CNG/LNG

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    Cherif Souki’s Tellurian LNG IPO Flames Out, Withdrawn Day Later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

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    More Canadian LNG Heads to New England; Why Not from Marcellus?

    Gaz Métro LNG loading

    4/24/17 Update: A sharp MDN reader wrote to alert us that in all likelihood, the gas getting liquefied by Gaz Métro is coming from the Marcellus/Utica. See a special note below.

    Gaz Métro is the largest natural gas distribution company in Quebec, Canada where its network of 6,200 miles of underground pipelines serves some 300 municipalities and more than 200,000 customers. Gaz Métro also has a presence in Vermont, with more than 310,000 customers through its subsidiaries Green Mountain Power and Vermont Gas Systems. One of the business units Gaz Métro operates is a liquefaction, storage and regasification (LSR) plant in Montréal–which has been in operation for 45 years. Last year via a major investment from Investissement Québec and the government of Québec, Gaz Métro tripled the plant’s liquefaction capacities. And now Gaz Métro is making a play to sell more gas–a lot more gas–to New England. Gaz Métro is using Canadian gas, liquefying it, and selling it to New England–when the Marcellus is as closer or (often) closer to the very markets where Gaz Métro is selling its LNG. So if the dunderheads in New England keep rejecting pipelines, why don’t we just ramp up an LNG operation here in the Marcellus and send them gas via tanker trucks, like Gaz Métro is doing?…
    Read More “More Canadian LNG Heads to New England; Why Not from Marcellus?”

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    Big Chemical Selfishly Wants to Block NatGas Exports

    Big Chemical–companies like Dow Corning, BASF, Eastman Chemical and others, via their trade association, have launched a war to try and block American-made natural gas from getting exported to other countries. The reason? They want the natural gas they buy (in very large quantities) to be as cheap as possible. They recently sent a letter (copy below) to Secretary of Energy Rick Perry asking Perry to create barriers to exports of natural gas, ’cause you know, it’s “America First” now baby, and we want that gas all to ourselves. Strumming the patriotic heartstrings, the the Industrial Energy Consumers of America (IECA) says keeping all the gas here will grow more American jobs–and The Donald loves jobs for Americans. These are the same companies that, at the drop of a hat, left our shores and built plants in other countries. To play the patriotic “keep it all home” card is disgustingly hypocritical…
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    PA Launch 1st of 29 CNG Stations for Public Transit Buses

    Yesterday Pennsylvania officials converged on Cambria County to unveil what is the first of 29 total CNG (compressed natural gas) fueling facilities that are being built in a public/private partnership for PA’s public bus transit fleet. Beginning this year and stretching through 2021, Trillium CNG will build and operate a total of 29 CNG fueling stations around the state. PA is paying Trillium, which is a subsidiary of Loves Travel Stops (see Love’s Travel Stops Buys Trillium CNG, Expands CNG Network), $84.5 million to build the stations. In addition to fueling public vehicles, some of the locations will be open to the public. Once the project is completed in 2021, those 29 CNG fueling stations will provide natgas for more than 1,600 CNG buses at transit agencies across the state–an important new market for homegrown, PA Marcellus Shale gas…
    Read More “PA Launch 1st of 29 CNG Stations for Public Transit Buses”

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    Dominion Cove Point to Begin LNG Exports to India in Jan 2018

    Since early 2013 all of the LNG export capacity at the coming Cove Point LNG facility (on the shore of Maryland) has been spoken for–by India and Japan (see Dominion’s Cove Point LNG Facility Achieves Important Milestones). Cove Point is scheduled to go online late this year, with shipments heading to India beginning in January 2018. GAIL India, the state-owned entity contracted with Dominion/Cove Point for LNG from the plant, has known about the coming date for the past four years. They will need numerous ships to ferry Cove Point LNG to India. So GAIL put out the word several years ago for companies to build nine ships total–to handle LNG exports from both Cove Point and Cheniere Energy’s Sabine Pass facility, along the Gulf Coast. One of the requirements for the project is that three of the nine has to be built in India–“Made in India”. They got no takers, and so now GAIL is scrambling to try and lease ships for the “short term” (3-4 years) so they can begin shipping on time…
    Read More “Dominion Cove Point to Begin LNG Exports to India in Jan 2018”

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    American Shale Gas Selling for Over $7/Mcf to Overseas Buyers

