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Suez LNG NA president testifies before Congressional committee — Sutherland LNG Law Blog, Washington, DC
In testimony given yesterday before the U.S. House Select Committee on Energy Independence and Global Warming, SUEZ LNG NA President and CEO Clay Harris emphasized the importance of LNG's role in moderating natural gas prices in the U.S. market by diversifying gas supply. However, Harris noted that LNG should be viewed as a supplement to North American gas supplies, not a fuel that will replace substantial volumes of indigenous natural gas.
Webmaster's Comments: Suez has just begun construction of their Neptune LNG deepwater port off Gloucester, Massachusetts. Apart from his statement that LNG will "moderate" natural gas prices (it has, in fact, by becoming a world commodity, driven natural gas prices deramatically upward), it is refreshing to learn that Suez's president and CEO believes LNG is merely supplemental to the "substantial volumes of indigenous natural gas" — 100 years' worth — as revealed in yesterday's news. (See "US has more than a century's worth of gas reserves, report says," and "Study finds existing U.S. natural gas supply extends into the 22nd Century," in July 30th news articles.)
LNG tankers on the way — The Boston Globe, Boston, MA
Suez SA's Suez Matthew is due in Boston today [Tuesday, July 29] and is carrying 126,540 liquefied cubic meters (4.47 million cubic feet) of gas, the data show. The ship has a 65,674-ton capacity and most recently docked in Spain, Trinidad and Tobago.
Teekay Corp.'s Catalunya Spirit is due in Boston on Aug. 3 and most recently sailed from Point Fortin, Trinidad and Tobago. The ship is carrying 138,188 cubic meters of liquefied gas and has a capacity of 77,204 tons. [Bold emphasis added.] (Jul 29)
Webmaster's Comments: This advance announcement published in the Boston Globe makes one question actual measures for LNG ship security.
Coast Guard issues FEIS for Calypso LNG — Energy Current, Houston, TX
HOUSTON: The U.S. Coast Guard has concluded that the proposed Calypso liquefied natural gas (LNG) deepwater port would have no significant environmental impacts on its surrounding environment.
The port, which has been proposed for construction by SUEZ subsidiary Calypso LNG LLC, would be located in U.S. federal waters about eight miles to 10 miles (13 km to 16 km) offshore Broward County, Fla. northeast of Port Everglades.
Calypso is an anchor and buoy system that will deliver natural gas to an undersea pipeline. The facility will be designed to moor specially built tankers that store and transport LNG.
Webmaster's Comments: Offshore, safely away from civilian populations, unlike Calais LNG, Downeast LNG, and Quoddy Bay LNG.
Cummings to back LNG facilities bill — The Baltimore Sun, Baltimore, MD
Cummings and Democratic Rep. Timothy H. Bishop said in a statement that the commission "would study how effectively the current regulatory structures meet the nation's energy needs and priorities. Current policy requires that new projects be reviewed and approved or denied as they are submitted rather than as the result of a comprehensive, national strategy."
ReEarth says no to LNG, yes to renewable energy — The Nassau Guardian, Nassau, Bahamas
The ReEarth director attended last week's Caribbean Regional Sustainable Energy Conference. She sent a message to Aaron Samson of AES Corp. who she said has been promoting that LNG could lower energy costs, through a transition to natural gas, instead of oil.
"That logic is tantamount to trying to wean a cocaine addict by addicting them to heroin," she said. "Thanks, but no thanks Mr. Samson. Natural gas addiction is no solution for our current or future energy problems."
She said the government "must now officially turn away the LNG proposal put forward by AES and any others that may be lurking in the shadows; they should extricate The Bahamas from all oil exploration licenses; then they must make compact fluorescent lights and solar water heaters duty free. [Red emphasis added.]
Webmaster's Comments: As reEarth's director stated, the Bahamas has an enormous solar energy potential wasting away that could save Bahamians money while reducing pollution and greenhouse gases. Florida has similar potential.
