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2008 March

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31 March 2008

LNG import capacity oversupply reported — The Quoddy Tides, Eastport, ME

The LNG Journal, the world's leading liquefied natural gas (LNG) publication, reports that North America faces an LNG regasification terminal overbuild. According to the publication, the East Coast of North America is facing a significant oversupply of LNG import capacity because of a shortage of supply.

Adam Wilson, deputy project manager for Quoddy Bay LNG, says the overbuild for LNG terminals is true in the Gulf area of the U.S., but there are not a sufficient number of import terminals on the East Coast or West Coast. Quoddy Bay would provide LNG, from its proposed terminal at Pleasant Point, for the New England area, where there is only one import terminal, located near Boston. Wilson believes the New England area could accommodate two additional terminals. [Red emphasis added.] (Mar 28)

Webmaster's Comments: We're glad to learn that Adam Wilson believes only two LNG import facilities besides the one at Everett, Massachusetts, is needed. But, we're surprised that Quoddy Bay LNG's Adam Wilson doesn't know about the three new terminals already finished or being built to supply New England: (1) Excelerate Energy's Northeast Gateway LNG (offshore from Gloucester, MA) that is completed and ready for its first LNG cargo, (2) Suez's Neptune (also offshore from Gloucester) that will receive its first cargo near the end of 2009, and (3) Canaport (Saint John, New Brunswick) that is over 60% complete, due for completion near the end of 2008, that will send most of its natural gas to New England.

Quoddy Bay LNG makes a perfect argument against building their own project and any other LNG terminals in Passamaquoddy Bay.

Quoddy Bay seeks pre-hearing delay — The Quoddy Tides, Eastport, ME

According to Smith, "FERC is considering the revised tariff of Maritimes and Northeast Pipeline on gas quality specifications and otherwise considering the impact of LNG on pipeline gas quality, including issues such as maximum nitrogen content. These issues may have an impact on our facility, and we believe that monitoring these issues will require additional time before a final position is possible."

According to Marylee Hanley, spokesperson for Maritimes and Northeast Pipeline, the company has not submitted any revised tariff requests to FERC. [Red and bold emphasis added.] (Mar 28)

Webmaster's Comments: This is the second time that Quoddy Bay LNG has been caught telling a falsehood about Maritimes & Northeast Pipeline (M&NE). The previous time, Quoddy Bay LNG claimed they were in negotiations with M&NE for pipeline capacity. M&NE responded that they had had no communications with any of the Passamaquoddy Bay LNG developers regarding obtaining pipeline capacity.

Concerns voiced about new Downeast LNG pipeline route — The Quoddy Tides, Eastport, ME

Pleasant Point Passamaquoddy Chief Richard Phillips Doyle wrote, "The Passamaquoddy Tribe has grave concern regarding potential environmental impacts the proposed pipeline may incur, both during construction and while under use. Of special concern is that the St. Croix River has one of the only existing Atlantic salmon runs in the U.S., and any construction activity may impair the movement of the adult salmon from Passamaquoddy Bay into the St. Croix or the salmon smolts returning from the river into the ocean."

The Bureau of Indian Affairs is expressing concerns that the siting of the proposed pipeline route may have impacts on unknown cultural sites through ground disturbance and tunneling activities. (Mar 28)

Webmaster's Comments: Chief Doyle also pointed out that the proposed pipeline would go beneath islands owned by the tribe. Since eminent domain cannot be used against government property, this may require Downeast LNG to come up with yet another — a seventh — route proposal.

Altered LNG plan still ignites opposition — The Boston Globe, Boston, MA

"The governor and I remain concerned about public safety and will review the proposal carefully," said Ian A. Bowles, secretary of the Executive Office of Energy and Environmental Affairs. "It's just too early to say." (Mar 29)

Long Island Sound LNG plan approved — The Quoddy Tides, Eastport, ME

Not everyone approves of the FERC decision. Following the approval, the New York State Department of Environmental Conservation filed comments with FERC regarding the final Environmental Impact Statement for the terminal proposal. Incoming New York Governor David Paterson has said he may seek additional time to study the proposal. Three members of the Connecticut state legislature released a report denouncing the proposed Broadwater project. (Mar 28)

US high court: Delaware can block BP LNG terminal — Reuters

The high court's 6-2 ruling is a setback to BP's plan to build the Crown Landing terminal to offload super-cooled liquefied natural gas from tanker ships. BP was not a party to the case.

