CNG/LNG

CNG/LNG | Industrywide Issues | Research

B&V 2019 Natural Gas Report: LNG Ramps Up, More Infra. Needed
November 16, 2018November 16, 2018

The annual Black & Veatch “Strategic Directions: Natural Gas Report” (full copy below) explores the complexities and market dynamics impacting today’s natural gas landscape. As the world continues to invest in the adoption of so-called renewable energy options, the outlook for natural gas has never been more positive. You read that right! More renewables = more investment in natural gas. Shifts in the global energy market are influencing gas production and transportation, altering the volume of supply. Developers, who know a good opportunity when they see it, are investing heavily in liquefied natural gas (LNG) and liquefaction capacity. But more infrastructure and pipeline capacity will be needed to continue to support the growth in LNG, especially as Asian markets continue to migrate away from coal in an effort to meet environmental goals. This report explores how complex geopolitics will impact upstream, midstream and downstream operations, while global forces reshape the industry across the board.
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Bradford County | CNG/LNG | Economic Impact | Industrywide Issues | Jobs | Pennsylvania | Processing Plants | Trucking

Marcellus LNG Export Plant in NEPA Will Generate Lots of Traffic
November 12, 2018November 12, 2018

Last week MDN brought you the exciting news that New Fortress Energy is planning to build an LNG (liquefied natural gas) liquefaction plant in Wyalusing (Bradford County), PA (see Big News! Marcellus LNG Export Plant Coming to Landlocked NEPA). The $800 million plant will supercool and liquefy locally extracted Marcellus Shale gas and ship it first by truck, eventually by rail, to “customers in the U.S. as well as abroad.” The plant received initial blessing from the Wyalusing Town Planning Commission last week. But not all is butterflies and unicorns. At a planning commission meeting, a New Fortress Energy official revealed that the plant will generate 10-15 tractor trailer trips per hour–24/7/365. That’s a truck turning in to the facility once every 4-6 minutes–call it an average of one every 5 minutes.
Read More “Marcellus LNG Export Plant in NEPA Will Generate Lots of Traffic”
CNG/LNG | Industrywide Issues | Pennsylvania | Statewide PA

PA DEP Spends $2.6M for “Clean Energy Vehicles” – Mostly NatGas
November 9, 2018November 9, 2018

It must really grate on Big Green supporters that their hero, lib Dem Tom Wolf (who just won reelection as governor of PA), continues to support fossil fuel projects. It must doubly grate on them that Wolf’s Dept. of Environmental Protection, when funding such projects, calls them “clean energy.” We love it! The PA DEP announced yesterday, two days after the big election, that they’ve just awarded $2.6 million in grants to 16 different “clean energy vehicle” projects. When you look at the list, all but $32,077 of that amount is going to fund either CNG or propane-powered vehicles. That is, fossil fuel-powered vehicles (mostly buses and trucks). And the DEP has the *audacity* (in the opinion of Big Green nuts) to call all of these projects “clean energy”! We’re laughing our considerable rear-end off.
Read More “PA DEP Spends $2.6M for “Clean Energy Vehicles” – Mostly NatGas”
Bradford County | CNG/LNG | Energy Services | Industrywide Issues | New Fortress Energy | Pennsylvania | Processing Plants

Big News! Marcellus LNG Export Plant Coming to Landlocked NEPA
November 8, 2018July 16, 2019

We have some exciting news to share. A company called New Fortress Energy is planning to build an LNG (liquefied natural gas) liquefaction plant in Wyalusing (Bradford County), PA. The $800 million (!) plant will supercool and liquefy locally extracted Marcellus Shale gas and ship it first by truck, eventually by rail, to “customers in the U.S. as well as abroad.” Meaning exports. How cool is that? It seems that LNG liquefaction plants no longer have to be located along a shoreline to engage in exports. Which company will provide the gas to liquefy and export? MDN has the exclusive answer, and yes, you need to be an MDN paying subscriber to find out…
Read More “Big News! Marcellus LNG Export Plant Coming to Landlocked NEPA”
CNG/LNG | Energy Services | Industrywide Issues | Pipelines | Processing Plants | Tennessee Gas Pipeline

LNG Liquefaction Plant May be Coming to Central Massachusetts
November 8, 2018November 8, 2018

