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Pre-filing approval granted by FERC to Calais LNG project — The Quoddy Tides, Eastport, ME
Atlantic Canada and New England, especially Maine, remain particularly vulnerable to the limited supply of natural gas available in North America, according to project manager Art Gelber. (Jun 27)
Webmaster's Comments: Arthur Gelber is demonstrating a surprising lack of industry acumen. Simply put, there is no need for Gelber's proposal, as indicated by realities in the LNG industry. LNG import infrastructure is already being overbuilt, imports are low, and foreign competition for LNG is winning.
Maritimes & Northeast Pipeline L.L.C.; Notice of intent to prepare an Environmental Assessment for the proposed Maritimes Phase V project and request for comments on environmental issues — US Environmental Protection Agency, Washington, DC
The purpose of the project is to provide transportation service for gas from a new gas field (``Deep Panuke'') located offshore of Nova Scotia to the New England market area. The Maritimes Phase V Project would increase the capacity of Maritimes existing system by about 250,000 dekatherms per day. [Red emphasis added.] (Jun 26)
Webmaster's Comments: This expansion of the Maritimes & Northeast Pipeline, to carry Deep Panuke natural gas to the New England market area — along with Canaport, Northeast Gateway, Neptune LNG, and MapleLNG — is why the Calais LNG, Downeast LNG, and Quoddy Bay LNG projects are futile excersizes in wasting investors' and taxpayers' money.
Public presses for Sears Island to remain as is — Village Soup, Belfast, ME
BELFAST (June 30): The committee charged with creating a joint use plan for Sears Island got an earful Wednesday night, from locals who called for an end to the planning process and for the island to remain undeveloped.
Mikulski statement on Commerce Department's decision to overturn Maryland LNG ruling [Press release] — US Senator Barbara A. Mikulski (D-MD), Washington, DC
WASHINGTON, D.C. – Senator Barbara A. Mikulski (D-Md.), Chairwoman of the Commerce, Justice, Science (CJS) Appropriations Subcommittee that funds the Department of Commerce, today criticized Secretary of Commerce Carlos M. Gutierrez’s announcement that the agency will not uphold the Maryland Department of the Environment’s July 2007 decision to deny an application from AES Sparrows Point LNG, LLC to construct an liquefied natural gas (LNG) terminal at Sparrows Point, Md. [Red emphasis added.] (Jun 26)
Sparrows Point LNG objection overruled — Energy Current, Houston, TX
"We can't let federal agencies rubber stamp plans for an LNG facility when our state is adamantly opposed. This is not the last step - or the only step. We will fight on."
US [natural] gas: Futures hit 29-month high as crude sets new record — Cattle Network, Platte City, MO
Natural gas for August delivery on the New York Mercantile Exchange was trading 16.7 cents, or 1.27%, higher at $13.365 a million British thermal units after opening floor trade 19.2 cents higher at $13.39/MMBtu. Futures reached $13.448 in combined floor and electronic trading, the highest price since December 2005.
Traders continue to see natural gas as a value compared to crude oil, and efforts to decrease the spread between the two commodities are putting additional upward pressure on prices, said Peter Beutel, president of Cameron Hanover, an energy risk-management firm in New Canaan, Conn.
Gas futures need to rise further to attract liquefied natural gas imports to help boost U.S supplies, said Beutel, who estimates prices need to reach $14.00/MMBtu to start attracting additional LNG. [Red emphasis added.]
Webmaster's Comments: Globalization of LNG is pairing natural gas prices to equivalent oil prices, based on BTU (heat) output. LNG is causing natural gas prices to increase, not decrease, despite LNG developer hype to the public.
Liquefied natural gas: A growing economic target? — The Cutting Edge News
Liquefied Natural Gas (LNG) is more than just a potential weapon of mass destruction in the right locale. It also offers terrorists an awesome economic target wherever in the world it can be found--even on the high seas.
Should the use of LNG in the U.S. follow the trend that would lead to the “high LNG” scenario, or 33 percent, then it would be reasonable to say that the probability of a terrorist attack against LNG, for economic purposes, would increase due to its greater potential economic impact.
