CNG/LNG

CNG/LNG | Industrywide Issues | Pennsylvania | Perry County | Pipelines | Trucking

Marysville PA Talking w/Compass Natural Gas re “Virtual Pipeline”
April 25, 2016April 25, 2016

Last June MDN told you about Compass Natural Gas, a company that compresses natural gas and trucks it to locations not served by a pipeline, cool concept called a “virtual pipeline” (see Getting Marcellus NatGas to Customers without Pipelines). At the time we posted that story, Compass contacted MDN to state the company does not market or serve rural communities/end users, but rather manufacturers, fleets and businesses. It seems their marketing emphasis has changed. Marysville, in Perry County, PA (near Harrisburg) has no interstate pipeline nearby and only about 1% of Marysville’s residents and businesses use natural gas. The town is in talks with Compass to change that–by having Compass truck in CNG (compressed natural gas) for use by town residents and businesses. The town would, of course, need to install delivery pipelines. Right now Marysville is conducting a survey to see if residents would like to buy cheap, abundant, clean-burning (and home-grown) natural gas…
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Anti-Drilling/Fossil Fuel | CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Litigation | Maryland | Statewide MD

Green Groups Ask DC Judge to Stop Construction at Cove Point LNG
April 20, 2016April 20, 2016

Big Green groups, including the nutty Sierra Club, the left-leaning Chesapeake Climate Action Network and the odious Earthjustice continue to pump money and lawyers and time into an effort to stop progress on Dominion’s construction of an LNG (liquefied natural gas) export facility in Cove Point, Maryland. As of March the Cove Point project was already a quarter done (see Cove Point LNG Export Plant Now 24% Complete, Rapid Progress). Last June Earthjustice and its co-conspirators filed a lawsuit against the Federal Energy Regulatory Commission claiming that FERC was wrong to issue a permit for the facility (see Earthjustice Asks Court to Stop Construction at Cove Point LNG). Yesterday the nutjobs got their day in the D.C. Circuit Court of Appeals, once again asking the judges to stop construction at the site so they can litigate it into eternity…
Read More “Green Groups Ask DC Judge to Stop Construction at Cove Point LNG”
CNG/LNG | Industrywide Issues | NGLs | Pipelines | Processing Plants | Research

Study: $546 Billion Needed in Gas/Oil/NGL Infrastructure by 2035!
April 13, 2016April 13, 2016

Forget about drilling, infrastructure is where it’s at baby! That’s our words summarizing a new study just released by the Interstate Natural Gas Association of America (INGAA). The new study, titled “North American Midstream Infrastructure Through 2035: Leaning into the Headwinds” (full copy below) says the U.S. and Canada need to invest $546 billion (real 2015$) total over the 21-year period from 2015 to 2035–or $26 billion per year–in natural gas, crude oil and natural gas liquids infrastructure. Natural gas infrastructure includes “gathering and transmission pipelines, compressors, laterals, gas-lease equipment, processing, gas storage and liquefied natural gas export facilities” (NGI). Our tongue-in-cheek opening statement isn’t completely true. You need drilling or sooner or later you have no gas to flow through the infrastructure. However, for the time being, investors (and engineers and construction firms, etc.) need to pay attention to infrastructure buildout…
Read More “Study: $546 Billion Needed in Gas/Oil/NGL Infrastructure by 2035!”
CNG/LNG | Industrywide Issues | Research

Everything You Wanted to Know About LNG – in One Report
April 13, 2016April 13, 2016

The International Gas Union (IGU) released their “2016 World LNG Report” at the LNG18 conference yesterday taking place in Perth, Australia. The report (we have a full copy below) shows global LNG, or liquefied natural gas, is set to grow. It will play an increasingly important role in the world’s energy mix. In addition to giving a great overview of the worldwide LNG industry, the report contains some really cool appendices, including a list of active liquefaction (i.e. export) plants, a list of export plants under construction, a list of receiving terminals (and terminals under construction), and a list of LNG ships that cart it from point A to point B. LNG, as we’ve said a number of times, will be an important market for Marcellus/Utica drillers. We look at this report like “everything you wanted to know about LNG”…
Read More “Everything You Wanted to Know About LNG – in One Report”
Chevron | CNG/LNG | Commodity Price | Energy Companies | Industrywide Issues

