Exporting

  • |

    Marcellus Gas Bound for Nova Scotia? Yes, if Emera Can Swing It

    Halifax energy conglomerate Emera Inc. wants to be the natural gas supplier to the Maritimes. But in order to do it, it appears that they will need to get Marcellus and Utica Shale gas from the U.S. And in order to do that–they need a pipeline. Fortunately Emera owns a 12.9% stake in the Maritimes and Northeast pipeline, which can help them do just that. It’s far from a controlling interest–but enough to (hopefully) persuade the operator to start flowing gas northward.

    Here’s the story of Emera, which happens to have “some very significant relationships” with Marcellus drillers…
    Read More “Marcellus Gas Bound for Nova Scotia? Yes, if Emera Can Swing It”

  • | | | | | | |

    Anti-Drillers File Complaint with SEC re Cove Point LNG Facility

    Even though they’ve lost, the obstinate and unreasonable (not able to be reasoned with) people at Earthjustice and the Chesapeake Climate Action Network (CCAN) are once again trying to prevent the inevitable–the Cove Point, Maryland LNG export facility. Dominion is the company building the new LNG export facility at Cove Point. On the eve of Dominion’s annual shareholder meeting, Earthjustice and CCAN attempted a publicity stunt by filing a complaint with the Securities and Exchange Commission saying that Dominion has not provided adequate disclosure of financial and environmental risks in their plans to build the new $2 billion facility.

    It’s just one more lame attempt by the same small group of virulent anti-drillers plus a ninny nanny anti-drilling investor from Trillium Asset Management (don’t ever invest money with Trillium) to stop progress…
    Read More “Anti-Drillers File Complaint with SEC re Cove Point LNG Facility”

  • | |

    Nova Scotia Wants to Export Marcellus Gas to Europe, Lacks Pipes

    Russia is once again threatening the Ukraine with shutting off natural gas supplies to and through the country. The Ukraine supplies much of Europe with natural gas from Russia. It’s creating a near-crisis in Europe–and yet the Europeans are being European and still slow to move on shale drilling in the abundant supplies beneath their feet. Good for the U.S. and good for Canada, who (if we can get exporting) stand to supply them with cheap natgas and start to reverse our trade imbalance.

    Nova Scotia, Canada really really wants to be one of the sources of LNG for Europe. They’re ready to ramp up LNG shipments–now all they need is the natural gas! Canada is more like Europe than the U.S. Quebec has an enormous supply of Utica Shale gas beneath them–but they have an ongoing shale drilling moratorium like New York State. Nova Scotia wants to tap into the Marcellus and Utica in the U.S., but pipelines north (or rather lack of them) are a problem. And then there’s the politics of getting gas from the U.S. What to do?…
    Read More “Nova Scotia Wants to Export Marcellus Gas to Europe, Lacks Pipes”

  • | | | | | |

    Marcellus/Utica Ethane Exports on the Way – from the Gulf Coast!

    Enterprise Products Partners, builder of the ATEX (Appalachia-to-Texas Express) ethane pipeline from Washington County, PA through Ohio and all the way to the Gulf Coast, has just announced what they plan to do with some of the ethane they’re sending to the Gulf Coast. Yes, right now it’s being sold to cracker plants along the Gulf Coast for processing into ethylene (used to make plastics), but Enterprise has just announced they will build an ethane export facility and send some of that cheap, abundant ethane to foreign destinations.

    Enterprise says U.S. production capacity and use for ethane exceeds demand and it only makes sense to export some good, ole American energy to other countries. Good for them, and good for u$…
    Read More “Marcellus/Utica Ethane Exports on the Way – from the Gulf Coast!”

  • | | | | | | | | |

    NOVA Visits Pittsburgh, Takes About Sarnia Cracker Expansion

    Last December MDN brought you the news that NOVA Chemicals, which operates the Corunna ethane cracker plant in Sarnia, Ontario (Canada) plans to expand their cracker plant using more Marcellus and Utica Shale ethane (see NOVA Chemicals Plans Expansion of Corunna Cracker in Sarnia). At that time NOVA said they will expand capacity by an additional 20% gradually between 2014 and 2018.

