Exporting

Energy Companies | Ethane | Exporting | Industrywide Issues | NGLs | Pennsylvania | Rex Energy | Statewide PA

Rex Energy Cuts Deal to Export Ethane, Propane to Europe via Philly
April 12, 2016April 12, 2016

Rex Energy has stepped up to be the second Marcellus/Utica driller to cut a deal using the Mariner East pipeline to ship ethane, propane and (eventually) butane from western PA to the Marcus Hook refinery in Philadelphia, and from there load it onto ships heading to (in this case) Europe. Range Resources was the first driller to use Sunoco Logistics Partners’ Mariner East pipeline to send ethane to Marcus Hook and on to exporting (see Range Resources Ethane Heading to Marcus Hook Beginning February). The Swiss-based company INEOS cut a deal to buy Range Resources ethane to power both Norwegian and Scottish cracker plants (see Cracker Plant in Scotland “Brought Back to Life” Thx to Marcellus Ethane). Now, Rex Energy has cut a deal with INEOS to buy ethane, propane and butane, according to an announcement yesterday by Rex. The particulars (i.e. financial aspects) of the deal were not announced…
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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”
Ethane | Exporting | Industrywide Issues | Pennsylvania | Statewide PA

Cracker Plant in Scotland “Brought Back to Life” Thx to Marcellus Ethane
March 30, 2016March 30, 2016

The Swiss-based company INEOS is a young but rapidly growing chemical company with roughly $40 billion in sales per year. INEOS’ competitors would be companies like BASF, Bayer and Dow Chemical. One of the projects owned by INEOS is an ethane cracker/chemical plant complex in Grangemouth, Scotland. It is Scotland’s biggest manufacturing complex hosting Europe’s biggest ethane storage tank–able to store up to 33,000 tonnes of liquid natural gas. INEOS announced yesterday that the second manufacturing unit at the Grangemouth plant has been “brought back to life” some eight years after being mothballed. The reason? To begin processing Marcellus shale ethane that will be shipped to it later this year from the Marcus Hook refinery near Philadelphia…
Read More “Cracker Plant in Scotland “Brought Back to Life” Thx to Marcellus Ethane”
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…
Read More “LNGL Applies to Build Pipeline to Bear Head LNG Export Facility”
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…
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Exporting | Industrywide Issues | Pipelines

Marcellus/Utica Gas Increasingly Heads to Canada via Pipeline
March 14, 2016March 14, 2016

In a low-price environment for natural gas, like the one we are in now, it’s every man (and woman) for himself. Marcellus/Utica drillers are scrambling to get their production to markets that pay enough to stay in business. While we still don’t have our own LNG export facility in the northeast, Cove Point, Maryland is under construction. But it won’t be ready for several more years. In the meantime, how can our drillers get product to international markets? One international market is obvious: Canada. It used to be that Canada sent natural gas to the U.S. It still does, but increasingly the flows are reversing and the U.S., especially in the Marcellus/Utica region, is sending natural gas to Canada. How? Using pipelines. Some of the pipelines are being built new. Some already exist and are getting reversed…
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Energy Services | Ethane | Exporting | Industrywide Issues | Pennsylvania | Statewide PA | Sunoco Logistics

Bon Voyage! First Ethane Export Ship Leaves Marcus Hook in Philly
March 10, 2016March 10, 2016

An Ineos tanker ship carrying 173,000 barrels of Marcellus ethane set sail yesterday from the Marcus Hook terminal near Philadelphia. On Feb. 24 we brought you the story that the ship would set sail “within a week” (see Marcellus Ethane Export Sets Sail “Within a Week” from Philly). One week turned into two weeks–perhaps that’s to be expected. But finally! Our Marcellus ethane is now on the high seas heading for Norway…
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Exporting | Industrywide Issues | NGLs

Open Season for New Marcellus/Utica LPG Rail & Export Terminal
March 7, 2016March 7, 2016

