Gulf of Mexico

• FERC to conduct onsite environmental review for proposed Corpus Christi LNG Liquefaction project

British Columbia

• LNG and Pacific Trail Pipeline a go
• Mitsubishi accelerating analysis of Canadian LNG export projects
• Canada: Oh Canada - Significant developments in Canadian energy - January 2012
• Slow and easy will win energy race (Feb 14)

Oregon

• Oregon Senator wants larger role for state in LNG export proceedings

United States

• UPDATE 1-Japan wants to seal U.S. LNG import deal in spring -media
• Govt in talks with U.S. to import natural gas (Feb 23)
• Japan in talks with U.S. to import LNG: report
• Exporting natural gas will be good for America [Opinion column]
• Fitch U.S. natural gas exports face long-term challenges (Feb 14)

North America

• Can North America become bigger than Qatar as the World's leading LNG exporter? [Press release]

Gulf of Mexico

FERC to conduct onsite environmental review for proposed Corpus Christi LNG Liquefaction project — LNG Law Blog

FERC announced yesterday that its staff will "examine the proposed [Corpus Christi] liquefied natural gas terminal site and pipeline route" on February 28, 2012, in order to "assist staff in completing its comparative evaluation of environmental impacts of the proposed projects." FERC staff will also attend the open house hosted by Corpus Christi LNG project developers later that evening.

British Columbia

LNG and Pacific Trail Pipeline a go — Vanderhoof Omineca Express, Vanderhoof, BC

Vanderhoof council meeting February 13, saw presentations to mayor and council. The Apache Corp presentation was by Marc Douglas, describing the Pacific Trail Pipeline. His update was in regards to their proposed underground liquid natural gas (LNG) pipeline that will start north of Prince George and go due west to Kitimat to an LNG holding facility and shipping terminal.

“All major provincial and federal permits are in place,” to begin constructing the line, Douglas informed council.

Mitsubishi accelerating analysis of Canadian LNG export projects — LNG Law Blog

Mitsubishi Corporation told Platts yesterday that it plans to accelerate its feasibility analysis of the proposed Canadian LNG export projects. This statement follows Mitsubishi's investment in Encana Corporation's Cutback Ridge gas play in northern British Columbia.

Canada: Oh Canada - Significant developments in Canadian energy - January 2012 — Mondaq

BC LNG received approval from the National Energy Board for a license to export LNG near Kitimat, British Columbia. The license is the second of its kind, following on the heels of the license granted to Kitimat LNG last year, and will permit the export of 36 million tonnes of LNG over 20 years, with a maximum of up to 1.8 million tonnes of LNG per year. The project, currently comprised of 13 members, will operate as a cooperative made up of LNG buyers, marketers and natural gas producers who will bid to purchase LNG or provide natural gas to be liquefied.

Slow and easy will win energy race (Feb 14) — The Vancouver Sun, Vancouver, BC

What neither Clark nor Coleman seems [sic] keen to talk about is just how much stress B.C.’s water resources and hydroelectric network will be under to fuel several proposed LNG terminals on our coast.

Six companies or consortiums are eyeing gas exports from B.C., most recently British natural gas giant BG Group PLC, which is kicking the tires in Prince Rupert. Their power demands combined would swallow at least one-quarter of B.C.’s projected hydroelectric supply in 2016.

Oregon

Oregon Senator wants larger role for state in LNG export proceedings — LNG Law Blog

Senator Jeff Merkley (D-Ore.) told a town hall meeting yesterday that he believes Oregon should have a larger role in the permitting process for LNG projects. KCBY.com provides further coverage.

United States

UPDATE 1-Japan wants to seal U.S. LNG import deal in spring -media — Reuters

TOKYO, Feb 22 (Reuters) - Japan is hoping to reach an agreement to import liquefied natural gas (LNG) from U.S. projects in Louisiana and Maryland at a bilateral summit meeting slated for this spring, the Yomiuri newspaper said on Wednesday.

Record U.S. natural gas production, thanks to new drilling techniques, has led to a series of rival export proposals all hoping to sell LNG to higher paying, thirsty markets in Asia and Europe.

Govt in talks with U.S. to import natural gas (Feb 23) — The Daily Yomiuri, Japan

The government has asked the U.S. government to grant permission for the export of liquefied natural gas (LNG) produced in the United States to Japan, according to sources.

U.S. production of natural gas is on the rise thanks to technological advances. The two states' projects are projected to result in exports of 17 million tons of LNG a year.

Japan in talks with U.S. to import LNG: report — MarketWatch

Fujimura said at a news conference that the expansion of shale gas production has lowered prices for natural gas in the U.S. market and he voiced the hope that imports from North America would ensure Japan a "stable supply of natural gas."

"It is true that we are lobbying the U.S. (on our LNG imports) at various levels, and Japan would like to proactively promote imports of natural gas from North America," the chief Cabinet secretary said.

Exporting natural gas will be good for America [Opinion column] — The Hill, Washington, DC

American consumers and businesses are currently reaping a windfall from the lowest natural gas prices in years. Cheap gas has reduced heating and electric bills for millions of households, while industries using natural gas as a feedstock or boiler fuel have realized huge production cost savings. But at the same time $2.50 gas at the wellhead has caused many drilling companies to reduce production and move their rigs to more profitable oil plays. Simply put, the current price for natural gas is too low to sustain the pace of drilling and production that has occurred in recent years.

As with all commodities, the price of natural gas is determined by supply and demand. Today the supply is abundant, a consequence of the shale gas revolution, while demand is muted due to a sluggish economy and relatively mild winter. Because of America’s large and growing reserves of natural gas, potential supply will exceed anticipated domestic demand for many years to come. [Red, brown & bold emphasis added.]

Webmaster's comment: Oil, natural gas, and gasoline prices certainly do not follow the assertion that all commoditiy pricing is a function of supply and demand.

Natural gas production has continued to soar — and is projected to do so for years — despite low prices and low demand. Natural gas is frequently a byproduct of drilling for oil and drilling for "heavy" hydrocarbon fuels such as propane. Sometimes, natural gas is produced at essentially no cost to the driller.

Pricing is frequently a function of the mood of the market — or of market manipulation — not of actual supply and demand.

Fitch U.S. natural gas exports face long-term challenges (Feb 14) — OilVoice

The combination of shale gas reserves and weak economy has pushed prices to a level approaching the marginal cost of production. We expect the recent low prices for natural gas to continue, as supply should remain high. The U.S. Energy Information Administration projects shale gas production to increase from 5.0 trillion cubic feet in 2010 to 13.6 trillion cubic feet in 2035. We also expect the Department of Energy to continue to grant licenses to construct or reconfigure LNG terminal facilities to increase the volume of exportable resources. However, several risks have been identified in this scenario that could disrupt this expansion and the securities funding them.

North America

Can North America become bigger than Qatar as the World's leading LNG exporter? [Press release] — Bradenton Herald, Bradenton, FL

Cheniere's latest SpA with KOGAS has once again launched North America into the headlines. Jean Abiteboul, President, Cheniere Supply & Marketing, will be giving a keynote presentation at the LNG Export Forum North America in Houston on the 16 - 18 May 2012, and will also give updates on the Sabine Pass - the launch of the first US LNG export terminal.