"For much of the state of Maine, the environment is the economy"
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2012 June 30
Once completed, the New Jersey-New York Expansion Project will provide an additional 800 million cubic feet per day of natural gas capacity into the New Jersey/New York region. [Red & bold emphasis added.]
Webmaster's comment: This is Northeast natural gas pipeline infrastructure expansion that, according to recent Downeast LNG comments to the FERC docket, 'does not exist.'
Cheniere said on June 4 it expected to complete debt financing arrangements by the end of this month for the estimated $4.5 billion to $5 billion it needs to build liquefaction units at its Sabine Pass facility in Louisiana. The company hired JPMorgan Chase & Co., Morgan Stanley and others in April to help arrange the funding.
So far, six liquefied natural gas plants have been proposed to carry gas from [northeast British Columbia via terminal on British Columbia's west coast] to Pacific Rim communities. British Columbia wants to see three LNG facilities in operation by 2020, pending environmental approvals. [Red & bold emphasis added.]
“Going forward we’ve got over 100 years’ worth of supply of gas that we know about today,” says Greg D’Avignon, president and CEO of the Business Council of British Columbia. That doesn’t factor in a recent announcement by Apache that it has identified a world-class gas resource in the Liard Basin northeast of Fort Nelson. [Red & bold emphasis added.]
Shell Canada and TransCanada have a $4-billion plan to build a natural gas pipeline originating near Dawson Creek, to carry gas across the province to the central coast town of Kitimat. And BC Hydro appears likely to carry through with its $8-billion Site C dam project, which is located about a half-hour’s drive away, at Fort St. John. Hydro is also targeting Dawson Creek as the anchor for an expansion of its transmission grid.
With Petronas’s advance, there are now three major LNG projects moving head in the B.C. coast, representing a solid platform for the emerging industry and providing a new market for depressed Western Canadian gas. Asia’s gas prices are much higher because they are linked to oil prices and there is demand to absorb huge supplies from shale fields such as the Horn River and the Montney. [Red & bold emphasis added.]
U.S. lawmakers representing states rich in shale gas called for the Obama administration to expedite approval of liquefied natural gas exports on Friday, mounting the first real push in support of gas exports on Capitol Hill.
Critics of exports argue cheap gas prices have helped spur a manufacturing resurgence that is threatened by moves to sell U.S. gas to overseas. Dow Chemical has argued that the government should not allow unlimited gas exports.
India’s biggest gas importer, Petronet LNG, has started talks with two companies. GAIL is also keen to source US gas. It recently signed an agreement to import 3.5 million tonnes (mt) of liquefied natural gas (LNG) from Sabine Pass, a subsidiary of Cheniere Energy. US has, so far, allowed only Cheniere Energy to export LNG from Sabine Pass terminal.
According to the US Energy Information Administration, the US has the world’s second-biggest shale gas reserve of 862 trillion cubic feet (tcf) after China’s 1,275 tcf. The boom has led to a crash in the US gas prices and proved a negative for companies such as Chesapeake and Exxon Mobil’s XTO. [Red & bold emphasis added.]
2012 June 28
Sunoco Inc.’s Marcus Hook refinery in Pennsylvania, which was shut last year after the company failed to find a buyer for it, could be used as a liquefied natural gas export facility or gas-fired power station, according to a report by IHS Inc.
Tom Ballou Jr., with Sherwin Alumina Company, which borders the site of the proposed plant, said he has public safety concerns. Specifically, flaring could affect employees at Sherwin Alumina, Ballou said.
"I've learned that if a thing can't possibly happen, it's going to happen," Ballou said, later adding, "We'll probably file a request to intervene at the appropriate time."Hal Suter, Corpus Christi resident and president of the Lone Star chapter of the Sierra Club, said his group also would consider intervening if the project moves forward.
After the Macondo oil spill in the Gulf of Mexico in 2010, BPTT embarked on a costly maintenance program to improve safety levels and reduce the risks associated with its pipelines, plants and other infrastructure in Trinidad, Christie said.
"Given this scenario," Hainsley said Wednesday. "Atlantic continues to work with our upstream suppliers (BP, BG, Repsol YPF and National Gas Co. of Trinidad and Tobago) to align our operations to their maintenance schedules in order to maximize opportunities for production.
Last year, only nine loads of home-grown U.S. LNG arrived in foreign ports – eight sent to Japan and one to China. The total volume was 16.4 bcf, or an average of just 45 million cubic feet of gas a day. All of those shipments originated from the ConocoPhillips LNG plant in Nikiski, Alaska, that processes nearby Cook Inlet gas, not North Slope gas.
The Nikiski plant is the nation's only operating LNG maker sanctioned for commercial exports. It was first authorized to send LNG to Japan in 1967 and has been doing so since the plant opened in 1969.
The Natural Gas Act of 1938 says no gas exports may occur without federal permission, but that permission will be granted unless, after a hearing, the government "finds that the proposed exportation ... will not be consistent with the public interest."
The Energy Policy and Conservation Act says the president can restrict natural gas exports – as well as export of other fossil fuels – unless he determines the exports are "consistent with the national interest." Congress wrote this law in 1975 when a quadrupling of oil prices in three years triggered an energy crisis that staggered U.S. consumers and the economy.
"The site Petronas is looking at is on the Lelu Island industrial site, just a stone's throw from where the BG Group would set up their LNG facility," explained Prince Rupert Port Authority spokesperson Michael Gurney, adding that the port authority is excited about this development because of the Petrona's international standing in the energy industry.
CALGARY/TORONTO, June 28 (Reuters) - Malaysia's state oil company launched a C$4.8 billion ($4.7 billion) takeover of its Canadian joint-venture partner, Progress Energy Resources Corp , on Thursday to gain control of vast shale gas reserves and advance plans to ship gas to Asia.
In their year-old joint venture, Petronas had agreed to fund 75 percent of the drilling in the companies' North Montney holdings and to study building a liquefied natural gas plant on Canada's West Coast. Petronas said on Thursday it had chosen Prince Rupert, British Columbia, as the site for the plant.
COOS BAY -- Outside the Pacific Connector Pipeline project's open house Tuesday night, dozens of protesters waved signs against fracking, building an export terminal and liquefied natural gas in general.
Although Williams had a federal permit to build a 230-mile natural gas pipeline to supply gas to an import facility, that permit was voided earlier this year after Jordan Cove Energy Partners changed their business model to export the gas. In the Federal Energy Regulatory Commission’s eyes, the project had changed enough to warrant a new permit applications from both the terminal and the pipeline.
In a bitterly divided U.S. political environment, there's at least one thing Republicans and Democrats can agree on: Avoid a public showdown on natural gas exports, arguably the most important energy policy decision in recent memory.
BP's London-based head of energy economics, Paul Appleby, expects the United States to develop a significant liquefied natural gas export industry as the shale gas "revolution" in the country progresses.