LNG holds appeal of increasing a nation’s energy security because of its fungible nature, however it could also be damaging to energy security because of the vulnerability of the extensive infrastructure required to process it. Should terrorists somehow manage to damage or destroy this infrastructure, or the ports that lead to the processing plants, it would be detrimental to those regions which have become highly dependent on LNG. [Red emphasis added.]
Webmaster's Comments: Author US Navy Reserve Lieutenant Commander Cindy Hurst is a political-military research analyst with the Foreign Military Studies Office.
Greater dependency on LNG decreases our energy security and economic security.
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More bad news for LNG plan — The Providence Journal, Providence, RI
The decision is another blow for the company, which has been battling widespread public opposition to the LNG plan, as well as a series of unfavorable decisions by state regulators and federal agencies.
Federal officials back state objection to LNG plan — Standard-Times, New Bedford, MA
FALL RIVER — The U.S. Department of Commerce has upheld objections by state coastal management officials against Weaver's Cove's plan to build a liquefied natural gas facility in Fall River's North End.
The decision, issued late Thursday, bars federal agencies from issuing permits, unless the developer wins on appeal in federal court, said Jeff Donald, a spokesman for the National Oceanic and Atmospheric Administration, which is under the commerce department.
"This project should never have been proposed," said U.S. Sen. John Kerry, D-Mass., in a statement. "The city knows it, the state knows it, the Coast Guard knows it, and now the Department of Commerce knows it, too. It is far too dangerous for so populated an area."
The Federal Energy Regulatory Commission considers its July 15, 2005, approval of the terminal still valid, as long as Weaver's Cove can appeal the decision, said Tamara Young-Allen, a spokeswoman for the commission.
Webmaster's Comments: States' authority trumps FERC's "put LNG terminals anywhere and everywhere, safety-be-damned" philosophy.
Fed official rules against Fall River LNG terminal — The Boston Herald, Boston, MA
BOSTON — The U.S. Secretary of Commerce has decided a Massachusetts agency acted correctly when it objected to plans to build a liquefied natural gas terminal in Fall River.
Massachusetts Attorney General Martha Coakley, who’s against the project, called the developers’ appeal an attempt to circumvent the state. (Jun 27)
Weaver’s Cove plan sees setbacks and gains — The Herald News, Fall River, MA
Based on the facts presented in your request, Weaver’s Cove and Mill River are granted an extension of time until Nov. 1, 2015, to complete their facilities and make them available for service,” the decision states
The one-page decision is signed by J. Mark Robinson, director of the office on energy products.
Both the city of Fall River and the office of Rhode Island Attorney General Patrick Lynch filed objections over the extension request.
Mayor Robert Correia cited the city’s previous objections and said he was “disappointed” with FERC’s decision. (Jun 27)
USCG – Broadwater LNG project – LOR — MarineLink, New York, NY
The LOR [Letter of Recommendation] finds that the waterway is not currently suitable for LNG marine traffic, but could be made suitable if certain specified measures are taken. (Jun 26)
Commerce Department overturns Maryland on LNG terminal decision — MarineLog, New York, NY
Under the Coastal Zone Management Act, federal agencies may not issue any permits required for a project if a state has objected, unless the Department of Commerce, on appeal, overrides the objection.
When the Department overrides a state objection, federal agencies may proceed with normal permit and license processes for the project. The project will also be required to comply with all state and local permitting regulations, and complete all required environmental reviews. [Red & bold emphasis added.] (Jun 27)
Maryland LNG project wins CZMA appeal — Oil & Gas Journal, Houston, TX
The secretary ruled against Maryland's objection to AES Sparrows Point LLC and Mid-Atlantic Express LLC's proposal to build an LNG facility east of the Port of Baltimore on Chesapeake Bay. However he upheld an objection by Massachusetts to Weaver's Cove Energy LLC and Mill River Pipeline LLC's proposal to build an LNG terminal and pipeline near Fall River. [Red emphasis added.] (Jun 27)
Reversal in LNG plant decision outrages community — WMAR - ABC, Baltimore, MD
Outraged and confused, that's what one Baltimore County community is feeling. Residents in Sparrows Point have long been opposed to a liquified natural gas terminal being built there.
