CNG/LNG

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    NG Asks Judge to Toss Case Blocking Virtual Pipeline in NY

    NG Advantage wants to build a “virtual pipeline” operation in ultra-liberal Broome County, NY, in a suburb of Binghamton. The location NG picked, after considering up to six locations in the region, was selected because of it’s proximity to major highways, proximity to the Millennium Pipeline, and availability of high-power electric lines. A virtual pipeline is nothing more than a compressor plant (series of compressor plants) that grabs gas from a pipeline, in this case the Millennium, 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 systems servicing homes. The location NG selected, in the Town of Fenton (within spitting distance of Hillcrest and Port Dickinson) was approved by the Town of Fenton after a detailed review. The area they selected is zoned industrial and is, in fact, a former dump site. However, residents from nearby neighborhoods (Hillcrest and Port Dick) were not aware of the project (so they claim) and when construction began to clear the dump site, and residents learned what was going to be built at the site, some of them demanded court action to oppose it. So far we’ve had two court cases asking county-level court (called “Supreme Court” in NY) to stop the project, which it temporarily did (see Court Halts Work on Broome Co. Virtual Pipeline, Residents Sound Off). MDN editor Jim Willis attended a meeting by NG Advantage held for area residents and he has to say the company is bending backward, forward, sideways, upside-down, back flipping–and in general doing anything and everything they can–to prove to residents that a few trucks an hour hauling natural gas is not the horror they have been led to believe it will be. But in an all-too-familiar pattern, the residents’ minds are made up and nothing short of shutting the project down will be acceptable. And so the fight now goes to court. Last week NG responded to the temporary restraining order, asking the judge to toss it out so they can get back to building the facility. If for some reason NG is blocked, the company will be out $23 million…
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    France Commits Energy Suicide – No New Oil & Gas Exploration, Ever

    Click chart for a readable version – France’s energy mix (as of 2013)

    MDN editor Jim Willis had the pleasure of visiting France in 2006. It is a breathtakingly beautiful country. Jim found the French people to be personable and easy to deal with (contrary to the popular myth they are arrogant and hate Americans). But hey, that was just one guy’s experience. Maybe you have had a different experience? We’ve written about France’s on again, off again frack ban over the years (see our stories about France here). You won’t have to worry about whether or not France will ever allow fracking. Beginning this fall, the country will stop issuing ANY/ALL permits to drill for ANY/ALL oil and gas–conventional, shale, doesn’t matter. France says it will “transition” to “environmentally-friendly energy.” You know, like solar and wind–even though discarded solar panels are about the same thing as disposing of nuclear waste (an ecological disaster). But appearances are everything for French President Emmanuel Macron and his certifiably-insane government. France currently (as of 2013) gets 44.5% of its energy from oil and gas, the single largest block of energy powering the country. Nuclear is second, at 41%. Wind and solar? Together they make up less than 1% of France’s energy supply! Why is France’s energy suicide an MDN story, other than Jim’s walk down memory lane? Because it’s easy to predict that France will not be able to operate on 100% renewable energy. Not now, not in our lifetime. It is a fact. If France doesn’t allow oil and natural gas exploration INSIDE their country, they will need to import oil and gas from OTHER countries. Enter the Marcellus/Utica with plenty of gas via LNG exports to sell. This is a tip to producers reading MDN to begin negotiating now to sell your gas to France. They’re going to need it…
    Read More “France Commits Energy Suicide – No New Oil & Gas Exploration, Ever”

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    President Trump Unveils 6 Energy Initiatives, Half Involve NatGas

    This week has been “Energy Week” at the White House, and yesterday President Trump (we just love saying that, “President Trump”) announced six new initiatives not to just make America energy independent, but to make America energy dominant. We love that too! Energy DOMINANT. Throughout the world. Number one. One of the six initiatives in Trump’s plan was the announcement that Sempra Energy is in negotiations with South Korea to sell them our LNG (liquefied natural gas, see more on that below). That’s a good thing! No doubt some of the gas heading to the Korean peninsula will come from the Marcellus/Utica. Another of the six initiatives announced yesterday is approval for two applications to export LNG from Louisiana. And a yet another initiative involves more offshore drilling for oil and gas. So half of the initiatives announced somehow impact or relate to natural gas (two of which also impact Marcellus/Utica). Here’s the full list of six initiatives announced yesterday in a speech by President Trump…
    Read More “President Trump Unveils 6 Energy Initiatives, Half Involve NatGas”

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    Court Halts Work on Broome Co. Virtual Pipeline, Residents Sound Off