Northeast Energy Center, LLC, plans a $100 million LNG plant in Charlton. (Liberty Energy Trust)

As it happens, this is the second LNG liquefaction plant story that landed on our desk today. Northeast Energy Center, backed by Liberty Energy and NorthStar Industries, is proposing to build an LNG liquefaction plant in central Massachusetts. Our other LNG plant story today (see Big News! Marcellus LNG Export Plant Coming to Landlocked NEPA) makes sense to us because that plant is located in the middle of a rich Marcellus gas region in northeast Pennsylvania. But building an LNG plant in the middle of Massachusetts, far from low-cost gas supplies? What gives?
Read More “LNG Liquefaction Plant May be Coming to Central Massachusetts”
CNG/LNG | Industrywide Issues | Statewide WV | Supply Chain | West Virginia

First “Big” Chinese Energy Investment in WV is…Software?
November 8, 2018November 8, 2018

Wendy’s iconic “Where’s the Beef” commercial

It’s been exactly one year since the announcement and signing of a memorandum of understanding between China and the State of West Virginia, whereby China pledged to spend (over 20 years) an incomprehensible $83.7 billion (with a “b”) on petrochemical and shale projects (see China Agrees to Invest Amazing $83.7 BILLION in WV Shale, Petchem). How much money has China actually invested in WV to date? NOTHING. ZERO. NADA. That is, until now. Maybe. We came across a story about a WV company, TMC Technologies, working closely with China to develop software that will keep LNG exports heading to China, safe.
Read More “First “Big” Chinese Energy Investment in WV is…Software?”
CNG/LNG | Exporting | Industrywide Issues | Pennsylvania | Philadephia

Phila. Gas Works Public Advocate Endorses LNG Export Plan
October 30, 2018October 30, 2018

In September, MDN told you that Philadelphia Gas Works (PGW), the country’s largest municipal-owned utility company, floated a plan to partner with a private company to build a new LNG export facility at its Passyunk Plant located in south Philly (see Phila. Gas Works Floats New Plan for LNG Export Facility). One of the first steps in making such a plan a reality is to run it by the PGW “consumer advocate”–an group appointed to be the voice of consumers as a check on decisions made by PGW management. The consumer advocate has just spoken–and likes the LNG plan!
Read More “Phila. Gas Works Public Advocate Endorses LNG Export Plan”
CNG/LNG | Industrywide Issues | Regulation

FERC Issues Final Approval for Rhode Island LNG Plant
October 19, 2018October 19, 2018

Fields Point LNG – click for larger version

In June, the Federal Energy Regulatory Commission (FERC) issued a favorable environmental assessment for a plan by utility company National Grid to build a teeny tiny LNG liquefaction plant in Providence, Rhode Island (see FERC Issues Favorable Enviro Assessment for Rhode Island LNG Plant). The Fields Point LNG plant, facing stiff opposition from a group of RI House and Senate members, will cost $180 million to build. The plant will liquefy 20 million cubic feet (MMcf) of natural gas per day and store it. Good news: earlier this week FERC granted final approval for the project.
Read More “FERC Issues Final Approval for Rhode Island LNG Plant”
CNG/LNG | Energy Services | Exporting | Industrywide Issues | Kinder Morgan

Elba Island, Ga. LNG Export Startup Delayed (Again) – Now 1Q19
October 18, 2018October 18, 2018

The East Coast’s second LNG export plant to come online, after Cove Point in Maryland, will be Elba Island in Georgia. In July, Kinder Morgan, the builder and primary sponsor of the project, pushed back startup for the plant from the third until fourth quarter of this year (see Elba Island, Ga. LNG Export Startup Delayed to 4Q18). In what appears to be a pattern, Kinder has just delayed startup again–now estimated to be first quarter of next year.
Read More “Elba Island, Ga. LNG Export Startup Delayed (Again) – Now 1Q19”
CNG/LNG | Dominion Energy | Energy Services | Industrywide Issues | Maryland | Statewide MD

Cove Point LNG Plant Restarts After 3 Wks Offline for Maintenance
October 16, 2018October 16, 2018

