maryland, Oregon and Virginia.

FERC approves construction of Sabine Pass liquefaction trains 5 and 6 (Apr 8) — LNG World News

Federal Energy Regulatory Commission issued an order approving Cheniere Energy’s Sabine Pass LNG Stage 3 expansion.

As FERC said in its order, the proposed construction of trains 5 and 6 in Stage 3 would increase the liquefaction project’s total authorized production capacity from approximately 20 mtpa, or 2.76 Bcf per day, to approximately 29 mtpa, or 4.14 Bcf per day.

Caribbean

Jamaica signs energy agreement with US (Apr 9) — The Gleaner, Kingston, Jamaica, West Indies

Jamaica could finally get the long-touted liquefied natural gas (LNG) project off the ground with the signing of an energy cooperation agreement with the United States Government.

Speaking with The Gleaner after the signing, Energy Minister Phillip Paulwell said the Government is optimistic particularly at the prospect of becoming a hub for distribution of LNG from the US to the rest of the region.

The US Department of Energy was represented by Dr. Ernest Monitz, who is part of the delegation of US president, Barack Obama, who arrived in the island yesterday. [Colored & bold emphasis added.]

Alaska

Walker to review AK LNG (Apr 8) — Alaska Journal of Commerce

Gov. Bill Walker has ordered a 45-day review of the state’s participation in the Alaska LNG Project with an eye toward possible changes in the partnership with North Slope producing companies and TransCanada Corp.

BP, ConocoPhillips and ExxonMobil are partners in the deal along with pipeline company TransCanada, with ExxonMobil acting as project manager in the preliminary front-end engineering and design, or pre-FEED, effort now underway.

British Columbia & Oregon

Opposition to Woodfibre LNG heats up in Squamish (Apr 9) — The Vancouver Sun, Vancouver, BC

Opposition to the proposed Woodfibre LNG plant is escalating in Squamish and Howe Sound, where a protest — not the first — involving hundreds of opponents marched through downtown Squamish Sunday venting their rage at the plan.

Although the plant’s supporters value the project’s potential tax base and promised jobs, critics believe the future of Squamish — recently cited as one of just two Canadian destinations in the New York Times’s list of 52 best places in the world to visit in 2015 — is largely in tourism and outdoor recreation, and that Woodfibre LNG’s alleged negative environmental impacts don’t square with that.

As well, critics are angry that by backing Woodfibre LNG, B.C. is cozying up to Indonesian billionaire Sukanto Tanoto, considered by many to be one of the planet’s worst environmental plunderers after his logging company, APRIL, cut down swaths of Indonesia’s rainforests, destroying wildlife habitat and inflicting a heavy toll on indigenous peoples.

“We’re not anti-industry, I want to make that perfectly clear,” Saxby said. “But Squamish has really diversified since the pulp mill shut down (in 2006). We’ve got two universities, brand new tourism infrastructure and StartUp Squamish, which is focused on bringing innovative entrepreneurs into town. There’s all these other industries and businesses that have located here, the rec-tech industry, knowledge-based industries and all these people have relocated to Squamish on the promise that we are this fantastic outdoor recreational town.

Squamish council, which has been largely cool to Woodfibre LNG, recently rejected an application by B.C. utility provider FortisBC to study the feasibility for a natural gas export pipeline by drilling five holes in the Squamish estuary.

Woodfibre LNG concerns aired (Apr 9) — Coast Reporter, Sechelt, BC

Speakers at a presentation in West Vancouver on the risks associated with the proposed LNG project in Howe Sound voiced concerns, Wednesday, April 1 over everything from environmental contamination to the risk of explosions from transporting natural gas.

Hosted at the Gleneagles Golf Course clubhouse by the Future of Howe Sound Society and in collaboration with MySeatoSky.org and Concerned Citizens of Bowen, the “Woodfibre LNG: Is it right for Howe Sound?” event saw four speakers and area residents voicing concerns over the potential dangers the project could present if approved. The event saw an attendance of more than 100 people.

