CNG/LNG

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…
Read More “LNG Importer Publishes Sham Report Slamming New England Pipelines”
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…
Read More “UGI Provides Update on PennEast & Other New PA Pipeline Projects”
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…
Read More “Let’s Celebrate a Small NY Victory: CNG Distro Center Opens in CNY”
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…
Read More “Join MDN at RBN Energy’s “Summer in the City” Event July 23 – NYC”
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?”
Anti-Drilling/Fossil Fuel | CNG/LNG | Crestwood Midstream | Energy Services | Industrywide Issues | New York | NGLs | Schuyler County | Statewide NY

Binghamton Newspaper Runs Anti-LPG Propaganda as “News”
June 29, 2015June 29, 2015

A well-known activist and anti-driller flying under the label of “reporter”–Tom Wilber–was actually paid to write six, possibly seven articles for the Binghamton Press & Sun-Bulletin appearing in the print edition on Sunday. The so-called “Watchdog Report” in the P&SB takes aim at an underground liquefied propane storage facility proposed by Crestwood Midstream along the shore of Seneca Lake (in a depleted salt cavern) and is what laughably passes as “news” these days in the People’s Republic of New York–where the only “news” allowed in Democrat rags like the P&SN is bad news when it comes to the shale industry. In most newspapers the entire section appearing in the P&SB, which amounts to free advertising for the virulent anti-drilling group Gas Free Seneca, would properly be labeled as an “Advertisement” or “Advertising Supplement.” But not in the P&SB. Unsuspecting readers of the P&SB are treated to a couple of front page stories about “environmental concerns” about the very safe underground storage facility planned near Seneca Lake. When you look further in, the entire first section of the newspaper is jammed with more stories–six in all–plus a seventh that was almost certainly written by Wilber labeled as an “editorial” from the newspaper itself. Example of the extreme bias: one of the stories is about railroads, tossed in to create FUD–fear, uncertainty and doubt–about the LPG facility by stating that LPG from the Crestwood facility will be hauled by railroad over a creaky old railroad bridge through historic Watkins Glen State Park with its beautiful gorges and waterfalls. The image is what would happen if there was an accident and the train fell into the gorge. Of course Wilber doesn’t bother to report that carloads of really nasty, toxic chemicals traverse that same railroad bridge each week–it’s only LPG (simple propane that would evaporate) that has him concerned. Wilber calls it a potentially “epic hazard.” What a joke…
Read More “Binghamton Newspaper Runs Anti-LPG Propaganda as “News””
CNG/LNG | Exporting | Industrywide Issues

Downeast Plans to Begin Building ME LNG Export Facility in 2017
June 26, 2015June 26, 2015

In April MDN told you about a potential second East Coast LNG export terminal project that stands a good chance of getting built–in Maine of all places (see 2nd LNG Export Terminal for Marcellus Gas Advances – in Maine!). Downeast LNG, as the project is called, was originally planned to be an import-only facility. But last year, after getting preliminary approval for the import project from FERC, Downeast amended its application to become both an import AND export LNG terminal. And yes, it is Marcellus Shale gas they have in mind to export. We have progress to report: Downeast LNG has contracted with one of the world’s largest energy engineering and construction companies, CB&I, to design and build the facility when and if they get the necessary approvals. Downeast is hoping construction may begin as early as spring of 2017…
Read More “Downeast Plans to Begin Building ME LNG Export Facility in 2017”
CNG/LNG | Industrywide Issues

Carnival Orders LNG-Powered Cruise Ships + Jim’s Cruise from Hell
June 25, 2015June 26, 2015

Hurricane Irene

We have mixed emotions about this story. We spotted a story a few days ago that a major cruise ship line has ordered up four new megaship cruise liners that will be powered by liquefied natural gas (LNG)–a first for cruise ships. The new ships will be the “greenest” cruise ships yet, cutting down significantly on air pollution by changing from diesel to LNG. Each of the four ships will have the capacity to haul 6,600 passengers (mammoth!). The first of the four ships will be delivered in 2019. So far so good–we find it really cool that cruise ships are converting to LNG, some of which will no doubt use natural gas from the Marcellus/Utica. The mixed emotions we have came when learning that the cruise line the new LNG ships are being delivered to is Carnival. Thunk. MDN editor Jim Willis took his bride of 25 years on a Silver Anniversary cruise (our first cruise ever) on a Carnival Cruise “fun ship” in 2011. It was the worst vacation we’ve ever had. Read the sad (and funny) story below…
Read More “Carnival Orders LNG-Powered Cruise Ships + Jim’s Cruise from Hell”
CNG/LNG | Exporting | Industrywide Issues | Ohio | Statewide OH

OH Congressman Bill Johnson: It’s Time US Ramps Up LNG Exports
June 15, 2015June 15, 2015

U.S. Congressman Bill Johnson, who represents eastern and southeastern Ohio (Utica Shale country) has introduced HR 315, a bill to force the Dept. of Energy to make decisions within 30 days for each new LNG project filed with the agency. Johnson also recently went on a trip to Portugal, Belgium, and the Ukraine to discuss energy policy–specifically liquefied natural gas (LNG) exports from the United States. Johnson penned the following column following his trip, advocating for U.S. LNG exports and discussing HR 315…
Read More “OH Congressman Bill Johnson: It’s Time US Ramps Up LNG Exports”
CNG/LNG | Exporting | Industrywide Issues | Research

IEA 2015 Global 5-Year Gas Market Report, U.S. LNG in Trouble?
June 5, 2015June 5, 2015

Yesterday the International Energy Agency (IEA) released its “Medium-Term Gas Market Report” covering the next five years. The somewhat troubling forecast is that the overall demand for natural gas will grow at a slower pace–just 2% per year–rather than their previous prediction from last year–2.3% per year–for the next five years. Normally with low low gas prices demand would pick up. But the IEA says Asia’s demand for natural gas over the next five years will *decrease* instead of increase, which more than offsets low prices stimulating demand. The IEA says this has big implications for the flurry of LNG export facilities being planned in the U.S. According to the IEA, several U.S. LNG export facilities will “likely to be delayed or even cancelled”…
Read More “IEA 2015 Global 5-Year Gas Market Report, U.S. LNG in Trouble?”
Anti-Drilling/Fossil Fuel | CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Litigation | Maryland | Processing Plants | Statewide MD

Earthjustice Asks Court to Stop Construction at Cove Point LNG
June 3, 2015June 2, 2015

Three weeks ago MDN told you about the frivolous lawsuit filed by Earth[in]justice attempting to stop the Cove Point, Maryland LNG export plant from being built (see DOE Grants Cove Point LNG Final Approval, Earthjustice Sues). Earth[in]justice sued on behalf of themselves (they are a small group of Washington, DC lawyers backed by Big Green money), and on behalf of Chesapeake Climate Action Network, Patuxent Riverkeeper, and the Sierra Clubbers. Meanwhile, Dominion, the owner of the project, has pushed forward with construction at the site. Dominion is about to begin construction on the foundation of the new facility sometime in June, so Earth[in]justice has just filed another lawsuit–a request for a cease and desist order to stop Dominion from constructing the foundation until after their frivolous lawsuit has a chance to get in front of a sympathetic judge…
Read More “Earthjustice Asks Court to Stop Construction at Cove Point LNG”