Japan wants to tap cheaper natural gas in the United States and Canada if and when their facilities are ready to cool natural gas to a liquid for transport, and a few Japanese companies have made preliminary agreements to invest in such projects.
The wash of domestic shale gas hitting U.S. markets has sent gas prices plummeting, and buyers across the world have lined up to buy cheap American fuel. But concerns that the fledgling movement to export LNG could drive up U.S. prices have drawn opposition from consumer groups. [Red & bold emphasis added.]
2012 June 26
In Maine, the value of Mother Nature, not counting tourism dollars, natural resource-based businesses or other revenue derived from the outdoors, accounts for more than $14 billion per year. Many of those values were derived with an eye toward the future, particularly as it relates to things like quality of life and the availability of clean drinking water. For example, recognizing the value of a forest that filters and slows runoff from rain will pay dividends later, according to the study.
The study, titled “Valuing Maine’s Natural Capital,” was conducted in collaboration with a Vermont-based consultant group called Spatial Informatics Group, LLC. It measured factors such as scenic beauty, natural flood control capacity, the ability of forests to capture greenhouse gases, wildlife habitat, ability of wetlands to filter water, pollination system, recreation opportunities and underground water tables.
Washington and Penobscot counties also ranked high with per-acre, per-year values of between $700 and $1,000. [Red & bold emphasis added.]
PASCAGOULA, Mississippi -- GE Energy Financial Services' co-owned Gulf LNG Energy regasification and liquefied natural gas storage facility in Pascagoula has received approval from the U.S. Department of Energy to export liquefied natural gas.
The $1.1-billion facility, which began operations in October, received two shipments of LNG -- natural gas super-chilled for transport by ship -- prior to its ribbon cutting, but hasn't received any since.
Webmaster's comment: All the hoopla in 2011 about Gulf LNG being "on the cutting edge" was either insincere or naïve — it was already far too obvious that the import terminal was years behind the natural gas market curve, and that yet another import terminal was no longer needed.
At a recent conference on unconventional resources, a panel on LNG in B.C. suggested consolidation would be the order of the day to combine the different projects’ strengths. For example, the Apache Corp. led Kitimat LNG project has the licence to export but no market, where as Shell Canada has Japan, China and Korea as partners on its proposed $12-billion project.
“BC Hydro simply doesn’t have the capacity to provide even close to the amount of power required for these projects,” provincial Conservative candidate Rick Peterson argued May 28 in the Vancouver Sun. “The first three LNG proposals alone…would require about half of the electricity that’s currently consumed by the entire province.”
Until recently, many regarded natural gas exports to Asia as a sideshow to Canada’s prospects of selling oil across the Pacific. That notion was banished with the announcement on May 15 of a massive new liquefied natural gas (LNG) terminal planned for Kitimat, B.C. The LNG Canada project led by Royal Dutch Shell would be the third and largest B.C. terminal, capable of shipping 1.2 billion cubic feet of gas a day. It carries a price tag of at least $12 billion, according to B.C. Energy Minister Rich Coleman. That would make it the largest capital project ever undertaken in the province.
But the new discoveries, along with similar finds in the United States, have led to an oversupply in North America, pushing down the price in April to a decade low of below $2 US, Scotiabank's commodity market specialist Patricia Mohr wrote in a report.
"And in some cases, we are now removing [water] from the very reservoirs that are used to generate power and the companies that want to use that water in the fracking process also want access to our power. So it's a double whammy."
FERC previously gave the company a permit to build the pipeline when Jordan Cove Energy Partners intended to build an LNG import facility, which the pipeline would connect to. Now that Jordan Cove plans to build an export facility, both companies need new permits.
[O]ne word from Congress could put an end to those kinds of gains — especially when people realize keeping our cheap natural gas here in the States is a smarter play than shipping it halfway across the globe.
Japan is hopeful that some accord can be reached with the United States to secure liquefied natural gas (LNG) exports from some of the country's recently unlocked bounty of shale gas, despite the world's third-biggest economy not having a free-trade agreement with the US.
Asian liquefied natural gas (LNG) buyers expect US exports to spur the change from traditional oil-index priced contracts to include a larger gas hub element, according to the Japan Oil, Gas, and Metals National Corporation (Jogmec).The traditional Asian buyers – comprising Japan, South Korea, and Taiwan – have bought long-term LNG on prices linked with oil for over 40 years. But with the US planning to build a number of LNG export facilities, Asian importers have rushed to sign contracts because they are either linked to US Henry Hub gas prices or are tolling agreements where the shipper buys the gas at market prices themselves and pay a liquefaction fee....
Webmaster's comment: This does not comport with another Petroleum Economist article, below.
A recent report released by the Government Accountability Office (GAO) found that the federal government is largely ignorant of the condition of thousands of miles of natural gas pipelines crisscrossing the nation.
While the United States Pipeline and Hazardous Materials Safety Administration [PHMSA] regulates about 24,000 miles of large pipelines that carry natural gas from processing plants across the nation, it is largely unaware of the condition of 200,000 miles of natural gas and 40,000 miles of hazardous liquid gathering pipes. [Red & bold emphasis added.]
Shaun Polczer, CALGARY: US independent Apache has ruled out linking the value of its pending liquefied natural gas (LNG) exports to anything other than the price of oil, according to the firm’s vice-president of gas monetisation.
Janine McArdle said using structures other than long-term fixed-price contracts would discourage firms from investing billions of dollars in new capital projects. Without price guarantees, companies would, instead, shift budget dollars to higher-return oil drilling.
Webmaster's comment: This does not comport with another Petroleum Economist article, above.
2012 June 23
“The Deep Panuke project coming in looks like good timing in terms of production coming into our pipeline,” [Maritimes & Northeast Pipeline spokesman Steve Rankin] said referring Encana Corp.’s gas project off Nova Scotia.
Christy Clark, the premier of British Columbia, has joined the ranks of public officials the world over, which have clouded the definition of "clean energy" by using the term to seve their own interests.
The claim that natural gas is a cleaner burning fossil fuel than oil and coal is highly debated when it comes to unconventional gas procured through hydraulic fracturing. In 2011, Cornell University published a study which found that shale gas produced from fracking produces between 30% and 200% more methane (the most powerful greenhouse gas) emissions than conventional coal and oil. Indeed, over a 20-year period, the study estimated the greenhouse gas footprint of shale gas is at least 20% higher than coal, and could be as high as 200%.
LNG export projects would require five times the energy now consumed by the 2 million residents of Greater Vancouver, Richard Stout, executive director of the Association of Major Power Consumers of British Columbia, told the conference.
Premier's liquefied natural-gas plan would be 'breaking government's own law'
Previously, only "clean" sources such as hydroelectricity were to be used to produce LNG as part of the province's plan to reduce greenhouse-gas emissions. For example, instead of building a hydro transmission line in the northeast to service shale-gas development in the Horn River basin that would cost in excess of $1 billion, Clark's changes would allow a $100-million pipe-line to bring natural gas to do the job.
