CNG/LNG

CNG/LNG | Columbia Pipeline Group | Energy Services | Exporting | Industrywide Issues | Pipelines

FERC Approves Columbia Project Connecting NE Gas to La. LNG Export
September 22, 2015September 22, 2015

Seems like just about every pipeline project out there is, in one way or the other, connected to the Marcellus/Utica Shale and moving northeast shale gas to other markets. Example: Yesterday Columbia Pipeline Group announced they have received Federal Energy Regulatory Commission (FERC) approval to proceed with the Cameron Access Project in Southwest Louisiana. The $310 million project includes improvements to Columbia Gulf’s existing pipeline system, as well as ancillary facilities, a new compressor station near Lake Arthur, Louisiana, and the installation of an approximately 26 mile greenfield pipeline lateral in Cameron Parish that provides direct access to the Cameron LNG export facility. The purpose of the project? It “further connects abundant, but constrained, Appalachian supplies to higher value markets.” In other words, Columbia will offer a new export market for Marcellus/Utica gas via the Cameron LNG export terminal. The project is due to begin construction in the spring of 2016 and be placed in service during the first quarter of 2018…
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CNG/LNG | Exporting | Industrywide Issues | Research

Wood Mackenzie: “Raft” of Planned LNG Projects Won’t Get Built
September 22, 2015September 22, 2015

Global research firm Wood Mackenzie recently published a brief analysis of LNG export facilities asking the question, Where are all the LNG project postponements? According to Wood researchers, the outlook for global LNG demand is looking increasingly subdued–particularly in China. The number of LNG projects proposed to make a Final Investment Decision (FID) in 2015 and 2016 has not reduced significantly. If all or close to all of the projects on the books make a FID to move forward, there would be an unsustainable glut of new LNG supplies–without a corresponding amount of demand around the globe. Wood Mackenzie’s conclusion? Companies will soon wake up to the fact that there won’t be enough demand and we will see “a raft of project postponements” in the next 6-18 months…
Read More “Wood Mackenzie: “Raft” of Planned LNG Projects Won’t Get Built”
CNG/LNG | Exporting | Industrywide Issues | Regulation

3rd Eastern Canada LNG Export Plant Receives Approval
September 14, 2015September 14, 2015

In February MDN told you that Spanish oil giant Repsol was accelerating 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). Two of the five projects–Bear Head LNG and Goldboro LNG, both located in Nova Scotia–were approved by the Canadian National Energy Board (CNEB) in August (see 2 Marcellus LNG Export Projects Get Canadian Approval). Good news: The Canaport LNG project has now also been approved by the CNEB…
Read More “3rd Eastern Canada LNG Export Plant Receives Approval”
CNG/LNG | Energy Services | Exporting | Industrywide Issues | Kinder Morgan | Pipelines

Marcellus/Utica Gas Heading to TX LNG Export Plant…in 2018
September 11, 2015September 11, 2015

Yesterday Kinder Morgan announced Cheniere Energy’s Corpus Christi LNG export facility on the coast of Texas has signed up to receive 385,000 dekatherms per day (i.e. 385 million cubic feet per day) of “southbound” natural gas from Kinder’s Natural Gas Pipeline Company of America (NGPL) expanded Gulf Coast mainline system for a 20-year term. There’s a lot to unpack in that statement, including the fact that the “southbound” natural gas will come from the Marcellus/Utica…
Read More “Marcellus/Utica Gas Heading to TX LNG Export Plant…in 2018”
CNG/LNG | Energy Services | Industrywide Issues | Pipelines

New England Importer Received 59% of All LNG Ship Imports 1H15
September 11, 2015September 11, 2015

Both Kinder Morgan and Spectra Energy are in a tough fight to build pipelines from the Marcellus into New England. One of the competing visions for how to get more natural gas to residents, businesses and electric generating plants that so desperately need natural gas is to import it through the Everett, MA LNG import terminal. That’s where GDF Suez, the American name for the French multinational electric utility company Engie, imports natural gas. We told you about GDF Suez’s self interested last year (see Guess Why GDF Suez Doesn’t Want Marcellus Pipeline to New England). We also brought you their self-serving “study” published in August that says New England doesn’t need more pipeline capacity (see LNG Importer Publishes Sham Report Slamming New England Pipelines). We now have more proof of what’s motivating GDF Suez to oppose pipelines. In the first half of 2015, 17 massive LNG cargo ships imported natural gas to ports in the United States. Some 10 of the 17 shipments came to GDF Suez’s import terminal in Massachusetts–59% of all imports. No wonder the company is fighting to continue importing natural gas from other countries rather than use home-grown, cheaper shale gas…
Read More “New England Importer Received 59% of All LNG Ship Imports 1H15”
CNG/LNG | Erie County (NY) | Industrywide Issues | New York