Feds: Size of LNG hazard zones is safe — The World, Coos Bay, OR
Although the slip proposed for the North Spit could berth a 217,000 cubic meter LNG tanker, there are no immediate plans to do so, said Jordan Cove Project Manager Bob Braddock.
Braddock said the company has requested approval from the U.S. Coast Guard to run ships with tanks as large as 148,000 cubic meters. He said it was possible ships with 160,000 tanks could call on Coos Bay, but anything larger would require the deepening of the Coos Bay shipping channel. And any ship with tanks larger than 148,000 cubic meters would need to be approved by the U.S. Coast Guard with the new Sandia findings in mind, Braddock said.
Braddock said the Department of Energy has proposed a larger scale test later this year that would simulate attacks on an LNG container ship. [Red emphasis added.] (Jul 28)
Webmaster's Comments: Safe? For whom? The Sandia Hazard Zones for smaller LNG ships extend 2.2 miles from the vessel. The Jordan Cove LNG terminal proposal's Hazard Zones engulf large numbers of residents and businesses, including an airport.
NATS Lowers Estimate of U.S. LNG Imports for 2008 — Sutherland LNG Law Blog, Washington, DC
Yesterday, NATS revised its 2008 estimate of LNG imports to the United States from 375 Bcf to 340-360 Bcf, noting that the Everett and Elba Island LNG regasification terminals will remain the most active LNG import terminals.
Webmaster's Comments: The situation becomes more and more obvious. Calais LNG Project Co., Downeast LNG, and Quoddy Bay LNG are surplus, money-wasting efforts.
US gas prices could weaken in '09 in face of global LNG surge — CattleNetwork.com, Lenexa, KS
This global output surge comes amid a U.S. production boom, inflated by unexpectedly large amounts of so-called unconventional gas from the Haynseville Shale in Louisiana and eastern Texas, and the Barnett Shale in Texas. The output increase comes after nine years of stagnation.
Emboldened by the production windfall, U.S. producers are pressing Congress for help in expanding the market for natural gas, pointing to forecasts that growth in domestic output is expected to outstrip demand this year and next.
U.S. gas production will grow 6.4% this year and 2% next year, in contrast to demand growth of 2% this year and 1% in 2009, the U.S. Energy Information Administration predicted. [Bold red emphasis added.]
Webmaster's Comments: Plentiful domestic natural gas is casting a pall over any hope for Calais LNG, Downeast LNG, and Quoddy Bay LNG.
Experts see massive rise in incomes — The Peninsula, Doha, Qatar
DOHA • Rising oil and gas revenues is expected to propel Qatar's per capita income to a massive $100,000 next year, second only to Luxembourg, according to the 'GCC Economic Outlook Q3 2008' report released by Islamic investment bank, the Bahrain-based Gulf Finance House (GFH).
The country's liquefied natural gas (LNG) production will be over 39 millions tonnes per annum, confirming the country's status as the world's largest LNG producer and exporter.
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Legislature approves LNG buffer, 'Rolling Rock' bills — The Herald News, Fall River, MA
Fall River — Both the House and Senate enacted the LNG buffer bill late Tuesday, putting the restrictive measure before Gov. Deval Patrick for his signature.
The law would prohibit construction of liquefied natural gas terminals, such as the one proposed in the city by Weaver’s Cove Energy LLC, within 5,000 feet of designated areas. It would also prevent tankers from passing within 1,500 feet of shore lines inhabited by the same populations, such as residences, schools and hospitals. (Jul 29)
Webmaster's Comments: States have a greater understanding and regard for their citizens' safety concerns than does FERC. It will be interesting to see how this "Buffer Bill" plays out, if challenged.
