CNG/LNG

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    Illegal Russian LNG Tanker Delayed, but Still Coming to Boston

    Gaselys tanker on the way to Boston

    We previously told you about an illegal shipment of Russian LNG coming to Boston, for use in New England to alleviate a natural gas shortage (see Confirmed: LNG Coming to Boston on Jan 22 is Illegal Russian Gas). The U.S. slapped the Russian Yamal LNG plant, located in the Arctic, with sanctions following Russia’s moves against the Ukraine several years ago. Those sanctions make it illegal to receive gas produced from that plant. So shippers “whitewashed” the gas by unloading it in the UK, and a few days later, reloading it on a different ship–the Gaselys. The Gaselys was, at last check, heading at full speed for Boston. Then the ship suddenly stopped and turned around in the middle of ocean, with new instructions to go to Spain. Then it turned around again, to head back to Boston. The people who own the shipment said the U-turn was to avoid foul weather–that the shipment will still go on to Boston. As near as we can tell, the Gaselys has not yet landed. We just wanted to keep this story alive because it is so outrageous. Vladimir Putin is laughing at us right now. We have enormous amounts of fracked Marcellus Shale gas that could/should be going to New England, instead of buying LNG from a sanctioned Russian facility located in the Arctic…
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    Although Cove Point LNG Not Yet Operational, Gas Flowing to Plant

    Last week MDN brought you news that Dominion’s Cove Point LNG export facility along the shore of Maryland has delayed its official start-up until perhaps as late as April (see Uh-Oh: Cove Point LNG Exports Possibly Delayed Until April). An expert analyst theorized the reason for the delay is to install two flaring systems at the plant (a safety precaution). So if the plant is not yet started up for commercial operations, why is gas still flowing to the facility? Other experts, at BTU Analytics, have been watching pipeline flow data and maintain the Cove Point facility has been receiving a steady flow of Marcellus gas since last September! No doubt some of the gas flowing to Cove Point is used for testing the equipment. But how can gas continuously flow to the plant if it’s not yet being liquefied and shipped out? We suspect some of the gas can be stored. As for the rest? We don’t know. What we do know, based on a post by BTU Analytics, is that even though Cove Point isn’t receiving the volumes it eventually will receive (3.5 billion cubic feet per day once it is fully up and running), Cove Point is getting a smaller, steady flow now–and (the point of this post), that smaller, steady flow is an important new market for Marcellus gas…
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    Tellurian Founder Says U.S. Needs $150B in Gas Infrastructure

    Charif Souki

    In December 2015, evil corporate raider Carl Icahn (invests in companies so he can fire a bunch of people, boost the stock and pocket the profit) fired Cheniere Energy CEO Charif Souki (see Evil Corporate Raider Carl Icahn Claims Another CEO Scalp). Souki didn’t let it slow him down. He started a new LNG export company, Tellurian, to compete with his old company (see Revenge: Fired Cheniere CEO Starts Competing LNG Company). We kind of had (past tense) a soft spot for Souki, getting tossed from the company he started. But then we read comments he made about Donald Trump in the run-up to the 2016 election. Souki thought (like many) that Trump had no chance of winning, but if he did, Souki said he would “reconsider my nationality.” Souki was born in Egypt but is an American citizen now. After Trump’s victory, Souki forgot about his threat to leave the country and change his citizenship. We didn’t. We’re still waiting. Souki turned up on CNBC again yesterday, this time with faint praise for Trump (but also words of praise for the abysmal failure Obama). Souki had a chat with Jimmy Cramer, telling Cramer the U.S. urgently needs $150 billion worth of infrastructure investment (i.e. pipelines) in order to get our prodigious amounts of natural gas from inland places where’s extracted to the shoreline–so it can be exported…
    Read More “Tellurian Founder Says U.S. Needs $150B in Gas Infrastructure”

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    Illegal Shipment of LNG Coming to Boston has Huge CO2 Footprint

