Exporting

CNG/LNG | Commodity Price | Ethane | Exporting | Industrywide Issues | NGLs

RBN Energy’s 2014 Predictions & the Marcellus Connection
January 6, 2014January 6, 2014

RBN Energy, headed by energy industry luminary Rusty Braziel (formerly an executive with Bentek and veteran of several large oil and gas companies), recently proffered its Top Ten Energy Prognostications for 2014. RBN is based in Houston, but a number of this year’s predictions from RBN are either directly or indirectly related to the Marcellus and Utica Shale, which tells you the stunning impact our northeast energy market is having on the world energy market.

Below is the abbreviated list of RBN’s “top 10” predictions for 2014–the Chinese Year of the Horse. Bear in mind what Rusty says, even as a prognostication, most (including MDN) believe as the gospel truth…
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Exporting | Industrywide Issues

Continued Resistance to NH Propane Terminal Expansion
December 24, 2013December 24, 2013

Sea-3, otherwise known as Trammo, continues to encounter local opposition to its plans to expand a propane terminal in Newington, NH. Trammo (until last year the company was called Transammonia) is the 24th largest private company on the Forbes list. Trammo has operated the Sea-3 propane terminal in Newington since 1975, handling up to 200 million gallons of liquefied propane annually. Current capacity at the terminal is 2 million gallons per day traveling in and out by truck and rail car. The company has asked the local town for permission to expand the rail yard at the terminal to handle more propane.

The controversy comes in that Trammo originally said they want to expand the terminal in order to export propane. More recently they’ve changed their tune and now say the expansion may include some exports, but the focus will be on regional distribution in New England. The reason it’s an MDN story? It’s Marcellus & Utica Shale propane that would flow into the facility…
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Coterra Energy (Cabot O&G) | Energy Companies | Exporting | Industrywide Issues | Pennsylvania | Pipelines | Susquehanna County

Cabot Signs Deal to Export Gas via Cove Point, MD
December 20, 2013December 20, 2013

The good news continues to roll out of Cabot Oil & Gas. In a corporate updated issued yesterday, the company said they’ve signed a deal with Pacific Summit Energy (a subsidiary of Japanese company Sumitomo) to export up to 350,000 million Btus of natural gas per day via Dominion’s planned Cove Point, MD LNG export facility. The Cove Point facility is currently supposed to be in operation in 2017. The deal runs for 20 years. Previously, MDN told you that Japan and India have already spoken for 100% of LNG exports from Cove Point (see Dominion’s Cove Point LNG Facility Achieves Important Milestones).

In what seems to be unrelated but actually is related, Cabot also said they’ve achieved another milestone–they now produce 1.5 billion cubic feet of natural gas per day out of their wells in Susquehanna County, PA. That’s just one year after hitting 1 Bcf/d! So in one year production has skyrocketed another 50%. Truly astonishing. How much of today’s current production is Cabot committing to send overseas?…
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Electrical Generation | Exporting | Hydraulic Fracturing | Industrywide Issues | Meetings | NG Vehicles | Pipelines | Processing Plants

Energy Industry Leaders Gather at Platts Forum in NYC
December 19, 2013December 19, 2013

One week ago, MDN editor Jim Willis attended the Platts Global Energy Outlook Forum in New York City. The Forum, an annual event that attracts the titans of the worldwide energy industry, was held at the swanky Waldorf Astoria Hotel. Although Jim has been traveling to NYC for years and prides himself on his ability to navigate Manhattan on the subway, every now and again he botches it–like this time. So he ended up walking an extra 6-7 city blocks after getting off at the wrong stop (doh!). But that’s OK. It was a brisk day and the walk did him good.

Rather than get on the ungodly 3:10 am bus from Binghamton to NYC, Jim elected to ride the 6:10 am bus, which was late arriving at the Port Authority due to traffic at the Lincoln Tunnel. So he missed the first session and joined the second session shortly after it had begun. But wow, what a session it was! Below Jim shares his notes from the session “Switching, Ditching and Bridging Fuels,” his notes and impressions from the lunch keynote address by DOE Sec. Ernest Moniz, and his notes from the afternoon session titled, “Midstream Gathers Momentum”. Jim got to hear some of the biggest names in energy. It was all a bit heady for a “small time” natural gas blogger with an attitude…
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Exporting | Industrywide Issues | Research

EIA Early Release of 2014 Report Shows Plenty of Gas for Exports
December 17, 2013December 17, 2013

Yesterday the U.S. Energy Information Administration (EIA)–the one government agency MDN actually likes and believes to be effective–released preliminary data and an abridged version of their Annual Energy Outlook (AEO) for 2014 (full copy of the “early release” version embedded below). The full version will be along in Spring 2014.