Chevron CEO: Oil Markets will Balance Soon, LNG Entering “New Phase”
April 13, 2016April 13, 2016

In an interview on CNBC, Chevron chairman and CEO John Watson said some interesting things. Among them: Watson believes the oil markets will “balance out” (price/production-wise) in the “coming months.” He also spoke about the prospects for LNG, saying it’s “maturing” and we are entering “a new phase”…
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CNG/LNG | Energy Companies | Industrywide Issues | Shell

Shell CEO @ LNG18: Working Hard to Lower LNG Costs
April 12, 2016April 12, 2016

Ben van Beurden, Shell CEO

In April 2015 when supermajor Royal Dutch Shell announced it wanted to buy out BG and merge the two companies–the biggest such merger since Exxon merged with Mobil–we told you the buyout/merger was all about LNG (see LNG Love Story: Shell Makes Play to Buy BG in $69.7B Megamerger). In February, Shell consummated the deal with BG (see Shell & BG One Company After Today, Shell Ponies Up $14.4B Cash). Earlier today Shell CEO Ben van Beurden took the stage at the LNG18 conference in Perth, Australia. van Beurden’s talk was, as you can imagine, about LNG–liquefied natural gas–and how Shell is working to lower costs in engineering and construction of LNG facilities. That is, van Beurden confirmed what everyone already knew: LNG is the future of Shell…
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CNG/LNG | Energy Services | Exporting | Industrywide Issues | Kinder Morgan

Kinder Morgan’s Elba Island, Georgia LNG Export Plant Progresses
April 6, 2016April 6, 2016

Last July Kinder Morgan bought out joint venture partner Shell’s portion of a proposed LNG (liquefied natural gas) project on the coast of Georgia (see KM Buys Shell’s Share in Elba LNG Export Plant, Marcellus Exports?). What does the Georgia Elba LNG plant have to do with Marcellus/Utica? Maybe nothing, but we suspect something. Kinder’s arch rival Williams owns the mighty Transco pipeline that connects, via the Elba Express pipeline, to the LNG facility. Currently Elba Island imports LNG. However, Williams has been on a mission to send Marcellus gas south–including to Georgia (see Marcellus Gas Heading to Georgia via Transco Pipeline). We don’t think it’s much of a stretch that Marcellus Shale gas, via the Transco, will be at least some of, if not the primary, source for gas exported from the Elba facility. The Elba facility is progressing. Yesterday Kinder announced “a contract for the engineering, procurement, construction, commissioning and startup of Kinder Morgan’s natural gas liquefaction project at Elba Island, near Savannah, Georgia.” The contract was awarded to IHI E&C…
Read More “Kinder Morgan’s Elba Island, Georgia LNG Export Plant Progresses”
CNG/LNG | Exporting | Industrywide Issues | Pipelines | Regulation

LNGL Applies to Build Pipeline to Bear Head LNG Export Facility
March 30, 2016June 16, 2016

Yesterday MDN told you that Bear Head LNG in Nova Scotia, Canada continues to make progress toward opening an LNG export facility that will export U.S. Marcellus and Utica Shale gas (see Bear Head LNG Facility Buys More Land, Opens Halifax Office). The very next day (today!) the parent company of Bear Head, LNG Limited (from Australia) issued another announcement to say they’ve registered for an environmental assessment for a pipeline they want to build–the Bear Paw Pipeline. It is the first (and perhaps most important) step in getting a new 39-mile pipeline built that will run from the Maritimes & Northeast Pipeline to the new Bear Head LNG facility. Yes it’s a story about Canada, but it’s mostly a story about the Marcellus and Utica…
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CNG/LNG | Exporting | Industrywide Issues

Bear Head LNG Facility Buys More Land, Opens Halifax Office
March 29, 2016March 29, 2016

