CLNG Releases Report Bashing Coal in Effort to Promote LNG Exports
The Center for Liquefied Natural Gas (CLNG) released a new report earlier this week that purportedly shows the global environmental benefits of exporting LNG. The Pace Global-authored report, titled “LNG and Coal Life Cycle Assessment of Greenhouse Gas Emissions” (full copy below) found greenhouse gas (GHG) emissions from coal-generated electrical power to be 92 percent to 194 percent higher than from power generated from U.S.-produced LNG in five key international markets. Yes, CLNG is targeting another fossil fuel, coal, to justify itself–which is not a healthy thing in our opinion. Everyone (except Cornell professors Robert Haworth and Tony Ingraffea) knows that natural gas burns cleaner and is better for the environment than coal. But coal has its place and is an important energy source. At MDN we don’t throw stones in our fossil fuel glass house. CLNG has decided to capitalize on the mass-hysteria surrounding global warming (a condition that doesn’t actually exist) to try and make a case for more LNG exports. A poor strategy–but it’s one CLNG is pursuing, so we’re bringing you their announcement along with a full copy of the report that concludes exporting more LNG from the U.S. is good for Mother Earth…
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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…
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…
Finally! Some new takeaway capacity for Seneca Resources is about to become reality when they begin shipping Marcellus Shale gas from western Pennsylvania through Kinder Morgan’s Tennessee Gas Pipeline (TGP) Niagara Expansion into western New York State where it will connect to the TransCanada Pipeline (in Niagara County, NY) and from there send the gas into Canada. In 2013 MDN brought you the good news that TGP would expand service on the pipeline northward (see 
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…