So what does the early release version show? U.S. production of crude oil and natural gas will continue to go through the roof–thanks to natural gas. Crude oil production will continue to grow until 2020 or there about, before leveling off. Natural gas? Production increases until at least 2040. In addition, EIA says the increased production in natgas means exports–by both pipeline and LNG carriers–won’t negatively affect domestic prices. That is, EIA report provides justification for further approvals to export American natural gas…
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CNG/LNG | Exporting | Industrywide Issues | Regulation

ACCF to DOE Sec. Moniz: Please Hurry Up LNG Export Approvals
December 4, 2013December 4, 2013

On Monday, the American Council for Capital Formation (ACCF) sent a letter to Dept. of Energy Secretary Ernest Moniz to encourage him to continue approving new liquefied natural gas (LNG) export terminals, and to “goose him along” and get him to speed up the process (full copy of the letter embedded below). To be fair, DOE has now approved five such facilities which will allow the export of LNG to countries without a free trade agreement with the U.S. However, there are another 21 applications waiting to be reviewed–and it took 65 days between the last two approvals (way too long).

ACCF respectfully requests Moniz to hurry it up in their letter, and provides him with compelling arguments for why more LNG exports should go forward…
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Energy Companies | Ethane | Exporting | Hydraulic Fracturing | Industrywide Issues | NGLs | Pennsylvania | Pipelines | Processing Plants | Range Resources Corp | Statewide PA | Washington County

Range Resources’ Top 10 Wet Gas Wells, New Company Presentation
October 30, 2013October 30, 2013

Yesterday Range Resources released their financial and operations update for third quarter 2013 (see our companion story from today). Nestled in that update is reference to a new company presentation released yesterday as well, available on the Range website. MDN downloaded it (full copy embedded below) and wow! What a presentation it is. This sucker is loaded with useful charts, maps, bullet points and more. Range has done the industry (and their investors) a great service with this presentation.

Below we will highlight some of our favorite “don’t miss it” slides from the presentation, so you know which ones to zero in on right away. However, the one slide many will want to view first is the list of Range’s Top 10 Liquids Rich (“wet gas”) wells. That slide lists the wells and their locations (hint: they’re all found in a single PA county), initial production levels, production mix (how much oil, NGLs, gas), lateral length, and number of frac stages. With lots of maps and lots of charts, here are some of our favorites, including the Top 10 Wells slide:
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Economic Impact | Electrical Generation | Exporting | Industrywide Issues | Research

GE Report: Natural Gas Taking the Limelight in World Energy
October 21, 2013October 21, 2013

Last week GE released a new report titled “The Age of Gas and the Power of Networks” (full copy embedded below). In the report, the brains at GE say that natural gas will soon rival coal use throughout the world, and is even starting to take some of oil’s market share away. By 2025 the report says 20% of the world’s natural gas supply will come from unconventional (i.e. shale) gas. Most that will come from the U.S. and Canada, and the majority of that will come from two shale plays: the Marcellus and the Eagle Ford. It shows the incredible importance of the Marcellus to the world’s energy supplies in the coming decades.

Other interesting factoids found in the report: 89% of natural gas is transported via pipelines, the rest by rail or truck or ship. LNG exports will play an increasingly important role as America continues to generate more natural gas that we can use here at home. And not surprisingly, the power sector (electric generation) will be the key future driver of demand for more natural gas, especially with tighter EPA regulations on coal generating plants…
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Boardwalk Pipeline Partners | Energy Services | Exporting | Industrywide Issues | NGLs | Pipelines | Processing Plants | Williams

Rumor Now Reality: Williams/Boardwalk to Build Gulf LPG Terminal
October 4, 2013October 4, 2013

Williams and Boardwalk Pipeline Partners announced in March they will build a natural gas liquids (NGL) pipeline that would run from the Marcellus/Utica region all the way to the Gulf Coast. They dubbed the new pipeline the Bluegrass Pipeline (see Williams, Boardwalk Announce Marcellus-to-Gulf Coast NGL Pipeline). But where would the new pipeline connect to along the Gulf Coast to process the NGLs? In July, we heard rumors that Williams and Boardwalk were considering building a new LPG export facility to process and export the Marcellus/Utica NGLs (see Bluegrass NGL Pipeline Recap, Builders Eye LNG Exports Too).

It’s no longer a rumor…
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Dominion Energy | Energy Services | Exporting | Industrywide Issues

WashPo Turns on Anti-Drilling Friends Over Cove Point LNG Exports
September 20, 2013September 20, 2013

MDN told you the happy news that the Dept. of Energy, under new Secretary Ernest Moniz, has approved a project to build a liquefied natural gas (LNG) export facility in Cove Point, Maryland (see Celebrate! Dominion Wins DOE Approval for MD LNG Export Facility). However, Dominion is not yet out of the woods with respect to putting shovel to ground–there are another 60 or so signoffs required by various agencies before they can begin to build. Anti-drillers, like the Sierra Club, have vowed to fight Dominion tooth-and-nail every step of the way, hoping they can block the LNG export facility.