A Canadian liquefied natural gas (LNG) export facility planned for Nova Scotia received final authorization from the U.S. Dept. of Energy (DOE) to export LNG to countries that do not have free trade agreements with the United States (see Bear Head LNG Exports Get Final DOE Approval – Good for Marcellus. Bear Head LNG, a $2.2 billion project proposed by Australian company Liquefied Natural Gas Limited (LNGL) received Canadian approval a year ago (see Canada’s 1st LNG Export Facility Gets Green Light; Marcellus Gas?). The project then received DOE approval to export to free trade agreement countries in July of 2015 (see 2nd Canadian LNG Plant Gets U.S. Approval to Export Marcellus Gas). This project is keeping its foot on the pedal. LNGL announced today they’ve purchased more land surrounding the site where they plan to build. Companies don’t sink this kind of money into projects they are not serious about. Here’s the latest on Bear Head LNG…
Read More “Bear Head LNG Facility Buys More Land, Opens Halifax Office”
CNG/LNG | Energy Companies | Exporting | Industrywide Issues | Repsol

Repsol’s Eastern Canadian LNG Export Plant “On Hold”
March 18, 2016March 18, 2016

In early 2015 Spanish oil giant Repsol accelerated plans to build an LNG export terminal on the coast of Saint John, Newfoundland (see Repsol Accelerates Plan for Canadian LNG Exports Fed by Marcellus). The Canaport LNG project, as it’s called, is one of five potential projects we identified in eastern Canada back in August 2014 that will potentially export Marcellus/Utica gas (see List of LNG Export Projects for Marcellus/Utica Shale Gas). Last fall the Canaport project received approval from the Canadian National Energy Board to proceed (see 3rd Eastern Canada LNG Export Plant Receives Approval). However, LNG World News is reporting they’ve received an email confirmation from Repsol that the company is slamming on the brakes with respect to the Canaport LNG export project…
Read More “Repsol’s Eastern Canadian LNG Export Plant “On Hold””
CNG/LNG | Industrywide Issues | Pipelines

Former GDF Suez CEO Launches New Energy Marketing Company
March 18, 2016March 18, 2016

LifeEnergy sounds like it might be a new age acupuncture treatment–or perhaps an energy drink. But it’s neither. LifeEnergy is an energy company with a “focus on delivering energy products and services to residential and business customers across North America.” It is, as near as we can tell, an energy marketing company. You know how you get telemarketing calls to change your electric and/or gas from the local utility to some other company that delivers electricity or gas to your home via the same local utility, but reportedly at a better/different price? We think that’s what this company is all about–except on a national scale. It is who is behind the company that first got our attention. The new head of LifeEnergy is the former CEO of GDF Suez Energy North America, a division of the French electric energy giant ENGIE. And who is GDF? They’re the company with an LNG import terminal near Boston that keeps trying to screw Kinder Morgan and Spectra Energy out of building pipelines to New England (see Guess Why GDF Suez Doesn’t Want Marcellus Pipeline to New England and LNG Importer Publishes Sham Report Slamming New England Pipelines). GDF would rather import natural gas–because they personally profit from it–rather than see local gas from the Marcellus/Utica find its way to New England markets. The guy who used to run that has stepped away to run this instead…
Read More “Former GDF Suez CEO Launches New Energy Marketing Company”
CNG/LNG | Industrywide Issues | NG Vehicles

Clean Energy Deal to Rebuild CNG Station for 147 NJ Transit Buses
March 8, 2016March 8, 2016

More clean-burning Marcellus and Utica Shale gas will be used to power New Jersey Transit buses–some 147 of them. Clean Energy Fuels Corp. announced last week it won a $10 million, multi-year procurement from New Jersey Transit to rebuild a large compressed natural gas (CNG) fueling station, as well as additional garage modifications and the repair and maintenance of facilities through 2020. NJ Transit is expected to operate a fleet of 147 CNG commuter buses estimated to consume approximately 2 million gasoline gallon equivalents (GGEs) each year. While the announcement doesn’t specifically say Marcellus gas will power those buses, where else do you think the gas will come from? Fleets of trucks and buses are an important new market for the abundant natural gas we have beneath our feet, and Clean Energy is helping to create that future with deals like this one and the many other deals they’ve won…
Read More “Clean Energy Deal to Rebuild CNG Station for 147 NJ Transit Buses”
CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Processing Plants