In the court's majority opinion, Justice Ruth Bader Ginsburg rejected New Jersey's claim of exclusive jurisdiction over any project that begins on the state's shore and extends into the river.

US Supreme Court rules in favor of Delaware in LNG siting dispute — Platts

The state of Delaware "acted within the scope of its governing authority" when it refused to allow construction of the Crown Landing liquefied natural gas import terminal in New Jersey, the US Supreme Court found Monday.

FERC grants extension to Corpus Christi LNG — LNG Law Blog, Washington, DC

FERC granted an extension Friday to Corpus Christi LNG for construction and operation of its terminal and pipeline facilities. Cheniere Energy subsidiary Corpus Christi LNG LP cited LNG market conditions, including delays of liquefaction projects around the world, in its application for the extension of time.

US LNG imports fall to 24.2 Bcf in March, PanEurasian says — Platts

Prices in Asian markets have been as high as $18 this year for LNG from sources that would normally send LNG to the US, PanEurasian said.

US summer LNG requirements up in air after quiet winter: analyst — Platts

On March 3, Pan EurAsian said US imports of LNG in February were the lowest for any February in the last four years. [Red emphasis added.] (Mar 28)

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30 March 2008

LNGTSS White Paper -- LNG safety & need: NEPA & states trump FERC — Quoddy Google Group

Since the Energy Policy Act of 2005, what has existed is a heretofore- unrealized balance of power between states and FERC. States have authority that they haven't realized -- a power that can be used when appropriate to deny LNG facilities that threaten human safety. (Mar 28)

Webmaster's Comments: A "white paper" is a statement of policy.

Re: Altered Weaver Cove LNG plan still ignites opposition — LNGsafety Yahoo Group

This is the same absurd approach proposed by Quoddy Bay LNG in eastern Maine and reveals similar evidence of poor site selection and desperate, unschooled thinking.

One has to wonder if Mr. Shearer is driven not by a lust for LNG, but a vendetta against the Fall River residents and their elected representative who have so steadfastly opposed his misguided plans.

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28 March 2008

An LNG Terminal Siting Standards Organization white paper — The Maritime Executive, Fort Lauderdale, FL

Since the Energy Policy Act of 2005, what has existed is a heretofore-unrealized balance of power between states and FERC. States have authority that they haven’t realized -- a power that can be used when appropriate to deny LNG facilities that threaten human safety. (Mar 27)

Advocates say NEPA, states trump FERC on LNG safety issues — Energy Current, Houston, TX

LNGTSS concludes that, prior to subjecting citizens, communities, states and the federal government to effort and great expense on projects that may be superfluous or even harmful, FERC should be required by Congress to recognize and respect these same issues. "It's time for the public to demand that their federal delegates require FERC to act responsibly regarding need and safety, and to adopt SIGTTO LNG terminal siting standards."

LNGTSS is an advocacy group based in Maine that promotes the position that governments should require the existing SIGTTO LNG terminal siting standards be held as the minimum threshold for local, state/province, and federal application consideration.

SIGTTO is a London-based international body established for the exchange of technical information and experience, between members of the industry, to enhance the safety and operational reliability of gas tankers and terminals. The Society publishes studies and produces information papers and works of reference for the guidance of industry members. It maintains working relationships with other industry bodies, governmental and intergovernmental agencies, including IMO, to better promote the safety and integrity of gas transportation and storage schemes. [Red emphasis added.] (Mar 27)

Energy Current: FERC doesn't have last word on LNG terminal safety — California LNG News, Google Groups

[California LNG News Editor's note: This article is from the Energy Current news site. While it discusses FERC, the Federal Energy Regulatory Commission, it does not address the two offshore LNG projects off California that are under the jurisdiction of the U.S. Commerce Department's Maritime Administration. The same points apply, however.] (Mar 27)

What will power Maine? — Bangor Daily News, Bangor, ME

Glenn Poole, manufacturing support manager at Verso Paper, said he and Bucksport Energy pay a lot more for natural gas than other states. He said he also is in favor of the LNG terminals proposed in Washington County.

Dean Girdis, president of Downeast LNG, said an increased supply of natural gas is the easiest short-term response to energy demands. Regional demand for natural gas is the major reason for his decision to propose a terminal in Robbinston, he said.