    This story continues to grate on our nerves–the fact that mainstream media is covering up a MAJOR scandal. What scandal? The scandal of Russian LNG banned from the U.S. coming to the U.S. (to Boston) because it was offloaded in the UK and reloaded on a different ship, to “whitewash” the gas (see Confirmed: LNG Coming to Boston on Jan 22 is Illegal Russian Gas). To make matters worse, the gas, from the sanctioned Russian Yamal LNG facility in the Arctic, has a massive CO2 footprint relative to LNG produced elsewhere (for those like who care about such things, like mainstream liberal media). And yet mainstream liberal media (i.e. fake news) totally ignores the story. We’d go so far as to say they are covering it up. Not here on MDN! Nick Grealy, a Brit who contributes articles to our friends at Natural Gas Now, has written an article delving into the sordid details of Russian gas coming to Boston–and how mainstream media in the UK has totally ignored the story. Nick uncovers some great information that continues to make our blood boil…
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    Following Constitution Pipe Decision, NY Virtual Pipe Now Vital

    1/24/18 Note: We have edited this post to be less incendiary and more respectful of the opposing viewpoint.

    Yesterday the Federal Energy Regulatory Commission (FERC) rejected a request by Constitution Pipeline to overrule the (very corrupt) New York Dept. of Environmental Conservation and allow construction of the pipeline to commence (see our lead story today: Death of the Constitution Pipeline? FERC Refuses to Overrule NY DEC). As we report in that story, Williams is not (yet) giving up the hope and dream of building the Constitution. However, given that tree clearing for the pipeline would have to begin now, and be done by the end of March (in order to save the bats–don’t ask), another year will go by before the Constitution could even begin construction. And it will take a year to build. That’s IF Williams prevails in court. In the meantime, businesses in New York State are DESPERATE to receive shipments of natural gas. Major employers in the Southern Tier of New York had planned to tap into the Constitution and use cheap, abundant, clean-burning Marcellus Shale gas from Pennsylvania, saving them money and lowering emissions. Without the Constitution, what can these employers do? Yes, they can leave the state (and some already have). But there is a solution. NG Advantage is planning to build a “virtual pipeline” in the Town of Fenton, on the outer edge of Binghamton, NY (Broome County). A virtual pipeline is a compressor plant (series of compressor plants) that grabs gas from a pipeline–in this case the Millennium Pipeline–and compresses it and loads it onto special tractor trailers that then deliver the gas to industrial customers like manufacturing plants, hospitals, and even small regional gas distribution systems servicing residential homes. NG’s project got derailed last year when a group of residents living nearby sued, stopping the project in its tracks (see Broome Virtual Pipe Project in Limbo, Fenton Board Refuses to Act). The residents claim three trucks per hour going through side streets will negatively alter the neighborhood. It’s bogus. NG is undaunted. They have patiently, calmly and repeatedly reached out to the community to answer questions and address concerns. NG has more than bent over backwards in an attempt to work with community. NG followed the judge’s directive and refiled the project with the Town of Fenton for a second time. There is a Fenton zoning board hearing at 6 pm on Tuesday, Jan. 23 at the Port Crane Fire Department to consider NG’s refiled request. Residents who are opposed are already gearing up to pressure board members. Pro-gas folks need to show up in large numbers to show the zoning board there is support for this vital project. Let’s not let the other side win this one! Jobs in, indeed the future of, the Southern Tier depend on it…
    Read More “Following Constitution Pipe Decision, NY Virtual Pipe Now Vital”

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    Uh-Oh: Cove Point LNG Exports Possibly Delayed Until April

    We’ve been waiting, with bated breath, for an announcement from Dominion Energy that their $4 billion LNG export terminal is finally (finally!) up and running and shipping out condensed Marcellus/Utica Shale gas as LNG, heading to Japan and India. In April of last year, Dominion said the plant would be up and running, shipping LNG to India beginning this month (see Dominion Cove Point to Begin LNG Exports to India in Jan 2018). Dominion began priming the pump with an initial load of feed gas in early December (see Dominion Cove Point LNG Export – Dress Rehearsal Begins). But by the end of the month, Dominion signaled a full startup at the facility may be delayed, until an unspecified “early next year” (see Dominion Signals Delay in Cove Point Start-up; Contract Related?). In a blockbuster story, NGI’s Daily Gas Price Index is reporting (based on a super secret source who talked to Bloomberg) that commercial startup of the Cove Point facility will now not happen until (gasp), April of this year. Why the delay? NGI spoke to their own experts who have a plausible theory…
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    Confirmed: LNG Coming to Boston on Jan 22 is Illegal Russian Gas