The governor, the Baltimore County Executive, and Senator Mikulski are vowing to fight the decision to build the LNG plant. (Jun 27)
First U.S. call for a Q-Flex LNG carrier — Energy Current, Houston, TX
Q-Flex are membrane type vessels, propelled by two slow speed diesel engines, making them more efficient and environmentally friendly than traditional steam turbine vessels. Equipped with an on-board re-liquefaction system to handle the boil-off gas, the new generation LNG carriers are able to deliver almost 100 percent of the cargo to the customers. (Jun 27)
Pacific Trail Pipelines granted Kitimat-Summit line approval — The Vancouver Sun, Vancouver, BC
The 91-centimetre-diameter pipeline is intended to link the proposed Kitimat Liquefied Natural Gas terminal, which would receive ship-borne imports of super-cooled natural gas, with the Spectra Energy gas transmission system.
The proposed project, however, has a few more hurdles to overcome. It is still subject to federal environmental approval and must obtain provincial and federal permits.
County has no jurisdiction in pipeline siting, manager says — The Daily Astorian, Astoria, OR
He said the siting process for the LNG terminal requires a local land-use compatibility process.
The pipeline doesn't. (Jun 27)
U.S. rigs chasing more natural gas — Edmonton Journal, Edmonton, AB
The number of active U.S. natural-gas rigs rose to 1,530 this week, the highest since gas-specific recordkeeping began in 1987, according to data published by Baker Hughes Inc.
The flow of liquefied natural gas (LNG) into the U.S. this year will probably be about 30 per cent less than the 770 billion cubic feet recorded in 2007, the Energy Department said June 10. [Red emphasis added.]
Webmaster's Comments: Considering the economic and infrastructure realities in the natural gas and LNG industry, the financial outlook for proposed but unpermitted US LNG import terminals is downright dreadful.
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Col. Philip T. Feir assumes command of Corps of Engineers New England District — PRNewswire
CONCORD, Mass., June 27 /PRNewswire-USNewswire/ -- In a Change of Command ceremony today at historic Faneuil Hall in Boston, Mass., District Commander Col. Curtis L. Thalken passed the command flag, signifying change of command authority of the U.S. Army Corps of Engineers in New England, to new District Commander Col. Philip T. Feir. [Bold emphasis added.]
Webmaster's Comments: COL Feir is now the officer in charge of the Army Corps of Engineers projects in the Passamaquoddy Bay region.
U.S. Secretary of Commerce sustains Mass. CZMA objections to Weaver's Cove LNG project — Sutherland LNG Law Blog, Washington, DC
Gutierrez concluded in the decision that "[a]lthough the [Weaver's Cove LNG] Project furthers the national interest in a significant and substantial manner, the national interest furthered by the Project does not outweigh the Project’s adverse coastal effects." [Red emphasis added.]
Weaver's Cove Energy granted extension of time to construct LNG facilities — Sutherland LNG Law Blog, Washington, DC
According to the letter granting this request, Weaver's Cove Energy now has until November 1, 2015, to construct the facilities.
Webmaster's Comments: No matter how bad the project, FERC is determined to allow it to fester and to cost taxpayers.
Correia: Hearing absence 'an oversight' — The Herald News, Fall River, MA
Despite not having a presence at Wednesday’s hearing, Correia asserted the defeat of any plans to locate an LNG terminal in Fall River remains one of his priorities.
“But not LNG or anything dangerous, and I don’t care how they try to get it (LNG) here, whether it’s by boat or if they try to fly it in.” (Jun 26)
LNG wins federal favor — The Baltimore Sun, Baltimore, MD
"The proposed LNG project at Sparrow's Point represents a threat to our homeland security, a threat to our environment and Chesapeake Bay and a threat to the families of eastern Baltimore County," [Gov. Martin O'Malley] said in the statement. "The overturning of MDE's original decision to deny Coastal Zone Consistency enhances this threat."
Thursday's finding does not resolve a separate legal dispute over whether Baltimore County can ban LNG facilities in environmentally sensitive waterfront areas, as part of its federally sanctioned Coastal Zone Management plan. (Jun 26)
Cheniere forms marketing deal for LNG — The Advocate, Baton Rouge, LA
[T]he facilities rely on overseas LNG production, which so far hasn’t provided large reserves to the U.S., due to rising global energy demand.