[Eoin Finn, who holds a PhD in physical chemistry and is a close follower of the LNG project,] said an LNG plant of this size has never before existed in Canada. He has concerns over the country’s lack of environmental regulations in place against this particular resource.

Global supply glut threatens British Columbia’s LNG projects (Apr 7) — The Globe and Mail, Toronto, ON

[This article also appears under the Passamaquoddy Bay, Maritimes & Northeast heading.]

Most liquefied natural gas export projects are at risk of being cancelled in North America as a result of a looming global glut of LNG, putting a damper on British Columbia’s energy dreams.

Moody’s said the “vast majority” of North American proposals face outright cancellation. “Many sponsors – including those in the U.S., Canada and Mozambique that have missed that window of opportunity as oil prices have declined – will face a harder time inking the final contracts, most likely resulting in a delay or a cancellation of their projects,” the credit rating agency said.

Moody’s warns that the prospects appear bleak for the bulk of B.C. projects and most of the ventures elsewhere in North America, notably nearly 30 proposals in the United States and a handful in Central and Eastern Canada.

LNG ventures on Canada’s East Coast face greater challenges than those in British Columbia. “We believe that Eastern Canadian projects are less likely to go forward because of the difficulty in importing sufficient gas supplies through the already gas-constrained New England region of the U.S.,” Moody’s said. [Colored & bold emphasis added.]

Moody’s puts a damper on B.C.’s LNG dreams (Apr 8) — GlobalNews.ca

CALGARY — There may be fewer contenders vying to export liquefied natural gas from British Columbia once Royal Dutch Shell acquires Britain’s BG Group in a deal worth $70 billion (U.S.).

“Shell would want to make sure they’re not competing against themselves,” said Geoff Hill, partner with Deloitte’s oil and gas practice.

Moody's sees vast majority of U.S. LNG projects cancelled; Cheniere's (LNG) Corpus Christi project likeliest to move forward (Apr 7) — StreetInsider.com

[This article also appears under the Passamaquoddy Bay, Maritimes & Northeast, Gulf of Mexico, and Canada, United States & North America headings.]

Moody's says low LNG prices will result in the cancellation of the vast majority of the nearly 30 liquefaction projects currently proposed in the US, 18 in western Canada, and four in eastern Canada.

"The drop in international oil prices relative to US natural gas prices has wiped out the price advantage US LNG projects, reversing the wide differentials of the past four years that led Asian buyers to demand more Henry Hub-linked contracts for their LNG portfolios," says Moody's Senior Vice President Mihoko Manabe.

However, projects already under construction will continue as planned, which will lead to excess liquefaction capacity over the rest of this decade. Notably, through 2017, Australia will see new capacity come online from roughly $180 billion in investments, which will result in a 25% increase in global liquefaction capacity. Likewise, the US is poised to become a net LNG exporter after the Sabine Pass Liquefaction LLC (Ba3 stable) project goes into service in the fourth quarter of 2015.

Greenfield projects on undeveloped property are much more expensive, involve more construction risk, and take longer to build than brownfield projects, which re-purpose existing LNG regasification sites. Greenfield projects are also frequently challenged by local opposition and occasionally by untested laws and regulations. Based on the public estimates of companies building new LNG liquefaction capacity, the median cost to build a US brownfield project is roughly $800 per ton of capacity, compared with the more advanced Australian greenfield projects, now estimated at around $3,400 per ton. [Colored & bold emphasis added.]

Webmaster's comment: Downeast LNG president Dean Girdis is hoping his project's investors are blissfully ignorant of these realities.

Canada, United States & North America

North American LNG export dream evaporating (Apr 8) — OilPrice.com

[This article also appears under the Passamaquoddy Bay, Maritimes & Northeast, heading.]

The rush to export natural gas from North America was nice while it lasted.