Overdue attention [Editorial] — The Herald News, Fall River, MA
Recognizing the danger to the entire region, SouthCoast cities and towns are unanimous in opposition to the terminal at Weaver’s Cove or an “off-shore” facility in the middle of Mount Hope Bay. Gov. Patrick would do well to assure residents of his support for Rep. David Sullivan’s bill strictly regulating LNG import terminals. While the proposal would not likely be the final nail in Weaver’s Cove’s coffin, it would at least put the state on record as defending the SouthCoast’s best interests. (Jul 29)
FERC to attend public meeting hosted by Pennsylvania Congressman — Sutherland LNG Law Blog, Washington, DC
FERC announced yesterday that staff members will attend a public meeting hosted by Rep. Joe Pitts (R-Pa.) on August 12, 2008, to discuss his constituents' concerns regarding the proposed Sparrows Point LNG terminal and associated pipeline project.
Dominion requests expedited action from FERC to affirm and reissue Cove Point expansion authorizations — Sutherland LNG Law Blog, Washington, DC
Specifically, Dominion requests that FERC issue an order by August 29, 2008, that: (1) fully affirms and reissues the Natural Gas Act (NGA) Section 7 certificates for the construction and operation of the Dominion natural gas pipelines and natural gas storage facilities, which provide services independent of the Cove Point Terminal Expansion; (2) "fully affirms and reissues the NGA Section 3 authorization for the continued construction of the Cove Point Terminal Expansion"; and (3) authorizes the Terminal Expansion to be placed in service when completed because WGL has taken remedial measures to ensure that its system can accommodate safely additional volumes of regasified LNG coming from the Terminal Expansion. (Jul 29)
U.S. Coast Guard finds waterway suitable for Cove Point expansion — Sutherland LNG Law Blog, Washington, DC
The U.S. Coast Guard issued a Letter of Recommendation regarding the Cove Point LNG Terminal Expansion project, stating that "the waterway leading up to the Cove Point LNG terminal is suitable for the increased LNG marine traffic associated with [the terminal expansion] project."
Congressmen propose legislation to study regional gas infrastructure — Sutherland LNG Law Blog, Washington, DC
Congressmen Tim Bishop (D-N.Y.) and Elijah Cummings (D-Md.) plan to introduce a bill today that would mandate a study of regional gas infrastructure. According to Platts LNG Daily, Rep. Bishop said, "Placement of natural gas infrastructure should not be run like a deli counter, where it’s 'first come, first served.' Instead, we must take a comprehensive approach and develop a national strategy."
Webmaster's Comments: The philosophy behind this legislation is worthwhile. Hopefully, it won't result merely in study data, but with an actual national energy strategy.
CLNG: LNG ships study reveals minimal public safety risk — Energy Current, Houston, TX
"Sandia's conclusion that the risks associated with larger capacity LNG carriers are not fundamentally different from conventional ships comes as no surprise," said CLNG President Bill Cooper. "The LNG industry has gone to great lengths to ensure its ships are safe and secure."
Webmaster's Comments: It's no surprise, either, that the Center for LNG's president made the above statement, although the statement glosses over the reality: larger LNG carriers do present a greater risk to the public — a 7–8% greater Hazard Zone, according to the Sandia Report 2008. Since Sandia considers the Hazard Zone for smaller LNG vessels to extend 2.2 miles from the ship — plus the additional 7–8% for large carriers — that's no insignificant consequence, and no comfort, to civilians living and working in that Hazard Zone.
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Quoddy Bay LNG suspends payments to tribe — Bangor Daily News, Bangor, ME
[Quoddy Bay LNG president Don Smith] said in a separate interview Friday that the payments the company has made to the tribe have been voluntary because, according to the company’s lease contract with the tribe, Quoddy Bay is not obliged to make payments to the tribe until the federal Bureau of Indian Affairs has given its final approval to the project.
Webmaster's Comments: The Bureau of Indian Affairs testified in US District Court in Bangor on July 1st that the lease approval was final — contradicting Don Smith's claim. (See related July 1 story, “Tribal members appear in court Tuesday,” near bottom of this page.)