On September 21, Dominion Energy stopped pulling gas from pipelines into the Cove Point LNG export facility (on the shoreline of Maryland) in order to conduct scheduled maintenance (see Cove Point LNG Plant Down for 3 Weeks of Maintenance). Cove Point liquefies and exports some 3/4 of a billion cubic feet (Bcf) each day. True to their word, over the weekend (three weeks later) Dominion began pulling gas again. By the way, all of the gas feeding Cove Point comes from the Marcellus/Utica region–most of it headed to Japan and India.
Read More “Cove Point LNG Plant Restarts After 3 Wks Offline for Maintenance”
CNG/LNG | Industrywide Issues | New York | Westchester County

Con Ed Plans 2-5 CNG/LNG Storage Facilities in Westchester County
October 2, 2018October 2, 2018

Clinton’s $1.7M Westchester County estate

Only in New York. Utility company Con Edison is proposing to build up to five compressed natural gas (CNG) and liquefied natural gas (LNG) storage sites in Westchester County, NY–to increase the local supply of natgas available for customers. Con Ed wants to invest in “renewable” natural gas and “offer new incentives for Westchester customers who upgrade their heating equipment or install heat pumps to reduce natural gas usage.”
Read More “Con Ed Plans 2-5 CNG/LNG Storage Facilities in Westchester County”
CNG/LNG | Industrywide Issues | Litigation | Regulation

XNG Virtual Pipe Facility in NH Hits Roadblock re Town Zoning
September 24, 2018September 24, 2018

NG Advantage, a pioneer in “virtual pipeline” trucked CNG service, tried to build a compressor station/trucking hub in a Binghamton, NY suburb, but that effort failed earlier this year due to local opposition (see NG Advantage Virtual Pipeline Project Near Binghamton is Dead). Let’s be honest. Nobody wants an endless stream of trucks driving through their neighborhood, especially a populated neighborhood. That was the issue in Fenton (and neighboring Hillcrest) where NG planned to build their facility. A similar situation has sprouted up in New Hampshire. Different company, XNG (Xpress Natural Gas), but similar in that a local town, Chesterfield, NH, is opposing a plan by XNG to locate a truck terminal in the town. The town zoning board refused to grant a special exemption for the “short-term-parking” terminal. XNG sued in county court and the judge ordered the zoning board to rehear the matter. The board issued a second rejection and the matter is back in court, which you can read about below. The point of our post is to tackle the “not-in-my-back-yard” (NIMBY) issue. These types of CNG/trucking facilities are still relatively new. They are needed and no doubt more will get built. And, these types of facilities face increasing NIMBYism. It’s a real concern. The philosophy of no pipelines, and now a philosophy of no natural gas deliveries via truck, is a societal issue we must deal with. Eliminating natural gas in a geography spells loss of companies and loss of jobs. It also spells super-high prices for electricity. Somehow, for the good of society, we must negotiate through these issues. Can reasonable people reach a reasonable compromise? Are there any reasonable people left?…
Read More “XNG Virtual Pipe Facility in NH Hits Roadblock re Town Zoning”
CNG/LNG | Exporting | Industrywide Issues | Pennsylvania | Philadephia

Phila. Gas Works Floats New Plan for LNG Export Facility
September 21, 2018September 21, 2018

Philadelphia Gas Works (PGW), the largest municipal-owned utility in the country, and perhaps the oldest at 181 years old, floated a new proposal yesterday to partner with a private company to build a new LNG export facility at its Passyunk Plant, located in south Philly. This is not the first proposal to build an LNG export plant proffered by PGW. In 2015, City Councilman David Oh organized a meeting to discuss the feasibility of locating an LNG export facility inside city limits. PGW already has a small LNG facility in the city, but currently that facility is set up to import LNG, not export it. Councilman Oh wanted to explore the possibility of converting the site to export LNG. The very corrupt Philly City Council nixed a potential deal to sell PGW to UIL Holdings in 2014 (see Philly City Council Kills the Phila. Gas Works $1.86B Deal). Since that time, City Council members like Oh have tried to save face and figure out how they might turn around the near-bankrupt PGW. One of the most promising ideas is to set up a small export operation. A meeting to discuss that idea was held on the campus of Drexel University in April 2015. A meaningful portion of those attending were anti-drilling nutters who wouldn’t shut up and had to be escorted out by Drexel security personnel (see “Peaceful” Protesters Removed from LNG Export Hearing in Philly). With that as background, apparently PGW thought enough time had passed that maybe they could float a new, scaled-back plan to export LNG. However, the private company they want to cut a deal with, Liberty Energy Trust, is the same company that selfishly helped scuttle the sale of PGW to UIL back in 2014…
Read More “Phila. Gas Works Floats New Plan for LNG Export Facility”
CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Maryland | Statewide MD