But the spot prices for liquefied natural gas (LNG) in Asia have collapsed, leaving a shrinking opportunity on the table for the plethora of export proposals. Much of that has to do with oil prices falling by half over the past year because LNG prices are linked to the price of oil in much of the world. The latest data from Platts shows that the Japan/Korea Marker (JKM) – the benchmark for LNG in northeast Asia – fell to just $7.279 per million Btu (MMBtu) for April delivery, or nearly 60 percent lower than they were at this time in 2014.

…The problem is that while each individual project makes sense to complete if it is already underway, collectively they are running head on into a buzz saw.

Fortunately for developers in North America, the vast majority of the projects on the drawing board have not received final investment decisions. That will limit the losses when they are ultimately scrapped. Cheniere Energy’s Sabine Pass is already under construction, and its Corpus Christi project may move forward as well. Other brownfield sites could also proceed, owing to their lower costs. But new greenfield projects in North America are as good as dead. [Colored & bold emphasis added.]

Moody's sees vast majority of U.S. LNG projects cancelled; Cheniere's (LNG) Corpus Christi project likeliest to move forward (Apr 7) — StreetInsider.com

[This article also appears under the Passamaquoddy Bay, Maritimes & Northeast,Gulf of Mexico, and British Columbia & Oregon headings.]

Moody's says low LNG prices will result in the cancellation of the vast majority of the nearly 30 liquefaction projects currently proposed in the US, 18 in western Canada, and four in eastern Canada.

"The drop in international oil prices relative to US natural gas prices has wiped out the price advantage US LNG projects, reversing the wide differentials of the past four years that led Asian buyers to demand more Henry Hub-linked contracts for their LNG portfolios," says Moody's Senior Vice President Mihoko Manabe.

However, projects already under construction will continue as planned, which will lead to excess liquefaction capacity over the rest of this decade. Notably, through 2017, Australia will see new capacity come online from roughly $180 billion in investments, which will result in a 25% increase in global liquefaction capacity. Likewise, the US is poised to become a net LNG exporter after the Sabine Pass Liquefaction LLC (Ba3 stable) project goes into service in the fourth quarter of 2015.

Greenfield projects on undeveloped property are much more expensive, involve more construction risk, and take longer to build than brownfield projects, which re-purpose existing LNG regasification sites. Greenfield projects are also frequently challenged by local opposition and occasionally by untested laws and regulations. Based on the public estimates of companies building new LNG liquefaction capacity, the median cost to build a US brownfield project is roughly $800 per ton of capacity, compared with the more advanced Australian greenfield projects, now estimated at around $3,400 per ton. [Colored & bold emphasis added.]

Webmaster's comment: Downeast LNG president Dean Girdis is hoping his project's investors are blissfully ignorant of these realities.

More LNG than market needs for a while, bank says (Apr 6) — Natural Gas Intelligence [Paid subscription]

[This article also appears under the Passamaquoddy Bay, Maritimes & Northeast heading.]

A spate of new liquefied natural gas (LNG) supply is slated to be brought online in the coming months, just when the market really doesn't need any more, which makes for a "frosty outlook for liquid gas," Bank of America Merrill Lynch said in a note last week.

"As a result, we believe the stars are aligned for lower European gas prices in 2H15 on higher LNG inflows, higher volumes from Russia and shrinking domestic demand due to efficiency gains," the bank's global commodity research analysts said.

All that gas won't be getting a warm welcome in the market. Spot LNG prices in Asia fell from about $15/MMBtu last September to about $7.50 currently. "Prices averaged just $9/MMBtu from November to March, a big step down from the average of $16+ realized in each previous winter since the 2011 earthquake shut down nukes in Japan." Bank of America said. "Global LNG supply has finally caught up with demand...and the recent price action was exacerbated by the sharp decline in crude oil prices." [Colored & bold emphasis added.]

Webmaster's comment: This is exactly the kind of news that Downeast LNG doesn't want to hear.

Amory Lovins: Freedom from fossil fuels is a possible dream (Apr 9) — InsideClimate News

The United States could run almost entirely on clean energy by 2050, with a larger economy, $5 trillion in savings––and no acts of Congress. That's a vision of the future as seen by Amory Lovins, a sustainability expert who talked about how to reach that goal in a presentation Tuesday at Harvard University in Cambridge, Mass.