LNG firm cuts off money to Maine tribe — (AP) WQDY FM, Calais, ME
Donald Smith, president of Quoddy Bay LNG, says the payments were never a requirement. He says they were voluntary because Quoddy Bay is not obliged to begin making payments until the federal Bureau of Indian Affairs has given its final approval to the project. [Red emphasis added.]
LNG firm seeks suspension of lease payment — The Quoddy Tides, Eastport, ME
Quoddy Bay LNG requests another BEP postponement — The Quoddy Tides, Eastport, ME
Calais LNG firm opens local office — The Quoddy Tides, Eastport, ME
"The whole project team would like to thank the leaders and citizens of Calais for embracing liquefied natural gas as the key to a more secure, affordable energy future," said Ian Emery, development manager. "The leadership that Calais is providing is critical to the success of this project, which represents a solution to the challenges we are all facing due to rising oil prices." [Red emphasis added.] (Jul 25)
Webmaster's Comments: Ian Emery and partners must be unaware that…
- LNG prices are soaring;
- Prices are predicted to possibly exceed the price of oil for an equivalent amount of heat;
- FERC-permitted LNG import capacity already exceeds the need; and
- Calais LNG can't receive any LNG since Canada won't allow LNG ships through the passage.
Anyone in the LNG industry should know that it is having serious problems, especially with…
- Price (it is climbing rapidly);
- Supply (demand exceeds supply); and
- Domestic natural gas competition (enormous volumes of domestic natural gas are becoming available, and are cheaper than LNG).
All-Alaska line remains in gas line debate, despite questions — Fairbanks Daily News-Miner, Fairbanks, AK
As lawmakers debate TransCanada’s proposal, the idea of a pipeline built entirely within the state continues to play a key role. The Senate took hours of testimony this week from the Alaska Gasline Port Authority, and opponents of TransCanada’s plan point to the all-Alaska option in part to explain their opposition. (Jul 26)
CRD urged to oppose Texada gas facility — Times Colonist, Victoria, BC
The Powell River Regional District has passed a resolution calling on the federal government to implement a ban on LNG tanker traffic in the Strait of Georgia. (Jul 27)
Wu wants decision on LNG made in public — The Daily Astorian, Astoria, OR
U.S. representative worries FERC will decide on project before next meeting Sept. 18
FERC next meets in full session Sept. 18, but Wu is worried that the agency might not wait until then and instead make what is called a "notational decision" between meetings.
FERC commissioners meet monthly, but often issue other decisions "notationally." In this process, members of the board vote individually on projects in between their meetings and their votes are tallied and decisions announced. "The commission does it both ways," O'Driscoll said. "It issues quite a few decisions notationally."
"I remain concerned that FERC has not sufficiently addressed the concerns of Oregonians, the governor and various state agencies, and now the U.S. Department of the Interior. FERC's final Environmental Impact Statement has raised concern because of its failure to address important issues such as erosion mitigation, emergency planning, impact on fish and wildlife, and access to the Lewis and Clark National Historic Trail," Wu said. (Jul 26)
Analysts: Price spread between U.S. and U.K. markets will lower U.S. LNG imports — Platts
Platts Gas Daily reports that several natural gas market analysts expect that the expanded price spread between the U.S. and U.K. gas markets will trim U.S. LNG imports for the rest of the year.
Webmaster's Comments: The Bad News continues to pour in for Downeast LNG, Calais LNG Project Co., and Quoddy Bay LNG speculators.
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Expansion eyed — Telegraph-Journal, Saint John, NB
Canaport LNG majority owner Repsol seriously weighing doubling terminal's capacity
Canaport LNG had already speeded up the construction of a third storage tank, which began construction early this year, sooner than anticipated.
While doubling capacity would mean expanding to two billion cubic feet per day, Ribbeck said the engineers are confident they could boost the send-out to 2.5 billion cubic feet per day.