    Tractor Trailer NG proposes to use at Fenton location – Click image for full size version

    MDN editor Jim Willis attended one of the information sessions offered by NG Advantage at the Port Crane fire hall last night. NG Advantage is making a concerted effort to dispel false rumors and misunderstandings on the part of neighbors who live near a proposed “virtual pipeline” site that is a series of compressor stations grabbing gas from the Millennium Pipeline in a Binghamton suburb, compressing it and loading onto tanker trucks. Jim knew it was going to be an interesting night when he arrived at 7:15 pm to find a packed previous session that began at 5 pm was still going strong. Jim wandered to the back of the facility (in the parking lot) to view one of the tanker trucks that NG hopes to have accessing the facility (see our pic). In fact, two of these trucks each and every hour of the day will enter and leave the facility, some 50 trucks per day, on average, according NG officials. As Jim approached the truck, a woman also walking in the same direction said loudly, “My God! Look how BIIIIIIGGGG it is!” Like she’d never seen a tractor trailer before (actually, it’s shorter than a standard trailer). Since no one else was close to her, Jim assumed she said it for his benefit–likely hoping he would join in and agree. Jim said nothing. The same woman grilled the NG rep standing there, asking how many trucks per day, etc. And then she said, “I’m against this–I’m just glad there’s now a stop work order,” which was the first we had heard the news (more on the stop work order below). The woman’s demeanor and her ebullience that the project is now halted was an early signal: Jim knew he was in for a long night of high emotion from local residents who don’t want the facility, largely because of truck traffic. Jim was right…
    Read More “Court Halts Work on Broome Co. Virtual Pipeline, Residents Sound Off”

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    NG Advantage Meets with Virtual Pipe Neighbors in Broome County

    NG Advantage is making a concerted effort to dispel false rumors and misunderstanding on the part of neighbors who live near a proposed “virtual pipeline” site that is a series of compressor stations grabbing gas from the Millennium Pipeline in a Binghamton suburb, compressing it and loading onto tanker trucks. As MDN reported yesterday, two different groups have now filed lawsuits to stop work at the site, one by a local elementary school (more than a half mile away) and one by residents living nearby, including a local Catholic church parish (see Church Asks NY Court to Stop Broome County CNG Virtual Pipeline). Last night officials with NG held a meeting for area residents (with more meetings scheduled for tonight) to answer questions and get the truth out about the facility. Two items in particular were front and center: (1) There are no emissions from the compressor station–it is a series of compressors (4 initially, up to 12 in all) that are powered with electricity, not diesel. So there are zero emissions from the plant. NONE. (2) The plant will be quieter than the Interstate highway it sits next to. If you are walking in the nearby Port Dickinson park (as MDN editor Jim Willis sometimes does), you will continue to hear the highway which runs overhead–but you won’t hear the compressor station. Neither will neighbors like the Catholic church hear it. Here’s a summary of last night’s meeting…
    Read More “NG Advantage Meets with Virtual Pipe Neighbors in Broome County”

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    Church Asks NY Court to Stop Broome County CNG Virtual Pipeline

    NG Advantage is building a new compressor station to tap into the Millennium Pipeline where it crosses the Chenango River near Port Dickinson, a suburb of Binghamton, in Broome County, NY (see NG Advantage Virtual Pipeline May be Coming to MDN’s Backyard). NG already has three businesses lined up to buy CNG (compressed natural gas) from the project. So-called virtual pipelines compress natural gas and load it onto tanker trucks, and then distribute the CNG to businesses that are not fortunate enough to be located near a natgas pipeline. It’s a cool concept that bypasses anti-drilling objections to pipelines. However, virtual pipelines have one negative side-effect for local residents: LOTS of truck traffic. The Town of Fenton Planning Board recently approved the project, and MDN can report (since we swung by the site) that bulldozers and backhoes are hard at work transforming the site, getting it ready to construct the compressor station. However, a local elementary school, more than half a mile away, decided to sue to try and stop the project (see NY School Saddles Taxpayers w/Legal Fees to Oppose Virtual Pipe). Now, a local Catholic church’s parish center, St. Francis of Assisi, has joined several nearby residents to launch their own lawsuit/petition asking a local court to halt construction…
    Read More “Church Asks NY Court to Stop Broome County CNG Virtual Pipeline”

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    NY School Saddles Taxpayers w/Legal Fees to Oppose Virtual Pipe

