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Passamaquoddy Bay & LNG

Canaport LNG progressing as partner Repsol LNG eyes supplies — Platts [Free registration required]

The Canaport LNG import project in St. John, New Brunswick, is rapidly moving forward -- and on likely better economic terms than its competitors in Eastern Canada and the US Northeast, an official with managing partner Repsol YPF said in an interview.

Canaport LNG's capacity could be expanded to 2.5 Bcf/d, Ribbeck said. "We can accommodate five storage tanks," he said. "We're looking now at starting with two or three."

Ribbeck touted what he said was Canaport LNG's cost advantage over possible competitors, which he attributed to it being able to lock in engineering, procurement and construction (EPC) contract costs for the project last year. "Since that time, costs for these facilities have shut up significantly," he said. [Bold emphasis added.] (Jun 29)

WEBMASTER'S COMMENTS: This is yet another demonstration of why Downeast LNG and Quoddy Bay LLC are simply ill-conceived, expensive pipe dreams.

LNG project focus turning to security — Gloucester County Times, Woodbury, NJ

While oil giant BP awaits the Supreme Court ruling to decide the fate of the planned liquefied natural gas (LNG) facility here, more than 50 federal, state and local emergency officials toil over a plan to ensure the safe shipment of the liquid up the Delaware River. (Jun 29)

WEBMASTER'S COMMENTS: BP has demonstrated its lack of respect for regulators and for safety of its facilities and personnel. They're being investigated for criminal negligence in the fatal Texas City, TX, refinery explosion, as well as for price manipulation of the natural gas market. Since FERC hasn't done it — and since FERC, by their own admission, will let anybody (including BP, Adolf Hitler, Idi Amin, Charles Manson, and Osama bin Laden) own and operate an LNG facility — hopefully, the Supreme Court will boot this facility out of BP's reach.

Since we asked: gas pipeline — Mail Tribune, Medford, OR

Numerous responses from the public, both infavor, and opposed. (Jun 25)

Bill prevents LNG tankers from entering Bay — Providence Journal, Providence, RI

The legislation attempts to kill the LNG plan by specifying a list of "state assets" that cannot at any time be within the Coast Guard's security zone around a tanker. The zone would stretch two miles ahead of a tanker, one mile behind and 1,000 yards on either side.

The bill prohibits the following from being in the zone: people, piers, wharves or docks, waterfront facilities, flammable materials, hunting grounds or areas from which an incendiary device could be launched, and places where welding or torch cutting is being done.

Tankers would be unable to comply because at points along their route north through Narragansett and Mount Hope bays they would pass within several hundred of feet of densely populated coastal areas in Rhode Island. Gallison referred to specific points in Portsmouth and where Roger Williams University is located in Bristol as being within the zone.

WEBMASTER'S COMMENTS: FERC, on the other hand, isn't concerned at all if people are in the "security zone" around the tanker, unless those people are in boats or have weapons. It is evident that FERC is concerned about the safety to the LNG vessel, not the safety of citizens who may be endangered by it.

East Coast LNG Facing Many Challenges — Natural Gas Intelligence, Sterling, VA

The abundance of domestic liquefied natural gas (LNG) regasification projects is not limited to the Gulf Coast. The northeastern Atlantic Coast has its share of proposed terminals as well. However, given rising construction costs and difficulty in securing LNG supply commitments, their futures are far from certain.

Perhaps a greater threat to LNG project developers in the Northeast is the question of whose project is really needed. By Ribbeck's math, supplies entering the New England-New York-Atlantic Canada market from the U.S. Gulf Coast amount to about 4.5 Bcf/d. Existing and proposed LNG terminals add to that about 10 Bcf/d, and on top of that add another 7.8 Bcf/d from terminals that have only been announced. That makes for 22.3 Bcf/d of supply for a regional market that consumes about 5 Bcf/d on an average annual basis and is expected to grow to only about 5.75 Bcf/d by 2015, Ribbeck said. (Mar 10)

WEBMASTER'S COMMENTS: The LNG industry is indicating that their New England capacity is being overbuilt by over 400%. Downeast LNG, Quoddy Bay LLC, Calais LNG, and Tidewalker Associates are all beating the same dead horse. They haven't got permits, they don't have LNG supply, and they aren't under construction. Even in the impossible event that one of their projects got built, they wouldn't have any LNG supply or customers. It's another case of wrong idea, wrong place, and wrong time.

FERC approves El Paso Cypress U.S. South gas line — Reuters

El Paso Corp. (EP.N: Quote, Profile, Research) said Tuesday its Southern Natural Gas unit received federal regulatory approval for the planned Cypress Pipeline project, enabling the company to expand its natural gas system from Savannah, Georgia, to Jacksonville, Florida.

The 176-mile pipeline project will transport gas from Elba Island, El Paso's liquefied natural gas terminal near Savannah.

Over the past few months, the company has opened a European management office in Geneva, Switzerland, and deployed large-scale solar power plants throughout Europe, according to the statement.