    We now have confirmation from the Russians themselves that the natural gas shipment on its way to Boston we alerted you to a few days ago is, indeed, Russian gas from the Yamal LNG plant, located in the Russian Arctic (see Russian LNG Coming to Boston to Alleviate NatGas Shortage?!). Even the ultra libs at the Boston Globe are admitting it’s Russian gas. We certainly hope American authorities are on the case and will stop the shipment because it is ILLEGAL. As we told you in our story posted Monday, the U.S. slapped the Yamal LNG plant with sanctions following Russia’s moves against the Ukraine. It’s illegal to receive gas produced from that plant. Shippers attempted to whitewash the gas by unloading it in the UK, and a few days later, reloading it on a different ship, the Gaselys, now heading at full speed for Boston. This is an outrage, for a number of reasons, but we’ll mention two: (1) The gas is illegal. (2) More pipelines from the Marcellus Shale region, about 300 miles from Boston, would alleviate the high prices and shortages New England currently experiences. Instead, the “leaders” of New England continue to block pipelines–preferring to get their gas illegally from America’s enemies…
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    Russian LNG Coming to Boston to Alleviate NatGas Shortage?!

    This is so wrong on so many levels. Our blood pressure went through the roof when we spotted a story that a shipload of Russian-produced LNG (liquefied natural gas) is almost certainly coming to Boston and will be delivered on Jan. 22nd. We suspect it may be an illegal shipment. Here’s what happened. The LNG tanker Christophe de Margerie loaded a shipment of LNG at Russia’s Yamal LNG plant–in the Russian Arctic–delivering it to the UK at the Isle of Grain terminal in Kent. The LNG was offloaded and stored, but not pumped into the UK grid. Instead, officials said the LNG would be resold to a higher paying customer. A few days later the tanker Gaselys loaded LNG from the same terminal in Kent. While those who own the shipment won’t say, it’s almost certain the LNG they loaded was the very same LNG unloaded a few days prior–from Russia. Gaselys is coming to America–to unload the Russian LNG in Boston, because New England is natural gas starved at the moment due to the ongoing cold snap. Why not just bypass the unloading/reloading process and ship direct to the U.S.? Because the U.S. slapped the Yamal LNG plant with sanctions following Russia’s moves against the Ukraine. It’s illegal to receive gas produced from that plant. So the people involved “whitewashed” the gas by unloading in Kent, and then pretending they’ve reloaded different gas molecules from the same facility. It’s a farce. Fake. Fraud. The gas coming to Boston is Russian gas. The reason New England needs gas so bad is because of their elected leaders, like Massachusetts Attorney General Maura Healey and Massachusetts Sen. Elizabeth Warren–both of whom adamantly oppose new natural gas pipeline projects in their state that would deliver cheap Marcellus/Utica gas to the region. Massachusetts residents should rise up against Healey and Warren for their actions which now mean New England is paying our ENEMIES for natural gas. How screwed up is that?…
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    Dominion Signals Delay in Cove Point Start-up; Contract Related?

    For months Dominion’s top brass has signaled that the country’s newest LNG export facility, Cove Point (situated along the coast of Maryland), would begin full commercial operations “by the end of this year” (see Dominion 3Q17: Cove Point LNG Coming Online, ACP Permits in Dec). That has now changed to “early next year”–which is a disappointment. Earlier this month Dominion began the commissioning process, where they use already-chilled LNG (from a tanker) to cool down the equipment, prior to running regular natural gas through it for the first time (see Dominion Cove Point LNG Export – Dress Rehearsal Begins). It appears the commissioning process to check out all of the equipment and to make triple sure everything is OK is taking longer than Dominion expected. The delay, along with a Reuters story, has given rise to rumors that Dominion’s signed-on-the-dotted-line customer from India is getting cold feet and attempting to renegotiate their long-term, 20-year contract. Dominion says, in so many words, that’s hogwash. Dominion says the slight delay in beginning full commercial operations has nothing to do with “contract renegotiations” and everything to do with a “comprehensive round of thorough testing and quality assurance activities.” However, the Reuters article quotes an Indian official as saying they have held a “number of discussions…for re-negotiation of the contracts.” Is contract renegotiation really the reason for Cove Point’s delayed start?…
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    LNG Tanker Docks at Cove Point Terminal – To Offload Nigerian LNG?

