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2006 August

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Google News: Passamaquoddy & LNG
2006
Aug
31
Time to act on LNG, meeting told (Sep 1)
Premier will act on LNG issue (Sep 1)
City Council seeks answers on breach of LNG facility
LNG panel to meet next week
Public visit set on LNG site Sept. 12
LNG terminal poses adverse impacts (Mar 15)
30
Terror Drill 2006: CambridgeSide and Everett Edition (Aug 29)
LNG breach prompts terror drills
Fueling the Debate
LNG plan sparks terrorism worries (Aug 28)
Authority approves gas import plan
Russia tells Shell to review [Sakhalin] pipelines
28
Tribe's acceptance of $200,000 offer by Quoddy Bay up in air (Aug 25)
Authority in LNG safety zones clarified (Aug 25)
Quoddy area eyed for five tidal projects (Aug 25)
Work begins on boat launch at Split Rock (Aug 25)
Quoddy Bay LNG poised for FERC filing [— NOT!] (Aug 25)
BP backs away from Texas LNG project
Betting billions on liquefied natural gas
The truth about LNG: Gasline Port Authority misleads Alaskans on several key issues [Opinion] (Aug 27)
Backers, foes tell Wyden LNG terminal will bring family-wage jobs or safety worries (Aug 25)
Northern Star agrees to land-use rules for liquefied gas terminal (Aug 24)
Approving LNG facility is not a 'blind decision' [Letter to the editor] (Aug 27)
Priming the Pump (Aug 23)
Shell halts Sakhalin Energy pipeline work
26
[Bahama] LNG deal approved (Jul 26)
Interview on The Whole Bay Study (Aug 17)
New Brunswick’s winning another energy battle
Romney orders security review of LNG facilities (Aug 24)
Who's to blame for LNG security lapse in Lynn? (Aug 23)
Bill to rank LNG plans shunted to committee
Alaska gov. to push for pipeline deal
Specter of gas cartel looms [Commentary]
24
Yellow Wood responds [Letter to the editor]
Security breach reported at Lynn LNG facility (Aug 23)
LNG attack could ignite firestorm
City files appeal of LNG ruling
LNG dominates DeFazio trip (Aug 23)
23
Few respond to $200,000 LNG offer
Maine's energy role [Letter to the editor]
22
Three Blaine House hopefuls divided on LNG (Aug 21)
BP says halts work on Tx. Gulf Coast LNG terminal
BP halts plan to build Pelican Island LNG terminal
Terminal Gas Problem [Editorial]
20
Work begins on tribal boat launch at Split Rock (Aug 18)
LNG: ‘fuel of the future,’ Castine audience told (Aug 19)
Next governor must face difficult energy challenge
Forces' Arctic patrol more than just an exercise
Canadian Gas (Aug 16)
Firestorm reason not to approve LNG terminal off Gloucester [Opinion] (Aug 15)
Excelerate Upbeat About Northeast Gateway LNG Proposal (Aug 16)
Excelerate Energy Cargos May Remain on Board Vessels Long-Term (Aug 17)
BP suffers new pipeline accident at Alaskan oilfield (Aug 17)
County objects, challenges LNG process (Aug 16)
Gazprom establishes Houston subsidiary to supply LNG domestically
Alaska Gov. may be unseated in primary (Aug 18)
LNG safeguards [Editorial]
Woodside in LNG pitch to California (Aug 21)
LNG support queried (Aug 17)
Shipowners face 'spiralling' crew costs as LNG trade booms
15
Anti-LNG group plans auction fundraiser
Confirmed layoffs and rumors of downsizing grip Eastport (Aug 11)
Floating factory could change future of LNG (Aug 14)
Boat companies concerned over speed limits to protect whales
Judge requests joint LNG appeal
Oil field problems fuel safety critics (Aug 13)
Sale of energy leases to proceed in Louisiana (Aug 14)
State agencies want voice in Bradwood Landing LNG (Aug 13)
Who has say over siting LNG terminal? (Aug 12)
LNG developer seeks extension in response time (Aug 12)
Propaganda and the push for liquid natural gas [Opinion]
No backroom deal on LNG! (Aug 10)
Gazprom establishes subsidiaries in US and France (Aug 14)
11
Quoddy Bay Announces Start of Open Season for Pipeline Capacity (Aug 10)
DiMasi could steer the energy ship [Editorial] (Aug 9)
What's the worst that could happen? [News commentary] (Aug 7)
Last Gas: Can natural gas reserves keep up with soaring consumption? (Aug 10)
Gaz Metro eyes spring for LNG decision (Aug 10)
LNG critic to speak at local group's forum (Aug 10)
California doesn't need gas terminals [Opinion] (Aug 10)
Environment Canada green lights Kitimat LNG (Aug 9)
DOE: Thus Far, U.S. LNG Imports Lower Than in 2005 (Aug 9)
AG answers $1m claim (Aug 10)
10
Quoddy Bay LNG helps [Letter to the editor by Brian Smith]
Anti-LNG campaign grows (Aug 8)
Paranoia or prophecy? [Editorial] (Aug 8)
NB Southwest NDP passes LNG resolution (Jul 4)
7
Whole Bay Study confirms LNG opponents' arguments [Op-ed column]
Thoughts on LNG [Letter to the editor]
Repsol signs largest ever US LNG deal with Shell
Another BP question surfaces (Aug 5)
BP shuts down giant Alaskan oilfield
4
DiMasi pushes unconstitutional bill regarding LNG (Aug 2)
State OKs Hess LNG report (Aug 2)
County feels it's getting cold shoulder on LNG
BP says no need to hurry Alaska gas deal
FERC [Commissioner] Spitzer Cautions Against Dependence on LNG (Jun 28)
Glut looms for LNG tankers (Jul 31)
LNG fleet overbuilt
3
Alleged arsonists hailed as heroes, not criminals
Perry selectmen accept petition to hold vote on recall ordinance (Jul 28)
Residents turn out for visit by FERC to proposed LNG site (Jul 28)
Right whale dead; ship strike suspected (Jul 28)
Romney cites obstacle to blocking LNG plant
2
Dozens of RCMP officers sent to Grand Manan
N.B. police appeal for calm on Grand Manan following riot last month
Mob attack charges laid (Aug 1)
Fears of Grand Manan hit list (Jul 28)
Man fired at Grand Manan mob (Jul 28)
Tempers rise on island (Jul 25)
We must cut energy costs by conserving (Aug 1)
LNG Terminal Coming To Southeast Texas (Aug 1)
Gas trader's lawyer says lying to index publishers is not a crime (Aug 1)
Senate backs expanded offshore drilling