CNG Customers Gather to Celebrate Grand Opening in…
September 4, 2015September 4, 2015

Earlier this week a $2.85 million compressed natural gas (CNG) filling station was opened with a large crowd of people eager to begin using it. Nexus Natural Gas, a consortium of seven different companies, unveiled their first collaborative CNG fueling station aimed at cars, trucks, tractor-trailers and buses. The state got involved with a $570,000 grant–recognizing the benefits of using natural gas as a transportation fuel (burns cleaner, natural gas is a home-grown fuel). Local utility/pipeline companies are involved too–to deliver cheap, abundant and clean-burning Marcellus Shale gas to the new fueling station. What’s that? Where’s this new CNG fueling station located–where crowds of natgas lovers congregated to celebrate? Would you believe, in New York State!…
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CNG/LNG | Industrywide Issues | Pipelines

LNG Importer Publishes Sham Report Slamming New England Pipelines
August 21, 2015August 21, 2015

For more than a year the owner of an LNG import terminal located off the coast of Massachusetts, GDF Suez, has been lobbying hard against any new pipelines that would bring abundant, cheap and clean-burning Marcellus Shale gas to New England (see Guess Why GDF Suez Doesn’t Want Marcellus Pipeline to New England). Why is GDF Suez opposed? Because their business, importing natural gas from other countries, is threatened. Something called self-interest. So GDF trots around attempting to make the case natural gas isn’t really needed in New England–not beyond what GDF Suez can provide anyway. The latest salvo in a disgusting display of self-interest is a so-called report bought and paid for by GDF that supposedly makes the case that proposed pipelines are too expensive because some of the cost will be passed on to electric rate payers who will experience greatly reduced electric rates once the pipelines are flowing gas to New England. GDF used what appears to be its own in-house analysts from a company called Energyzt to write a biased report that is being reported by mainstream media as some sort of independent report–which it definitely is not…
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CNG/LNG | Exporting | Industrywide Issues | Pipelines | Regulation

2 Marcellus LNG Export Projects Get Canadian Approval
August 18, 2015August 18, 2015

Two Canadian LNG export projects have made significant progress–but both are still far away from actually getting built. A year ago MDN supplied you with a list of five potential Canadian LNG export projects along the East Coast of Canada (see List of LNG Export Projects for Marcellus/Utica Shale Gas). Two of those projects–Bear Head LNG and Goldboro LNG, both located in Nova Scotia–have received a green light from the U.S. Dept. of Energy (see 2nd Canadian LNG Plant Gets U.S. Approval to Export Marcellus Gas). Both projects received a green light last week from the Canadian National Energy Board (see the article below). The gazillion dollar question is: Where will the natural gas come from that gets exported via these facilities? We’ve long hoped that Marcellus Shale gas would be some of that gas–we have way more than we can use here at home. But at the recent RBN Energy “State of the Energy Markets” conference in New York City, RBN’s Rusty Braziel said virtually none of the gas going to New England via the proposed Kinder Morgan Northeast Energy Direct pipeline nor the Spectra Energy Access Northeast pipeline would be exported. Frankly, if Marcellus gas doesn’t get piped to Canada, we think there’s virtually no chance these LNG projects will get built. Our sentiments were recently echoed by Moody’s Investors Services (see Moody’s: “Vast Majority” of LNG Export Projects Will be Canceled). So, read the following article, but do so with your head swiveling around as ours is. Will Marcellus gas get exported? Will the Maritimes & Northeast pipeline get FERC permission to reverse its flow and send gas from the U.S. into Canada? Will Kinder and Spectra actually build their pipelines to New England? A lot of unanswered questions when you consider whether or not Canada will actually build any of these LNG projects…
Read More “2 Marcellus LNG Export Projects Get Canadian Approval”
CNG/LNG | Electrical Generation | Energy Services | Industrywide Issues | PennEast Pipeline | Pennsylvania | Pipelines | Statewide PA | UGI Energy Services