"From a climate-change perspective, this is a disaster," said Lee. "This means B.C. will not meet its legislated greenhouse-gas emissions targets. This is an act that is breaking the government's own law."
But the new discoveries, along with similar finds in the United States, have led to an oversupply in North America, pushing down the price in April to a decade low of below $2 US, Scotiabank’s commodity market specialist Patricia Mohr wrote in a report.
The U.S. suspended issuing permits for exports of gas in liquid form after some fuel users and Democrats in Congress said sales abroad might increase domestic prices. Cheniere Energy Inc. is the only company so far to win approval to ship gas from a Louisiana terminal.
2012 Jun 21
AUGUSTA -- The state government has selected a company affiliated with Central Maine Power Co.'s parent company to build a natural gas pipeline system in the Augusta area to distribute the gas to state property throughout the region.
The state's selection of Maine Natural Gas comes as an apparent blow to a competing and much larger proposal from Summit Natural Gas of Maine, which plans a $150 million natural gas distribution system in the region. That proposal would come from the same pipeline in Windsor, coming into Augusta and distributing natural gas to users south to Richmond and north to Madison.
Webmaster's comment: This is more evidence contrary to claims by Downeast LNG — Maine has no shortage of natural gas.
Although rising domestic production has made LNG and pipeline imports from Canada a smaller piece of the domestic supply picture, imports still play an important role, particularly in meeting incremental demand during times of extreme heat or cold. The jump in prices has also likely helped to attract Canadian pipeline gas to the Northeast. According to Bentek, LNG sendout from the Everett Terminal, located close to Boston, has fallen to zero in recent weeks, leaving Canadian gas as one of the few sources of incremental supply.
...There was a 55.6 increase in liquefied natural gas (LNG) supply during the week, with sendout averaging 368 million cubic feet (MMcf) per day. Sendout volumes remain 62.4 percent below year-ago levels. [Red, yellow & bold emphasis added.]
Webmaster's comment: More evidence that Downeast LNG is less-than-previous.
THE new BEC chairman Leslie Miller said yesterday he hopes to lower electricity costs for Bahamians through strategies he attempted to implement when he was Minister of Trade and Industry from 2002-2007 - namely Venezuelan oil and Liquefied Natural Gas.
Beleaguered natural gas producers in Western Canada are going to have wait a little longer for relief from severely depressed prices. Janine McArdle, the senior executive in charge of the Kitimat LNG project at Houston-based Apache Corp., said the facility’s planned startup will take an extra year as the company continues to look for firm contracts with buyers in Asia.
The first cargo is now expected to leave Canada in 2017, a year behind the latest plans. The project has regulatory approval, but Apache needs to be sure it has a market for the gas and that the project is economic before taking a final investment decision, Ms. McArdle, senior vice-president for gas monetization at Apache, North America’s largest oil and gas independent producer, said Wednesday.
It takes a lot of electricity to bring natural gas to the temperature at which it liquefies. BC Hydro does not generate enough electricity yet to serve all the LNG projects being considered - not to mention the eight new mines the Liberal government wants opened by 2015. Just two of the LNG projects at full capacity would consume the entire output of the pro-posed Site C dam.
LNG developers will not only need plenty of power, they'll need it at a cost that keeps them competitive with other jurisdictions. Building the generation and transmission infrastructure to deliver vast amounts of electricity at a competitive price is a daunting challenge. If BC Hydro is expected to bear the burden alone it will have to take on massive debt in order to finance an ambitious capital-spending program.
"I am pleased to announce that the Commission is planning as many as five regional technical conferences to explore coordination between the natural gas and electric industries. These conferences, which are tentatively scheduled to cover the Midwest, the West, New England, New York, the mid-Atlantic and the Southeast, will each include a staff presentation on infrastructure in that region and an opportunity for a staff-led industry discussion of national issues affecting coordination between the gas and electricity markets, electric reliability, and those issues of special significance to that particular region. My colleagues and I look forward to attending these conferences as our schedules permit." [Red & bold emphasis added.]
Webmaster's comment: Improving natural gas pipeline infrastructure in New England will likely be the topic of discussion. Downeast LNG or increasing LNG imports are not likely to be topics of discussion.
The U.S. Department of Energy recently approved the following four applications to export domestically produced LNG to countries with Free Trade Agreements with the United States: Southern LNG from its Elba Island, Georgia terminal, Gulf LNG Liquefaction from its Pascagoula, Miss. terminal, SB Power Solutions from terminals located on the Atlantic and Gulf of Mexico coasts, and Oregon LNG from its proposed terminal in Warrenton, Ore. The orders can be found on DOE's website. [Red & bold emphasis added.]
Webmaster's comment: There have been a total of 15 DOE applications to export domestic-source LNG. (NOTE: These applications are separate from FERC applications. The DOE applicants must also obtain approval from FERC.)
Barely a decade ago, it looked as if the U.S. was running so low on domestic gas that it would have to begin importing larger and larger supplies of liquefied natural gas (LNG) from abroad. Today — thanks largely to the new domestic supplies unlocked by hydraulic fracturing, or "fracking" — forecasts suggest the U.S. not only has enough gas to meet its own needs for the next 100 years, but also enough to sell it to countries that don't have enough. Japan, for example, desperately needs gas to take up the slack for the nuclear power plants it shut down after last year's tsunami. [Red & bold emphasis added.]
If we open up the United States' new natural gas supply to the world market, the same market forces that govern the cost of oil around the globe will take hold of natural gas. In other words, the cost of natural gas for American consumers will skyrocket and the United States will sacrifice a once-in-a-lifetime competitive advantage. [Red & bold emphasis added.]
The natural-gas boom reshaping America is rocking Russia, where state producer OAO Gazprom (GAZP) is slow to react and at risk of becoming the world’s biggest loser from the new technology to drill shale rock.
Shale production allowed the U.S. to overtake Russia as the largest gas-producing nation in 2009 after explorers began employing hydraulic fracturing, a technique using pressurized water with chemicals and sand to open cracks in rock for freeing gas.
The subsequent collapse in prices, which touched a 10-year low in New York in April, killed the U.S. as an export market for Shtokman and other liquefied natural gas projects. The U.S. will even become a gas exporter as early as 2015. [Red & bold emphasis added.]
Pirates fired guns and rocket-propelled grenades at a liquefied natural gas tanker off the coast of Oman on Wednesday, and three shots hit the vessel, the International Maritime Bureau's anti-crime arm said.
LNG industry sources said on Thursday the LNG Aries, managed by Japan's Mitsui O.S.K. Lines, was the victim of the attack, but the company was not available for immediate comment on the condition of the ship. [Red, yellow & bold emphasis added.]
2012 June 20
While Exxon Mobil Corp . believes long-term demand for natural gas will prevail over depressed prices, the company also is studying projects such as expanding a chemical plant and liquefied natural gas exports to make the most of current market conditions.