Top

31 August 2006

Time to act on LNG, meeting told — Saint Croix Courier, St. Stephen, NB

[Clifford Goudey] spoke about the dangers of an explosion from LNG. Both the terminals and the tankers represent large amounts of LNG, said Goudey, and from a public safety standpoint, you need to think long and hard before you store that amount of concentrated energy near the public.

The danger zone ... extends almost four miles from the terminal site and a spill from a tanker could extend out to one-and-a-half miles and that could happen anywhere along the approach. Goudey said there would be lots of impact on Canadians if there [were] an accident. (Sep 1)

Premier will act on LNG issue — Saint Croix Courier, St. Stephen, NB

This week, Premier Lord said that he spoke with his officials in the province's department of justice on areas of jurisdiction when Huntjens first informed him of the possibility of the LNG terminals while the two were in St. Andrews about a year and a half ago. (Sep 1)

City Council seeks answers on breach of LNG facility — Daily Item, Lynn, MA

Several KeySpan officials were available to answer questions during the tour, but councilors who attended weren't completely satisfied with the substance of the responses they received.

KeySpan's tank is located between Blossom Street Extension and Marine Boulevard, not far from downtown areas. The tank stores liquid natural gas that, if ignited, could cause a massive explosion and cause grave damage to the city.

LNG panel to meet next week — Dundalk Eagle, Dundalk, MD

The first official meeting of the state-sanctioned LNG task force is set for Sept. 5 in Annapolis even though a chairman and four members had not been selected by early this week, according to the Maryland Department of the Environment.

The task force was created as Senate Bill 996 - written in part by State Sen. Norman Stone (6th District) - back in April and signed by Gov. Robert L. Ehrlich Jr. in June.

The panel is to be comprised of 20 community members and state officials who will examine the possibility of a liquefied natural gas plant on the Sparrows Point peninsula.

Public visit set on LNG site Sept. 12 — Daily Astorian, Astoria, OR

A public FERC site visit of the proposed Bradwood Landing liquefied natural gas terminal location will be held Sept. 12.

Top

30 August 2006

Terror Drill 2006: CambridgeSide and Everett Edition — Bostonist, Boston, MA

LNG breach prompts terror drills — Daily Item, Flynn, MA

Two weeks after intruders cut through fences and climbed a waterfront liquid natural gas tank, anti-terror experts and police are planning a drill to prepare them for combating terror attacks.