    We just knew getting a “virtual pipeline” facility built in ultra-liberal Broome County, NY was proceeding a little too easy. MDN recently told you about a proposed virtual pipeline (i.e. natgas trucking system) coming to MDN’s neighborhood. NG Advantage wants to build a new compressor station and tap into the Millennium Pipeline where it crosses the Chenango River near Port Dickinson, a suburb of Binghamton, in Broome County (see NG Advantage Virtual Pipeline May be Coming to MDN’s Backyard). NG already has three businesses lined up to buy CNG (compressed natural gas) from the project. So-called virtual pipelines compress natural gas and load it onto tanker trucks, and then distribute that gas to businesses that are not fortunate enough to be located near a natgas pipeline. It’s a cool concept that bypasses anti-drilling objections to pipelines. However, virtual pipelines have one negative side-effect for local residents: LOTS of truck traffic. The Town of Fenton Planning Board recently approved the project and although we thought it wasn’t quite yet a done deal, apparently it is a done deal, as a small group of antis learned earlier this week at a Town of Fenton meeting (see NG Advantage Virtual Pipe “Done Deal” in Broome County, Antis Stymied). However, that may not be the end of it. Antis (in New York as elsewhere) don’t fade away without a LOT of loud-mouthed opposition, and a LOT of legal action. Antis are now pegging their hopes to defeat this fossil fuel intruder on the actions of a local school district. The Chenango Valley School District operates the Port Dickinson Elementary school close to (half mile? quarter mile?) the proposed compressor station for the virtual pipeline project. The CV school board voted last night 8-0 to hire a law firm to fight the project, with no cap on how much in legal fees local taxpayers will have to pay for this folly. The clock is now ticking. It’s quite likely the project will get built before it ever sees its first court hearing–and antis know it…
    Read More “NY School Saddles Taxpayers w/Legal Fees to Oppose Virtual Pipe”

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    Saudis, Others Cuts All Ties with Qatar – LNG Opportunity?

    Click for larger version

    The following story intrigued us, not the least of which because it has the potential to affect the Marcellus/Utica region. Out of the blue, Saudi Arabia, the United Arab Emirates, Egypt and Bahrain have all “cut ties” with the country of Qatar. That includes shutting down pipelines that flow LNG and natural gas out of Qatar. Why? Because, they claim, Qatar supports “extremism”–by which they mean terrorism. This is truly rich. All of the countries cutting ties have their own issues in supporting terrorism. So if they accuse “one of their own” for doing the same thing, how much worse must be Qatar? There is another interesting aspect to this story–related to the idiot Al Gore. Gore and a couple of his ultra-rich buddies started a cable television channel in 2005 called Current TV. The channel flopped, big-time. So Al and his buddies sold it in 2013–to Qatar. Well, actually it was sold to Al Jazeera, the official Qatar state-run media agency, owned by the ruling family of Qatar. Qatar didn’t want the channel, which they immediately threw in the trash. They wanted access to all of the cable systems the channel was running on for their Al Jazeera station. Yeah, you don’t hear about it much, but Al Gore sold his TV channel to terrorist-friendly Qatar–for $500 million. Back let’s get back to the Marcellus. Both Egypt and the UAE are “highly reliant on Qatari gas via pipeline and LNG.” With those lines now cut for the foreseeable future, it opens up a new market for Marcellus/Utica gas to be exported to Egypt, the UAE and perhaps others… Read More “Saudis, Others Cuts All Ties with Qatar – LNG Opportunity?”

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    Air Products Closing Wilkes-Barre LNG Manufacturing Plant

    Air Products owns a manufacturing plant located on the outskirts of Wilkes-Barre, PA. If you’ve ever heard of the Air Products business, you may conjure up an image of small cylinder tanks of helium or other “rare” gases sitting inside a chain fence. Yes, Air Products sells gases by the tank, but they also manufacture the mother of all gas tanks in their Wilkes-Barre facility–huge rocket-looking “production trains” or “heat exchangers,” which are pieces of equipment that turn natural gas into liquefied natural gas, or LNG. The heat exchangers manufactured by Air Products in Wilkes-Barre are two-thirds of a football field long (180 feet), used by plants all over the world to condense natural gas into a liquid. We’ve written about Air Products a few times, theorizing some of the heat exchangers they manufacture are being used by plants to liquefy Marcellus/Utica gas (see our Air Products stories here). Sadly, Air Products has just met with its employees at the Wilkes-Barre plant to let them know the plant close on August 1st, resulting in a layoff of 75 employees. Air Products is not getting out of the heat exchanger manufacturing business. They own a second plant in Port Manatee, Florida. The Wilkes-Barre plant is limited in the size of the exchangers it makes, while the Florida facility is not. Demand for shorter exchangers is down, meaning no work for the plant. Also, the Wilkes-Barre facility must ship the huge exchangers they manufacture via railroad to Philadelphia–a process that takes five days. The Florida facility is located at port where the exchangers are loaded directly onto ships heading to other countries, where much of the product is destined. It seems in the end, geography is what defeated Air Products’ Wilkes-Barre operation… Read More “Air Products Closing Wilkes-Barre LNG Manufacturing Plant”