Webmaster's Comments: What the article, Verso Paper, and Dean Girdis want the reader to overlook is that demand will already be met by the three already-permitted new LNG facilities: Northeast Energy Bridge off Gloucester, MA, that is ready to accept its first cargo; Canaport in Saint John, NB, that will receive its first cargo around the end of 2008; and Suez LNG terminal off Gloucester, MA, that will receive its first cargo near the end of 2009.

Downeast LNG, Quoddy Bay LNG, and Calais LNG have all been badly beaten in the race to supply LNG to the Northeast — so badly beaten that they had lost before they entered the race. In 2005, FERC Chairman Pat Wood stated that only 7–9 new LNG terminals would be needed, plus expansions. Currently, there are 31 terminals and peak shaving facilities either in operation, under construction or expansion, or permitted. LNG import capability, in operation or about to be, is already way over US market requirements.

And, of course, the proposed projects on Passamaquoddy Bay violate the LNG industry's own terminal siting standards. (See SIGTTO.)

Alternate plan floated for LNG terminal — AP, Yahoo Finance

Hess LNG Unit Floats Alternate Plan for Offshore Fall River Berth

Under the new plan, a berthing structure would be built in Mount Hope Bay about a mile from the nearest shore and two miles south of the Braga Bridge.

A four-mile LNG pipeline would be buried in a trench beneath portions of Mount Hope Bay and Taunton River leading to an LNG storage and processing terminal located on the banks of the river.

Advocates, elected officials and local residents were unimpressed with the new plan.

Webmaster's Comments: Shades of Quoddy Bay LNG's cryogenic Perry-to-Robbinston plan.

Hess Energy fails to understand that even their new proposed berth violates SIGTTO standards for LNG terminal siting.

Weaver’s Cove offers new plan — The Providence Journal, Providence, RI

The company said it will soon file the plan with federal energy regulators in the hopes that it will be better received than its widely opposed plan to build an LNG terminal in Fall River.

The Weaver’s Cove proposal to build the Fall River LNG terminal was conditionally approved by the Federal Energy Regulatory Commission in 2005, despite widespread opposition from elected officials in Rhode Island and Massachusetts, as well as citizens groups and residents near the proposed facility. But the proposal met a major setback when the U.S. Coast Guard found that it was too risky to allow LNG tankers to traverse parts of the Taunton River because of two bridges that are close together. (Mar 27)

Taking of marine mammals incidental to specified activities; Operation of an LNG facility in Massachusetts Bay — Trading Markets, Sherman Oaks, CA

An authorization shall be granted if NMFS finds that the taking will have a negligible impact on the species or stock(s) and will not have an unmitigable adverse impact on the availability of the species or stock(s) for certain subsistence uses, and if the permissible methods of taking and requirements pertaining to the mitigation, monitoring and reporting of such takings are set forth. NMFS has defined "negligible impact" in 50 CFR 216.103 as "...an impact resulting from the specified activity that cannot be reasonably expected to, and is not reasonably likely to, adversely affect the species or stock through effects on annual rates of recruitment or survival."(i) any act that injures or has the significant potential to injure a marine mammal or marine mammal stock in the wild [Level A harassment]; or (ii) any act that disturbs or is likely to disturb a marine mammal or marine mammal stock in the wild by causing disruption of natural behavioral patterns, including, but not limited to, migration, surfacing, nursing, breeding, feeding, or sheltering, to a point where such behavioral patterns are abandoned or significantly altered [Level B harassment]. (Mar 27)

Chesapeake Energy puts Louisiana gas find at 7.5 Tcfe to 20 Tcfe — Platts

US producer Chesapeake Energy Tuesday put the potential size of its new natural gas discovery in the Haynesville Shale in northern Louisiana at 7.5 Tcf-equivalent-20 Tcfe and said it has identified five unconventional oil plays in four US states that could provide the company with up to 1 billion barrels of crude. (Mar 27)

Sabine Pass cool down LNG cargo en route — Energy Current, Houston, TX

NIGERIA/USA/GULF OF MEXICO: Cheniere Energy, Inc. reports that the LNG carrier Celestine River vessel has departed from the Nigeria LNG terminal at Bonny Island with the first cargo of liquefied natural gas destined for the Sabine Pass LNG terminal.

The vessel is expected to arrive around April 12 and deliver the cargo for Sabine Pass's "cool down" process, which will cool the terminal to its normal operating temperature.