LNG plan sparks terrorism worries — Port Lavaca Wave, Port Lavaca, TX

Participants in the Point Comfort LNG public meeting Thursday night expressed concern about the proposed $550 million LNG natural gas terminal and pipeline to be constructed in Calhoun County. (Aug 28)

Authority approves gas import plan — Reuters UK

Excelerate Energy's offshore "Energy Bridge" technology — keeping LNG terminals safely away from people — is spreading.

Russia tells Shell to review [Sakhalin] pipelines — Scotsman.com

They also note that increased pressure from Russia comes amid attempts by gas monopoly Gazprom to secure 25 percent in the project.

Top

28 August 2006

Tribe's acceptance of $200,000 offer by Quoddy Bay up in air — Quoddy Tides, Eastport, ME

Quoddy Bay LNG so far has not made any lease payments to the tribe.

The $200,000 offer by Quoddy Bay has stirred up criticism from LNG opponents. "In Maine, people see an act like this for exactly what it is, and Smith's desperate attempt to buy the election has not fooled anyone," said Save Passamaquoddy Bay - US Coordinator Linda Godfrey. (Aug 25)

Authority in LNG safety zones clarified — Quoddy Tides, Eastport, ME

On August 15 the U.S. Coast Guard issued an overview of regulations regarding safety and security zones around liquefied natural gas (LNG) tankers and indicated that harbor pilots aboard LNG vessels do not have any authority to make decisions regarding other vessels — including fishing vessels, ferries and other boats — within such zones. According to the Coast Guard, only the Coast Guard, and in Maine, the Maine Marine Patrol, legally has that authority. [Bold red emphasis added.] (Aug 25)

WEBMASTER'S COMMENTS: Don Smith's video-recorded statements at a 2005 Sipayik Tribal Council meeting claimed that his LNG project would have no negative effect on fishing — that the LNG vessel's pilot would radio any fishing boat within the LNG vessel's safety/security zone that the pilot recognized; then, if the fisherman answered the pilot's questions to the pilot's satisfaction, the fisherman would be allowed to keep on fishing in the safety/security zone.The Coast Guard's notice of authority is testimony to just one more of Smith's lies.

Smith's false claim was even adamantly repeated by a local harbor pilot during the 2006 July 13 FERC Quoddy Bay LLC Site Visit, confirming that local pilots have been hoodwinked by Smiths' lack of honesty.

Once again, Quoddy Bay LLC has proven their lack of character, and that they'll say anything at all to obtain public support for their project.

Quoddy area eyed for five tidal projects — Quoddy Tides, Eastport, ME

Each of the new projects, one submitted by the Passamaquoddy Tribe and two by Ocean Renewable Power Company (ORPC) of Miami, Fla., would consist of fully-submerged turbines connected to generators, with the electricity produced to be sold to a local utility.

Normand Laberge, a principal of Tidewater Associates, has filed applications for two tidal power projects, one at the former Navy base in Cutler and one at Half Moon Cove, both involving dams. The Cutler project also envisions possible construction of an LNG terminal and conversion of the Navy's diesel plant to LNG to permit continuous operations at the facility. The Navy Department has submitted a "protest" to the Cutler proposal "on grounds of inconsistency with military mission and policy."

The letter to FERC from Andrew Stackpole for the Navy cites the project's proximity to "restricted access areas," and policy that excludes "tide lands and submerged lands" from certain uses. (Aug 25)

WEBMASTER'S COMMENTS: One of the uses that the Navy cites as prohibited from tidal and submerged lands around their Cutler base, as a matter of Department of Defense policy, is extracting energy. Mr. Laberge objects to this webmaster's previous conclusion regarding Laberge's proposed dam at Cutler, "It appears that this project is, essentially, dead." Laberge categorized this webmaster's conclusion as exhibiting "arrogance" and "intransigence." Since this webmaster simply iterated the obvious, Mr. Laberge should, instead, redirect his objection to the Department of Defense. It is that body who established the prohibition of his project around naval installations.

Work begins on boat launch at Split Rock — Quoddy Tides, Eastport, ME

Milton Ross, area loan supervisor for USDA Rural Development, says the Split Rock site "is the best location for that access." He understands, if the LNG project proceeds, that the tribal government will be reimbursed by the LNG developer, Quoddy Bay LNG, for the cost of the boat launch, and it would then be rebuilt in another location. [Tribal project manager Dana Altvater] says he is not aware of that agreement. (Aug 25)

WEBMASTER'S COMMENTS: Is anyone else noticing the similarity between what is happening at this location and what happened at the Gleason Cove location? Quoddy Bay LNG previously proposed to put their project at Gleason Cove, and at the same time the Tribe had earmarked the site for a housing project. History is repeating itself.

