CNG/LNG

CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Maryland | Regulation | Statewide MD

Cove Point LNG Plant STILL Waiting for Final DOE Approval?!
April 17, 2015April 17, 2015

Something a tad strange caught our eye. Yesterday America’s Natural Gas Alliance (ANGA) released a white paper (copy below) and held a conference call to step up pressure on the Obama Dept. of Energy–with pleas to do the right thing and grant final approval for a list of LNG export projects currently on the list. Some of those projects have been waiting years for a final approval. We knew all of that–but one of the projects named by ANGA on the call and in the white paper is Cove Point. Which made us scratch our head. We thought Cove Point was already was already fully approved by the plethora of government agencies, including DOE, that need to approve it. We reported that Dominion began construction of the facility last October (see Dominion Breaks Ground on Cove Point, MD LNG Export Facility). Just last month Dominion threw a big party to celebrate the project’s approval and future prospects with no less than the Japanese ambassador attending (see Dominion Needles Anti-Drillers by Throwing Party for Cove Point LNG). But now here’s ANGA saying the DOE needs to provide a “final” approval for Cove Point. What gives?…
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CNG/LNG | Exporting | Industrywide Issues | Research

Moody’s: “Vast Majority” of LNG Export Projects Will be Canceled
April 9, 2015April 9, 2015

The analysts at Moody’s Investors Service have turned decidedly bearish on the plethora of proposed LNG (liquefied natural gas) export plants in both the U.S. and Canada. There are nearly 30 LNG export plants proposed in the U.S., 18 proposed projects in western Canada, and 4 in eastern Canada. One of them–Cove Point, Maryland, being built by Dominion–is right now in the midst of construction. The Cove Point plant will export Marcellus and Utica Shale gas to Japan and India. A number of the other LNG plants would also export Marcellus/Utica gas–in particular the four proposed plants in Nova Scotia (see Canadian LNG Exports, New England Pipelines & the Marcellus). However, according to Moody’s, the “vast majority” of proposed LNG projects, including the four in Nova Scotia, will never happen…
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CNG/LNG | Dominion Energy | Economic Impact | Energy Services | Exporting | Industrywide Issues | Maryland | Statewide MD

Dominion Needles Anti-Drillers by Throwing Party for Cove Point LNG
March 26, 2015March 26, 2015

Dominion hosted a party yesterday and anti-drillers weren’t invited. Dominion’s party sported the Japanese ambassador the U.S., Maryland Gov. Larry Hogan and other dignitaries–international, state and local–to celebrate the fact that the Cove Point LNG export facility is now under construction. Japan and India have together spoken for 100% of all the natural gas that can be liquefied and pumped through the new facility once it’s built and begins operations in 2017 (see Dominion’s Cove Point LNG Facility Achieves Important Milestones). As near as we can tell this was a party just to have a party. That is, there was no particular portion of the project completed or other “milestone” reason to celebrate. They just wanted to celebrate and (judging from the language in the announcement below) needle anti-drillers (the “doubters” who said it couldn’t be done) to point out that Dominion has won–and they have lost–despite their best efforts to scuttle the project…
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CNG/LNG | Industrywide Issues | New York | Regulation | Statewide NY

Liberty Says “Non-Fracked” Trinidad Gas Better than Marcellus Gas
March 26, 2015March 26, 2015

For some time a controversy has been brewing in (where else?) New York State. But this controversy isn’t about fracking–at least not directly. Liberty Natural Gas filed a plan back in 2010, prior to the Marcellus Shale revolution, to construct an off-shore LNG import (not export) facility off the coast of New York and New Jersey–in the ocean. A floating LNG facility. A pipeline would run from the off-shore terminal to Jones Beach, NY and from there would connect to a Transco pipeline lateral. But something happened on the way to the forum–the Marcellus Shale boom. There is no longer a need for the terminal. Anti-drillers (anti-fossil fuelers, really) are dead set against it. The Marcellus revolution caught a lot of people by surprise, including Liberty. So did Liberty acknowledge the project is no longer needed? Nope. They’re trying to convince anti-drillers the project is still needed because it will bring in “non-fracked” gas from places like Trinidad. That is, they’re shooting the very industry they belong to right in the head, and attempting to appease the nutters on the other side that will never be appeased. Not a very smart move by Liberty…
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CNG/LNG | Energy Services | GASFRAC | Hydraulic Fracturing | Industrywide Issues | Millennium Stimulation