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    Canadian Co. Uses Virtual Pipeline to Sell LNG in New England

    For some time, MDN has had an eye on a trend we find exciting: “virtual pipelines,” by which we mean facilities located along a pipeline that compress natural gas, load it onto tanker trucks, and then distribute that gas to businesses that are not fortunate enough to be located near a natgas pipeline. With irrational opposition to pipelines rampant, virtual pipelines are a good alternative. We recently highlighted a new project coming in our own area of Broome County, NY (see NG Advantage Virtual Pipeline May be Coming to MDN’s Backyard). We have a new twist on the virtual pipeline–something we’ve not read about before: Setting up a virtual pipeline for LNG (liquefied natural gas) instead of CNG (compressed natural gas). Typically virtual pipelines are CNG-based, far easier to transport and to use. Gaz Metro is Quebec’s largest natural gas distributor with an LNG facility in Montreal. Gaz Metro also happens to own Vermont Gas Systems. Gaz Metro recently beefed up its Montreal LNG plant and is now trucking LNG to Vermont and other New England states, targeting large industrial users and energy companies who use LNG for “peaking”… Read More “Canadian Co. Uses Virtual Pipeline to Sell LNG in New England”

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    No LNG Peakshaver for Maine – PUC Declines to Fund Project

    The Maine Public Utilities Commission (PUC) recently declined to help fund a new LNG peakshaving facility in the state, concluding it would not reduce consumer natural gas and electricity prices. Er, a, what’s an LNG peakshaver anyway? Good question! According to industrial engineering company Fives, “LNG peak shaving units are used for storing surplus natural gas, so as to be able to meet the requirements of peak consumption later during the different seasons. Gas distribution companies and local administrations use this application to be more flexible in their consumption of natural gas. Thanks to these Liquid Natural Gas (LNG) peak shaving units, they will be able to face periods of peak consumption during cold winter times and extreme summer heat. Peak shaving can also be used to keep natural gas prices from soaring during periods of high gas consumption.” That helps. They are small LNG plants that kick in when demand for natural gas exceeds supply. There are 44 such peakshaving tanks at 29 locations in the northeast. Last September the Maine legislature authorized the PUC to spend $25 million on leasing capacity at a peakshaving plant, if they could find the right plant to do it. A number of projects were submitted, and the PUC said nyet–they don’t like any of them and don’t think a peakshaver will be needed going forward… Read More “No LNG Peakshaver for Maine – PUC Declines to Fund Project”

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    NG Advantage Virtual Pipeline May be Coming to MDN’s Backyard

    For the past few years MDN has had an eye on a trend we find exciting–“virtual pipelines”–by which we mean facilities that are located along a pipeline that compress natural gas (CNG), load it onto tanker trucks, and then distribute that gas to businesses that are not fortunate enough to be located near a natgas pipeline. With irrational opposition to pipelines rampant, virtual pipelines are a good alternative. We were first alerted to this trend when International Paper’s Ticonderoga mill in northern New York, near the Vermont border, opted for a virtual pipeline from NG Advantage, back in 2015 (see NY Paper Plant Opts for “Virtual” NatGas Pipeline Over Real One). NG Advantage has established a presence throughout New England, most recently adding Maine to their delivery options (see NG Advantage’s “Virtual” NatGas Pipeline to Maine Begins Flowing). In January, a competitor of NG Advantage–Xpress Natural Gas (XNG) set up a virtual pipeline in Susquehanna County, PA–not far from MDN HQ (see Major CNG Virtual Pipeline Coming to Susquehanna County, PA). Imagine our surprise–and delight–to find out that NG Advantage wants to build a virtual pipeline about 9 miles from MDN HQ–along the edge of Binghamton in an adjacent suburb called Port Dickinson! This one flew mostly under the radar. NG Advantage has proposed a new compressor station and tap into the Millennium Pipeline where it crosses the Chenango River. They already have three businesses lined up to buy CNG from the project. Port Dickinson approved the project last night, but it’s still not a done deal yet…
    Read More “NG Advantage Virtual Pipeline May be Coming to MDN’s Backyard”

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    Cherif Souki’s Tellurian LNG IPO Flames Out, Withdrawn Day Later