Quoddy Bay LNG poised for FERC filing [— NOT!] — Quoddy Tides, Eastport, ME

FERC requires that Resource Report 13 be submitted at least 90 days prior to the final filing of a formal application to FERC. Quoddy Bay LNG has said it intends to have all permits for construction by the fall of 2007 and begin operations in the winter of 2009. (Aug 25)

WEBMASTER'S COMMENTS: Quoddy Bay LNG's "poise" has resulted in an embarrassing "stumble." Since the above article was published, FERC has notified Quoddy Bay LNG that their Resource Reports contain an abundance of missing and incomplete material, pushing back the date that they can file for an application until November, December, or later, making their project even more futile.

BP backs away from Texas LNG project — Gloucester County Times, Woodbury, NJ

[I]n the Gulf Coast -- where several terminals already exist, 10 LNG projects have received federal approval and at least two more are proposed -- British Petroleum may have lost the race to build its own proposed project.

While BP's Crown Landing project is farther along in the approval process than any other LNG facility proposed for the area, it still may be delayed or stymied by a pending Supreme Court case. The court has been asked to decide whether the company can build a 1,900-foot loading dock for the New Jersey plant that would extend into Delaware's portion of the Delaware River.

Approving LNG facility is not a 'blind decision' [Letter to the editor] — Los Angeles Times, Los Angeles, CA

Far from a "blind decision," an LNG terminal could not be more carefully and thoroughly studied. SB 426 would only result in senseless delays that could lead to even higher gas and electricity rates for California consumers. — Bill Cooper, Executive Director, Center for Liquefied Natural Gas (Aug 27)

WEBMASTER'S COMMENTS: Having the executive director for an LNG-industry advocacy group tell the public that LNG terminals are "thoroughly studied" hardly justifies confidence regarding industry-friendly FERC and the LNG siting process.

Priming the Pump — BSRNews, Bozeman, MT

When the Energy Policy Act of 2005 (the Act) was signed into law last August, it was criticized for taking a piecemeal approach to energy policy. The Act contained a virtual shopping list of items that benefit one or another branch of the energy industry; there were tax breaks and incentives for big oil and gas producers, nuclear energy providers, and renewable energy suppliers. A review of some of the specific items in the Act reveals just how serious policy makers are — or aren't — about breaking the U.S. addiction to oil.

In all, nearly $20 billion in tax revenue will be foregone because the federal government still believes that it should be encouraging energy companies to find and produce more oil and gas. Today's oil prices would seem to be sufficient encouragement without a depletion allowance, but it is still with us.

[A]s the price of oil rises, the allowance increases, which increases Big Oil's already-massive profits. (Aug 23)

Shell halts Sakhalin Energy pipeline work — Reuters, Pacific Environment, San Francisco, CA

"Work won't restart until we are sure that our contractors and subcontractors completely share our readiness to strictly observe the construction standards set out out in Russian law," the paper quoted an unnamed project official as saying.

Top

26 August 2006

[Bahama] LNG deal approved — Bahama Journal, Bahamas B2B, Nassau, Bahamas

"This administration has decided that of course it will accept the prior administration’s decision to adopt LNG as a part of our economy," Attorney General Allyson Maynard-Gibson told The Bahama Journal. "In other words, it means that wherever applicants actually satisfy the conditions of our LNG policy we will entertain applications [from] them and possibly enter into heads of agreement with those particular applicants. We’re now in the process of negotiating a heads of agreement with AES."

AES intends to construct an LNG regasification terminal on Ocean Cay, near Cat Cay and Bimini, and run [a natural gas] pipeline to South Florida to help meet that state’s growing demand for energy.

Minister Miller has said an LNG facility will assist with economic diversification by providing income of approximately $25 million per annum for lease and license fees, plus an additional $50 million to $70 million per annum in throughput fees based on current prices and projected demand.

This amount is expected to be supplemented by an additional $500,000 annually which will be contributed to training and environment protection, and community projects. [Bold emphasis added.] (Jul 26)

WEBMASTER'S COMMENTS: Compare the AES Ocean LNG project with Downeast LNG and Quoddy Bay LLC.

New Brunswick’s winning another energy battle — Chronicle Herald, Halifax, NS

Alberta gas producers will fight like lawyers in a hearing room for market share in New England, against new LNG supplies from the Maritimes.