In rural areas of New Brunswick, the existing $350-million Maritimes & Northeast pipeline would have to be "looped," meaning it would have an extra parallel pipe installed, to allow for the extra gas.
Webmaster's Comments: This expansion would further moot Downeast LNG, Calais LNG Project Co., and Quoddy Bay LNG.
LNG company seeks delay for application — WQDY FM, Calais, ME
In a letter submitted Wednesday to the BEP, Quoddy Bay project manager Brian Smith requested that the pre-hearing conferences on the application be delayed until January 2009. If the company is unable to meet that timeline, Smith wrote, it will withdraw and then re-file when the application is ready for a full review.
A federal court also is considering a lawsuit filed against the U.S. Bureau of Indian Affairs by members of the Passamaquoddy Tribe angry that tribal leaders negotiated an agreement with Quoddy Bay. The bureau signed off on the tribe's agreement to allow and LNG facility at Pleasant Point.
Quoddy Bay's primary competitor, Downeast LNG, has withdrawn its state application for a facility in nearby Robbinston and plans to re-file. [Red emphasis added.]
Webmaster's Comments: This is Quoddy Bay LNG's 5th delay for the pre-hearing conference.
The Bureau of Indian Affairs lawsuit would invalidate Quoddy Bay LNG's lease, meaning they won't have an import terminal site.
Both Quoddy Bay LNG and Downeast LNG are in serious trouble.
Parties request rehearing on order granting Weaver's Cove LNG's extension of time — Sutherland LNG Law Blog, Washington, DC
Stating that the extension of time is "premature" and that "good cause has not been demonstrated," the City of Fall River, Mass., and the attorneys general of Rhode Island and Massachusetts filed a Request for Rehearing of the June 26, 2008, FERC order, which granted Weaver's Cove LNG's request for an extension of time until 2015 to complete its terminal project on the Taunton River in Massachusetts. [Red emphasis added.]
City joins R.I., Mass. AGs to appeal LNG extension — The Herald News, Fall River, MA
Fall River — The city of Fall River along with the attorney generals of Massachusetts and Rhode Island have filed an appeal in objection to the recent grant of a five-year extension for completion of the liquefied natural gas facility proposed by Weaver’s Cove Energy.
“I deal with facts, evidence, and the law. To the extent its ‘facts’ were even accurate at the time it presented them to FERC, however, Weaver’s Cove keeps changing its facts to justify a time extension,” [Rhode Island Attorney General Patrick Lynch] said in announcing his appeal. “These are not minor changes, and the FERC is clearly wrong to overlook how different Weaver’s Cove’s original scheme and current scheme are. The facility as originally proposed cannot be built, and the new scheme to convert our precious Mount Hope Bay into a private corporation’s profit center borders on delusional. I would hope the investors behind this project will wake up and pull the plug on this arrogant and unworkable idea before they waste any more of their time and money, and ours." [Red emphasis added.]
Taunton River measure could prompt similar efforts to oppose LNG projects — Sutherland LNG Law Blog, Washington, DC
Energy Washington [subscription required] reports that legislation passed by the U.S. House of Representatives designating portions of the Taunton River as "wild and scenic" and potentially impacting the Weaver's Cove LNG terminal project could prompt similar legislative efforts to oppose LNG projects across the country.
State House passes bill restricting LNG projects — The Herald News, Fall River, MA
Fall River — The House of Representatives unanimously passed state Rep. David Sullivan’s bill regulating liquefied natural gas tanker import terminals late Thursday night.
Nearly four years in the works, the bill moves to the Senate for engrossment in that chamber and a final vote in both chambers before going to Gov. Deval Patrick for his signature.
The law would not allow terminals to be built within 5,000 feet of designated areas or tankers to pass within 1,500 feet of shore lines inhabited by populations meeting the criteria. [Red emphasis added.]
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