NGC is a long standing state-owned company of the government of Trinidad & Tobago which is involved in the domestic natural gas value chain. Through its partial ownership in Atlantic LNG, it owns approximately three LNG cargoes annually which are targeted to the international market. Waterborne Energy, the global leader in monitoring and analyzing LNG markets, is widely considered to be the benchmark publisher of LNG and LPG trade flow statistics and analysis since 1982.
Located in the Kenai Peninsula community of Nikiski, the plant has a monopoly in LNG export in the U.S. The facility commissioned in 1969 was owned by ConocoPhillips and Marathon Oil Corporation, with a respective stake of 70% and 30%. For the major part of its operating cycle, the plant sourced its output to Tokyo Gas and Tokyo Electric. Currently, ConocoPhillips is the sole owner of the Alaska facility, after it acquired Marathon's holding in September 2011.
Shell Canada Limited has awarded TransCanada Corporation a $4 billion contract to develop a proposed pipeline to transport natural gas from the Montney region near Dawson Creek, B.C. to a liquefied natural gas (LNG) facility in Kitimat, BC.
As Canadian companies look for new markets abroad, four competing energy companies have proposed facilities that would liquefy gas for shipment overseas. But Shell’s proposal is “much stronger now with the pipeline,” Bob Schulz, business professor at the University of Calgary, told Bloomberg.
From a market perspective – and it might be too premature to provide overall estimates – Apache has said that it believes wells in the Liard could be profitable at a well-head price of US$2.57 per thousand cubic feet, not far from current price levels. [Red & bold emphasis added.]
With the current natural gas glut in North America, energy experts say Apache Corporation should hold off on producing in the new natural gas play it's found, until there is a viable liquefied natural gas market. It was revealed Thursday that the company has spent the past three years buying up land around a massive gas deposit it found 150 kilometres northwest of Fort Nelson.
"This is the type of well that you want to park, put it in the garage, and produce it when you have a liquefier on the west coast, flow the gas, and sell it into a Japanese market where the price of gas just came down yesterday to $17 per Gigajoule MCF," he explains. [Red & bold emphasis added.]
One of the energy companies planning a liquefied natural gas terminal at Kitimat announced Thursday "an outstanding" new shale gas discovery, the best in North America, in British Columbia's remote and largely unexplored Liard Basin.
In prepared remarks presented in his Senate confirmation hearing, Mr. Clark cited North Dakota’s energy growth under his leadership at the NDPSC as “perhaps the best way to introduce my experience.” Specifically, he pointed to North Dakota’s inclusion among the top 10 wind energy-producing states, the siting of hundreds of miles of new electric transmission lines, North Dakota’s leadership in clean coal and carbon capture and sequestration infrastructure, the recent announcement that North Dakota is now the nation’s third-largest oil-producing state, and the authorization of approximately $6 billion in energy infrastructure projects while he was at the NDPSC. Among the “big issues” he sees in FERC’s future are “developing infrastructure in the right way, facilitating Americans’ access to affordable, reliable, environmentally responsible forms of energy, [and] protecting our nation’s critical assets.” Mr. Clark’s nomination was confirmed by unanimous consent before the full Senate.
A sudden abundance of natural gas and unprofitably low prices — the result of fracking technology that's opened up previously unreachable shale-gas reserves — has the industry looking for new markets.
“We saw a policy shift to exports without even a debate,” says Jonathan Phillips, a senior policy adviser to [Massachusetts Rep. Edward Markey] on the Democratic staff of the Natural Resources Committee. “Yet all the studies show that exports will increase domestic prices. We’re not going to race ahead, allowing oil and gas companies to reap large profits at a cost to consumers."
The surge in U.S. production of shale gas is creating a surge in permit requests to build liquefied natural gas (LNG) terminals. That’s because the glut of U.S. gas has dropped domestic prices sharply below global price levels.
BOTTOM LINE: Investing billions of dollars in new shale gas infrastructure for domestic use is, at best, of limited value for a short period of time if we put in place both a CO2 price and regulations to minimize methane leakage. Exporting gas vitiates even that limited value and so investing billions in LNG infrastructure is, at best, a waste of resources better utilized for deploying truly low-carbon energy. At worst, it helps accelerates the world past the 2°C warming threshold into Terra incognita — a planet of amplifying feedbacks and multiple simultaneous catastrophic impacts.
SEOUL -- Korea Gas Corp. is eyeing shale-gas assets in the US and expects to invest in a liquefied natural gas project there that will enable it to import at least another 3 million metric tons a year of LNG, a company executive said.
On the heels of sewing the nation’s first gas import deal from the US, state-owned GAIL India wants Washington to relax rules so that it can buy more liquefied natural gas (LNG) to meet growing energy needs here.
[G]iven the growing gap between demand and supply, GAIL Chairman B C Tripathi wants to tap all the seven LNG export terminals planned in the US and has written to the petroleum and external affairs ministries for diplomatic intervention to push Washington to allow other terminals to sell gas to India. [Red & bold emphasis added.]
2012 June 14
Today, FERC issued a tolling order that suspends indefinitely the deadline for FERC action on Sierra Club's request for rehearing of FERC's order granting Sabine Pass LNG authority to construct facilities to export LNG. [Red emphasis added.]
HOUSTON--(BUSINESS WIRE)--The National Gas Company of Trinidad & Tobago (NGC) announced today that it will issue its first tender for the sale of LNG to international markets through Houston-based Waterborne Energy. Details regarding NGC’s tender for sale will be published in Waterborne’s weekly LNG trade flow reports scheduled to be distributed on Thursday, June 14, 2012.
The LNG plant was closed over the winter and was previously targeted for closure due to failure to strike a shipping contract with the Tokyo utilities, and difficulties in securing natural gas supplies from the mature Cook Inlet basin, Reuters reports.
2012 June 13
Some of the proceeds of the sale will go towards issuing a "limited notice to proceed" to Bechtel Oil, Gas and Chemicals Inc., which was awarded an engineering, procurement and construction contract for the Sabine Pass LNG liquefaction project in Cameron Parish, Louisiana.
The plant, once the largest of its kind in the world, had been the sole supplier to Japan when it began exports in 1969, but it provided less than one-half of a percent of that market's supply by 2010, according to testimony given to a special legislative committee last year.
The first public display in more than a year for Oregon LNG ushered in plans that show the project in transformation. In March, Oregon LNG withdrew its application with the Federal Energy Regulatory Commission – an application that outlined plans for an LNG import facility – in favor of a likely more profitable facility capable of handling both imports and exports. Soon, Oregon LNG will call on FERC to issue a certificate of public necessity and convenience, which will grant project backers authority to force property owners to sell their land through eminent domain.
Oregon Pipeline LLC, an affiliated subsidiary of Oregon LNG and Leucadia National Corp., remains embroiled in a legal battle with Clatsop County over the placement of the pipeline. In 2011, the Clatsop County Board of Commissioners voted to revoke the company’s land use approval.