    At a special event in Pittsburgh designed to strengthen the already-strong connection between Pennsylvania and Canada, called Pop-Up Canada, NOVA vice president John Hotz provided a few more details about NOVA’s plans for the Corunna cracker plant…
    Read More “NOVA Visits Pittsburgh, Takes About Sarnia Cracker Expansion”

  • | |

    Fox Business Energy Expert Talks Storage, Pipelines & LNG Exports

    HardAssetsInvestor (HAI) recently interviewed Phil Flynn, a senior energy analyst and a futures account executive at Chicago-based The Price Futures Group. Phil is one of the world’s leading energy market analysts and a daily contributor to the Fox Business Network. The interview ranges from speculation on what the price of natural gas will do in the short term and over the next few years, storage levels, lack of pipeline infrastructure in the Marcellus, and a refreshingly frank look at LNG exports.

    We enjoyed reading the HAI interview with Phil and thought you would too…
    Read More “Fox Business Energy Expert Talks Storage, Pipelines & LNG Exports”

  • | |

    Russia, Obama, Europe and Marcellus Shale Gas – They are Related

    In a move sure to tick off those on the anti-fossil fuel loony left, yesterday President Obama and members of the European Union issued a joint statement from an economic summit in Brussels, Belgium in which they say (our words): Bring on the LNG exports from the USA! It’s an important signal from Obama that his administration may speed up approvals for facilities that want to export liquefied natural gas (LNG) to Europe and beyond–partially in an effort to weaken Russia’s influence in the region. Europe currently gets 40% of their natural gas from Russia–so if Putin decides to turn off the spigot (as he’s done in the past with Poland and the Ukraine), it can have catastrophic consequences. Europe, and now apparently Obama, are ready to use American shale gas to reduce and even replace gas from Russia.

    Even a dolt like Obama is bound to get something right at some point–so let’s give some credit where it’s due. His administration recently approved the Cove Point, Maryland LNG export facility that is being built by Dominion. When it’s operational (2015?) Marcellus Shale gas will be going to India and Japan. More export facilities are waiting to be approved that will move Marcellus and other shale play gas to other countries. Hopefully this new-found interest from the EU will encourage Obama to get on the stick and approve those facilities. Below is the joint statement between the U.S. and the EU, along with an article from The Hill highlighting LNG exports from the good ole US of A…
    Read More “Russia, Obama, Europe and Marcellus Shale Gas – They are Related”

  • | | | | |

    Chesapeake Climate Action Asks Obama to Nix Cove Point LNG Exports

    The unreasonable (not able to be reasoned with) and irrational (incapable of rational thought) fossil fuel-haters of the Chesapeake Climate Action Network (CCAN) and other similar-minded groups sent President Obama a letter requesting that he should (surprise!) slow down/reconsider/kill exports of liquefied natural gas (LNG) from Dominion’s planned Cove Point, MD LNG export facility (see Celebrate! Dominion Wins DOE Approval for MD LNG Export Facility). Why? Global warming, of course.

    Yes boys and girls, so-called environmentalist organizations like CCAN, 350.org, the Sierra Clubers and other unheard of groups just blame it all on global warming. Drill in shale deposits? Nope–too much global warming. Encourage electric generating facilities to convert from polluting coal to cleaner-burning natgas? Nope. That’ll lead to global warming. Build new pipelines to New England to relieve sky high natgas prices for consumers? Nope–global warming. Export some of our huge abundance of natgas to places like India and Japan (U.S. allies) who desperately need it? Nope! That will increase global warming too. You see just how unreasonable and irrational they really are. Below is the press release and letter from the unreasonable and irrational who oppose Cove Point…
    Read More “Chesapeake Climate Action Asks Obama to Nix Cove Point LNG Exports”

  • | | | | | | |

    Fascinating Look Behind the Curtain of the Phila. Gas Works Deal

    Last week MDN told you about the potential sale of the country’s largest municipal-owned natural gas utility–the Philadelphia Gas Works (PGW)–to Connecticut utility company UIL (see Phila. Gas Works Deal for $1.86B – Marcellus/Utica One of Keys). The law firm that structured and brokered the deal says that while the legal aspects were complicated, the legal aspects were the “easy” part. The hard part? The coming political buzz saw from selling the city-owned asset (an asset that’s been losing money for forever under city ownership). Labor unions are actively opposing the sale, afraid it will mean layoffs.