    As we pointed out last December, evil corporate raider Carl Icahn (invests in companies so he can fire a bunch of people, boost the stock and pocket the profit) had 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 Inc.–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 a few weeks before the election last November. Souki thought (like many) that Trump had no chance of winning, but if by some miracle Trump did win, Souki said he would “reconsider my nationality.” He was born in Egypt but is an American citizen now. After Trump’s victory, Souki seems to have forgotten about his threat to leave the country and change his citizenship. Can anybody say “two-faced”? Tellurian has a subsidiary called Driftwood LNG that we track. Even though Driftwood (when built) will be located along the Gulf Coast, it’s quite likely some–even a lot–of Marcellus/Utica gas will feed it. Hence our interest. So we’re always conflicted when it comes to news about Tellurian. Should we cheer or should we mourn when something negative happens to the company. This time we’ll cheer. On Wednesday, Tellurian announced it would float 10 million shares of new stock in an initial public offering (IPO). A day later, the company withdrew the offering due to “adverse market conditions.” That is, due to lack of interest…
    Read More “Cherif Souki’s Tellurian LNG IPO Flames Out, Withdrawn Day Later”

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    Goldboro LNG Export Plant on the Hunt for Marcellus Assets

    Just last week MDN told you that Pieridae Energy has signed a labor agreement to build the Goldboro LNG export facility along the shore of Nova Scotia, Canada (see Update on Goldboro LNG – Labor Agreement Signed to Build). The U.S. Dept. of Energy approved the plant for exporting to non-free trade agreement counties in February 2016, an indication that Marcellus/Utica gas will flow to the plant (see Goldboro LNG Project Gets Final DOE Approval – Good for Marcellus). As we’ve previously pointed out, gas to feed this new export facility will likely come from the Marcellus/Utica via the Maritimes & Northeast Pipeline. However, Goldboro can also get gas from TransCanada’s pipeline system–sourced from Western Canada. A Reuters story provides new details about Pieridae Energy’s plans for the project. Pieridae CEO Alfred Sorensen told Reuters the company is not just looking to buy gas on the open market, but looking to buy a driller or assets (leased acreage someone else is drilling on), to feed the plant. Pieridae is looking at both Western Canada AND in the Marcellus. The other tidbit we glean from the story is that the plant will cost on the order of $7.3 billion to build–the first time we’ve seen a number associated with the project… Read More “Goldboro LNG Export Plant on the Hunt for Marcellus Assets”

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    Update on Goldboro LNG – Labor Agreement Signed to Build

    We’ve kept an eye on several LNG export projects along the Eastern shore of Canada (most of them in Nova Scotia) for some time. Why? Because they’re a huge potential market for Marcellus and Utica Shale gas. One of those projects, in Nova Scotia, is the Goldboro LNG project from Pieridae Energy. The U.S. Dept. of Energy approved the plant for exporting to non-free trade agreement counties in February 2016 (see Goldboro LNG Project Gets Final DOE Approval – Good for Marcellus). In August 2016, Honeywell announced it was selected to provide the Goldboro project with automation and safety systems and serve as the integrated main automation contractor (see Signs of Life in Canadian Goldboro LNG Export Project). And in October, Pieridae signed a labor contract to build the plant (see Pieridae Energy Signs Labor Contract to Build Goldboro LNG). That labor contact, originally signed in October, was recently ratified by a 85% of the union members expected to work on the project. It is yet another milestone along the way to building the Goldboro LNG plant… Read More “Update on Goldboro LNG – Labor Agreement Signed to Build”

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    Dominion 1Q17 – Updates on Cove Point, Atlantic Coast Pipe & More

    Yesterday midstream and utility giant Dominion issued its first quarter 2017 update. Along with the update Dominion held an earnings call. On that call we learned new information about both the Atlantic Coast Pipeline (ACP) project, Dominion’s Cove Point LNG export project, and a plethora of other projects, including natgas-fired power plants and more pipelines in the works. Dominion CEO Tom Farrell shared the exciting news that Cove Point is now 89% complete and will be “in service” later this year. As for Atlantic Coast Pipeline, Dominion has now purchased 80% of the materials they will need to build it. Farrell said the pipeline will be online in the second half of 2019. Another six pipeline projects are underway (at a cost of $700 million)–with five of the six due to be done THIS YEAR. Dominion is a happening company. Below are extracts from the earnings call, the 1Q17 update (with financials), and the newest PowerPoint slide deck used during the earnings call…
    Read More “Dominion 1Q17 – Updates on Cove Point, Atlantic Coast Pipe & More”