"Long ago, fire made us human, and then fossil fuels made us modern," Lovins said. "But now we need a new fire that makes us safe, secure, healthy and durable, and that turns out to be feasible, and in fact, to be cheaper than what we are doing."

Lovins doesn't see himself as an optimist. Instead, he aspires to what he calls "applied hope." His vision for 2050 shows the U.S. relying on wind, solar, biomass, hydropower and other renewables, along with some natural gas—but a third less than the country consumes today. Throughout his talk, he shared numerous examples of how the world is already turning from fossil fuels and why the trend will continue. [Colored & bold emphasis added.]

Passamaquoddy Bay

Tidal energy bill rejected by committee (Mar 27) — The Quoddy Tides, Eastport, ME

The testimony of a number of Washington County residents and organizational leaders in Augusta on March 19 resulted in LD 295, An Act to Promote Tidal Energy Projects, to be killed by the legislature's Committee on Energy, Utilities and Technology. At a workshop held on March 25, the committee voted unanimously to give the bill an ought not to pass recommendation.

Representatives Joyce Maker, William Tuell and Matthew Dana II provided statements, with Maker and Tuell offering a "neutral" opinion in favor of hearing the pros and cons of the tidal project and related bill and Dana offering an argument in favor of "ought not to pass" because of concerns about sacred Passamaquoddy cultural sites and fishing grounds.

The bill, summed up by the Office of the Public Advocate, would have revised the state's Ocean Energy Act to include not just hydrokinetic tidal action but hydropower projects that use "the difference between water levels on either side of a marine enclosure," which could mean a dam, barrage or impoundment system. In addition the bill would increase net installed generating capacity from five megawatts to 25. The intent of the Ocean Energy Act is to promote research and development for hydrokinetic tidal energy demonstration projects. Public Advocate Timothy Schneider stated that there is "exactly one such project that would fit these [LD 295] specifications in Maine, the Pennamaquan tidal project proposed by Halycon. ... The bill amends the Ocean Energy Act to fit this single developer's preferred project size and contact structure."

The Pennamaquan tidal project envisions a 1,675-foot-long tidal barrage stretching across the river in Pembroke from Leighton Neck to Hersey Neck. It would be built of concrete and consist of different sections of walls, a powerhouse, 16 reversible turbines, a boat lock and additional built infrastructure.

Cobscook Bay Fishermen's Association Chair Scott Emery wrote, "Whether you call a dam a dam, a barrage or a marine enclosure, these structures will restrict access for fish and fishermen, change the sediments where we dig clams and disrupt the currents that deliver fish and spat to our fishing grounds. We can't imagine why, when dams around the state are being removed to restore historically important fish runs, anyone would be proposing to start building new ones." [Colored & bold emphasis added.]

Webmaster's comment: A bad idea appears to have bit the dust. Let's hope Downeast LNG is the next one to fall.

Nova Scotia

Liquefied Natural Gas Ltd files environmental approval for Bear Head LNG (Apr 2) — Proactive Investors Autstralia

Liquefied Natural Gas Limited has filed an updated registration document with Nova Scotia Environment (NSE) for its Bear Head LNG project in Canada.

Approval of this update is expected in the second quarter of this year.

The NSE approval would be the last of the 10 initial federal, provincial, and local regulatory approvals needed to construct a LNG export facility on the Strait of Canso in Nova Scotia.

New England

The final word on winter in New England’s energy markets, part III: some lessons from a calm, cold winter (Apr 2) — Conservation Law Foundation, Boston, MA

With the winter behind us, New England can look to its energy future with the benefit of what we learned as predictions of crisis fizzled and historic cold tested the region’s energy system. In the first post of this series, I explained the data showing that New England energy markets this winter were much less expensive and volatile than during the winter of 2014. In the second post, I identified some reasons for this turnaround: market shifts that increased imports of liquefied natural gas and lowered fuel prices, and reforms that improved energy market rules and procedures. In this final post, I offer a few of this winter’s lessons, with important implications for the billion-dollar decisions on the future of our energy system that are now pending in state houses and government agencies around New England.