Sabine Pass LNG will be the largest LNG receiving terminal in North America by regasification capacity at 4 Bcf/d and will have 16.8 Bcf of LNG storage capacity with two berths capable of handling the largest LNG vessels.  It is located in Cameron Parish, Louisiana, on 853 acres of land remote from dense population centers and only 3.7 miles (5.9 km) from the open waters of the Gulf of Mexico.  (Mar 27)

Cheniere says first LNG cargo to Sabine Pass terminal has sailed — Platts

The Sabine Pass LNG terminal has capacity of 2.6 Bcf/d, but Cheniere plans to expand that to 4.3 Bcf/d by next year, making it the largest LNG receiving terminal in North America. (Mar 27)

LNG terminal appealed — The World, Coos Bay, OR

The opponents of a liquefied natural gas terminal proposed for Coos Bay’s North Spit have offered three reasons to overturn the project’s land-use application.

Asian spot LNG finds support at $14/MMBtu despite end of winter — Platts

Asian buyers hoping for a rapid fall in spot prices with the end of winter have been disappointed by levels that are only slightly below the March level of around $15/MMBtu, sources said.

Webmaster's Comments: Asia continue to out-bid US LNG buyers.

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27 March 2008

LNG safety & need: NEPA & states trump FERC [White paper] — LNG Terminal Siting Standards Organization, Eastport, ME

Since FERC ignores need in its permitting, and fails to adequately protect human environment, states can use the authority provided by NEPA to establish a permitting threshold. If LNG terminal applicants cannot satisfy SIGTTO LNG terminal siting standards, and prove need, then there is an a priori failure to meet NEPA requirements. States can refuse to allow the applicant to enter the permitting process, or can issue a summary decision against the project. [Red emphasis added.] (Mar 26)

Legislators push for $1M in port security — Gloucester Daily Times, Gloucester, MA

Faced with mounting port security costs and a fiscal crunch, Mayor Carolyn Kirk and Massachusetts senators are pushing for $1 million in federal funds to beef up port security for the city, citing a number of threats to the city's safety.

According to the letter, city officials have estimated that costs associated with growing homeland security requirements increase by $1 million each year. [Red & bold emphasis added.]

Hess LNG plans take another hit — The Herald News, Fall River, MA

Fall River — Two offices under the state Department of Environmental Protection have rejected a plan by Weaver’s Cove Energy to build a liquefied natural gas terminal, dredge part of the Taunton River and install a pipeline under the river to deliver gas.

The Bureau of Resource Protection and Wetlands and Waterways Program both issued decisions on March 10 to Weaver’s Cove.

Weaver’s Cove “failed to demonstrate that the project serves a proper public purpose that provides greater benefits than detriments to rights of the public,” Wetlands and Waterways Program Director Lealdon Langley said in the decision. (Mar 24)

Webmaster's Comments: Even though FERC issued a permit for the Weaver's Cove LNG terminal, the Coast Guard has rejected it — and now, two offices of Massachusetts' Department of the Environment have rejected it.

This demonstrates that, despite FERC's bluster to the contrary, state authority trumps FERC.

Supply concerns thwart Cacouna LNG plans — The Globe and Mail, Toronto, ON

OTTAWA -- The partners in the planned $1-billion liquefied natural gas terminal in Gros-Cacouna, Que., are applying the brakes at the project, citing a lack of secure gas supply to feed the plant.

"The critical issue is access to long-term, stable supplies," said analyst Ira Joseph at PIRA Energy consultants in New York. "There are not enough suppliers for all the regasification terminals [being planned] around the world." He said most suppliers are targeting the rapidly growing Asian market, where the price for imported natural gas is about 50 per cent higher than in North America.

Webmaster's Comments: This is simply more evidence of what's going on with the LNG industry: too much import capacity in North America, higher-paying customers in Asia.

FERC Commissioner: Both federal and state authorities play important roles in siting energy projects — LNG Law Blog, Washington, DC

In a statement released with FERC's conditional approval of the Broadwater Energy project, FERC Commissioner Marc Spitzer said that he is "deeply respectful of state jurisdiction."

FERC ignores complaints, gives LNG terminal OK [Editorial] — Stamford Times, Stamford, CT

We just knew it would happen, despite the objections from Connecticut and New York state and the U.S. Coast Guard. [Red & bold emphasis added.]

LNG site OK’d despite shortage — The Providence Journal, Providence, RI

The Federal Energy Regulatory Commission on Thursday approved a liquefied natural gas terminal for Long Island Sound even though the United States will have almost four times more import capacity than it can use by 2012 because of a shortfall in fuel supply, according to a report from consultant PFC Energy.