GASFRAC Bankruptcy Dims LPG Waterless Fracking; LNG Fracking Debuts
March 25, 2015March 25, 2015

In an effort to minimize the impact of shale drilling on the environment, perhaps the biggest prize of all is to figure out a viable alternative to using water in fracking. As MDN has pointed out numerous times–there’s nothing wrong with using water, as long as you recycle it and/or properly dispose of it. Water is used because it’s economical to do so, and it’s one of the best fluids to get the fracking job done. But still, there are locations, like the western part of the country, that are water-constrained. Plus, it would sure be nice to reduce all of those truck trips to the well pad. One technology that seemed to hold promise was liquefied petroleum gas (LPG) fracking, pioneered by Canadian company GASFRAC. The problem is, GASFRAC is close to the end of being sold off in bankruptcy court (see Bankrupt Waterless Fracking Co GASFRAC Sold to “Third Party”). Does the end of GASFRAC also mean the end of waterless fracking? Perhaps not. An intriguing new LNG (liquefied natural gas) fracking technology is now on the horizon…
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CNG/LNG | Exporting | Industrywide Issues | Pennsylvania | Statewide PA

Lots of Interest in Building LNG Facility at PGW’s Philly Port
March 23, 2015March 23, 2015

Could LNG (liquefied natural gas) fed by Marcellus Shale gas one day be exported from Philadelphia to Europe? That’s the hope being offered by one company to the struggling Philadelphia Gas Works. Another company also wants to beef up the LNG operation at Port Richmond (owned by PGW), but their plan would be to sell LNG domestically–for use here in the U.S. Now that the corrupt Philadelphia City Council has quashed plans for PGW to be sold and privatized (see Philly City Council Kills the Phila. Gas Works $1.86B Deal), it seems everyone has a “great idea we’d like to run by you” for PGW to consider…
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CNG/LNG | Electrical Generation | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Spectra Energy | Tennessee Gas Pipeline

Does New England Really Need a New Natgas Pipeline?
March 12, 2015March 12, 2015

Don’t look now, but we actually read a pretty fair and balanced report on pipelines to New England…published by PBS! We predict a reporter who will soon be out of a job. The article (which we quote from below) frames up the arguments against and for new natural gas pipelines coming to New England this way: Those against say electric generation that requires natgas really only demands an extra supply in the dead of winter–typically 30-45 days. Because of that heightened demand, it drives electric prices through the roof because the plants have to buy the gas on the spot market. The rest of the year that kind of intense demand is not there–meaning you’ll spend billions on pipelines to solve a 30-45 day problem. And the rest of the year? Some of that gas will go to Canada and likely get exported. Better to use the existing LNG terminal in Boston and import (!) liquefied natural gas, instead of using cheap, abundant Marcellus gas from a few hundred miles away, and use more LNG at electric generation plants. Those who favor building the pipelines see it differently…
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CNG/LNG | Exporting | Industrywide Issues | Pipelines | Processing Plants

Canada’s 1st LNG Export Facility Gets Green Light; Marcellus Gas?
February 19, 2015February 19, 2015

The Bear Head LNG export facility in Nova Scotia, Canada has just taken another huge step forward. You may recall last August when we outlined the $2.2 billion project proposed by Australian company Liquefied Natural Gas Limited, or LNGL (see Deal to Purchase Site for Nova Scotia LNG Plant Advances Quickly). On Tuesday, the company reported they have received necessary Canadian regulatory approvals to move forward with the project. Why are we going on about an LNG plant in Nova Scotia? Because Marcellus Shale gas will feed it…
Read More “Canada’s 1st LNG Export Facility Gets Green Light; Marcellus Gas?”
CNG/LNG | Exporting | Industrywide Issues | Pipelines

Repsol Accelerates Plan for Canadian LNG Exports Fed by Marcellus
February 12, 2015February 12, 2015