Romney orders security review of LNG facilities — WHDH-TV, Boston, MA

A state audit last year found that at the time, the Department of Telecommunications and Energy was not exercising sufficient oversight of safety and security procedures at 20 LNG storage facilities across the state. The review said the agency wasn't following the required schedule for inspecting LNG plants, nor was it enforcing a requirement that the operators develop and submit fire study and prevention plans, evacuation plans and annual operator training reports. [Bold emphasis added.] (Aug 24)

WEBMASTER'S COMMENTS: A person doesn't need to be a rocket scientist to realize that LNG facilities aren't as "safely operated" as FERC and LNG developers hype to the public.

Who's to blame for LNG security lapse in Lynn? — CBS Boston, Boston, MA

There are federal rules but state officials are in charge.

James Fay is a mechanical engineering professor at MIT. He says LNG terminals can't be adequately protected regardless of what companies do.

Fay says all of them should be moved off shore.

"The solution is very clear. The cost of replacing the obsolete terminals with new ones offshore is negligible compared to the damage that might happen," said Fay. [Bold emphasis added.] (Aug 23)

Bill to rank LNG plans shunted to committee — Ventura County Star, Ventura, CA

The bill, SB426, fell just short of success on the final night of last year's legislative session. It passed the Assembly late that night, but the Senate adjourned for the year before the measure could be ferried a few hundred feet across the Capitol for a final vote that would have sent it to the governor.

Alaska gov. to push for pipeline deal — AP, Dallas Morning News, Dallas, TX

"I interpret the vote of the people to say we want a more sensible project to be considered," Republican Gubenatorial Candidate Sarah Palin said Thursday.

Specter of gas cartel looms [Commentary] — UPI

European observers are particularly concerned about the prospects of a Russian-Algerian coordinated pricing policy in Europe. Judging by the European reaction, Brussels sees a way out in a consumer cartel patterned after cooperation between the Organization of Petroleum Exporting Countries and the International Energy Agency in the oil market. In this situation, it is important to understand the motives behind Gazprom's active international expansion. Do the two companies have normal business relations, or are they thinking of forming a cartel?

WEBMASTER'S COMMENTS: The European Union is worried about Russia and Algeria forming a natural gas cartel, while the U.S. Government blithely invites Russia to own and control U.S. natural gas infrastructure. Hasn't the U.S. Government learned anything from history?

Top

24 August 2006

Yellow Wood responds [Letter to the editor] — Bangor Daily News, Bangor, ME

Shanna Ratner, President of Yellow Wood Associates in St. Albans, Vt., points out Quoddy Bay LLC Project Manager Brian Smith's lack of knowledge, lack of honesty, and lack of competence as demonstrated in his previous letter to the editor. [NOTE: The Bangor Daily News online letters page contains no link to take you directly to a particular letter. To find the letter using the above link, search the page for "Yellow Wood responds".]

WEBMASTER'S COMMENTS: FERC personnel must be embarrassed that they are required to deal with Quoddy Bay LLC's project. Hopefully, if Quoddy Bay LLC ever formally applies for a permit, FERC will unceremoniously reject them.

Security breach reported at Lynn LNG facility — Boston Globe, Boston, MA

Two people were seen on surveillance tapes cutting through a fence and climbing atop the storage tank at a liquefied natural gas storage facility in Lynn last week, and while it does not appear to be an act of terrorism, authorities are calling for a full-scale investigation.

Authorities were especially displeased with the five-day lag between the Aug. 16 security breach and when KeySpan Corp. reported it to the state on Monday, said Mike Coelho, chief of staff of the state Executive Office of Public Safety. [See "LNG attack could ignite firestorm," below.] (Aug 23)

LNG attack could ignite firestorm — Daily Item, Flynn, MA

An explosion followed by a rash of fires spreading out for a mile in all directions is the worst possible scenario that could occur in the event of a terror attack on the waterfront liquid natural gas tank in Lynn.

That possible disaster zone would stretch from the waterfront past Western Avenue, over the General Edwards Bridge, encompassing downtown and much of West Lynn and extending halfway across the Nahant Causeway.

A local fire chief involved in emergency response to terror attacks on area utilities offered that grim scenario Wednesday as state and Keyspan energy workers sought to locate two people who climbed the LNG tank last Wednesday.

"It would be a catastrophic release if the tank were breached. The liquid would vaporize, expand quickly, seek an ignition point and then, if there was a flashback, you would have a firestorm," Revere Chief Eugene Doherty said.

WEBMASTER'S COMMENTS: Note: the emergency response personnel of the Lynn area have been trained to deal with an LNG "event," but the Revere Fire Chief still categorizes what could happen as a "firestorm."

This event should raise the hackles on everyones' necks, for two reasons: (1) It took five days for Keyspan to report the incident; and, (2) although it might have been committed by juveniles, terrorists could have been conducting a "practice run."