UGI Provides Update on PennEast & Other New PA Pipeline Projects
August 5, 2015August 5, 2015

During the AmeriGas Partners quarterly analyst conference call yesterday, Pennsylvania utility giant UGI Corporation CEO John Walsh gave an update on several projects of interest for those in the PA Marcellus Shale. Oh! We should point out AmeriGas is the country’s largest propane company and a subsidiary of PA-based UGI, which is why Walsh was on the call. And what did he say? Walsh provided an update on UGI’s $60 million project to build a new LNG production plant in Wyoming County, PA (see UGI Building LNG Plant in NEPA, Local Marcellus Gas to Feed It). He also spoke in glowing terms about the PennEast Pipeline and how he sees that project unfolding (it should be operational by late 2017). Walsh also updated analysts on several pending pipeline projects that will feed electric plants being built in the Marcellus. Here’s what he said yesterday…
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CNG/LNG | Industrywide Issues

World First: Large RO/RO Ship Converting to LNG Fuel
August 5, 2015August 5, 2015

This story is not about the Marcellus/Utica per se, but it’s cool nonetheless and we think you’ll find it interesting. In June we told you that Carnival Corp. had ordered up four new megaship cruise liners that will be powered by liquefied natural gas (LNG)–a first for cruise ships (see Carnival Orders LNG-Powered Cruise Ships + Jim’s Cruise from Hell). A second type of large ship is following suit. Totem Ocean Trailer Express (Totem Ocean), located on the Left Coast (Tacoma, WA), announced yesterday it has signed a contract to convert a “roll-on/roll-off” or RO/RO ship to burn liquefied natural gas (LNG). This is the world’s first major conversion of a large RO/RO vessel to LNG. The work will begin in December and is expected to be completed in 90 days. Is LNG set to take the shipping world by storm?…
Read More “World First: Large RO/RO Ship Converting to LNG Fuel”
CNG/LNG | Exporting | Industrywide Issues | Research

Brookings LNG Report: An Assessment of U.S. Natural Gas Exports
August 4, 2015August 4, 2015

The nonpartisan Washington, DC-based think tank the Brookings Institution recently released the fourth in a series of briefings by the Energy Security and Climate Initiative at Brookings on developments in the natural gas market. This latest research report (or “brief”), titled “An Assessment of U.S. Natural Gas Exports” (full copy below), provides an overview of regulations in the U.S. that control LNG exports, along with an assessment of how competitive the U.S. is compared with other suppliers emerging worldwide. Interestingly, the Brookings report points out a little known fact: “Although U.S. natural gas export regulation may be cumbersome and the trajectory expensive, to date not a single project has been rejected”…
Read More “Brookings LNG Report: An Assessment of U.S. Natural Gas Exports”
CNG/LNG | Exporting | Industrywide Issues | Processing Plants

2nd Canadian LNG Plant Gets U.S. Approval to Export Marcellus Gas
July 21, 2015July 21, 2015

In May MDN told you that one of four proposed Canadian LNG (liquefied natural gas) export facilities that wants to export American shale gas received a green light from the U.S. Dept. of Energy to export our shale gas (see Canadian LNG Project to Export Marcellus Gas Gets DOE Approval). Good news. A second Canadian LNG export facility, Bear Head LNG in Nova Scotia, has just received the DOE’s official approval to export American shale gas. The shale gas they will export, if the plant gets built (still a big “if”), for both of the approved plants, would be Marcellus and Utica Shale natural gas. There are still many hurdles, including: (1) the Maritimes & Northeast pipeline has to get FERC permission to reverse its flow; (2) the gas has to get to the Maritimes & Northeast pipeline in the first place via new pipelines from either Kinder Morgan or Spectra Energy; and (3) the price of oil has to rise to make the whole thing economical, since LNG is so closely tied to the price of oil. Here’s the announcement from Bear Head LNG…
Read More “2nd Canadian LNG Plant Gets U.S. Approval to Export Marcellus Gas”
CNG/LNG | Energy Companies | Energy Services | Exporting | Industrywide Issues | Kinder Morgan | Shell