Cove Point LNG Export Plant Now 24% Complete, Rapid Progress
March 4, 2016March 4, 2016

Dominion is making excellent progress with the Cove Point LNG (liquefied natural gas) export facility. Despite the fact that shrill anti-fossil fuelers are trying to stop the facility in court (see Radical Enviro Groups Continue Lawsuit Against Cove Point LNG), fully 24% of the new plant is already done. And Dominion continues to make progress. Here’s an update on the LNG plant the antis couldn’t stop…
Read More “Cove Point LNG Export Plant Now 24% Complete, Rapid Progress”
CNG/LNG | Exporting | Industrywide Issues

East Coast LNG Export Updates – Bear Head & Downeast
March 4, 2016March 4, 2016

LNG is increasingly seen as vitally important to America’s natural gas industry. LNG, by which we mean liquefied natural gas (it gets liquefied by a process known as liquefaction), can be exported to other countries, providing an important new market for American natural gas. The way it gets shipped abroad is through an LNG export facility. In February the very first LNG export cargo left from Cheniere Energy’s Sabine Pass facility in southwest Louisiana (see Cheniere Finally Ships First Sabine Pass LNG Export – to Brazil). Some of the gas could have been (and likely will be in the future) from the Marcellus/Utica–piped to the Gulf Coast. But what about closer to home? The Cove Point LNG export facility is now 24% complete (see today’s companion story). However, there are other plants north of the Marcellus/Utica that can play a role. Some five LNG plants are planned for Canada’s East Coast area. There’s also a new project planned for the state of Maine. We have quick updates for one of the Canadian projects, and the project in Maine…
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CNG/LNG | Commodity Price | Exporting | Industrywide Issues

LNG Exports to the Rescue in Northeast? Not So Fast
February 29, 2016February 29, 2016

The answer to low prices for natural gas in the Marcellus/Utica is more demand. More demand comes either from new sources using natgas within the region–like building power plants–or sending the gas out of the region. Sending it out involves pipelines, mostly. One of the great hopes for drillers and midstream companies has been the prospect of exporting our natural gas to other countries via LNG (liquefied natural gas). Dominion is right now building the Cove Point liquefaction facility in Maryland with the prospect of bringing it online in 2017. All of the LNG Dominion can produce at Cove Point will go to two countries: Japan and India (see Dominion’s Cove Point LNG Facility Achieves Important Milestones). More northeast gas will head to Japan via the Gulf Coast (see Marcellus/Utica Gas Going to Japan: TGP Signs 20-Year Export Deal). But here’s the thing: Japan is bringing their nuclear power back online, and they’re bringing a lot of solar sources online–meaning they don’t need as much natgas as they used to. In December we told you that LNG for delivery to northeast Asia (Japan and Korea) would average $7.397 per million British thermal units (MMBtu) for January delivery (see Platts Says LNG Heading to Japan & Korea Fetching $7.40/Mcf). Looking to March, LNG for delivery to Asia is down to $5.339/MMBtu–the lowest monthly price since September 2009. And there’s no indication it will go higher any time soon. Our point? LNG exports are not a panacea. Yes, Europe is somewhat interested (and that’s good). But world LNG supplies far outstrip demand at this time…
Read More “LNG Exports to the Rescue in Northeast? Not So Fast”
CNG/LNG | Exporting | Industrywide Issues

Cheniere Finally Ships First Sabine Pass LNG Export – to Brazil
February 25, 2016February 25, 2016

Seems like it’s been forever in coming, but finally (!) Cheniere Energy has shipped their first LNG tanker of exported shale gas from the Sabine Pass facility on the border of Texas and Louisiana. We don’t know if any of the gas liquefied at the facility was from the Marcellus/Utica, but we do know that at some point it will be, which is why we’re excited about this new market opening up. This first tanker full of LNG (liquefied natural gas) set sail for Brazil yesterday and will dock in a few days at the regasification terminal in All Saints’ Bay, Bahia…
Read More “Cheniere Finally Ships First Sabine Pass LNG Export – to Brazil”