As recently as 2007, North America was looking at a significant gas shortage and more than sixty LNG import projects were proposed. Just five years later, the implementation of horizontal drilling and hydraulic fracturing has led North America to a sizable excess of gas supply. The latest figures from the U.S. Energy Information Agency (EIA) indicate that natural gas supply could exceed demand by 2016, enabling North America to become a net exporter of LNG. [Red emphasis added.]
Cheniere’s Louisiana terminal is scheduled to begin operations in 2015, and will ship supplies out to clients such as London’s BG Group PLC, Barcelona’s Gas Natural Fenosa, GAIL India Ltd, and Korea Gas Corp.
Cheniere also has applied for permission to export LNG from another export terminal to be located in Corpus Christi. The company would like to have that facility operating by 2017 or 2018. Additionally, competitors like Dominion Resources and others are lined up waiting for permits to start exporting LNG. Dominion aims to ship the fuel out of its Cove Point terminal in Maryland.
2012 June 12
Companies in Canada, the third-largest gas producer, are seeking new markets as North American output climbs and prices trade near 10-year lows. About 62 percent of Canadian gas was exported to the U.S. in 2010, according to the Canadian Association of Petroleum Producers, an industry group. Shell is proposing one of at least four facilities that would liquefy gas for shipment overseas by tanker.
The shale gas boom in the United States means lower North American demand for natural gas from Canada. Investment analysts told Bloomberg News that western Canadian ports could accommodate at least two LNG projects.
Gas inventories are expected to climb to a new record high of 4.015 trillion cubic feet by the end of October 2012, just shy of the government's 4.1 tcf estimate of total storage capacity. EIA's previous estimate in May was 4.096 tcf.
EIA's forecast for liquefied natural gas imports remained unchanged at 0.7 bcf per day for 2012, a 33 percent fall from last year, with low domestic prices expected to deter imports. Imports in 2013 are expected to be flat with 2012. [Red & bold emphasis added.]
Webmaster's comment: Downeast LNG might as well try selling freezers in Antartica.
2012 June 11
On Friday, FERC issued an order vacating Corpus Christi LNG's authority to construct an LNG import terminal near Corpus Christi, Texas. FERC's order is in response to Corpus Christi's failure to place the facilities in operation by the April 18, 2012 deadline. The order also vacates authority to construct the Cheniere Corpus Christi pipeline, which was to interconnect the LNG terminal to several interstate pipelines. [Red & bold emphasis added.]
Alaska's hope was rekindled though several months ago when three of the major international oil companies – ExxonMobil, BP PLC ADR and ConocoPhillips – reached agreement with the state of Alaska to move forward on a $40-$50 billion project to export liquefied natural gas (LNG) to Asia. The companies agreed on a target of 2016 for the large scale project which would include not only a pipeline but a gas liquefication plant to turn the gas into LNG for export to Asian markets.
Premier Christy Clark has been busy promoting Liquefied Natural Gas (LNG) recently: she just came back from touring Asia to promote BC's LNG projects, and even suggested that the province's stringent climate targets can be compromised to pave the way for the industry. [Red & bold emphasis added.]
With natural gas prices at record lows and no significant increase in sight, Canada, unlike its southern neighbor, is taking the reins and encouraging natural gas producers to liquefy and export gas to areas that command significantly higher prices for the commodity. Shell recently offered TransCanada the opportunity to build a 435-mile pipeline to connect the robust natural gas fields to an LNG facility in British Columbia. This will be the third LNG operation in Canada, while the United States will offer just one. By taking advantage of extremely cheap natural gas, is Canada making the prudent move while the United States misses out on a fabulous decision? Check out the following video to find out more.
Apache may delay LNG plan
Webmaster's comment: FERC requires such open houses, but makes no demands on what is presented to the public — including veracity. One can bet that Oregon LNG will not be offering information to the attending public regarding the propoject's incompatibility with SIGTTO terminal siting best safe practices. (See LNG Terminal Siting Standards Organization for more on this issue.)
Kwok W Wan, KUALA LUMPUR: Japanese gas importers want to buy liquefied natural gas (LNG) linked to US or European gas hub prices and move away from traditional oil-linked contracts, the Japan Gas Association told reporters at the WGC2012. The world’s largest LNG importer buys most of its gas on oil-linked contracts, but soaring demand after the Fukushima Daiichi disaster last year and high crude prices means Japanese customers are paying up to seven times more compared to US gas prices. “For the natural gas price to be linked to the oil price right now has lost any economic rationale,” Japan Gas Association chairman Mitsunori Torihara said .“Looking at the main uses of natural gas right now, it’s for power generation and such use of natural gas is becoming more prevalent, which means it’s not really in competition with oil but rather in competition with nuclear and coal. So… to still link with...
US exports to Asia would cost $9.35 per million Btu, based on a benchmark Henry Hub price of $3, according to a May 29 presentation by Cheniere, the Houston-based company developing the nation’s largest LNG export terminal in Louisiana.
It's really an interesting case study, what has happened in the United States. I've been working on gas for more than 10 years, and I remember six years ago the whole gas industry, especially LNG, was just focusing on the United States as a market.
But with the power of innovation and agility, slowly you see that people are working on unconventional gas. Overnight, you see the United States turn from a net importer to an island of self sufficiency, and now they have 100 years worth of supply. [Red & bold emphasis added.]
Webmaster's comment: ...Or not.
"LNG exports to Asia can open a market for North America -- and especially Canada -- worth billions of dollars," said Odum. "It could sustain investments, jobs and provide long-term income through royalties and taxes in North America, while helping China and the rest of emerging Asia secure a lower-carbon energy future."
2012 June 8
Cheniere Energy — through subsidiary Corpus Christi Liquefaction — is readying to file for Federal Energy Regulatory Commission permits in August for the company's Corpus Christi liquefied natural gas export terminal, company vice president of business development William English said during an address Thursday to the Westside Business Association's annual luncheon.
Royal Dutch Shell is intensifying the drumbeat, sounding a warning to Canada that unless it speeds regulatory approval and eliminates red tape it will miss the opportunity to sell LNG in Asia. In case the message hadn’t come through from Shell’s Canadian President Lorraine Mitchelmore it was deliver....
Canada’s smaller unconventional natural gas producers have been urged to trade some of their competitive instincts for “strategic alliances” to lower exploration and development costs while they wait in anticipation of demand for LNG export projects.
Consumers are eyeing North America, awash with supply due to the rapid increase in shale gas output. There are at least 12 projects to export gas from North America at different stages of development, but only one has full export approval.
The U.S. has experienced a boom in shale gas exploration, which will potentially turn it from a net importer of natural gas into a gas exporter. Several companies have applied for licences to export excess domestic reserves to Europe and Asia.
Kwok W Wan, KUALA LUMPUR: The US government is keeping domestic gas prices lower than the rest of the world in a bid to stimulate its economy, Gazprom’s deputy chairman Alexander Medvedev claimed in a keynote address.
