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Cove Point LNG Files with FERC to Add Another 20 MMcf/d Output

Located in Lusby, Maryland, Cove Point LNG is the first major LNG export facility to locate on the East Coast. It is recognized as one of the most technically advanced and environmentally sensitive LNG facilities in the world. The Cove Point LNG Terminal has a storage capacity of 14.6 billion cubic feet (Bcf) and a daily send-out capacity of 1.8 Bcf. The owners/managers of Cove Point recently filed a preliminary request with the Federal Energy Regulatory Commission (FERC) to increase export capacity by an extra 20 million cubic feet per day (MMcf/d) by installing a small liquefaction unit to capture “boil off gas” the plant currently evaporates during normal operations.
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U.S. LNG Exports to Hit 20 Bcf/d by 2026 as More Plants Begin Const

Three LNG export projects in the U.S. are now under (or are about to begin) construction, including Golden Pass LNG, Plaquemines LNG, and Corpus Christi Stage III. According to a chart provided by the U.S. Energy Information Administration (EIA), when those three new facilities come online by early 2026, the U.S. will be exporting some 20 Bcf/d (billion cubic feet per day) of American gas molecules. Cool!
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Obscure EPA Reg Change Creates Big Problems for LNG, Pipelines

The left finds the most devious ways to sink their claws into the fabric of American society and force it to conform to their twisted worldview–like using an obscure regulation promulgated by the U.S. Environmental Protection Agency (EPA). In February 2022, the EPA announced a “minor” change to a regulation governing gas-fired turbines under the National Emission Standards for Hazardous Air Pollutants (NESHAP), a framework in place since 2004. At first glance, the EPA’s announcement seems to be a minor update to a highly technical rule. However, a careful examination of the list of impacted units reveals that the change in enforcement framework could have significant impacts on both supply and demand dynamics in natural gas markets in the U.S. and beyond, affecting LNG exports, gas-fired power plants, and gas transmission and processing infrastructure (pipelines) in particular.
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Boston Imports 10th Foreign LNG Cargo This Year – It’s Only August!

For more than four years, we have been calling attention to the fact that the Boston/New England area imports FOREIGN LNG each year, even though abundant DOMESTIC supplies sit a few hundred miles away in the Pennsylvania Marcellus (see Confirmed: LNG Coming to Boston on Jan 22 is Illegal Russian Gas). New England pays 2-4X as much for their imported natural gas as they would from the Marcellus/Utica. What stops Boston from using domestic supplies? Politicians (the governors) in both New York and Massachusetts block new pipelines. So far this year, Boston has imported ten cargoes of LNG at two facilities near Boston–roughly 16 billion cubic feet (Bcf) of natgas. All of it is from foreign sources.
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Philadelphia LNG Export Project Still Very Much Alive & Advancing

In June, seemingly out of nowhere, a plan to build an LNG export facility on the banks of the Delaware River south of Philadelphia made big headlines in Philly. Penn LNG, headed by Franc James, a native of Philadelphia, has “quietly lined up support to build a $6.4 billion liquefied natural gas export terminal near Philly.” While acknowledging such a project will face stiff opposition, James is planning to pre-file with Federal Energy Regulatory Commission (FERC) by the end of this year, and reach a final investment decision (FID) by 2024. Full speed ahead!
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Cheniere Files with FERC to Expand LNG Exports at Corpus Christi

Cheniere Energy operates the largest LNG export facility in the U.S.–the Sabine Pass LNG facility in the Lake Charles, LA area. Sabine Pass liquefies and exports 30 mtpa (million tonnes per year) of LNG. If new plans unveiled by Cheniere play out, the company’s second LNG export facility in Corpus Christi, TX, will come close to the output at Sabine Pass–around 28 mtpa. Both facilities have the capability of exporting Marcellus/Utica molecules.
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US LNG Export Volumes Increase as Calcasieu Pass Comes Online

Venture Global’s Calcasieu Pass LNG export facility in Louisiana shipped its inaugural cargo of LNG back in February (see Calcasieu Pass LNG Loads Inaugural Cargo; Sabine Pass LNG Expands). In May, Calcasieu Pass began accepting daily deliveries of 800 million cubic feet per day (MMcf/d) of natural gas (see Calcasieu Pass, U.S.’s 7th LNG Export Terminal, Hits 0.8 Bcf/d). The facility continues to build toward using an estimated 1.3 billion cubic feet per day (Bcf/d) of natgas, with the ability to spike up to 1.6 Bcf/d. And it’s a good thing because not long after Calcasieu Pass came online, Freeport LNG and its 2 Bcf/d of production went offline (see Explosion Rocks Freeport LNG Export Plant – Offline for 3 Weeks). Freeport remains offline to this day.
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Sierra Club Attacks Driftwood LNG’s “Dredge & Fill” Permit

You have to hand it to the wackadoodles of the Sierra Club–they sure are creative. They look for any way they can to block American fossil energy. They try to stop drilling for oil and gas via frack bans. They are behind many of the efforts to ban new customers from connecting to natural gas lines in “blue” cities (the ignorant fools fall into the trap almost every time). The Clubbers try to block the transportation of oil and gas by launching lawsuits against pipelines. And now, they are trying to block clean-burning American natural gas (far cleaner than any other gas extracted on the planet) from being exported to help our allies in Europe. The Clubbers and their radical brethren at a group called Healthy Gulf have challenged a “dredge and fill” permit granted by the U.S. Army Corps of Engineers to the Driftwood LNG facility now under construction near Lake Charles, Louisiana.
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Critical Role of U.S. LNG in Fighting a Two-Front Gas War