    Why buy a money loser? According to the lawyer in charge of the deal, Gregory L. Seltzer, UIL wanted to buy PGW for three reasons…
    Read More “Fascinating Look Behind the Curtain of the Phila. Gas Works Deal”

  • |

    The Link Between Ukraine and Marcellus Shale Gas

    Is there a link between Russia’s nakes aggression and invasion of Ukraine, and American shale gas, like that found in the Marcellus and Utica? You bet there is! When Russian bully Vlad Putin wants to throw his weight around, he turns off the natural gas pipeline to places like Poland and Ukraine. Keeps the peasants in line, especially during long, cold winters like this one. Just the threat of turning it off has a profound effect.

    Four eastern European nations–Poland, Hungary, Slovakia and the Czech Republic sent an official letter on Friday to U.S. House of Representatives Speaker John Boehner begging him to step up U.S. efforts at exporting natural gas to Europe–so they can tell Vlad where to stick his gas. American exports would make for a much more secure Europe and would serve to marginalize Putin and his bullies. If we could just get the Obama administration to start crawling toward more export facility approvals (instead of being at a virtual standstill), it would certainly help. Exporting to Europe would help sop up some of the oversupply we have in the Marcellus Shale…
    Read More “The Link Between Ukraine and Marcellus Shale Gas”

  • | | | | | | |

    Maryland Court Rules in Favor of Cove Point LNG Export Terminal

    The litigating Sierra Club has lost yet another lawsuit to block Dominion from revamping an LNG import terminal in Cove Point, Maryland to become an export terminal instead–exporting Marcellus Shale gas to India and Japan. Last Friday Maryland’s second highest court, the Court of Special Appeals, gave Dominion the green light to continue with their project to covert the Cove Point facility into an export terminal. Will the Sierra Club appeal (yet again)? With the deep pockets of the eco-left in this country, it’s a pretty safe bet they will appeal…

    Here’s the story of the court returning a pro-Dominion verdict:
    Read More “Maryland Court Rules in Favor of Cove Point LNG Export Terminal”

  • | | | | | | |

    The Radicals Behind Efforts to Stop Cove Point, MD LNG Plant

    The group 350.org, a rabidly anti-drilling group that has adopted the same tactics used by the Ku Klux Klan complete with face masks and burning torches (see Wackadoodle 350.org protesters disappear their KKK moment), is behind the movement to stop the XL Keystone oil pipeline from Canada to the Gulf Coast. They are also behind an effort to stop the LNG (liquefied natural gas) export terminal in Cove Point, MD. The Chesapeake Climate Action Network has enlisted the help of 350.org in their effort to stop Cove Point. We wonder, are torches and bed sheets coming to Maryland now? Shame on the Climate Action Network for hooking up with these radicals–but then, perhaps they’re just as radical?

    Here’s an update on the ongoing effort to stop what, frankly, can’t be stopped: the permitting of a new export facility in Cove Point that will liquefy and send some of our cheap, abundant Marcellus Shale gas to India and Japan where they need it badly…
    Read More “The Radicals Behind Efforts to Stop Cove Point, MD LNG Plant”

  • | | | | | | |

    CONSOL Feeling Heat over Ethane Exports to Europe, CEO Defends

    it's okCONSOL Energy’s CEO Brett Harvey must be getting some heat over the company’s recent announcement that they have signed an agreement to export ethane from the Marcellus to Europe (see CONSOL to Begin Ethane Shipments Next Year–to Europe?!). Why would we say CONSOL is getting blowback? Because Harvey penned an op-ed that appears in The Intelligencer/Wheeling News-Register giving a spirited defense of their decision. The gist of Harvey’s points, if we might summarize, is this: CONSOL has deep roots and is committed to WV; there’s plenty of ethane to go around, including for exports (and exports bring money into WV); CONSOL is also going to sell ethane to the Odebrecht ethane cracker when/if it gets built; in the meantime, selling ethane to Europe means CONSOL will have more money to invest in WV.