In an amazing (to us) editorial, the Washington Post editorial board turns on anti-drillers (whom they usually support) and tells them, in essence, to get a life and leave it alone. The Post says we need that LNG export facility and we need it now…
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Dominion Energy | Energy Services | Exporting | Industrywide Issues | Maryland | Statewide MD

Celebrate! Dominion Wins DOE Approval for MD LNG Export Facility
September 12, 2013

It’s been a long, hard fight. Dominion has finally won approval from the Dept. of Energy (thank you new Secretary Ernest “Hair” Moniz!) to build a liquefied natural gas (LNG) export facility at their Cove Point, Maryland location. The LNG facility will allow Dominion to super-cool and condense natural gas to a liquid state–Marcellus and Utica Shale gas–and export it to India and Japan, countries who are allies of the United States but don’t have a free trade agreement with us. This is great news for those two countries who previously signed deals with Dominion to take 100% of the LNG the Cove Point facility can produce (see Dominion’s Cove Point LNG Facility Achieves Important Milestones). It’s also great news for Maryland: Dominion will spend between $3.4-$3.8 billion to build the plant.

The new facility has been opposed by the Sierra Club and other well-known anti-drilling organizations because they believe the facility will encourage more fracking (see Sierra Club, Others Trash Talk Cove Point LNG Export Terminal). With this approval from the DOE, Dominion says they plan to begin construction next year, in 2014, and that the facility will be online and shipping in 2017…
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Dominion Energy | Energy Services | Exporting | Industrywide Issues | Maryland | Statewide MD

When Will DOE Approve Cove Point, MD LNG Export Facility?
August 26, 2013August 26, 2013

In early August the U.S. Dept. of Energy (DOE) approved a project to export liquefied natural gas (LNG) via a facility along the Gulf Coast–in Lake Charles, LA (see Third Houston company gets LNG export approval). No doubt the DOE’s newly minted secretary, Ernest “Hair” Moniz, had a great deal to do with it (we affectionately call him Hair, if you’ve seen his picture, you know why). So far, Lake Charles is the third LNG export facility to receive a green light from the Obama administration over the past two years–all of them along the Gulf Coast.

What about a little LNG action along the East Coast–so we can export some of this abundant (and cheap!) Marcellus Shale gas? Dominion is still waiting for a green light from the DOE for their Cove Point, MD LNG project–a project heavily protested by the likes of the Sierra Club and other anti-fossil fuel groups. Japan and India–two good allies of the U.S.–are lined up and waiting, ready to buy the entire output of the Cove Point facility when/if it starts to ship…
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Exporting | Industrywide Issues | Pennsylvania | Statewide PA

Consultant: Retooling PGW LNG Terminal for Exports Problematic
August 23, 2013August 23, 2013

MDN previously told you that the 176 year-old Philadelphia Gas Works (PGW) natural gas utility company went on the auction block in July with the aim of privatizing it (see Phila. Gas Works Goes on Auction Block – Marcellus Key in Sale?). At the time, it seemed like one of the keys to a sale would be converting an existing liquefied natural gas (LNG) facility owned and operated by PGW into an export facility for exporting Marcellus Shale gas.

However, according to a confidential report issued earlier this year by a PGW consultant, such a scenario would not be all that attractive for a potential buyer. The cost to convert the facility would be far more than the existing value of the entire company, plus there are real estate issues to contend with…
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Exporting | Industrywide Issues | Pennsylvania | Statewide PA

Chilean Execs Visits PA – Interested in Buying Marcellus Shale Gas
July 18, 2013July 18, 2013

Last April, PA Gov. Tom Corbett went on a South American visit to promote Pennsylvania–especially PA’s shale gas. Looks like he did a good sales job. This week, energy executives from Chile are making their own trade visit to PA and guess what they want to see? PA’s Marcellus gas fields…
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Anti-Drilling/Fossil Fuel | Exporting | Hydraulic Fracturing | Industrywide Issues | Regulation

France Sticks its Collective Head in Frack Sand
July 15, 2013July 15, 2013

Apparently the matter is now settled in France. As long as President Francois Hollande is in office, he will not allow shale drilling in France. Too bad for the French people. Great news for the U.S.–France just became a huge export market for us…
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Anti-Drilling/Fossil Fuel | Dominion Energy | Energy Services | Exporting | Industrywide Issues | Maryland | Processing Plants | Statewide MD

Enviro Groups Once Again Ask FERC to Refuse Cove Point LNG Plant
July 10, 2013July 9, 2013

A small group of individuals pretending to be large groups of many people yesterday sent a letter to the Federal Energy Regulatory Commission (FERC) asking them to reject the Cove Point, Maryland LNG (liquefied natural gas) export facility Dominion is planning to build because they, said groups, believe in scary climate change fairy tales (oceans rising, tornadoes swirling, hurricanes churning), and so, because they believe these fairy tales, FERC should refuse a permit to Dominion. Uh, right.

Bonus observation from the press release below from said so-called “environmental groups”: any time you see the word “Riverkeeper” in a group name, run the other way. Any time you see “Sierra Club” in the name, run the other way. They are radicals and frankly, off their collective rocker. Here’s the letter they sent yesterday:
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