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We are currently at war with two of the biggest rogue countries in the world: Russia and China. No, it’s not a shooting war that involves U.S. soldiers. At least, not yet. But make no mistake, we are in a war–on two fronts. The Russian war is over that country’s illegal invasion of Ukraine and the ongoing effort to murder Ukrainians using missiles and Russian ground forces in an attempt to annex portions of the country. The Chinese war is over the independent island nation of Taiwan, which China covets and wants to annex as its own. See a theme here? Both are about land grabs. According to energy experts from Rice University’s Baker Institute, the U.S. LNG industry will need to maintain commitments and support allies and trading partners in both Europe and Asia this winter while fighting this two-front war. It won’t be easy.
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Shell Cuts Deal to Buy LNG from La. Facility it Previously Dumped

Talk about irony! Scared of the potential impacts of the coronavirus and with the price of oil crashing in March 2020 (just as COVID was getting started), Royal Dutch Shell pulled out of a 50/50 joint venture partnership with Energy Transfer (ET) to build a new LNG export facility in Lake Charles, Louisiana (see Shell Pulls Out of Lake Charles LNG Project, Energy Transfer Stays). In an announcement issued yesterday, ET said it had cut a deal with its old partner to sell them 2.1 million tonnes (MT) of LNG per year from the Lake Charles facility when the facility gets up and running in 2026. Shell must be kicking itself…
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Freeport LNG Restart Timeline Slips from October to November

The Freeport LNG export facility, located in Quintana Island, Texas, has been offline since June due to an explosion and fire. Liquefying just over 2 Bcf/d (billion cubic feet per day) of natural gas, including some Marcellus/Utica gas, Freeport is the second largest LNG exporter in the country. Three weeks ago, Freeport announced the plant would be mostly back online and producing 2 Bcf/d sometime in October (see Freeport LNG Signs Agreement w/PHMSA to Restart 2 Bcf/d in October). Yesterday the company backtracked and said no, it would now be November, not October, before the plant returns to near-full operation.
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Canadian PM & German Chancellor Trash Talk LNG Exports to Europe

We simply don’t understand the minds of liberals. They are frustratingly irrational. In June, German Chancellor Olaf Scholz spoke to Canadian Prime Minister Justin Trudeau about Germany buying LNG from Canada (see One of Five Canadian East Coast LNG Export Projects Leads the Pack). One of the five East Coast projects, in particular, seemed to be the focus of their discussion–Repsol’s St. John LNG project in St. John, New Brunswick. Scholz is visiting Canada and yesterday, just two months after begging for LNG, both Scholz and Trudeau dismissed the concept of Canada exporting LNG to Germany. Both pledged their undying love to renewable unicorn farts instead. It’s mind-blowing.
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Eagle LNG Export Close to Building in Jacksonville? FL Easement

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In September 2019, the Federal Energy Regulatory Commission (FERC) gave final approval to Eagle LNG to build a small LNG export facility project at a site on the St. Johns River in Jacksonville, Florida (see FERC Grants Final Approval to Jacksonville, FL LNG Export Plant). Some of the gas that will feed it will come from the Marcellus/Utica. It has been a looooong road, but we finally may be close to the beginning of construction of this smallish facility. The state of Florida is about to approve a lease for what is known as “sovereign submerged lands” controlled by the state–in essence, an easement related to a docking facility and permission for dredging.
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Freeport LNG Creates Confusion by Retracting Force Majeure

The second-largest LNG export terminal in the U.S., Freeport LNG, located near Galveston, Texas, experienced an explosion and fire in early June (see Explosion Rocks Freeport LNG Export Plant – Offline for 3 Weeks). Thankfully nobody was injured, and it did not take long to extinguish the fire. The incident took the plant offline for “at least three weeks,” which later turned into months (at least until October). Freeport was quick to declare the incident a force majeure or unforeseeable act of God, which takes the facility and the buyers of its LNG off the hook for legally-binding contracts to deliver LNG. But what’s this? Freeport has, according to Reuters, retracted or rescinded its declaration of force majeure.
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Cove Point Hits Major Milestone – Loads 300th Marcellus LNG Cargo

Berkshire Hathaway Energy’s (BHE) GT&S subsidiary announced that the Cove Point LNG export facility, which BHE GT&S operates, reached a major milestone at the end of July. Cove Point has loaded its 300th commercial LNG export cargo. All of the molecules that Cove Point liquefies come from the Marcellus Shale. MDN was there from the beginning, chronicling the journey from idea to construction to (now) loading 300 cargo ships full of Marcellus LNG. What a journey!
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Small Amount of NatGas Flowing to Freeport LNG Explained

Two weeks ago, MDN brought you the news that a small amount of natural gas–roughly 22 MMcf/d (million cubic feet per day)–is once again flowing into the closed Freeport LNG export facility (see Small Amount of NatGas Flowing to Freeport LNG Once Again). The facility is not due to reopen until October. So why is natgas flowing into it? We offered up two possible explanations. As it turns out, neither explanation was the correct one.Continue reading