    A Bloomberg article caught our eye. It says natural gas being exported by Cheniere Energy (in southern Louisiana) is being sold to counties like Mexico, Japan and Jordan for over $7 per thousand cubic feet (Mcf). Why is that significant and how is it related to the Marcellus/Utica? It’s significant because gas right now is selling in the U.S. for an average of around $3/Mcf. In some places, like the Marcellus/Utica region, it sells for much less. Yesterday gas sold at the Tennessee Gas Pipeline Zone 4 Marcellus trading hub sold for $2.61/Mcf. If producers can sell their gas overseas at double the price–happy days are here again! How does that relate to the Marcellus/Utica? Some of the gas being sold by Cheniere comes from the Marcellus/Utica. And later this year, Dominion will have finished and will power up their massive LNG export facility in Cove Point, Maryland. When that happens, 100% of the gas exported will go to two countries: Japan and India. And it will likely be sold for prices like Cheniere is seeing–around $7/Mcf. That is really good news for the producers who have signed contracts with Cove Point…
    Read More “American Shale Gas Selling for Over $7/Mcf to Overseas Buyers”

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    Another Review Completed for Canadian Bear Head LNG Project

    For some time we’ve tracked the progress of an LNG export plant planned for the eastern shore of Nova Scotia, the Bear Head LNG project. Of all the Canadian LNG export projects, Bear Head seems to have the most momentum. The project has received most of the necessary permits it needs to proceed. But it’s not been without its bumps along the way (see Bear Head LNG Export Plant: Bad News & Good News). Where will the gas come from to feed the plant? One source is likely to be Marcellus Shale coming via the Maritimes & Northeast pipeline, converted to be bidirectional (see FERC Approves Atlantic Bridge Project for New England/Canada). But LNG Limited, the builder of Bear Head LNG, is not putting all of its eggs in one basket. They don’t want to leave the fate of their plant to the flakes of New England who may end up blocking Spectra Energy’s efforts to move more Marcellus into the region. So LNG Limited is also working on a plan to bring western Canadian gas to Nova Scotia (see Canadian Bear Head LNG’s Long-Shot Plan to Get Gas). One more piece of the larger pie to build the plant just fell into place, earlier today. Transport Canada’s TERMPOL Review Committee has completed a review of the Bear Head project and issued a report. The TERMPOL report is a technical review of marine terminal systems and transshipment sites. Technical stuff, lots of recommendations. The bottom line is that Bear Head said they’ll do what’s in the report and the project continues to be very real and on track…
    Read More “Another Review Completed for Canadian Bear Head LNG Project”

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    Dominion CEO Asks Senators to Fix Broken Permitting Process

    Dominion CEO Diane Leopold

    On Tuesday, just as winter storm Stella was beginning to hit along the East Coast, a group of executives testified before the U.S. Senate Committee on Energy & Natural Resources. The session was billed as a “Hearing to receive testimony on opportunities to improve American energy infrastructure.” One of the speakers to address the Senators was Dominion CEO Diane Leopold. The thrust of her lengthy testimony was to encourage (implore?) the Senators to (in our words) fix the very broken process of permitting important infrastructure projects in this country. Leopold shared Dominion’s experience in applying for permits to build the $4 billion Cove Point LNG export project in Maryland. As bad as it was with 55 federal, state and local permits and reviews required, Leopold said Cove Point was a relative walk in the park compared to what they’re now going through with the $5.5 billion Atlantic Coast Pipeline project. Something has got to change if anything is going to get built in this country…
    Read More “Dominion CEO Asks Senators to Fix Broken Permitting Process”

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    UPS Adds 390 CNG, 50 LNG Trucks to Fleet in $90M NatGas Investment

    UPS LNG tractor trailer

    In 2013 we tipped our hat to UPS, the worldwide package delivery service, for their commitment to growing their natural gas fleet with a plan to add 700 new LNG (liquefied natural gas) tractor trailers to the fleet (see UPS to Grow NG Fleet with Additional 700 LNG Tractor Trailers). In 2015, UPS did it again. The company announced they would another 64 new LNG tractor trailers to the fleet–this batch based in Harrisburg, PA (see UPS Adds 64 New LNG Tractor Trailers to Fleet in Harrisburg, PA). It seems that UPS’s investment in natural gas comes every two years. Yesterday the company announced another massive $90 million investment in natural gas. UPS is adding an additional six compressed natural gas (CNG) fueling stations, 390 new CNG tractors and terminal trucks, and 50 liquefied natural gas (LNG) vehicles to its alternative fuel/advanced technology fleet…
    Read More “UPS Adds 390 CNG, 50 LNG Trucks to Fleet in $90M NatGas Investment”

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    Trinidad LNG Exports Keep Falling – When Will it Affect New England?