KM Buys Shell’s Share in Elba LNG Export Plant, Marcellus Exports?
July 16, 2015July 16, 2015

Kinder Morgan, the country’s largest midstream/pipeline company, announced yesterday they are buying out Shell’s share of a joint venture in building an LNG (liquefied natural gas) export facility at the existing LNG import facility on Elba Island, Georgia–near Savannah. Currently Kinder owns 51% of the Elba Island LNG export project and Shell owns 49%. Kinder will now own 100% of the project after they pay Shell $630 million. Depending on how fast the Federal Energy Regulatory Commission (FERC) acts, Kinder believes construction will begin by the end of this year an LNG exports will begin “in late 2017.” What does this 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…
Read More “KM Buys Shell’s Share in Elba LNG Export Plant, Marcellus Exports?”
CNG/LNG | Herkimer County | Industrywide Issues | New York

Let’s Celebrate a Small NY Victory: CNG Distro Center Opens in CNY
July 7, 2015July 7, 2015

A small (very small) victory for natural gas in New York State. And it’s sad that we have to accord this bit of news as actual news. Direct Energy and Xpress Natural Gas (XNG) announced today that they have just opened New York State’s very first compressed natural gas (CNG) production facility and distribution terminal–located in Central New York, east of Utica in Herkimer County. The facility will handle large volumes of natural gas, most of it coming from the Pennsylvania Marcellus (excuse us while we wipe tears away from the keyboard over the destruction to our upstate economy by Andrew Cuomo with his frack ban). This high volume facility, which can handle up to 5.7 billion cubic feet per year, is meant to serve businesses and even entire towns that are not located near a natural gas pipeline. Direct Energy and XNG are targeting not only New York State but also businesses and municipalities in Vermont, Massachusetts and Connecticut…
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CNG/LNG | Commodity Price | Crude Oil | Decline/Depletion Rates | Economic Impact | Education | Ethane | Exporting | Industrywide Issues | M&A | NGLs | Pipelines | Processing Plants | Regulation | Research | Reserves (Proved and Unproved)

Join MDN at RBN Energy’s “Summer in the City” Event July 23 – NYC
June 30, 2015July 9, 2015

MDN invites you to join us in attending RBN Energy’s “State of the Energy Markets” one-day event in New York City on July 23. Before you hurry to say “yes,” a few caveats. It costs money (a lot of it). It’s aimed at executives working in the industry, as well as traders and investors. If that describes you (and we know that many of you read MDN), you may be interested in attending. We guarantee it will be a great event. Rusty Braziel & company will provide an overview of the key issues facing natural gas, NGLs and the crude oil market. They will explain how the markets for those three commodities interact and affect each other. They will also take a look at prices, where they may be heading, and how infrastructure affects price. If you are really “into energy” as we are, this is a must attend event. Details are below, along with a link to register…
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Boardwalk Pipeline Partners | CNG/LNG | Energy Services | Exporting | Industrywide Issues | Ohio | Pipelines | Processing Plants | Statewide OH | Utica Shale

Sabine Pass LNG Export Expansion Approved, Utica Gas Heading There?
June 29, 2015June 29, 2015

Good news for Marcellus/Utica drillers–especially those in the Ohio Utica. Last Friday the U.S. Dept. of Energy issued a final authorization for an expansion to Cheniere Energy’s Sabine Pass Liquefaction LNG export facility in Cameron Parish, Louisiana. The approval means Sabine Pass can now export domestically produced liquefied natural gas (LNG) to countries that do not have a Free Trade Agreement (FTA) with the United States. The approval expands export capacity at the facility by an extra 1.38 billion cubic feet of natural gas per day (Bcf/d), to a new total of 3.58 Bcf/d. Why is it good for Utica drillers? Because at least one pipeline project will connect from Ohio all the way to the Sabine Pass facility (see Texas Gas Seeks to Reverse Flow of Pipeline from OH to LA), meaning some Utica and Marcellus Shale gas will get exported from the Gulf Coast…
Read More “Sabine Pass LNG Export Expansion Approved, Utica Gas Heading There?”