It begs the question: "With such a serious breach in security — terrorists could have easily created a disaster — how can the public believe FERC and LNG developers when they tell the public that new LNG facilities will be operated safely?"

LNG dominates DeFazio trip — World, Coos Bay, OR

“If the port enters into an agreement with (Jordan Cove) and FERC approves the site, they can build it,” he added. “They don't have to put an LNG facility on that land. They could put something else on that property.”

This news shocked and delighted local opponents of the LNG and natural gas projects, who had been told repeatedly by port commissioners that the approval of the LNG project was in the federal government's hands. (Aug 23)

Top

23 August 2006

Few respond to $200,000 LNG offer — Bangor Daily News, Bangor, ME

The reality is, Donald Smith failed" last week, said [Vera] Francis, a spokeswoman for the opposition group Nulankeyutomonen Nkihtahkomikumon, or "We Take Care of the Land" in the Passamaquoddy language.

"His attempt to gain a tax agreement on the eve of our tribal election and then attempt to impose upon the Tribal Council how to spend its money, months overdue, should tell you something about Oklahoma's business practice.

"Attempting to buy favor by those most vulnerable to unscrupulous tactics is an affront to all of Maine's people. Promising to dole out any amount of money on the eve of any election is simply wrong."

WEBMASTER'S COMMENTS: Don Smith is making a habit of offering money just before elections.

Maine's energy role [Letter to the editor] — Bangor Daily News, Bangor, ME

Houlton native Robert Somerville, a graduate of Maine Maritime Academy, now chairman and CEO of the American Bureau of Shipping, fully understands Maine's economic development needs and is well qualified indeed to suggest that the benefits for Maine of assuming its natural role as one of the nation's most important energy transshipment points outweigh by far some mis-perceived risks. [NOTE: The Banfor Daily News online letters page contains no link to take you directly to a particular letter. To find the letter using the above link, search the page for "Maine's energy role".]

WEBMASTER'S COMMENTS: Robert Somerville apparently failed to read the Whole Bay Study and the LNG industry's world standards.

The Whole Bay Study does a more objective job of "understanding Maine's economic development needs" than a spokesman-advocate for the shipping industry.

The Society of International Gas Terminal and Tanker Operators (SIGTTO, with over 90% of the world's LNG capacity as members) has developed LNG-industry world-class standards — that warn against siting an LNG terminal under the conditions in Passamaquoddy Bay. Somerville's and the letter writer's "mis-perceived risks" apparently are real-world risks in the eyes of the LNG industry's standards-making body.

Top

22 August 2006

Three Blaine House hopefuls divided on LNG — Bangor Daily News, Bangor, ME

Woodcock was the most outright supporter. Merrill said she believed that the siting of LNG should not be a federal issue. LaMarche spoke adamantly against bringing LNG to Maine. (Aug 21)

BP says halts work on Tx. Gulf Coast LNG terminal — Reuters

BP Plc. said on Tuesday it was halting work on a proposed $600 million, 1.2 billion cubic foot per day (bcfd) liquefied natural gas (LNG) terminal planned for Pelican Island, just north of Galveston, Texas, after an "assessment of the project's economics."

BP told Galveston city officials last week it would not go forward with the Bay Crossing LNG terminal and regasification plant project because of the glut of similar projects planned for the U.S. Gulf Coast, according to the Galveston County Daily News. [Bold emphasis added.]

WEBMASTER'S COMMENTS: The glut of LNG projects has caused BP to back out of the Pelican Island project. That's one more LNG-industry member that's indicated an over-abundance of LNG projects, even more proof that Downeast LNG and Quoddy Bay LLC are moot or otherwise doomed to financial failure.

BP halts plan to build Pelican Island LNG terminal — Houston Business Journal, Houston, TX

The company cited changing market conditions as the reason for the pull-back. [Bold emphasis added.]

WEBMASTER'S COMMENTS: The 40 LNG terminal applications before FERC has convinced this mega-corp that they wouldn't make money on the project. This demonstrates that the Downeast LNG and Quoddy Bay LLC projects are dead ducks.

Top

20 August 2006

Work begins on tribal boat launch at Split Rock — Bangor Daily News, Bangor, ME

The construction is taking place on a site that the tribe has set aside in a lease agreement with an Oklahoma developer, who plans to build a liquefied natural gas facility at Split Rock. (Aug 19)

WEBMASTER'S COMMENTS: This situation looks similar to the previous iteration of Quoddy Bay LLC's LNG project, where the selected Gleason Cove site at Pleasant Point was also scheduled to have homes built upon it. Those homes have been put in place, and Quoddy Bay LLC looked for another location for its proposed project.Quoddy Bay LLC's project moved. Quoddy Bay LLC may need to begin seaching for a new home.