“This is a very large overbuild,” said Terrell Benke, manager of the upstream oil and gas group at PFC Energy and one of the authors of the report. “You’ve had regasification terminals that were built without dedicated supply behind them.” (Mar 23)

Webmaster's Comments: Like the multiplying brooms in the Sourcer's Apprentice, FERC is approving LNG terminals as fast as it can, regardless of need, safety, or logic.

FERC approves Broadwater LNG project — Marine Log, New York, NY

A yoke mooring system, which will be incorporated in the bow section of Broadwater's FSRU, will moor the FSRU to a fixed tower and allow the FSRU to pivot, or "weathervane," around the tower and to withstand events exceeding 100-year storm conditions.

The project would include eight LNG storage tanks capable of storing the equivalent of 8 Bcf of regasified LNG, a regasification plant and a 21.7 mile long pipeline extending from the LNG terminal to a subsea interconnection with the Iroquois Gas Transmission System which will bring the gas onshore. (Mar 21)

LNG barge approved — Edmonton Journal, Edmonton, AB

Broadwater is "one of the most difficult" liquefied-natural-gas projects in the U.S., Jamie Webster, senior consultant at PFC Energy, said in a March 17 interview.

"We question whether Broadwater will actually be built," he said, noting that pipeline companies are seeking to fill the need for delivering more gas into the region.

Webster also questioned whether TransCanada or Shell have adequate access to liquefied-natural-gas cargo ships to keep the facility operating at sufficient capacity to make it economic. (Mar 21)

Quintana residents maintain dialogue with LNG — The Facts, Clute, TX

Most questions, like if the site’s massive electric fans are noisy, won’t be answered until island residents find out for themselves once the site is up and running, Henry said. [Red emphasis added.] (Mar 26)

Webmaster's Comments: After an LNG terminal is constructed is an exceedingly tardy time for the neighboring public to learn about the problems that the terminal will produce.

First onshore US LNG port in 25 yrs nears startup — Reuters

FREEPORT, Texas, March 25 (Reuters) — Freeport LNG import terminal hopes to receive its first liquefied natural gas cargo by the end of April and be commercially open for business by June 1, officials told a kickoff briefing Tuesday.

Another terminal, 90 miles northeast near Port Arthur, also is very near completion and running a close race with Freeport for startup.

When finished, the two will lead a parade of terminal startups that will double U.S. LNG import capacity in about 18 months. (Mar 25)

Clatsop County voters recall commissioner who supported LNG terminal — The Daily News, Longview, WA

Tuesday's results showed 65 percent of the voters opted to remove Lee, 72, whom recall organizers accused of failing to follow rules on permits and using his position to seek special treatment.

Webmaster's Comments: Like many other proposed LNG projects in the US and Canada, the project sites on the Columbia River were carelessly selected and cannot pass SIGTTO world-class LNG terminal siting standards.

Bradwood Landing LNG terminal moves forward, drawing referendum effort — The Forest Grove News-Times, Forest Grove, OR

Opposition groups aim for September ballot in an effort derail LNG development. (Mar 21)

Onshore gas discovery could lessen U.S. demand for LNG — LNG Law Blog, Washington, DC

Aubrey McClendon, CEO of Chesapeake Energy, told Platts LNG Daily that he believes that Chesapeake's large natural gas discovery in northern Louisiana could lessen demand for LNG imports to the United States. [Red emphasis added.]

NATS: LNG expected to be available for U.S. summer demand — LNG Law Blog, Washington, DC

In its LNG Week in Review, NATS predicts that as winter weather abates in the Northern Hemisphere, LNG demand in Japan, South Korea, and Spain will decline, which will allow some LNG cargos to reach the United States. (Mar 26)

Report: New LNG terminals and other infrastructure projects will change gas flows and prices — LNG Law Blog, Washington, DC

The report predicts that excess pipeline and storage capacity will divert gas from existing pipelines, changing downstream prices, and that LNG imports in the Gulf of Mexico will increase volatility at Henry Hub. [Red emphasis added.] (Mar 26)

North America facing LNG regasification terminal overbuild — PFC Energy, Washington, DC

The east coast of North America is faced with a significant oversupply of LNG import capacity which will persist well into the next decade. PFC Energy forecasts that as new terminals are constructed the capacity will exceed the supply available from producers in the Atlantic Basin and Middle East with a gap between regasification capacity and available LNG as great as 90 mmtpa (4.35 tcf) by 2012. This gap will shrink over the longer term, but by 2017 is still expected to be around 50 mmtpa (2.4 tcf). [Red and bold emphasis added.] (Mar 18)

Parent page to the above article: PFC Energy Press & News

Webmaster's Comments: Too much LNG import capacity. On the East Coast. Downeast LNG, Quoddy Bay LNG, and Calais LNG are fighting reality, wasting money on surplus projects.