Cheniere, which traded at more than $42 a share in November, has seen its stock price fall below $5 a share today on the American Stock Exchange. It recorded a net loss of $49.9 million in the first quarter of 2008. [Red emphasis added.]
Webmaster's Comments: This kind of bad news is what Downeast LNG, Calais LNG, and Quoddy Bay LNG have to look forward to if they continue their ill-planned projects.
LUBA sets new deadline for LNG ruling — The World, Coos Bay, OR
A ruling concerning Jordan Cove Energy Project’s proposed liquefied natural gas terminal has been postponed again.
LUBA was originally suppose to issue a decision June 12, but requested a two-week extension. The new deadline is July 10.
Analysis—High US natgas prices may draw more LNG supplies — Reuters, Forbes, New York, NY
Despite a 75 percent spike in U.S. natural gas prices this year to about $13 per million British thermal units at the Gulf Coast and $14 per mmBtu on the East Coast, experts said some LNG buyers in Europe and Asia were still willing to pay more.
"It looks like we could get a little more LNG in July, but not much," said Steve Johnson of Waterborne Energy, a Houston firm that monitors the global flow of liquefied gases.
"Latin America is starting to affect us. They've been pulling LNG from Trinidad that most likely would have come here," Johnson said. [Red emphasis added.]
Trade group calls for U.S. to keep path clear for LNG — Energy Current, Houston, TX
CLNG takes the position that the U.S. has existing natural gas reserves in many areas, but federal restrictions preventing natural gas from being produced in those areas mean that the energy industry must look elsewhere to meet the needs of consumers.
Webmaster's Comments: CLNG apparently hasn't been reading industry analysis reporting all the new domestic natural gas finds, and that the LNG import infrastructure is already considerably overbuilt.
Testimony of Energy Secretary Samuel Bodman to US House of Representatives — eGov Monitor, London, England, UK
We are in a global environment and our actions should reflect that reality.
I believe it is important to understand what I view to be the three principle causes of this new reality: 1) a significant surge in demand 2) geopolitical instability and resource limitations 3) concerns about climate change.
[I]t is my view that we must recalibrate our focus on the following major areas:
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House committee backs Taunton River scenic status; seen as blow to Fall River LNG terminal — Standard-Times, New Bedford, MA
The U.S. House Committee on Natural Resources approved a bill sponsored by U.S. Reps. Barney Frank and James McGovern to include the river in a wild and scenic river designation. The two Massachusetts Democrats emphasized the environmental benefits in their recommendation and did not mention liquified natural gas in their announcement. However, Fall River Mayor Robert Correia welcomed the news as another loss for Weaver’s Cove. (Jun 25)
Taunton River moves closer to scenic status — GateHouse News Service, The Daily News Tribune, Waltham, MA
The Taunton River is the longest coastal river in New England without dams and supports 45 species of fish and many species of shellfish. The watershed is the habitat for 154 types of birds, including 12 rare types. It is also home to otter, mink, grey fox and deer.
Again, legislators tell federal regulators that LNG plan is ill-conceived — The Providence Journal, Providence, RI
The line of elected officials who testified at the start of the meeting … was not divided. Each and every one of the nine officials or their representatives raised serious questions about the plan to build a 1,200-foot-long berth in the middle of Mount Hope Bay, about a mile from the closest shoreline. Tankers would dock there and unload LNG, which would be piped to a re-gasification plant that would be built in Fall River’s north end.
New LNG plan gets cool reception at federal hearing — The Providence Journal, Providence, RI
The majority of the people who testified last night on Weaver’s Cove Energy’s proposal for a floating liquefied natural gas terminal in Mount Hope Bay were emphatic in their opposition. (Jun 25)
R.I. to require emergency response plan for LNG — The Herald News, Fall River, MA
The Rhode Island General Assembly has passed a bill requiring legislative and municipal approval for any emergency response plan developed for the transportation of liquefied natural gas in state waters.
"[I]f Weaver’s Cove is going to persist in pushing this idea, it’s going to have to come up with a response plan that suits our needs, and it better not expect that work to be funded by the people whose lives and property it plans to put at risk.” [Red emphasis added.] (Jun 25)
Webmaster's Comments: This may be a good model for other states and communities, to level out the bargaining balance that is currently all on the LNG developer's side.