Now, land on which Quoddy Bay LLC has a defective lease (due to the Bureau of Indian Affairs violation of federal statute in approving the lease) is being used for another purpose. Is history repeating itself?

LNG: ‘fuel of the future,’ Castine audience told — Bangor Daily News, Bangor, ME

The Harpswell decision was based on fear, he said: fear of the product, the method of transporting it, fear that it might attract a terrorist attack and fear of its impact on traditional ways, [according to Bob Somerville,, chairman of the American Bureau of Shipping]. (Aug 18)

WEBMASTER'S COMMENTS: Somerville obviously didn't read the Harpswell Yellow Wood Report. If he had, he'd have known that an LNG terminal at Harpswell would have resulted in a net loss of revenue and jobs.

Next governor must face difficult energy challenge — Boston Globe, Boston, MA

The next governor faces a steep climb to meet a legislative requirement of having 4 percent of the state's energy from renewable sources by 2009.

Forces' Arctic patrol more than just an exercise — Globe and Mail, Toronto, ON

Canadian soldiers, sailors, air crews and police officers gathered on one of the remotest points in the country on the weekend to project their nation's sovereignty over the Arctic into the future and pay tribute to those who guarded it in the past.

While Canada maintains it controls the seas around the High Arctic islands — including environmental regulation — countries such as the United States have long argued that they should be international waters.

WEBMASTER'S COMMENTS: Head Harbour Passage parallels the sovereignty issues in the Canadian Arctic. The LNG issue in Passamaquoddy Bay may become the test case for Canada's sovereignty over its Arctic waters.

Canadian Gas — BSR News, Bozeman, MT

Under the terms of the North America Free Trade Agreement, the U.S. is legally entitled to receive, in any one year, the same fraction of the natural gas produced in Canada as it received on average for the past three years. Canada may conserve all the energy it wants, but that does not diminish its treaty responsibility to keep delivering natural gas to the United States. At the current rate of production, the equivalent of 76% of Canada's total known reserves of natural gas must be exported to the U.S. by 2018. (Aug 16)

Firestorm reason not to approve LNG terminal off Gloucester [Opinion] — Gloucester Daily Times, Gloucester, MA

It seems to me that no plan with any possibility of such harm should be approved for waters near Gloucester and should either be dropped entirely or moved a lot farther out to sea - like the edge of the continental shelf.

For me, one of the 10 top risks "that disaster and homeland security planners worry about most" doesn't sound like a really wonderful sort of thing to have coming into our neighborhood. (Aug 15)

Excelerate Upbeat About Northeast Gateway LNG Proposal — LNG Law Blog, Washington, DC

Excelerate Energy hopes for project approval by year’s end. Start-up would occur in 2007. (Aug 16)

Excelerate Energy Cargos May Remain on Board Vessels Long-Term — LNG Law Blog, Washington, DC

Excelerate may maximize profits by holding onto LNG cargo. (Aug 17)

WEBMASTER'S COMMENTS: Excelerate will need to be careful not to artificially influence natural gas prices by holding out on selling the product. BP is currently under criminal charges for that type of activity last winter.

BP suffers new pipeline accident at Alaskan oilfield — Pacific Environment, San Francisco, CA

[S]hareholders have filed a suit against BP executives and board members, including Lord Browne, chief executive, whom it charges took no steps to improve the 30-year-old pipelines, despite becoming aware of corrosion years ago. (Aug 17)

WEBMASTER'S COMMENTS: FERC says all LNG facilities —including those operated by BP — will be operated safely. But, FERC doesn't concern itself with an LNG company's history or character. How does neglecting maintenance ensure safe operation?

County objects, challenges LNG process — Daily Astorian, Astoria, OR

Clatsop County leaders have accused executives of the Bradwood Landing liquefied natural gas terminal of trying to "bypass" local governments to push their project through.

Managers of three state agencies also believe they are being edged out.

In its filing with FERC, the county said Northern Star has "failed to address the environmental and land-use issues raised by Clatsop County in previous filings" and the company's "motion for a scheduling order indicates a continued avoidance of those issues." (Aug 16)

Gazprom establishes Houston subsidiary to supply LNG domestically — Houston Business Journal, Houston, TX

Russian gas monopoly OAO Gazprom has set up a U.S. subsidiary based in Houston to supply liquid natural gas to U.S. markets.

WEBMASTER'S COMMENTS:This situation poses a real quandry for "super patriots" who believe that Americans should support LNG, no matter what.