Cove Point LNG Plant Down for 3 Weeks of Maintenance
September 20, 2018September 20, 2018

In early June MDN told you that Dominion Energy’s Cove Point LNG export plant is due to shut down–after being online for just a few months–for scheduled maintenance (see Cove Point LNG Shutting Down for Maintenance This Fall). The shutdown will be for “a few weeks” and occur “in autumn,” according to Dominion’s statement back in June. Although we can’t track down an official announcement from Dominion, LNG World News is reporting the shutdown is here now, and that it will last for three weeks, beginning with this week. Does that mean all Marcellus LNG exports will stop for the next three weeks? In June, Dominion CEO Tom Farrell told Reuters: “Asked whether there would be any interruption in LNG exports from the site on the coast of the state of Maryland, Farrell said that would depend on whether gas storage tanks with capacity to hold nearly 15 billion cubic feet of the commodity were exhausted”…
Read More “Cove Point LNG Plant Down for 3 Weeks of Maintenance”
CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Pipelines

Could Atlantic Coast Pipe Feed LNG Exports from South Carolina?
September 14, 2018September 14, 2018

This is all kind of speculative, but we find it intriguing and exciting. If you’ve read MDN for any length of time, you’re read about Dominion Energy’s 600-mile Atlantic Coast Pipeline, which will run from West Virginia through Virginia and into North Carolina–near the border with South Carolina. Unfortunately construction is currently on hold following revocation of some permits by a federal court, and an order from the Federal Energy Regulatory Commission in August to stop work on the entire project, for now (see FERC Shuts Down ALL Work on Atlantic Coast Pipeline). That won’t last–progress is being made to rework the necessary permits to the court’s liking, and Dominion has asked that FERC lift the stop work order for the rest of the line in the meantime (see Atlantic Coast Pipeline Asks FERC to Lift Stop-Work Order). At any rate, here’s where it gets interesting. Late last year a top Dominion official speculated that his company will look to expand Atlantic Coast into more of North Carolina, and extend it across the border into South Carolina, after the initial project is complete (see Atlantic Coast Pipeline’s Future Plans: Expand in NC & SC). In addition to building Atlantic Coast, Dominion is also in the process of buying South Carolina-based SCANA Corporation, the main electric and gas utility for most of South Carolina (see Dominion Buys SCANA, Mulls Atlantic Coast Pipe Expansion into SC). Antis are now connecting the dots and say if Dominion buys SCANA and if Dominion extends Atlantic Coast into SC, they believe an LNG export facility will get built in either Georgetown or Charleston to export Marcellus/Utica gas coming south…
Read More “Could Atlantic Coast Pipe Feed LNG Exports from South Carolina?”
CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues

Dominion Takes Out $3B Loan for Cove Point Facility
September 4, 2018September 4, 2018

This another one of those high finance thangs we don’t fully understand. Dominion Energy spent $4 billion to build their Cove Point LNG export facility in Lusby, Maryland. Somehow and somewhere they got money to build it–investors perhaps, or maybe Dominion had some cash tucked away under the corporate mattress. Dominion wants to get some of that debt off its books, so it has just structured a three-year loan with 20 lenders for $3 billion, reducing the company’s “parent level debt”–as opposed to child or subsidiary level debt. What it all means, if we’re understanding it correctly, is that Dominion is moving debt from the parent company’s balance sheet to the Cove Point subsidiary company’s balance sheet. Prior to this, Cove Point “owed” the money to Dominion itself (all in the family), and now, instead, the Cove Point subsidiary will owe that money to lenders directly. That’s our take. Hopefully it won’t take long for Cove Point to pay off the debt…
Read More “Dominion Takes Out $3B Loan for Cove Point Facility”