Earlier this year, US gas prices fell to 10-year lows of under $2.50 per million British thermal units (Btu) after a huge ramp-up in the country’s shale-gas production depressed prices. Asian prices, meanwhile, have climbed to around $18/million Btu, driven by Japanese demand after it shut its last nuclear reactor...
Webmaster's comment: This is lingering Soviet-style baseless propaganda. The US Government is not keeping natural gas prices low. Markets are the actual cause of low prices.
Kwok W Wan, KUALA LUMPUR: The cost of exploration and liquefied natural gas (LNG) projects are set to rise – further stoking the conflict between producers and consumers over how to price gas, Total chief executive Christophe de Margerie said this week.
In his keynote speech to the 2012 World Gas Conference, de Margerie said the complexity of projects and other inflationary factors meant upstream costs jumped 75% between 2005 to 2011, and that this would put pressure on LNG producers to insist on oil-linked gas contracts to safeguard long-term returns. “The issue is even more critical in areas of intense E&P (exploration and production) activities and scarce manpower, like Australia and Canada. In this context of high project costs, the visibility of the long-term LNG price is critical,” de Margerie said. LNG producers would like oil-linked contracts, but Asian consumers would like to move to...
Webmaster's comment: And yet, Cheniere is working on LNG export pricing based on the US Henry Hub — a fraction of the current world price.
2012 June 7
Whether battling against Broadwater Energy’s plan to put liquefied natural gas barges in the Long Island Sound, taking local and state legislators to task for controversial legislation or raising awareness about water protection, climate change, toxics and public health policy, Esposito has been a defender of not just LI’s environment but that of the entire region, going on three decades. Recent battles have included Suffolk’s septic problems, Nassau’s disastrous sewage plants, the state of the county’s Western Bays and hydrofracking, to name a few. Whatever the fight, if it means protecting the environment, Esposito will be right out in front.
"The introduction of Liquefied Natural Gas (LNG) is a fundamental element of the Government's fuel source diversification strategy, which includes investigating options for coal, petcoke, and renewable energy sources such as solar, wind, and hydro power," Paulwell said.
Gasfin Development SA, an independent developer of mid-scale LNG and natural gas projects, today announced they have signed an agreement with National Energy Corporation of Trinidad and Tobago Limited, the subsidiary of the National Gas Company, charged with the conceptualisation, promotion, development and facilitation of new energy-based downstream industries in Trinidad & Tobago, to facilitate the development of a mid-scale liquefaction plant capable of producing approximately 500,000 million tonnes of LNG per annum to supply markets in in the Caribbean.
Webmaster's comment: This proposed LNG export terminal and tanker berth are far too close to concentrated civilian housing, in conflict with SIGTTO terminal siting best safe practices. (See LNG Terminal Siting Standards Organization for more on this topic.)
The government is also reportedly aware that it has a problem with its policy governing the pricing of electricity for large new electric loads. Discussions are taking place with the proponents of new LNG plants that would consume in aggregate more electricity than the entire output of the proposed Site C hydro generating station. BC Hydro would incur huge losses if forced to pro-vide power to these LNG plants at the standard industrial rate as opposed to, for example, the cost of Site C.
The line would convey Wyoming natural gas from a transmission hub in southern Klamath County to the proposed Jordan Cove natural gas terminal at Coos Bay. The underground pipe would be 230 miles long and 3 feet in diameter.
U.S. Rep. Peter DeFazio wants Congress to deny the power of eminent domain, arguing that such pipelines fail the test of being necessary for public use because they would increase domestic energy prices.
U.S. imports have been declining steadily as shippers send LNG to higher-paying markets in Europe and Asia. [Red & bold emphasis added.]
Webmaster's comment: The news squib fails to mention that the the US is up to its eyeballs in domestic natural gas supply — a more accurate reason as to why imports are so few.
[T]he United States is poised to become an LNG exporter, and Morgan Stanley has yet to get a foothold in the market while others such as JP Morgan and Macquarie may be involved in U.S. liquefaction projects.
Korea Gas Corp. (036460), the world’s biggest importer of liquefied natural gas, said U.S. policies will determine how much LNG the country exports and shipments will undermine a 40-year-old oil-linked price mechanism used in Asia.
Buying U.S. gas will allow Asian consumers to pay prices linked to U.S. Henry Hub futures, which dropped 32 percent in 2011 and are down 19 percent in 2012. Futures slumped to $1.90 per million Btu on the New York Mercantile Exchange April 19, the lowest since September 2001. The contract rose 0.4 percent today to $2.43 per million Btu.
Webmaster's comment: Does the US really want a price war with such LNG-export giants as Qatar? The current US goldrush to export LNG may turn into the same terminal-investment disaster as the recent goldrush to import.
In his latest paper, "Balancing Natural Gas Pipeline Safety with Economic Goals," [Ken Costello, a principal in the National Regulatory Research Institute,] says that from an economic perspective, "utilities can have overly safe pipelines. The view that 'we can't compromise on safety' ignores the fact that safety carries a cost that policymakers should compare with the benefits." [Brown & bold emphasis added.]
Webmaster's comment: This article cries "wolf" without providing examples of what "too much safety" consists of, it it even exists.
2012 June 6
Dominion has proposed for several months now to construct, install, own, operate and maintain liquefaction facilities for exporting liquefied natural gas at its existing Cove Point site located on the Chesapeake Bay. As part of the project, the company also plans to build additional compression at its existing Loudoun compressor station in Loudon County, Va., or Pleasant Valley compressor station in Fairfax County, Va.
Last month, the Sierra Club announced its intentions to block the project, claiming it has the right to do so based on a revised legal settlement. However, Dominion claims there is no language in the settlement allowing the organization to keep it from expanding at that facility and has filed a lawsuit in the Calvert County Circuit Court requesting a declaratory judgment on the issue.
Sabine Pass LNG is operating at half its capacity. However, due to the oversupply of natural gas in the United States, it's unlikely the Company will receive any more import revenue. For the same reason, these contracts with Chevron and Total expire in 2029 and most likely won't get renewed. [Red & bold emphasis added.]
Mr. Tillerson, who said in his speech that the growing consumption and supply of natural gas will open new prospects for economic growth as well as environmental improvement with fewer emissions, also confirmed that Exxon Mobil Corp. is currently looking into the idea of constructing a new petrochemical plant in Texas to take advantage of current cheap shale gas prices.
FERC issued a notice of intent last week to prepare an environmental assessment for the Corpus Christi LNG terminal and interconnected pipeline proposed to be constructed in Nueces and San Patricio Counties, Texas. The deadline for public comments on the scope of the environmental review is July 2, 2012.
Business executive Christopher Zacca, who has served as chairman of the government’s liquefied natural gas (LNG) steering committee since November 2010, has resigned the position, Minister of Science, Technology, Energy and Mining, Phillip Paulwell has announced.