Alaska Gov. may be unseated in primary — AP, Dallas Morning News, Dallas, TX

Unpopular Alaska incumbent Gov. Frank Murkowski may not escape Tuesday's Republican primary. If Murkowski is unseated, his deal to smooth the way for a $25 billion natural gas pipeline to Canada will likely go down with him.

Every other candidate save one has panned the governor's deal and said they would open the pipeline negotiations with the state [to] other groups besides the three companies. (Aug 18)

WEBMASTER'S COMMENTS: Since one of the partners in the current pipeline project deal is BP, the desire by Governor Murkowski's challengers and the legislature to change partners in the deal indicates that at least those people — unlike FERC — recognize that BP is an inappropriate company to do business with.

LNG safeguards [Editorial] — San Francisco Chronicle, San Francisco, CA

To ensure that a governor's decision is based on sound analysis, state Sen. Joe Simitian's SB426 would require the California Energy Commission to evaluate and rank LNG proposals on the basis of health, safety, economic potential, environment and national security. The governor would be compelled to reject any application that was not among the top two in the rankings.

WEBMASTER'S COMMENTS: Offshore LNG terminals are regulated by the U.S. Coast Guard, rather than FERC. Also, the state has the authority to reject offshore LNG terminals, even though FERC has preeminent authority (with the exceptions of air and water pollution issues, and coastal zone management issues) regarding LNG terminals on a state's actual shores.

Woodside in LNG pitch to California — Australian, Surry Hills, NSW, Australia

Woodside has designed OceanWay to avoid community concerns that a land or platform-based gas receival terminal could affect property values. OceanWay involves two delivery buoys more than 32km offshore from Los Angeles International Airport, with twin underwater pipelines to deliver gas to shore.

LNG will be turned back into gaseous form on a specially equipped ship before being piped directly to shore, avoiding the need to construct a permanent plant. When not required for ship unloading, the buoys will rest on the sea floor. (Aug 21)

Shipowners face 'spiralling' crew costs as LNG trade booms — Business Times, Kuala Lumpur, Malaysia

Insurers are ... "worried about navigational errors" that may arise as shippers move away from traditional single-voyage deliveries to making one-off shipments to different ports, according to Lorentzen & Stemoco.

According to Marsh & McLennan Cos, the world's biggest insurance broker, premiums may rise by as much as 10 per cent to 0.2 per cent of the price of the ship's value, on concerns about staffing shortages and because ships are making more one-off deliveries in unfamiliar waters. [Bold emphasis added.]

WEBMASTER'S COMMENTS: Insurers apparently aren't as confident as LNG developers and industry spokesmen that LNG's shipping record will remain as uneventful as it has been in the past.

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15 August 2006

Anti-LNG group plans auction fundraiser — Bangor Daily News, Bangor, ME

"Proceeds from the auction will go to Save Passamaquoddy Bay to pay legal expenses in the ongoing effort to prevent a liquefied natural gas import terminal from being built in the area," the group said in a news release.

WEBMASTER'S COMMENTS: Make your reservations today!

Confirmed layoffs and rumors of downsizing grip Eastport — WQDY-FM, Calais, ME

With the industrial uncertainty, Finch was asked if it made the two proposed Liquefied Natural Gas [LNG] terminals in the area any more attractive.

"It doesn't make LNG look more attractive to me because I don't see any relationship between LNG locating in the area and the current activities taken on by these facilities," Finch said.

And why is that?

"I'm not saying plus or minus in one direction. I don't see LNG as a relationship to this. LNG will bring some jobs to a particular area, it would not be jobs that would particularly benefit the people who are losing their jobs [in] these cases."

"As it stands out there right now, nothing in LNG is going to solve our current short-term problems." (Aug 11)

Floating factory could change future of LNG — Boston Globe, Boston, MA

The possible energy future of New England and the nation steamed into the Gulf of Mexico last week and moored 116 miles off New Orleans.

Even a northeaster should not affect the gas flow. Excelerate officials like to boast that they were able to operate in 20-foot seas in the Gulf during Hurricane Katrina, and they say ships will be able to operate even when dockside LNG ships cannot.

"I like these offshore terminals," said Scott Kraus, vice president for research at the New England Aquarium who studies right whales. He said all ships need to slow down so they don't hit right whales in the region and the technology exists to dampen noise from ships. "Nobody wants one of these things in their backyard and with this one, it isn't in anyone's." (Aug 14)

WEBMASTER'S COMMENTS: This technology blows away Downeast LNG's Dean Girdis's claims that LNG facilities need protected harbors like Passamaquoddy Bay.

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