1. With the savings this winter, the benefits of big bets on new infrastructure just got more questionable.
    
   This winter’s most important lesson was that we can significantly reduce winter volatility and prices by more wisely using and upgrading the infrastructure we already have. Wholesale prices were way down, and electric reliability wasn’t at risk, despite the coldest February on record. But there was virtually no new energy infrastructure on the system; in fact, it was just the opposite: four large non-gas power plants retired before cold weather set in.
    
   In the next few years, several incremental gas pipeline projects will come online, adding to the region’s capacity by 10%. Although these projects’ capacity is not dedicated to power plants, it is intended to meet peak heating needs of gas users in a decade or more, meaning that in the short-term most of the new capacity will be available to serve electric generation. These projects should help ease some of the stress that cold winter weather places on our increasingly gas-dominated electric system. If the region’s many clean energy advocates can help it, we will also continue to accelerate investment in our cheapest resource—energy efficiency—and local, zero-carbon renewable projects like wind and solar that help reduce demand for fossil fuels, in the winter and year-round.
    
   In the meantime, we need to move past panic over illusory energy shortages and the idea that building every costly energy project on the table will inevitably lower costs. Unfortunately, these are the very arguments we continue to hear in favor of spending billions on new energy infrastructure now. According to these arguments, the winter was a minor, lucky reprieve from the dire trend of higher prices driven by insufficient gas pipeline capacity and power plant retirements. From this perspective, there are huge risks of “inaction,” with “action” meaning large new ratepayer-funded bets on new gas pipelines and also new power line infrastructure.
    
2. Gas pipelines aren’t a panacea in cold weather.
    
   While New England typically had higher natural gas prices than other parts of the country, the whole Northeast—including areas with robust, brand-new pipelines and closer access to Marcellus shale gas—experienced price spikes during the month, as wave after wave of Arctic air boosted heating and electric demand. [Colored & bold emphasis added.]

 

Webmaster's comment: Largely idle existing LNG infrastructure is more than adequate to handle any New England LNG import requirements.

Northeast

No fooling around at city hall (Apr 2) —Environmental Action, Boston, MA

Spring is still negotiating it’s first actual appearance in New York City. And while it’s still a bit chilly here, that did not stop over 50 fracktivists from descending on City Hall to demand that Governor Andrew Cuomo issue a veto for the proposed Port Ambrose Liquefied Natural Gas (LNG) import facility. The facility, which would be located off the coast of New York City and Long Island would import fracked gas from around the country and demand for fracked gas would increase in New York. Worse yet, it would be located in an area that was previously reserved for a wind farm, which is supported by 90% of New Yorkers.

British Columbia

Storm of opposition against Howe Sound LNG plan gathers in West Van (Apr 3) — Vancouver Observer, Vancouver, BC

The moment Premier Christy Clark’s recorded speech reached the 250 people gathered at the Gleneagles Golf Course Club House in West Vancouver, a blaring boo ripped through the room, drowning out the premier's voice.

The three-hour discussion was hosted by the Future of Howe Sound Society. David Suzuki Foundation's Howe Sound campaign lead Stephen Foster, retired KPMG partner Eoin Finn, representatives of the Squamish Nation and ethnographer Wade Davis expressed concerns over the Howe Sound LNG project.

Among the concerns discussed during the event was the disruption of the ecologically sensitive Howe Sound, which is home to dolphins, eagles, salmon and bears.

My Sea to Sky also argues that the LNG tankers would create high-risk danger zones in Bowen Island, Bowyer Island, Anvil Island, Passage Island, Porteau Cove, West Vancouver, and parts of the Sea to Sky highway. In the event of an accident, people within the risk zone would risk death by asphyxiation, fire or explosion, the group's representatives said.

Webmaster's comment: LNG ship Hazard Zones would definitely engulf numerous communities along the ship transit route — contrary to the LNG industry's own best practices.