Randy Reiman is the Director of Resource Planning for B.C. Hydro says LNG plants have an option to use natural gas to create the necessary electricity for their operations, “But the Government has released its natural gas and LNG strategy and what they’re trying to achieve is three LNG plants up and running by 2020 and they’d like them to be supplied with by clean energy in B.C. backed up by gas. The intent is to make sure the LNG plants are competitive , that the government can still meet its climate targets, its ghg targets, and they want to make sure ratepayers are not impacted by the LNG plants.”
Already, the community has earned $50 million selling its equity stake in the Kitimat LNG project to be located on Haisla land from which it will collect rent, taxes and guaranteed employment for 49 years. The project's backers, Apache Corp., EOG Resources Inc. and Encana Corp., are expected to decide later this year whether to sanction the proposal to initially process 700 million cubic feet of gas per day.
In updates from opposite sides of the globe, proponents of a Canadian West Coast liquefied natural gas export terminal said the project is on schedule for a sanctioning decision in 2014 and possible startup in 2018.
TransCanada, Canada’s No. 1 pipeline company, said it would design and build a 700-kilometre line capable of shipping 1.7 billion cubic feet of gas per day from the Dawson Creek area to Kitimat, where three LNG plants, including Shell’s facility, are planned.
The West Coast GasLink, as TransCanada has called it, will extend 700 kilometres from Dawson Creek, the nexus of a number of rich B.C. shale gas fields, to Kitimat, B.C. Not far from that town, perched at the mouth of Douglas Channel, Royal Dutch Shell PLC has secured land and is developing a project to export 1.2 billion cubic feet a day of liquefied natural gas – and perhaps twice that – to Asian markets. TransCanada beat out Enbridge Inc. and Spectra Energy Corp. for the Shell contract.
“The negative reputations of TransCanada and Shell will definitely make it harder for these companies to get social licence,” said Nikki Skuce, a Smithers, B.C.-based campaigner for ForestEthicsAdvocacy. She pointed to the 200 tankers a year that Shell’s project alone could bring to the area.
The Site C dam is neither a "clean" nor "green" option. It will flood one of the most important river valleys in the northeast. Site C is not needed for domestic consumption, but, according to government, to power the planned LNG (liquefied natural gas) plants.
Notice was published in the Federal Register of Jordan Cove Energy Project's application, filed with the U.S. Department of Energy, to export LNG from a terminal to be constructed near Coos Bay, Ore. Jordan Cove requests authorization to export domestically produced and imported Canadian natural gas as LNG to countries that do not have Free Trade Agreements with the United States. Comments on the application are due August 6, 2012.
Backers of the proposed Pacific Connector Gas Pipeline between Coos Bay and Malin on Monday filed a pre-application with the Federal Energy Regulatory Commission to build the estimated 230-mile project.
In April, the commission withdrew its 2009 authorization to allow a liquefied natural gas import terminal to be built at Jordan Cove near Coos Bay and a pipeline across northern Jackson County en route to Malin after the backers announced they wanted to export the gas instead of importing it as originally planned.
[U.S. Rep. Peter DeFazio] noted the U.S. Constitution limits the use of eminent domain to actions necessary for "public use," adding that pipelines such as the one proposed from Malin to the proposed LNG terminal in Coos Bay fail that test. Instead, it would boost corporate profits while increasing domestic energy costs, he said.
Both Jordan Cove and Williams must re-apply for permits from the Federal Energy Regulatory Commission before construction can begin. The companies previously received permits to build an import facility and connecting pipeline, but FERC vacated those permits in April when Jordan Cove changed its project to export the gas. An export facility is a significantly different project than an import facility and requires its own permits, according to FERC.
The Williams Companies, Inc. has asked federal regulators to begin the review process for the Pacific Connector pipeline, which would carry natural gas to a proposed liquefied natural gas export terminal in Coos Bay. It intends to file a complete application by the end of the year.
Williams and the backers of the proposed Jordan Cove LNG terminal had hoped that the Federal Energy Regulatory Commission would expedite review of the pipeline, which was previously approved when Jordan Cove was envisioned as an import facility. Now that the project backers intend to export gas, however, regulators are undertaking another full- blown review of both the terminal and the pipe.
“Natural Gas is available from secure sources in North America. It can be liquefied and transported to Hawaii at a cost which TGC believes will be well below the current cost of oil. Moreover the price of Natural Gas is expected to remain below the cost of oil for many years to come,” Kissel said. “When used for power generation, it has the added advantage of providing high-efficiency, low-carbon support for the wind and solar power sources slated for introduction in Hawaii.”
TGC makes synthetic natural gas (SNG) at the only facility of its kind in the United States and supplies it through a 1,100-mile pipeline network to nearly 30,000 commercial and residential utility customers on Oahu.
The reason coal production is down is a decrease in demand from electricity generators. The reason electricity generators are demanding less coal is because natural gas is so cheap. The reason natural gas is so cheap is because we have more supply than we need.
As for natural gas and coal, we have more than we need as the prices for the two tell you. That's the wonderful thing about free markets: If you want to know if we need more of something, you can just look at the price. If it's hitting record lows, you know there's probably too much in the first place, just like there is right now in natural gas and coal. [Red & bold emphasis added.]
The joint effort comes at a time of geographic shifts in gas demand and is designed to address whether the three major gas markets -- Asia, Europe and North America -- can continue to be separate markets, both in terms of contractual terms and price benchmarks, given the expected start of LNG exports from North America.
[A]s gas prices in the US have collapsed as a result of the shale gas explosion, Japan has been looking to North America for alternative supplies in the hope of securing Henry Hub prices that are currently at a fraction of oil-linked LNG prices. [Red & bold emphasis added.]
Qatar, the world’s largest liquefied natural gas producer, joined Australian suppliers in playing down the threat of large-scale exports of the fuel from the U.S., where a shale-gas boom has upended global energy markets.
“The U.S. has need for energy themselves,” Hamad Rashid Al-Mohannadi, the managing director of RasGas Co., told reporters in Kuala Lumpur today. “I don’t see the U.S. exporting large volumes of LNG” as it would cause domestic gas prices to rise significantly, he said.
A boom in extracting gas trapped in shale rock in the U.S. has helped it surpass Russia as the world’s biggest producer of natural gas and brought the country close to energy independence. [Red & bold emphasis added.]
America produces more gas than it knows what to do with. Its storage facilities are rapidly filling, and its gas price -- because prices for gas, unlike oil, are set regionally -- has collapsed. Last month, it dipped below $2 per million British thermal units, less than a sixth of the pre-boom price and too low for producers to break even.
This is astonishing. Barely five years ago America was expected to be a big gas importer. Between 2000 and 2010 it built infrastructure to "regasify" more than 100 billion cubic metres of imported liquefied natural gas. In 2011, however, American LNG imports were less than 20 bcm. Efforts are underway to convert idle regasification terminals into liquefaction facilities in order to export LNG. [Red & bold emphasis added.]