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25 March 2008

Groups opposing LNG pipeline — Bangor Daily News, Bangor, ME

The Baileyville Utilities District sent a letter stating that the pipeline route is on wellhead protection land and stands 400 feet closer to a production well than previous proposed routes.

"Baileyville has an excellent water supply and I do not want to see anything happen to it. If something should happen, we have nowhere else to go to get a sufficient supply," Gardner Rolfe, manager of the district, said in the March 13 letter. [Red emphasis added.]

Webmaster's Comments: In addition, since LNG pipeline eminent domain cannot be applied to government property, and since the pipeline would pass beneath the Passamaquoddy Tribe's islands — against their will, as expressed in comments to FERC by Pleasant Point Passamaquoddy Tribal Chief Rick Doyle — it appears that Downeast LNG's takeaway pipeline route option 6 is impossible, and the project is once again without a viable pipeline.

[Grassy Point, Placentia Bay] Environmental protection plan received [News release] — Environment and Conservation, Government of Newfoundland and Labrador

[Grassy Point Liquefied Natural Gas Transshipment Terminal, Newfoundland LNG Limited] has submitted an Environmental Protection Plan (EPP) as required by the Minister of Environment and Conservation as one of the conditions of release from the environmental assessment review on January 19, 2007. Public comments on the EPP must be received by April 23, 2008. (Mar 20)

LI needs LNG guarantees [Editorial] — Newsday, New York, NY

…. Broadwater has been sold to the public on the promise that it would lower prices and fulfill increasing energy demands. Promises aren't enough, however; Paterson needs to get written guarantees. A recent study by a strategic energy firm forecasts that LNG terminals are being overbuilt, and capacity will exceed supply. Such a tight market means that LNG tankers could be diverted to Asia and Europe, where they are more likely to get higher prices. [Red emphasis added.] (Mar 24)

N.Y. State Department of Environmental Conservation files comments on Broadwater FEIS — LNG Law Blog, Washington, DC

The comments are critical of the FEIS' conclusions on the potential aquatic and air quality impacts of the project. (Mar 21)

FERC OKs LNG terminal in Long Island Sound — Reuters

"This decision is an important step forward in bringing new clean, reliable, affordable natural gas supply to a region where prices are volatile and climbing," said John Hritcko, Broadwater Senior Vice President.

Connecticut Attorney General Richard Blumenthal called the terminal an "environmental atrocity" and an "unneeded abomination." He said he would immediately ask FERC to hold a rehearing on its decision and will fight the project all the way to the U.S. Supreme Court, if necessary. (Mar 20)

Webmaster's Comments: There is evidence to the contrary that this terminal will bring natural gas prices down. Additionally, calling natural gas a "clean" fuel is an overstatement.

Connecticut A.G. pledges to appeal FERC decision on Broadwater LNG proposal — LNG Law Blog, Washington, DC

He said in a statement, "I will fight this project at every agency and in every court up to the U.S. Supreme Court, if necessary."

Connecticut AG promises 'all-out' court battle over Broadwater — Platts

Blumenthal said the "fatal flaw" in FERC's order is its "refusal to consider alternatives to Broadwater that would provide more natural gas with less danger to public safety and environmental resources."

…. "I recently wrote New York Gov. David Paterson, urging him to drive a stake through this monster's heart." (Mar 21)

Chairman Joseph T. Kelliher's statement on Broadwater Energy, LLC [Opinion] — Federal Energy Regulatory Commission (FERC), Washington, DC

With respect to LNG terminals, we are first and foremost a safety agency, we do not balance safety against need. But we are not unmindful of the need for additional natural gas supplies in the Northeast. We examine that need in the course of our environmental review under the National Environmental Policy Act or NEPA. Our environmental review shows that without increased natural gas supplies in the region, consumers will experience higher prices and reduced reliability of natural gas supply. That is certainly the case on Long Island and in New York City and Connecticut.