    We have to confess, the LNG (liquefied natural gas) world is sometimes confusing for us. The overall theory is pretty simple. Huge plants super-cool natural gas into a liquid state (called liquefaction) and load it onto tankers. The tankers (typically ships, sometimes rail) convey the LNG to a distant port somewhere and it’s unloaded. At the receiving end, the gas is then reheated back into a gaseous state (called regasification). However, the technology that both cools and reheats the gas is complex. Dominion began working on the Cove Point LNG export plant in October 2014 (see Dominion Breaks Ground on Cove Point, MD LNG Export Facility). Cove Point will liquefy 1.8 billion cubic feet per day (Bcf/d) of Marcellus/Utica shale gas and load it onto ships bound for India and Japan. It took something like $4 billion and just over three years, but earlier this month the facility began to accept an initial quantity of gas as part of the “commissioning” process–which we take to mean the shakedown process, make sure everything is working OK (see Dominion Cove Point LNG Export – Dress Rehearsal Begins). Now comes word that a tanker has docked at the Cove Point facility. The tanker is already filled with LNG–from Nigeria. Apparently the Nigerian LNG will get offloaded at Cove Point, which is a bit mysterious for us. Experts say this is a “cool down” cargo, used as part of the commissioning process. We assume, like it’s name, this cargo will “cool down” the equipment that needs to be cooled down in order to begin operations. Like we said, the LNG world is sometimes confusing for us…
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    Gas Exporting Countries Predict Global Gas Demand Up 53% by 2040

    The GECF (Gas Exporting Countries Forum) has just released its latest annual report, titled “2017 Global Gas Outlook” (full copy below). The report is remarkable for its prediction that by 2040 demand for natural gas across the globe will increase 53% from what it is today. Staggering! What’s even more remarkable is that the GECF is largely made up of oil producing/exporting countries–including Algeria, Iran, Libya, Nigeria, Russia, the United Arab Emirates and Venezuela. For oil countries to say gas is on fire and going through the roof–now that’s news! Even though these countries secretly hate the U.S. and its abundant shale reserves, they put on a good public face. GECF’s secretary general, Seyed Mohammad Hossein Adeli, said this about American shale gas: “The growth of shale is good because more gas will contribute to the penetration of gas worldwide.” Er, right. Whatever you say, Seyed. Here’s an overview of the report, followed by a copy of the full report…
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    Marcellus/Utica Gas Exports Increase with New LNG Plants

    Last week MDN’s favorite government agency, the U.S. Energy Information Administration, posted an article about the increase in LNG exports from the United States. The article highlighted the one existing and five forthcoming LNG export facilities that are changing the world energy picture by exporting (literally) boatloads American natural gas. The existing, going-full-bore LNG export plant is Cheniere Energy’s Sabine Pass plant, located on the Louisiana Gulf Coast. Two of the five forthcoming plants (Cove Point and Elba Island) are located on the East Coast–Maryland and Georgia respectively. Cove Point is due to begin exports this month (see Dominion Cove Point LNG Export – Dress Rehearsal Begins). The other three plants (Freeport LNG, Corpus Chrisi LNG, and Cameron LNG) are located along the Gulf Coast–the first two in Texas and the third in Louisiana. What struck us about the list is this: Most, if not all, of the facilities either already do, or will export Marcellus/Utica gas, an extremely important new market for our ever-increasing production…
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    Dominion Cove Point LNG Export – Dress Rehearsal Begins