Webmaster's comment: It is abundantly clear that the US is up to its eyeballs in domestc natural gas supply, and that Downeast LNG's import terminal proposal defies economic logic. If New England needs additional natural gas access during seasonal high-usage periods, pipeline infrastructure expansion is the logical answer — not increasing US dependence on expensive LNG imports from overseas.
2012 June 4
It took about an hour to stop the leak. [Red & bold emphasis added.]
Malfunctioning valve lead to natural gas leak
A tanker carrying liquefied natural gas was pulled over there after the driver noticed vapors coming from the truck. [Red & bold emphasis added.]
The Department of Energy has already approved Cove Point's application to export 1 Bcf/d of LNG to free trade agreement countries. Its application to ship LNG to non-FTA countries is still pending at DOE.
Cove Point must also win approval from FERC to build the liquefaction and other facilities necessary for exports. The company plans to file this application no less than 180 days after beginning the pre-filing process with FERC. [Red & bold emphasis added.]
On Friday, Dominion Cove Point LNG (Cove Point) filed a request at FERC to begin the pre-filing environmental review process for proposed liquefaction facilities to be constructed at Cove Point’s existing LNG import terminal in Lusby, Md. The liquefaction facilities will consist of up to two LNG trains, capable of processing an average total of 750 MMcf/d of natural gas for a nominal LNG train capacity of approximately 4.5 to 5 million tons per annum, and will enable Cove Point to provide bi-directional import and export service. Cove Point projects an in-service date of March 2017.
Notice was published in the Federal Register of Gulf Coast LNG Export's application, filed with the U.S. Department of Energy, to export LNG from a terminal to be constructed at Port Brownsville, Texas. In its application, Gulf Coast LNG Export requests authority to export to countries with and without Free Trade Agreements with the United States. Comments on the application are due August 3, 2012.
If the international pricing on natural gas falls significantly, LNG could find itself in dire trouble. With worldwide economies slowing currently, the possibility of LNG prices falling is increasingly large. Such an occurrence would make it harder for LNG to sell stock to prospective investors and debt to prospective creditors. This could add greatly to delays and to the overall costs. For instance the costs of trains 3 & 4 (due for completion in 2017 or 2018) could easily skyrocket. This would put LNG in a very bad position.
Karl Samuda, a Jamaican opposition Member of Parliament and former industry and commerce minister, said "enough is enough" and called on Trinidad and Tobago to supply Jamaica with Liquid Natural Gas just as plans to do with Barbados. Speaking in Jamaica's Parliament on Wednesday as he made his contribution to that country's 2012-2013 Budget Debate, "The question of the fact that they (T&T) have been lucky to have endowment of oil does not remove their obligation as a member state (of Caricom) to share that wealth.”
Attempts were being made to put the flare out, but the gas leak was contained before an explosion occurred, he said. [Red & bold emphasis added.]
Employees at Atlantic LNG, Point Fortin, had to be evacuated yesterday after a leak was discovered in one of the plant’s tanks. Atlantic LNG’s communications specialist, Billson Hainsley confirmed the incident. However, he assured the situation was under control and work had resumed at the plant.
Reports reaching the T&T Guardian indicated that shortly after lunch, a leak was discovered at Atlantic’s Tank “C” and employees had to be evacuated to the company’s administrative office, Clifton Hill, Point Fortin. Half an hour later, all other employees on the plant were evacuated and made to wait under a tent as checks were carried out on the site. They complained that at train one, the alarm system failed and workers were left wondering where was the muster point. [Red & bold emphasis added.]
Not surprisingly, the development of a new liquefied natural gas industry in the province's northwest is being viewed as a major industrial consumer. It potentially represents the biggest additional load on Hydro's system, according to the plan. There will not be enough energy from existing sources to meet the demand if all the proposed LNG terminals go ahead.
[T]he much larger Shell Canada LNG proposal for a plant more than twice the size of Kitimat LNG, would require new green energy plus a gasfired turbine. Two other LNG proposals, which are not mentioned in the Hydro forecast, are also being considered by global oil and gas companies. They are a British Gas proposal for Prince Rupert and a joint Petronas-Progress Energy plan for Kitimat.
2012 June 1
While Canadian LNG exports to Pacific markets will begin by 2020, further growth in exports to Asia is limited in the IEA's Golden Rules Case - or best-case scenario - because of the large increase in domestic production in China, as well as the rise in unconventional production in Indonesia and Australia, the agency said in a new report on natural gas published Tuesday.
The assessments were initiated after complaints from several U.S. lawmakers, including Sen. Ron Wyden, D-Oregon, and Rep. Edward Markey, D-Massachusetts, who said sales overseas might increase prices at home.
The Gas Co. is moving ahead with plans to bring U.S.-produced natural gas to Hawaii, announcing Thursday it has chosen an engineering firm to help with the project, which would give local residents and businesses access to a new and potentially cheaper energy alternative.
In addition to hiring CH2M HILL, a Denver-based engineering and consulting firm, The Gas Co. officials also said they have begun seeking regulatory approval to bring in the first shipment of liquefied natural gas, or LNG, by the end of this year.
The Honolulu Star-Advertiser reported Friday in addition to hiring CH2M HILL, The Gas Co. officials have begun seeking regulatory approval to bring in the first shipment of liquefied natural gas by the end of the year.
Obama needs to use his authority to limit exports of natural gas, as well as coal and petroleum products, and lay out a framework for assessing whether such exports are in the national interest, Congressman Edward Markey and Senator Ron Wyden said in a letter to the president.
The DOE has delayed permits and assessments of proposed sites mainly due to worries from Congressional members. Congress remains concerned about the long-term U.S. energy security and the potential that natural gas prices could increase dramatically as exports begin.
Bottom line for the U.S.: For the first time in 50 years it could become an exporter of LNG as it finds itself awash in shale gas reserves. Houston-based Cheniere Energy Partners (NYSE: CQP), which operates the country’s largest natural gas import terminal – now a white elephant given the surfeit of gas in the U.S. – has plans to construct the first LNG export terminal at its Sabine Pass, Louisiana location. Initial plans call for the construction of two liquefaction “trains,” each capable of producing 4.5 million tons of LNG a year, with two more to follow. For perspective, total global output of LNG in 2011 was approximately 240 million tons. Lending credibility to the project is a $2 billion investment by private equity giant Blackstone, which should ensure that the rest of the estimated $5 billion cost will soon follow from like-minded investors.
The Wall Street Journal reports that the Obama Administration has told Japan and other countries that they face a waiting period while the United States decides whether to move forward with LNG exports, mostly due to the political sensitivity of the issue. A Japanese official familiar with recent talks between Japan and the United States on energy issues stated that no decisions on U.S. LNG exports would be made before the November presidential election.
Webmaster's comment: Here is mentioned, again, fire-sale prices on exported US-source LNG.