I regret that this proceeding has been so controversial. I respect public opinion, and we have gone to great lengths to respond to the legitimate concerns raised by the public. Doing so has been made more difficult by the attitude of some public officials in the region, who have chosen to exploit and inflame public fears. These public officials have done a great disservice to the citizens in the region, which is regrettable. [Red emphasis added.] (Mar 20)

Webmaster's Comments: FERC Chairman Kelliher made several misstatements in his opinion statement. If FERC is "foremost a safety agency," then why does FERC repeatedly ignore the LNG industry's own terminal siting safety standards that are more conservative than FERC's? (World-class LNG industry SIGTTO terminal siting standards. As SIGTTO states, the LNG industry doesn't want a disaster that would result in the shutdown of the industry — resulting in serious harm to US energy security"Site Selection and Design for LNG Ports and Jetties," SIGTTO, 1997, Witherbys Seamanship International.)

Kelliher's also contradicts his predecessor, FERC Chairman Wood, as well as current LNG industry experts who state that LNG import capacity is now many times greater than needed. In fact — including Broadwater — there are now 31 US LNG terminal and peak-shaving projects that are operating, permitted, or under construction, plus additional terminals in Canada and Mexico that will be providing regasified LNG to the US.

Plus, there is evidence that the availability of more natural gas via LNG will not result in cheaper natural gas prices, due to higher-paying overseas competitors for the gas.

Keliher's statements simply don't stand up to scrutiny.

FERC issues DEIS for Florida LNG storage facility — LNG Law Blog, Washington, DC

Last week FERC issued a Draft Environmental Impact Statement (DEIS) for a peak-shaving facility proposed by Floridian Gas Storage. The proposed facility would have a storage capacity of 4 Bcf.

Puerto Rico's EcoEléctrica LNG seeks to modify original FERC order allowing construction of its LNG terminal — LNG Law Blog, Washington, DC

Specifically, the firm is seeking to use an existing stub natural gas pipeline, located on the facility's property, to deliver gas to the Puerto Rico Electric Power Authority's proposed Gasoducto del Sur pipeline, and to construct an additional LNG vaporization system. (Mar 24)

Governor Palin: Value of Alaska's LNG exports to Japan down substantially in 2007 — LNG Law Blog, Washington, DC

Late last week, Alaska Gov. Sarah Palin (R) announced that … the value of the state's LNG exports from its Kenai LNG liquefaction facility was … down 39.7% from the previous year.

Who can be surprised? [Editorial] — The Daily Astorian, Astoria, OR

Wrote the RG [The Register-Guard of Eugene, OR]: "Free market competition can be a powerful and productive force. But unless it is harnessed to long-range regional energy planning, it can result in duplication, inefficiency and unwarranted environmental costs. Whether Oregon and the Northwest need more natural gas, and how it should be obtained, shouldn't be decided solely by the companies that are proposing the terminals and pipelines. Federal regulators, working closely with the states, should play a central role."

Our county commission's hastiness and its rejection of a thorough staff study and recommendations is an insult to the collective intelligence of this county. Those who push LNG as economic development miss the negative enormity of what this project represents. [Red emphasis added.]

Clatsop County preps for referendum on gas pipeline — Willamette Week, Portland, OR

“The county is already bending backwards to accommodate NorthernStar. This is going too far for a lot of people here. Now we are willing to let them trench across our parks?” says Auerbach, chair of the Northwest Property Rights Group—one of the major backers of a referendum to get the amendment revoked. (Mar 24)

County Dems oppose LNG — The World, Coos Bay, OR

The group opposes the project for several reasons. It noted the Federal Energy Regulatory Commission has failed to provide an independent assessment of the demand for natural gas in the state.

Also, LNG ships would disrupt commercial and recreational fishing and fish habitat would be lost as a result of the construction. Finally, the group suggested the terminal would be a detriment because importing natural gas would not help Oregon meet its goal of having 25 percent of its energy produced by renewable sources by 2025. (Mar 24)

County: Yes to LNG — The Daily Astorian, Astoria, OR

Pandemonium continued as the board struggled to decide how to resolve disagreement between local emergency response agencies and Bradwood Landing project developer NorthernStar Natural Gas Co. on what resources the company should provide to cover the added public safety costs of LNG.

After more than six months of discussion, the company hasn't gotten the agencies to agree to its offers of money and equipment. [Red emphasis added.] (Mar 21)

Sempra Energy's Costa Azul LNG terminal on track to completion — Energy Business Review, London, UK