CNG/LNG

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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…
    Read More “Confirmed: LNG Coming to Boston on Jan 22 is Illegal Russian Gas”

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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?…
    Read More “Russian LNG Coming to Boston to Alleviate NatGas Shortage?!”

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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?…
    Read More “Dominion Signals Delay in Cove Point Start-up; Contract Related?”

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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…
    Read More “LNG Tanker Docks at Cove Point Terminal – To Offload Nigerian LNG?”

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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…
    Read More “Gas Exporting Countries Predict Global Gas Demand Up 53% by 2040”

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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…
    Read More “Marcellus/Utica Gas Exports Increase with New LNG Plants”

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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…
    Read More “Dominion Cove Point LNG Export – Dress Rehearsal Begins”

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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…
    Read More “Black & Veatch Report: US LNG is Changing the World”

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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…
    Read More “Sierra Club Lawsuit Against Cove Point, 2 Other LNG Plants Tossed”

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    Dominion 3Q17: Cove Point LNG Coming Online, ACP Permits in Dec

    Yesterday midstream and utility giant Dominion Energy issued their third quarter 2017 update. During an analyst phone call, Dominion CEO Thomas Farrell shared some great news regarding both the Cove Point LNG export facility and Atlantic Coast Pipeline (ACP). Farrell said Cove Point will “begin generating LNG” in November, “conclude commissioning” in December and be fully operational by the end of this year. Fantastic! In response to a question by an analyst about Atlantic Coast Pipeline, Farrell said he expects water permits from West Virginia, North Carolina and Virginia will all be issued by the middle of December. Again, fantastic! These two projects are HUGE with respect to the future of the Marcellus/Utica region. Christmas has come early this year. 🙂 Below is yesterday’s 3Q17 update for Dominion, along with the latest slide deck and select comments pulled from the analyst phone call…
    Read More “Dominion 3Q17: Cove Point LNG Coming Online, ACP Permits in Dec”

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    Some Rover Gas Flows All the Way to Gulf Coast LNG Export Plant

    Two weeks ago MDN brought you analysis from RBN Energy that hints at least some Marcellus/Utica gas molecules are flowing all the way to Cheniere Energy’s Sabine Pass LNG export facility (see Is Marcellus/Utica Gas Getting Exported from Cheniere’s Sabine Pass?). In part 2 of the series, the expert analysts at RBN make a compelling case that an increasing amount of Marcellus/Utica gas is going to the Sabine Pass facility via the newly-minted Rover Pipeline and the connection it has with TransCanada’s ANR pipeline. RBN connects the dots…
    Read More “Some Rover Gas Flows All the Way to Gulf Coast LNG Export Plant”

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    Clean Energy Breaks Ground on CNG Fueling Station in the Bronx

    Andrew J. Littlefair, president and CEO of Clean Energy Fuels; Mark Riley, vice president, Clean Energy; Spiro Kattan, DSNY; and Steve Tufo, Baldor Food Transportation Manager, participate in the groundbreaking of Clean Energy’s Bronx, NY. CNG station.

    Yesterday Clean Energy Fuels, the City of New York and various community leaders (i.e. politicians) held a ground-breaking ceremony to launch work on what will be the very first compressed natural gas (CNG) station in the Bronx. According to the Clean Energy press release: “The use of natural gas fuel, produced domestically in North America, reduces greenhouse gas emissions (GHG) by up to 21 percent versus diesel and gasoline. Using natural gas is one of the ways New York City can meet its goal of reducing greenhouse gas emissions by 80 percent the next few decades.” The New York City Department of Transportation said it is “proud to be part of this unique groundbreaking, which will benefit the Hunts Point community and all of New York City.” So why does New York’s corrupt governor, Andrew Cuomo, continue to block pipelines that will bring greenhouse gas-reducing natural gas that benefits all communities to MDN’s beloved home state? Yesterday we told you about an upcoming hearing to discuss two natural gas-fired electric microgrids coming to Albany (see Public Hearing Next Wk on Albany, NY Fracked Gas-Fired Electric Plant). Now we read of this CNG fueling station coming in the Bronx. Where will all of the gas come from to feed these projects without new pipelines? Here’s the good news from Clean Energy about the Bronx CNG station…
    Read More “Clean Energy Breaks Ground on CNG Fueling Station in the Bronx”

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    Is Marcellus/Utica Gas Getting Exported from Cheniere’s Sabine Pass?

    One of the reasons we periodically report, and keep a close eye on, Cheniere Energy’s Sabine Pass LNG export facility in southern Louisiana is our suspicion that at least some Marcellus/Utica gas makes its way to that facility and gets exported to other countries. We’ve never been able to prove our suspicion, but we got a lot closer to proving last February when Williams confirmed that the mighty Transco Pipeline now has a direct connection to Sabine Pass (see Williams Confirms Transco Now Ships Gas Directly to Cheniere LNG). Our friends at RBN Energy have done a deep dive into this topic. Using flow data and their own knowledge of pipelines and reports about new projects coming online, RBN has determined that “there are early indications that recent pipeline takeaway and reversal projects from the producing region and the resulting connectivity are indirectly bridging the divide.” Meaning that by using indirect routes (gas passed from one pipeline to another to another), indeed some of our gas is making its way to the Sabine Pass export facility…
    Read More “Is Marcellus/Utica Gas Getting Exported from Cheniere’s Sabine Pass?”

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    PA DEP Offers $1M in Grants for CNG, Propane Refueling Stations

    The Pennsylvania Dept. of Environmental Protection (DEP) is offering $1 million in grants to companies willing to build “alternative fuel infrastructure projects” in Pennsylvania. What the heck is that? CNG (compress natural gas) fueling stations, propane fueling stations, and electric vehicle charging stations. The catch? The fueling stations must be open and available to the general public, and must be located with the “designated alternative fuel corridors” of certain interstate highways: I-76, I-276, I-476, I-70, I-95, and I-80. PA wants to goose the use of alternative fuels. Here’s the deets on the program…
    Read More “PA DEP Offers $1M in Grants for CNG, Propane Refueling Stations”

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    Sierra Club in Court Oct 18 Against Cove Point, 2 More LNG Plants

    The deep pockets of the radical Big Green group, the Sierra Club, continue to vex the oil and gas industry. The Sierra Club is involved in so many lawsuits against our industry, you literally need a score card to keep track. Three of the cases the Clubbers have on deck come before the D.C. Circuit Court of Appeals in two weeks–on Oct. 18th. The three cases involve Federal Energy Regulatory Commission (FERC) approved LNG export projects. One of the three is Dominion’s Cove Point project, which is due to export its first shipment this month or next (see Cove Point to Begin LNG Exports in October or November!). The other two LNG projects in the Clubbers’ sights are both Cheniere Energy projects–Sabine Pass and Corpus Christi. Sabine Pass is currently the only LNG export plant in operation in the U.S. 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…
    Read More “Sierra Club in Court Oct 18 Against Cove Point, 2 More LNG Plants”