Eversource Pushes for Jones Act Waiver for U.S. LNG in New England
MDN previously reported that in October, Joe Nolan, the CEO of New England’s largest utility company, Eversource, sent a letter to President Biden urging him to assemble a panel and figure out how to ensure natgas flows to New England (via LNG) this winter–because if it doesn’t, this IS the year rolling blackouts become reality (see Eversource Tells Biden w/o More NatGas New England Gets Blackouts). At the top of Nolan’s wish list is a Jones Act waiver to allow U.S. LNG to be transported to Boston.
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The country of Japan is perenially either the #1 or #2 top LNG importer in the world. The country has virtually no domestic supplies of oil and gas and, therefore, must import what it uses. It’s no secret that Japan and its traders are some of the best in the world. So when Japan says supplies of LNG are getting tighter and that “Procurement [of LNG] can also be said to be in a state of war,” that’s alarming. And sobering. Japan says not enough money is being invested in LNG export projects, and although this year most countries can muddle through, beginning next year, it’s going to be a problem.
The Freeport LNG facility, which has been out of commission since early June, has once again changed the target date it will restart. According to Freeport officials, the export facility will restart incoming gas flows to the plant in mid-December. That is, provided Freeport gains permission from the U.S. Dept. of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) to do so. In an announcement issued Friday, Freeport said full production of 2 Bcf/d (billion cubic feet per day) of incoming gas won’t happen until January 2023, and using both docks for cargo vessels won’t happen until March 2023. Net net: Freeport won’t return to full, 100% service until next spring.
In March of this year, the three Democrats who occupy and control the Federal Energy Regulatory Commission (FERC) sent a loud and clear signal they don’t like the Commonwealth LNG plan to erect a new LNG export plant in Cameron Parish, La. due to concerns over so-called environmental justice (see 
The Freeport LNG export facility, located in Quintana Island, Texas (near Houston), experienced an explosion and fire in early June (see 
An interesting episode on Friday illustrates the power of social media and fake news. The NYMEX natural gas futures price for the “front month” December contract plunged as much as 7.4% on Friday morning after someone identifying themselves as a commodities trader posted on Twitter that “cracked pipes” were discovered at the Freeport LNG terminal, potentially delaying the company’s plans to restart exports. Interest in the tweet took off after being shared by another Twitter user that is widely followed by gas traders and analysts.
MDN editor Jim Willis lives in the Binghamton, NY, area. While traveling local highways and local town roadways, he often sees XNG tractor-trailers passing through the area (like the one pictured at left). XNG (Xpress Natural Gas) is a “virtual pipeline” company, compressing and hauling CNG (compressed natural gas) to customers in the northeastern United States. The company has a major depot in Montrose, PA, not far from MDN HQ, compressing and then transporting Marcellus gas to customers that don’t have the benefit of using pipelined gas. XNG has just ordered more CNG trailers.
Bloomberg is reporting that “sources” are chattering that Dominion Energy, the majority owner of Cove Point, Maryland, LNG export facility with a 50% stake in the plant, is considering selling its stake. In July 2020, Dominion sold its natural gas pipeline business along with a 25% stake in Cove Point to Warren Buffett’s Berkshire Hathway (see 
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 (see 
National Grid is desperately trying not to run out of natural gas for its customers in Brooklyn and Queens (on Long Island). For several years the company has fought a battle to run a tiny pipeline to its Greenpoint, Brooklyn facility to provide extra natural gas. That project is being investigated by the Biden administration on charges of racism (see 
The Freeport LNG export facility experienced an explosion and fire in early June (see 
Late last week, both the Federal Energy Regulatory Commission (FERC) and the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) held a conference call with Freeport LNG to discuss progress being made in restoring the 2.1 Bcf/d LNG export facility back to full working order. Freeport experienced an explosion and fire in early June (see 
We’ve been warning about it for years because various government and private companies have been warning about it–that Boston and New England were just one extended cold snap away from rolling blackouts. More than half of all electricity generated and provided to New England comes from natural gas-fired power plants. During cold periods when there is high demand for home heating, power plants are threatened with shortages. Somehow New England has dodged a bullet and has not had to resort to rolling blackouts. Until (likely) this year. Eversource, the region’s largest utility company, sent a letter last Thursday to President Biden urging him to assemble a panel and figure out how to ensure natgas flows to New England (via LNG) this winter–because if it doesn’t, this IS the year rolling blackouts become reality.
Cheniere Energy, the largest LNG exporter in the U.S., recently made a major error in judgment and a misstep that threatens the company, in our humble opinion. Cheniere, via its Sabine Pass and Corpus Christi LNG facilities, exports more than 50% of all U.S. LNG exports, and more than 10% of all LNG exports worldwide. In fact, only the country of Qatar (Qatar Petroleum) exports more LNG than does Cheniere Energy. Last week Cheniere announced it has voluntarily joined the Oil and Gas Methane Partnership (OGMP) 2.0, a United Nations Environment Programme’s (UNEP) oil and gas methane emissions reporting and mitigation initiative. This is bad news.