Spanish oil giant Repsol loves North American shale. In December, Repsol purchased the troubled Canadian company Talisman Energy for $8 per share (see Spanish Respol Buys Marcellus E&P Talisman Energy for $8/Share). That deal is awaiting regulatory approval before it becomes official. Repsol is also contemplating building an LNG (liquefied natural gas) export facility along the coast of Saint John, Newfoundland. Those plans, according to new filings with Canada’s National Energy Board, have been accelerated. Part (much?) of the gas that will feed the Saint John LNG operation will come from, yes, the Marcellus and Utica Shale…
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CNG/LNG | Exporting | Industrywide Issues | Pipelines

Canadian LNG Exports, New England Pipelines & the Marcellus
February 4, 2015February 4, 2015

Let’s return to the topic of exporting Marcellus/Utica Shale gas. You may recall MDN did a roundup of potential export facilities for Marcellus/Utica Shale gas back in August. Most of those facilities are located in Canada (see List of LNG Export Projects for Marcellus/Utica Shale Gas). The biggest hurdle to feeding those projects is not technical but instead is political/philosophical. Anti-fossil fuelers in New England are vigorously opposing new pipelines to the region from the Marcellus even though it would deliver cheap, abundant, clean-burning natural gas that would ultimately lower their own electric rates. Must be they like paying 2-3 times for electricity what everyone else across the country pays. Sprinkle in talk of using some of the gas that would flow through those pipelines for export and they go berserk. However, that’s not to say they don’t have some (minor) points that need to be considered. Let’s delve into the specifics of how (and why) northeast gas should flow to Canada, how much, and whether or not it would affect the price New Englanders ultimately have to pay for electricity…
Read More “Canadian LNG Exports, New England Pipelines & the Marcellus”
CNG/LNG | Economic Impact | Exporting | Industrywide Issues | Pennsylvania | Processing Plants | Statewide PA

PA-Based Air Products Wins Another Gulf LNG Plant Contract
January 30, 2015January 30, 2015

Air Products is a Wilkes-Barre, PA manufacturer that builds huge rocket-looking “production trains” or “heat exchangers”–pieces of equipment that turn natural gas into liquefied natural gas, or LNG. Last September, Air Products signed a deal to produce two heat exchangers for an LNG export plant in Texas (see Air Products Wins Contract for TX LNG Plant, Marcellus Connection?). They’ve done it again! Air Products announced Wednesday they’ve signed another agreement–this one is to produce three heat exchangers for the Cameron LNG Liquefaction Project, located in Hackberry, Louisiana. As with the Texas plant, we believe there’s a connection to the Marcellus in this new sale…
Read More “PA-Based Air Products Wins Another Gulf LNG Plant Contract”
CNG/LNG | Industrywide Issues | New York | Regulation | Statewide NY

Small Victory: NY to Allow LNG Storage Facilities – Again
January 28, 2015January 28, 2015

Fracking to obtain natural gas is potentially too dangerous for public health, according to New York Dept. of Environmental Conservation Commissioner Joe Martens. Or so he said in December when he agreed with a trumped up report by Acting State Health Commissioner Dr. Howard Zucker. (Stay tuned, Zucker won’t be “acting” much longer–he’ll soon be rewarded with the full title for his performance in December–the quid pro quo for prostituting himself for Cuomo.) However, it’s just fine with Joe if fracked gas from other states is liquefied and stored in facilities in NY, available for use by trucking fleets and other customers. Today (Wednesday) Martens will release new rules that allow liquefied natural gas (LNG) storage facilities to operate in the state–facilities that have been banned since the 1970s following an explosion at an LNG facility on Staten Island that tragically killed 40 workers. Anti-drillers have fought the re-introduction of LNG facilities tooth and nail, so we count today’s announcement as a small victory for the good guys in the ongoing fracking wars in NY…
Read More “Small Victory: NY to Allow LNG Storage Facilities – Again”
CNG/LNG | Industrywide Issues | Pennsylvania | Statewide PA

Can Risk-Averse Phila. Gas Works Successfully Expand LNG Plant?
January 19, 2015January 19, 2015