"In 2005, PowerLight completed the largest solar photovoltaic power system in the world, a 10 megawatt solar tracking system in Bavaria, Germany," the statement said.

Putin asserting control over state firms — AP, Dallas News, Dallas, TX

Deputy Prime Minister Dmitry Medvedev, a Putin protege, chairs the board of Gazprom, the world's largest gas company....

Russia's G-8 partners have expressed concern about the state's growing role - especially the Kremlin's influence in the volatile energy market, where many European countries fear they could become hostage to a Russian monopoly.

"Gazprom is one of the most inefficient companies in the country, because it survives due to two things: tax subsidies and continual borrowing," said Georgy Satarov, a former aide to Putin's predecessor Boris Yeltsin and head of the Indem think tank.

WEBMASTER'S COMMENTS: Gazprom has indicated that it wants to own U.S. LNG facilities, including Dominion Cove, the Maryland terminal darling of Downeast LNG's Dean Girdis.

Gazprom's designs on U.S. LNG infrastructure, Russian politics, and Gazprom incompetency — along with FERC pushing for increased dependence on LNG — can only spell disaster for U.S. energy security.

Cutler project gets approval for feasibility study — Quoddy Tides, Eastport, ME

The Federal Energy Regulatory Commission (FERC) has granted approval to Tidewalker Associates to conduct a feasibility study for a combined tidal power plant and LNG terminal at the U.S. Navy antenna station in Cutler. Normand Laberge, a professional engineer from Trescott who is a Tidewalker principal, says he received a letter last week from the agency that gives him three years to provide the economic, engineering and environmental data that would entitle Tidewalker's application to further consideration for licensing by FERC.

Laberge says he is already working on a new application to the regulatory agency for a similar tidal power project, without the LNG component, in a different site, this one at Half Moon Cove in Cobscook Bay near Quoddy Village. He says the new application will be ready to submit to FERC "by the end of this week [June 23]."

[Laberge] says he has spoken with officials at Beachwood Bay Estates, the business that is marketing condominiums on the site of the former Cutler Navy base, and they have raised no objections about a power plant on Little Machias Bay, which he says would not be visible to condo residents. He says he has heard some negative comment from his fellow employees who fear their jobs could be at risk.(Jun 23)

WEBMASTER'S COMMENTS: Laberge didn't mention if Beachwood Bay Estates made a response regarding his proposed LNG project that would be on the doorstep of their condominium development. It would be well to recall that at the last Sunrise County Economic Summit (2005 November 18), the keynote speaker — Daraius Irani — while discussing the impacts of the Cove Point, Maryland, LNG terminal, indicated that from a real estate perspective, LNG terminals are considered disamenities and LULUs, in the same category as nuclear power plants, superfund cleanup sites, and landfills. It would be suprising if Beachwood Bay Estates would accept an LNG terminal next door.

On a related issue, Laberge declined to name his other partners, in the same method that Don Smith of Quoddy Bay LLC won't name his partners. Could it be that they're all in it together?

Canadian group opposing LNG incorporates — Quoddy Tides, Eastport, ME

The ad hoc Save Passamaquoddy Bay/Canada group has announced its legal incorporation as a non-governmental organization under the laws of New Brunswick. The group's mandate is threefold: to ensure Canadians are well-informed about proposals to establish liquefied natural gas (LNG) terminals in the Passamaquoddy Bay/St. Croix region; to provide a voice for Canadians who oppose such development; and to ensure this voice is properly represented to the U.S. and Canadian governments and the public.

The group's immediate priority is to ensure the Canadian government regulates quickly to prohibit LNG tankers from transiting Head Harbour Passage, as Prime Minister Harper has promised. The group retained the Sierra Club of Canada to work on their behalf in Ottawa and simultaneously is preparing to intervene in the U.S. decision-making process under the auspices of FERC. (Jun 23)

According to the Downeast LNG newsletter, the company has conducted environmental studies at a very detailed level and continues to do so. A review of seismic conditions on site indicates there are no problems. Archaeology studies indicate there is nothing significant on the construction site. Marine geotechnical borings for the pier will be underway soon, and the barge for the studies should be visible in the water soon. Noise surveys are under way at this time. (Jun 23)

WEBMASTER'S COMMENTS: Downeast LNG has ignored the SIGTTO LNG-terminal siting standards that indicate in dozens of places in their LNG terminal siting standards literature that Passamaquoddy Bay is an inappropriate and unsafe location for LNG facilities and tanker traffic. There are also several other immoveable obstacles that they're about to bump their heads into: problems related to environment, culture, safety, sovereignty — and the fact that they're impossibly behind the competition.

Quoddy Bay LNG representatives questioned at Pembroke meeting — Quoddy Tides, Eastport, ME

When [Planning Board member Bill Brown] raised the question of a landowner's refusal to grant access to his land, [Steven Sawyer, a pipeline engineer for a Quoddy Bay LLC subcontractor, Coler & Colantonio Inc. of Portland] replied, "If we get FERC [Federal Energy Regulatory Commission] approval, we would use the power of eminent domain."