More opposition to Weaver's Cove LNG project — Energy Current, Houston, TX
The city and Lynch point out in their FERC filing that the project may never go forward because FERC's approval of the project is expressly conditioned on approval by the U.S. Coast Guard and the U.S. Department of Interior. The Coast Guard has denied Weaver's Cove's request for approval of the waterway for LNG vessel traffic, "and that denial (upheld on reconsideration and appeal) is largely the reason for delays in issuing permits related to dredging and related activities, including the required dredging permit from the Army Corps of Engineers." (Jun 23)
USCG finds "no significant impact" for Cove Point LNG expansion — Sutherland LNG Law Blog, Washington, DC
The Supplemental EA emphasizes Cove Point's "proven framework of operating conditions" as an existing import terminal and states that the Coast Guard's preferred action is to issue a positive Letter of Recommendation (LOR) for the project with conditions to ensure that the "waterway is suitable, safe, and environmentally sound for the increased LNG vessel traffic." (Jun 25)
At proposed plant, disaster plan is sought — The Baltimore Sun, Baltimore, MD
"Politics shouldn't be interfering with emergency preparations," he said. "You can't stick your head in the sand. When the federal government says there's a need for a project like this and says, 'This is where it will be,' that's where it is," [said Michael K. Day Sr., president of the Baltimore County Professional Fire Fighters Association].
But County Executive James T. Smith Jr. said he remained unwilling to sit down with AES Corp., the company that wants to build the LNG facility on the former Bethlehem Steel shipyard. He said it would be a poor use of taxpayers' money to plan for a project that he does not believe will be built and that the community agrees would not be good for the region.
Webmaster's Comments: Michael Day Sr. is assuming too much. The federal government can't simply dictate where these facilities will be; LNG terminal siting requires permits from several federal and state agencies.
Court: LNG owes back taxes — Savannah Morning News, Savannah, GA
The decision means the company will have to pay more than $2 million in back taxes due by Saturday, said attorney Abda Quillian, who represents the Chatham County Board of Assessors. (Jun 24)
The privatization of Humboldt Bay [Op-ed column] — Times-Standard, Eureka, CA
The privatization of public assets of the HBHRCD was not a focus of the feasibility study. Now it seems the NCRA (North Coast Railroad Authority) and NWP (Northwestern Pacific Railroad) will have to be rolled into the deal in some sort of Public-Private Partnership (PPP). The package will then be marketed to large hedge, retirement, multinational and foreign investment funds by auction. Goldman Sachs takes its money off the top. Those who went this way on LNG (liquid natural gas) plants now find they sit empty because the market changed making domestic supplies more competitive than foreign. [Red emphasis added.]
Natural gas weekly update - Jun 26 — International Business Times, New York, NY
The pace of deliveries of liquefied natural gas (LNG) imports remains considerably below last year's volumes and now appears to have been less than 200 Bcf for the first half of the year, which is less than half of the approximately 460 Bcf received last year during the same time period. LNG imports in June have averaged about 0.9 Bcf per day (based on sendout data from LNG import terminals), which is significantly less than the average of 2.8 Bcf per day in June 2007. Most flexible LNG cargoes are heading to Europe and Asia, where buyers continue to purchase LNG at prices higher than those that have prevailed in U.S. markets. [Red emphasis added.]
LNG could hit US$40 — Trinidad & Tobago's Newsday, Port-of-Spain, Trinidad & Tobago
Speaking at an energy luncheon hosted by First Citizens at the Hyatt Regency, Port-of-Spain, Bertani, now president of Thompson and Knight, Global Energy Services, a legal firm that has an appetite for energy deals, predicted that at the present rate of demand LNG prices could hit US$40.
Webmaster's Comments: LNG global commodification may be driving natural gas prices through the roof — not keeping natural gas prices down for consumers, as LNG developers have been preaching.
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Grounded U.S. schooner re-floated off southern New Brunswick — The Canadian Press
EASTPORT, Maine — The U.S. Coast Guard says it helped evacuate and re-float a U.S.-based schooner after it ran aground off the southwestern coast of New Brunswick.
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