Philadelphia Gas Works (PGW) was up for sale, a winsome suitor was found (UIL Holdings from Connecticut) and the deal to sell the nation’s largest publicly-owned gas utility was obliterated by a corrupt City Council. We won’t recount the history (see our stories here). With the $1.86 billion deal now dead, PGW is moving on and trying to act and behave like a private sector company–except it’s not a private sector company. Last week they announced a 12-day “open season” to gauge interest in expanding their liquefied natural gas plant, a plant that would be fed by Marcellus Shale gas (see Phila. Gas Works Launches 12-Day Open Season to Expand LNG). However, LNG is not regulated like the delivery of natural gas, PGW’s main “business.” That is, there’s risk involved–and the people who bear the risk for PGW, being a municipal-owned utility–are the ratepayers, not the investors/owners, which would be the case if PGW were a private sector company. Are Philly residents willing to risk higher rates if PGW bungles the LNG expansion?…
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CNG/LNG | Industrywide Issues | Pennsylvania | Statewide PA

Phila. Gas Works Launches 12-Day Open Season to Expand LNG
January 13, 2015January 13, 2015

An interesting footnote to the drama that’s played out over the past 10 months in the proposed sale of the Philadelphia Gas Works (PGW), Philly’s city-owned natural gas utility. You may recall that Philly’s Democrat Mayor, Michael Nutter, worked out a deal to sell PGW for $1.86 billion to UIL Holdings, a Connecticut utility (see Phila. Gas Works Deal for $1.86B – Marcellus/Utica One of Keys). Eventually, after months and months and months, City Council President Darrell L. Clarke, acting like a corrupt Philly crime boss, refused to allow any hearings on the sale and killed the deal (see Philly City Council Kills the Phila. Gas Works $1.86B Deal). The crown jewel of PGW (see LNG Facility the Crown Jewel in Scuttled PGW Sale) is once again in the limelight. PGW announced yesterday they are holding a 12-day, non-binding “open season” for potential new customers of LNG sold by the plant with an eye to expanding the LNG plant. If they do expand it, they’ve said they will use Marcellus Shale gas to feed it…
Read More “Phila. Gas Works Launches 12-Day Open Season to Expand LNG”
Anti-Drilling/Fossil Fuel | CNG/LNG | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Litigation | Maryland | Regulation | Statewide MD

Anti Groups Ask FERC to Stop Construction on Cove Point LNG Plant
December 31, 2014December 31, 2014

The Federal Energy Regulatory Commission (FERC) recently concluded a years-long process of evaluating all of the ins and outs, environmental and otherwise, for the proposed LNG (liquefied natural gas) export facility in Cove Point, Maryland. FERC decided, after years of research, untold thousands of comments and hundreds of hours of testimony, to approve the project (see Dominion Gets Final Fed Approval to Build Cove Point LNG Plant). Dominion has since broken ground and is actively building the new plant. So what do the environmental extremists from the Allegheny Defense Project (ADP) and Wild Virginia, people who hate fossil fuels, do? They tell FERC, “You didn’t do your job right, stop Dominion’s construction until we can file a lawsuit to block the project.” Before ADP and Wild Virginia can file a lawsuit, they must first get a “rehearing” with FERC, something they’ve requested. FERC takes its time with these things, and the groups are afraid Dominion’s construction will get far enough along that the project can’t be stopped. So ADP and Wild Virginia are asking FERC to temporarily stop the Dominion project until the rehearing, the inevitable ruling in favor of Dominion, and then a newly-minted lawsuit can be filed in federal court. In other words, ADP and Wild Virginia want FERC to help them stack the deck against Dominion. FERC isn’t playing along…
Read More “Anti Groups Ask FERC to Stop Construction on Cove Point LNG Plant”
CNG/LNG | Energy Companies | Exporting | Industrywide Issues | Range Resources Corp

Cheniere Deal Means Some Marcellus Gas Will Go to Portugal
December 19, 2014December 19, 2014

At least one Marcellus Shale producer, Range Resources, will send Marcellus gas all the way to the Gulf Coast and Cheniere Energy’s LNG export facility in Sabine Pass near Corpus Christi, TX (see Range Announces Multiple Agreements to Sell Natgas & Ethane). It’s quite probable other producers will also ship Marcellus and Utica gas to the Cheniere facility for export as well (see More Marcellus Gas Going to Cheniere LNG Export Facility in TX?). So who will be buying at least some of that Marcellus gas? Yesterday, Cheniere announced a 20-year deal to sell LNG to Portuguese utility company EDP…
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