LNG: This is bigger than Squamish, this is bigger than Howe Sound... (Apr 2) — Bowen Island Undercurrent, Bowen Island, BC

A bus load of Bowen Islanders, as well as Islanders travelling in their own vehicles, travelled to Squamish to attend a rally organized by Skwomesh Action and My Sea to Sky to protest against the proposed expansion of the Fortis BC pipline and Woodfibre Liquified Natural Gas (LNG) Export Facility. The rally was attended by people living in various communities around the Sound, and while they were told the purpose of the event was to let the Squamish Council know how people within the Nation feel about the project, the issue goes well beyond regional concerns.

“I hear politicians say that Liquid Natural Gas ain’t as bad as diluted bitumen. They tell me it’s a different product, an oil spill and an LNG spill are two different things. It’s not as bad, they tell me. My response to that is if we continue to frack in BC and destroy indigenous lands, if we continue on this course emitting the carbon that we are emitting, then that only means destruction, that only means death for the human people. It only means seas will rise, droughts will increase, water will become more precious...” [Colored & bold emphasis added.]

More than 2,000 people comment on LNG projects (Apr 1) — The Squamish Chief, Squamish, BC

Plenty of Squamish residents have had a lot to say about the proposed Woodfibre liquefied natural gas (LNG) export plant and FortisBC natural gas pipeline projects, but how engaged with the public have the companies been?

The EAO [Environmental Assessment Office] told The Squamish Chief it received 1,600 comments for Woodfibre LNG alone, plus approximately 500 for the FortisBC natural gas pipeline project.

“We are currently planning to refer the application with our assessment report to the ministers in mid-July. After that, they have 45 days to make a decision on whether to issue a certificate,” said [Mike Shepard, project assessment manager at the Environmental Assessment Office].

LNG stakeholder event slated for Vancouver (Apr 1) — Pipeline News North, Prince George, BC

A liquefied natural gas (LNG) multi-stakeholder collaboration event is planned to take place in Vancouver from April 15 to 16.

Eleven LNG export licenses have been approved for the 20 proposed export facilities in B.C. and the Pacific Northwest United States.

None, however, have yet made a financial investment decision that would signal a firm commitment to proceed with construction.

Canada

Cedigaz looking into Canada’s LNG export potential (Apr 3) — LNG World News

In February 2015, Canada counted 22 LNG liquefaction plant projects, of which 17 are located in British Columbia, representing a total design capacity of 325 mmtpa.

Cedigaz, the international association for natural gas, issued a report “Waiting for the Next Train? An Assessment of the Emerging LNG Industry in Canada” discussing the potential for the country to export LNG.

In order to assess the economics of British Columbian projects, Cedigaz has modeled a typical 12.8 mmtpa [12.8 million tons per annum] plant and computed the total cost of LNG delivered to Japan, according to three scenarios designed to reflect costs uncertainties.

Base case assumptions show that LNG price in Japan should equal $11.8/mmbtu to recover all costs. In the low case, LNG should at least be sold at $8.6/mmbtu and in the high case, it should reach $16.1/mmbtu. Assuming an average 14.5% slope for Japanese contracts indexed on the Japanese Crude Cocktail [JCC] Price, Canadian LNG projects require a minimum JCC of $81/bbl with the base case assumptions. In the low case scenario, JCC break-even price for LNG projects is $59/bbl while it is up to $111/bbl in the high case. [Colored & bold emphasis added.]

United States

NRDC: Oil, gas violations largely unreported (Apr 2) — UPI

States skirting their responsibilities to the public, environmental report finds.

A report from the Natural Resources Defense Council finds "it is virtually certain" oil and gas violations are never reported because of inadequate enforcement.

Colorado, one of the states with an emerging shale oil and gas sector, had fewer than 40 inspection staff on hand to survey more than 52,000 wells. The state's crude oil production from 2007-13 rose 146 percent thanks in part to the Niobrara shale reserve area, which holds an estimated 2 billion barrels of oil.