    Dominion announced yesterday it has introduced “feed gas” into it’s new $4 billion LNG export plant in Cove Point, Maryland. Feed gas is used for testing purposes and is the final step before the plant goes online into full production later this month. Dominion said the feed gas will come from Shell, and Shell will take delivery of the LNG that results. Following the test, Marcellus/Utica gas will begin flowing to the plant and the LNG produced will begin shipping to Japan and India. We are on the cusp of something we’ve waited for, cheered for, and agonized over for more than three years. Think of the Shell’s feed gas as the dress rehearsal the night before a play opens…
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    XNG Virtual Pipeline Defends Itself Against Antis in Otsego Co. NY

    Earlier this year Xpress Natural Gas (XNG) spent $18.6 million to build a “virtual pipeline” facility in Susquehanna County, PA that employs ~90 people and loads up to 100 compressed natural gas (CNG) tanker trucks each day with PA Marcellus gas, for deliveries to customers across the Northeast and Mid-Atlantic states (see Major CNG Virtual Pipeline Coming to Susquehanna County, PA). Many of XNG’s trucks (40 per day) head up Interstate 81, catch Interstate 88 in the Binghamton area, and keep on going, eventually arriving in Herkimer County where the trucks unload the gas into the Iroquois Pipeline. Iroquois gets up to 50 million cubic feet per day (MMcf/d) from XNG’s trucks, using it for resale to customers further on down the pipeline in New York and New England (see XNG Virtual Pipe Delivering 50 MMcf/d of PA NatGas to NY Pipeline ). However, some residents in Upstate NY, in Otsego County (we suspect the same anti-fossil fuel nutters who lobbied to ban fracking and ban new pipelines) are up in arms with XNG’s daily truck trips. In order to shave miles and money from having to use Interstate 90 (NY Thruway with big tolls), XNG instead leaves I-88 and uses several state highways, routing the trucks through small towns. An eyewitness who lives along the route emailed MDN back in September said, “these [XNG drivers] are very considerate to the speed limits in the small towns they go through, I think these drivers are well disciplined…(maybe disciplined is not the right word) and the trucks are very quiet.” However, a group of antis turned up at a meeting last Thursday night in Otsego County to gripe and moan about the truck traffic. They don’t want fracking. They don’t want pipelines. And now they don’t want trucks hauling natural gas coming past their front door. Maybe they should just quit using all fossil fuels themselves and begin living like cavemen again?…
    Read More “XNG Virtual Pipeline Defends Itself Against Antis in Otsego Co. NY”

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    Black & Veatch Report: US LNG is Changing the World

    Black & Veatch, a leading engineering, consulting and construction company, released their “2017 Strategic Directions: Natural Gas Industry Report” earlier this week (full copy below). In the report, B&V examines how organizations are planning for long-term, sustainable operations that can handle rising supplies and deliver those supplies to markets eager to use natural gas as a cheaper and cleaner power generation source. The report finds that LNG (liquefied natural gas) is key in shifting oversupply from countries like the U.S. to growing demand centers in Asia, Latin America, India and Sub-Saharan Africa. The report emphasizes calls from the industry to fund infrastructure investments to enable increased LNG imports and exports, including floating LNG (FLNG) and natural gas-based power generating plants. There is no doubt, according to the report, that the U.S. is now in the driver’s seat with respect to LNG. Below is a summary of the key points, followed by the full report…
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    Sierra Club Lawsuit Against Cove Point, 2 Other LNG Plants Tossed

    Yesterday a three-judge panel from the US District of Columbia Circuit Court of Appeals tossed out the Sierra Club’s petitions challenging Federal Energy Regulatory Commission (FERC) authorization of three LNG export projects: Dominion Energy’s Cove Point LNG in Maryland, Cheniere’s Sabine Pass LNG in Louisiana, and Cheniere’s Corpus Christi LNG in Texas. As we said in a post on Oct. 3rd: “The Sierra Club lawsuit against all three projects challenges FERC’s approval of them, arguing the plants negatively affect the environment and will make Mom Earth sick. While no one expects these lawsuits to go anywhere, you never know, which is why it’s important to keep an eye on it” (see Sierra Club in Court Oct 18 Against Cove Point, 2 More LNG Plants). We did keep an eye on it, and the good news is that not even the liberal judges on the DC Circuit Court of Appeals could stomach the nonsense coming from the odious Sierra Club…
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