    Last June, MDN quasi-predicted that natural gas prices may spike during the 2016-2017 winter season in New England, due to a coming shortage of LNG from Tinidad (see Is New England Heading for Huge NatGas Price Spike this Winter?). With a warmer than normal winter, and with newfound natural gas supplies making their way to New England, prices did not spike. However, New England continues to pay prices 3-4 times higher than the rest of the country for their natgas–due to lack of supply. That hasn’t (and won’t) change, until more supplies make it to New England–either by pipeline or ship. Opponents of new pipelines to New England have included LNG importers in the region. Specifically, GDF Suez imports Trinidad gas at the Everett, MA LNG import terminal, near Boston (see New England Importer Received 59% of All LNG Ship Imports 1H15). LNG imports are one of the primary sources of natgas for New England. Antis holler and scream, “Forget the pipelines. If you must use gas, use LNG. There’s more than enough LNG to supply New England.” In a macro sense that may be true–the world is awash in LNG. But arranging shipments and sources for it takes months, even years. Right now most of the LNG GDF Suez imports comes from Trinidad. As we pointed out in our article last year, Trinidad’s natural gas sources are drying up. The country is exporting less and less. We spotted yet another article about how Trinidad’s natural gas exports are rapidly declining. Sooner or later Trinidad’s falling exports will affect GDF Suez’s imports of LNG to New England. Once again, like that famous New Englander Paul Revere, we’re issuing a warning that New England needs new sources of natgas (via pipelines), and they need it sooner rather than later…
    Read More “Trinidad LNG Exports Keep Falling – When Will it Affect New England?”

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    Kinder Morgan Sells 49% Stake in Elba Island LNG to EIG for $555M

    Elba Island LNG facility

    Kinder Morgan’s Elba Island, Georgia (near Savannah) LNG export facility received a green light from the Federal Energy Regulatory Commission (FERC) last June (see KM’s Elba Island LNG Export Plant Approved by FERC). Kinder has since started construction at the site. In December, the U.S. Dept. of Energy granted Elba Island permission to export LNG to non-Free Trade Agreement countries (see Elba Island LNG Update: Non-FTA Exports Approved, Dump Truck City). What does the Georgia’s Elba LNG plant have to do with Marcellus/Utica? The Williams Transco pipeline runs through Georgia. Kinder owns and operates the 200-mile Elba Express pipeline, which connects the LNG facility to the Transco. Currently Elba Island imports LNG, getting it to market via the Transco. However, Williams has been on a mission to send Marcellus gas south–including to Georgia (see Marcellus Gas Heading to Georgia via Transco Pipeline). Marcellus Shale gas will, via the Transco, be at least some of, if not the primary, source for gas exported from the Elba Island facility. Although work continues at the facility, Kinder has decided they can use some money to help finish the project–so they’ve just sold a 49% stake in the project to investment firm EIG Global Energy Partners for $555 million. When the project is complete, Kinder says it will be worth $1.3 billion. So EIG got 49% of a $1.3 billion project (or $637 million worth of value) for $555 million. Sounds like EIG got a good deal, or perhaps Kinder was a tad desperate for the cash?…
    Read More “Kinder Morgan Sells 49% Stake in Elba Island LNG to EIG for $555M”

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    Moody’s Says Global LNG Prices to Remain Flat “Beyond 2020”

    Two days ago MDN brought you Shell’s very first LNG Outlook report, which says demand for LNG around the globe will increase by a very brisk 4-5% per year from now until 2030 (see Shell Launches LNG Outlook 2017 – Rapid Growth Ahead). Shell out to know a thing or two about LNG, since they paid a staggering $69.7 billion last year to purchase BG, basically to get BG’s LNG business (see LNG Love Story: Shell Makes Play to Buy BG in $69.7B Megamerger). Someone else that watches the markets closely is Moody’s Investors Service. Moody’s has just issued a report that says demand for LNG over roughly the same period (“after” 2020), is weakening, not growing. And because of weaker demand and more supply coming online in the U.S. and elsewhere, Moody’s says the price for LNG will remain flat. Shell says demand will be strong, Moody’s says it won’t. Who do we believe?…
    Read More “Moody’s Says Global LNG Prices to Remain Flat “Beyond 2020””