The NRDC finds less than 10 percent of the states with active oil and gas operations have data available on spills or other environmental violations. The report, conducted in coordination with the FracTracker Alliance, finds state governments are skirting their obligations.

At the federal level, the report found the Department of Interior reported more than 2,000 violations from 1998 to 2011, though there is no public information available after that. [Colored & bold emphasis added.]

Shale crews being watched from above as emissions levels tested (Apr 1) — Bloomberg

Through April, the National Oceanic & Atmospheric Administration will be flying above the basins from North Dakota to Texas collecting air samples to document if drilling is adding to ground-level ozone, said Joost de Gouw, a research scientist at NOAA’s Earth Systems Research Lab in Boulder, Colorado.

Breathing ozone triggers a variety of health problems for children, the elderly and anyone with lung diseases such as asthma. It’s produced when sunlight mixes with nitrogen oxides and volatile organic compounds. Gasoline vapors, emissions from factories and electric utilities, motor vehicle exhaust and chemical solvents are some of the major sources of the pollutants that lead to ozone creation, according to the U.S. Environmental Protection Agency.

In addition to nitrogen oxides and volatile organic compounds, de Gouw said, the researchers will be looking for methane specific to oil and gas industries. Methane has a lot of different sources, including coal, landfills and animals, but the instruments can distinguish among them.

Flying 14 to 21 hours a week, the Orion, with a crew of six researchers and nine crew members, will crisscross the shale oil and fracking sites in the western and central U.S. The data gathered will require about 18 months to process.

Maine

Maine Natural Gas seeks rate increase to expand market, raise revenue (Mar 31) — Portland Press Herald, Portland, ME [Paid subscription]

The company says it needs more than $10 million in additional revenue over the next three years to improve the safety and reliability of its distribution system, expand customer services and bring earnings in line with industry standards. Maine Natural Gas hasn’t raised rates since 2011. It has suffered low earnings for years, and had a negative return on equity in 2014, according to documents filed in March at the Maine Public Utilities Commission.

The rate case centers on the cost of distributing gas, which includes installing and maintaining underground pipes and serving customers. Distribution costs account for up to one-third of an average home bill. If Maine Natural Gas gets all the money it’s seeking, a typical home customer could see the delivery portion of an average monthly bill rise from nearly $59 today to $130 in 2018, according to the documents.

Taken together, Maine Natural Gas’ total bill, including service charges, distribution and gas supply, could go from $175 a month to $220 in a typical home, or from $2,101 a year to $2,644 a year. The average home burns 1,120 therms of gas a year, the company says in its filing. [Colored & bold emphasis added.]

Webmaster's comment: Is this what the pro-natural gas crowd has been clammoring for? And, how is it that Maine Natural Gas needs more money to improve safety? That implies they are not yet safe.

United States

What the advertisements aren't telling you about natural gas [Blog] (Mar 31) — Huffington Post

Natural gas has been touted as a clean, green alternative to coal and oil, especially in recent advertisements such as the America's Natural Gas Alliance's "Think About It" campaign with TV ads that feature the Denver International Airport, L.A. transit and TOTE container ships as being "green" and "environmentally sustainable" because they are powered by natural gas. However, there is more to the natural gas phenomena, which we can observe with economic, environmental and political lenses. As these advertisements are sponsored by the oil and gas industry, there are a number of things the advertisements aren't telling you about natural gas:

1. Natural gas is a fossil fuel.
2. Hydraulic fracturing (fracking) is where natural gas comes from.
3. Natural gas production has been largely unmonitored and unregulated in the US.
4. Exporting liquefied natural gas (LNG) is energy intensive.
5. It's relatively cheap.
   …[I]t means renewables have to work even harder to be competitive.
6. NGOs aren't satisfied with the status quo of natural gas.
   This is largely due to the risks associated with the gas' extraction process as well as the lack of regulation and oversight.…

While there may be potential for natural gas to ween us off coal use, this is just a short term, unsustainable fix…. [Colored & bold emphasis added.]