    Here’s Harvey’s “it’s OK” op-ed:
    Read More “CONSOL Feeling Heat over Ethane Exports to Europe, CEO Defends”

  • | | | |

    The Complex Issue of Ethane – Pipelines, Cracker Plants & Exports

    Ethane–a natural gas liquid (NGL)–is bountiful in parts of the Marcellus and Utica Shale. So bountiful, it’s causing problems. Until very recently, ethane was considered a waste product. You either had to burn it (increasingly hard to do because of regulations), or blend it with methane. It has been a cost center when in fact ethane is normally a profit center–something that makes drillers money. But you can only make money on it if you can get it to market.

    Enter several ethane-specific, and coming soon, NGL pipelines that can carry ethane (and other NGLs) to the Gulf Coast, Canada or Philadelphia for processing and sale. The problem is, if you don’t have a long-term contract on one of those pipelines, you’re hosed. Your competitors are making money on ethane while you’re still spending money on it. That, in a nutshell, is why two regional ethane cracker plants are so desperately needed (Shell’s cracker plant in Beaver County, PA and Odebrecht’s cracker in Parkersburg, WV). The Pittsburgh Tribune-Review took an in-depth look at “the ethane issue” last Friday. It’s a good article providing us with insights into the complex issue of what drillers can/should/are doing with ethane:
    Read More “The Complex Issue of Ethane – Pipelines, Cracker Plants & Exports”

  • | | | | | | | |

    CONSOL to Begin Ethane Shipments Next Year–to Europe?!

    CONSOL Energy is a big, important driller in the Marcellus and Utica Shale. Most of their operations are in “wet gas” areas–those locations that produce a lot of natural gas liquids (NGLs), like ethane, along with “dry gas” or methane. Although CONSOL has a lot of acreage in southwestern PA and in WV and eastern OH, the ethane they produce will not be going to a proposed new ethane cracker plant being built by Odebrecht in Parkersburg, WV. Instead, CONSOL is going to send their ethane by pipeline to an export facility in Philadelphia, and from there, on to Europe for processing and use in European petrochemical factories.

    Why in the world ship ethane all the way to Europe for processing instead of selling it in your own back yard? Timing. CONSOL doesn’t want to wait the 4-5 years for an ethane cracker to be built (if it’s built at all). They’ve adopted a “bird in hand” strategy. They’d rather start shipping it next year, when Sunoco Logstics’ Mariner East pipeline is up and running, rather than wait. And so CONSOL, according to their announcement below, has locked in a deal with Ineos Europe AG. But don’t despair, CONSOL also previously signed an agreement with Shell to provide its cracker plant in Beaver County, PA with ethane–when and if that plant gets built…
    Read More “CONSOL to Begin Ethane Shipments Next Year–to Europe?!”

  • | |

    Which Way Do You Flow? The Price of Gas, the Marcellus & Canada

    What’s the long-term prognosis for the commodity price of natural gas? Depends on who you ask–but overall, “the market” seems to be saying even amidst one of the coldest winters on record in decades, the longer term trend will be low to moderate prices for methane/natural gas. Industry publication Oil and Gas Investments Bulletin issued one of their analysis stories on the press release wire (a clever marketing move that we appreciate). The story delves into the issue of gas prices and its relationship to Canadian exports/imports. One of the major components of the story (full copy below) is an analysis by investment firm Raymond James.

    Guess which shale play Raymond James spends a good deal of time examining? The Marcellus, of course–which is why we found this particular story about gas prices intriguing. Another reason the story is intriguing is because it reveals that Canada, which has long been the #1 source of natural gas imported into the U.S., has seen their gas flows into the U.S. drop by 50% in the past six years. And now, Marcellus gas is starting to flow the direction, into Canada…
    Read More “Which Way Do You Flow? The Price of Gas, the Marcellus & Canada”