Forget the pipelines. Artemis Liquids plans to build an export terminal along the shore of the Delaware River in New Jersey to export LPG (liquefied petroleum gas, or propane) to both domestic and international markets. The new export facility, which will be located directly across the river from the Philadelphia International Airport, is aimed at providing Marcellus and Utica drillers with an alternative to shipping their LPG all the way to the Gulf Coast. New Jersey (that is, the Philadelphia area) is a whole lot closer than the Gulf–meaning it’s a whole lot cheaper to ship to it. But what’s that? How on earth will drillers get their LPG to the Philly area without using pipelines like the Mariner East? By using railroads! Artemis Liquids has launched a non-binding “open season” (same concept as used in reserving capacity in pipelines) to gauge interest in the proposed LPG export terminal in Paulsboro, NJ, and in the necessary railroad capacity to get the LPG to the terminal. According to the open season documents, Artemis plans to offer capacity of 50,000 to 75,000 barrels per day, transported to the terminal via unit trains of 80 to 100 cars…
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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…
Read More “East Coast LNG Export Updates – Bear Head & Downeast”
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”
Energy Companies | Energy Services | Ethane | Exporting | Industrywide Issues | Pipelines | Range Resources Corp | Sunoco Logistics

Marcellus Ethane Export Sets Sail “Within a Week” from Philly
February 25, 2016February 25, 2016

We’ve been predicting for some time, but the day is almost here when the first export shipment of Marcellus and Utica ethane will leave the Marcus Hook terminal in Philadelphia and head to Norway. Genscape, which monitors pipelines and trucks and ships and uses really cool technology to alert them of when these things are about to happen says the first ethane export from Philly will happen “within a week”…
Read More “Marcellus Ethane Export Sets Sail “Within a Week” from Philly”
CNG/LNG | Exporting | Industrywide Issues

Corporate Raider Carl Icahn Makes Cheniere, like Chesapeake, Worse
February 24, 2016February 24, 2016

It befuddles us why anyone thinks Carl Icahn is such a genius. He invests just enough money in a company to get his own people elected to the board of directors, and then the board fires the CEO and fires thousands of people working at the company in hopes of boosting the stock price by making the company appear to be profitable on paper so Icahn can turn around and sell his stake in the company at a profit. We call it disgusting and immoral. Wall Street investors call it just another day at the office (never looking the people in the eye they’re responsible for screwing out of a job). But with Icahn and his investments, they often don’t go as planned. Instead of the stock price going up after he fires the CEO and a bunch of people–the stock price goes down instead. Icahn makes companies worse than before he started his meddling. It happened with Chesapeake–now a whisker away from bankruptcy. Now it’s happening with Cheniere Energy, the LNG export company located along the Gulf Coast…
Read More “Corporate Raider Carl Icahn Makes Cheniere, like Chesapeake, Worse”
CNG/LNG | Exporting | Industrywide Issues

Revenge: Fired Cheniere CEO Starts Competing LNG Company
February 24, 2016February 24, 2016

Martin Houston (left) and Charif Souki

Several days ago Charif Souki, co-founder and former CEO of Cheniere Energy (forced out by Carl Icahn) announced he had resigned from the board of Cheniere. We now know why. Souki has formed a new LNG export company with former COO and executive director of BG Group, Martin Houston. Just like Aubrey McClendon started a new company to compete with Chesapeake (American Energy) after being forced out of Chesapeake Energy by Icahn, so too Souki has now formed a new company to compete with his old company. The new company is called Tellurian Investments and its mission is to offer “mid-scale natural gas liquefaction and export projects along the United States Gulf Coast.” No doubt those Gulf Coast export facilities will use at least some Marcellus/Utica shale gas to feed them. Here’s the details on Souki’s new “in your eye Carl Icahn” venture…
Read More “Revenge: Fired Cheniere CEO Starts Competing LNG Company”