Sawyer returned to the issue of negotiations by the company with individual landowners several times, in response to questions raised about the company's responsibility after the construction of the pipeline. For example, when a citizen asked if the company would put up "gates" to prevent access by "four-wheelers and snowmobiles," Sawyer replied that a landowner who wishes gates should seek to make that a part of the negotiated agreement.

Milan Jamieson, one of the two selectmen present, noted that an increase in valuation would produce a decrease in state school subsidy, and would be subject to depreciation over time, factors that could have an unpredictable effect on net revenue to the town. [Bold emphasis added.] (Jun 23)

WEBMASTER'S COMMENTS: Since Quoddy Bay LLC would have the power of eminent domain, putting all the power into Quoddy Bay LLC's hands, any agreement negotiation — such as installing gates — between a landowner and the LNG developer is unlikely to result in satisfaction for the land owner. However, since the project is doomed, anyway, it makes sense to refuse to negotiate at all. Why make it appear that landowners are in favor of a project that takes control of their land, and why waste time and energy on a failed project?

Authority for Perry selectmen to hire attorney stirs debate — Quoddy Tides, Eastport, ME

In a May 19 letter to Eaton Peabody attorney Erik Stumpfel, Perry resident Ron Rosenfeld points out that the town as a whole has not voted to authorize the selectmen to hire an attorney to review previous negotiations between the Perry Improvement Association and Quoddy Bay LNG. He also notes that the agreement that Eaton Peabody will be reviewing was not negotiated by any group or individual approved by the town meeting.

In a May 28 letter he states that selectmen "do not have unfettered authority to enter into contracts absent town meeting approval." He refers to a case decided by the Maine Supreme Judicial Court in 1985, State of Maine v. Town of Franklin, which found that the selectmen of that town did not have the authority to sign a consent agreement with the state concerning the closing and relocating of its dump because there had not been a clear vote at the town meeting to authorize that action. (Jun 23)

Perry board's authority to hire law firm raises legal question — Quoddy Tides, Eastport, ME

Toward the end of a two-hour Perry selectmen's meeting, at the time usually earmarked for liquefied natural gas (LNG) issues concerning the town, Selectman David Turner responded publicly to a May 26 letter that was sent to residents in town from the Perry Citizens for Responsible Growth (PCRG). The letter states, "Two selectmen, David Turner and Dick Adams, agreed to commit town funds to retain a Bangor law firm to draw up a legal agreement between the Town of Perry and a developer, Quoddy Bay LNG. The proposed agreement would give the developer unprecedented control over the future of our town." The letter adds, "This extraordinary legal expense ($200 per hour) was never approved by Perry voters; in fact, the plan itself was never presented for voter approval." The letter asks for support in sharing their concerns, stating, "Our rights as citizens are being pushed aside to promote the interests of a private developer and the personal priorities of two selectmen." The letter listed a phone number for residents to contact with "any concern about this recent action." (Jun 23)

FERC approves three new LNG terminals and two expansions — Quoddy Tides, Eastport, ME

In February 2005, at a LNG Community Awareness Workshop, Hal Chappelle of the National Petroleum Council (NPC) said a study by NPC in 2003 estimated that seven to nine new LNG import terminals are needed in the U.S., Canada and Mexico. He noted that the vast majority of global natural gas reserves are located outside of North America. Canadian and U.S. well productivity from transitional basins is declining. Natural gas usage is growing in all parts of the world.

The NPC is a privately funded advisory committee established in 1946 whose function is solely to represent the views of the oil and natural gas industry in advising informing and making recommendations to the U.S. Secretary of Energy in respect to any matters relating to oil and natural gas. [Bold emphasis added.] (Jun 23)

WEBMASTER'S COMMENTS: We're now over the estimated number of required LNG terminals, as indicated in the National Petroleum Council's study, and according to an LNG industry news release, we're way over. The proposed local LNG projects are superfluous, and their tickets have been cancelled — except for the buses taking the developers home.

Council blocks LNG facilities near homes — Examiner, Baltimore, MD

The Baltimore County Council passed a bill Monday banning liquefied natural gas facilities within five miles of homes — essentially blocking the proposed LNG terminal at the Sparrows Point Shipyard — but project supporters are questioning the bill’s authority. (Jun 20)

Another hit against LNG [Opinion column] — Anchorage Daily News, Anchorage, AK

All three independent consultant reports issued in the past 90 days agree that North Slope gas piped to Valdez, liquefied, loaded aboard expensive tankers, hauled to ports somewhere on the Canadian or U.S. West Coast, turned back into gas and then sent by pipe to consumers would be worth less to Alaska in taxes and royalties than gas shipped direct by pipe to mid-America. (Jun 22)