*9* of 11 US LNG Import Terminals Have Applied to Export
What Is It About the Natural Gas Marketplace
That Downeast LNG Doesn't 'Get'?
[Red bold emphasis added.]
LNG adrift at sea — Forbes
Remember LNG, or liquefied natural gas? Well, it’s still around even though it has been overshadowed by its cousin, shale gas.
U.S. companies with heavy investments in LNG must therefore re-invent themselves. And that is turning out to be a more challenging proposition than they had figured. It’s not just some of the local communities that are skeptical. It’s also America’s top industrial concerns that are dependent on natural gas and that want domestically-produced shale to stay right here so prices remain low.
[T]he most vocal opponents of taking that shale and shipping it overseas are the large manufacturers such as Dow and DuPont, which say that it will drive up natural gas prices and hurt their ability to compete. And with natural gas prices now at $3 per million BTUs and with forecasts not much higher, those businesses are on the front lines. Asia, for example, is paying much higher prices at around $18 for the same unit while Europe is spending about $12.
Of the nation’s 11 LNG receiving facilities, 9 have asked for permission to have them converted to export terminals.
US on brink of strong oil, gas growth, Senate panel told — Oil & Gas Journal
EIA’s initial 2012 AEO also projects that the US will become a net exporter of LNG by 2016, a net exporter of gas by pipeline by 2025, and an overall net exporter of gas by 2021, he said in his written statement. “The outlook reflects increased use of LNG in markets outside of North America, strong domestic gas production, reduced pipeline imports and increased pipeline exports, and relatively low gas prices in the United States compared to other global markets,” Gruenspecht said.
“With increasing supplies, gas prices in the United States are down,” observed a fourth witness, Richard H. Jones, deputy executive director of the Paris-based International Energy Agency.
“There are several other shale areas that are just starting to be drilled, and if those prove as prolific, then our [production] forecast is likely to be raised,” he added.
World's largest LNG buyer signs up for US natgas — Business Recorder, Pakistan
South Korea's Kogas, the world's largest single buyer of liquefied natural gas, will purchase US natural gas from Cheniere Energy's proposed Sabine Pass export plant in Louisiana by 2017 under a 20-year deal announced Monday.
Soon consumers across the globe could be burning natural gas from the United States, where supply continues to outstrip demand.
Record natural gas production due to the prolific development of shale deposits across the United States has left the country with decades of supply, but has pushed prices way below global levels.
Shale gas the place to be — Financial Post, Dons Mill, ON
[T]he U.S. sees shale gas as a major contributor to its goal of energy independence and will encourage its use even if fossil-fuel critics don’t like it, while adopting strict regulation to ensure it’s produced safely.
But the discovery of a century’s worth of shale gas on the continent has resulted in a glut in supplies that has sunk prices to the US$2.70 per thousand cubic feet range, far below the US$5 to US$7 level required in North America to produce the resource economically. Companies like Chesapeake Energy Corp. and ConocoPhillips are shutting in gas wells. Encana may announce similar plans when it gives its year-end results on Feb. 17.
Souki: Cheniere may look to expand exports — UpstreamOnline
Cheniere chief executive Charif Souki told Reuters that if the company indeed goes ahead with the four-train Sabine Pass facility – which is still pending regulatory approval and a final investment decision – the company may consider adding another two trains.
The company is also lining up customers for another proposed facility in Corpus Christi, Texas, Souki told the news wire.
Update 2-Cheniere eyes expansion after KOGAS LNG deal — (Reuters) London Southeast, London, England, UK
It ... shows the huge turnaround in the U.S. gas market prompted by new technologies that have unlocked vast reserves of natural gas in shale deposits, evaporated import needs and turned the United States into a potentially major exporter. Sabine Pass was originally built in 2008 to import LNG.
Korea Gas to buy U.S. LNG as gas slump attracts Asian importers — Bloomberg Businessweek
Asia accounts for more than 60 percent of global LNG demand and buyers are turning to North America, where record production from shale deposits has driven down U.S. prices. GAIL India Ltd. last month became the first Asian buyer of U.S. LNG at Henry Hub prices, weakening a 40-year-old oil-link currently used to price long-term supplies in Asia.
“More and more Asian buyers will look to buy LNG from the U.S., that will be their first choice because it’s cheaper,” said Osamu Fujisawa, an independent energy economist in Tokyo. “As more companies get U.S. LNG, Asia’s link to oil will start weakening over the years.”
Sierra Club submits comments on EA prepared for Sabine Pass LNG Liquefaction project — LNG Law Blog
Late last week, the Sierra Club submitted comments regarding FERC's Environmental Assessment (EA) prepared for the Sabine Pass LNG liquefaction project. The comments criticize the EA, stating that the document does not consider secondary and tertiary environmental impacts, such as rising natural gas prices inducing more coal-fired electricity generation.
LNG exports present policy, political challenges for U.S. regulators — LNG Law Blog
In an analysis offered by Platts LNG Daily [subscription required], several members of the LNG industry expressed concern over whether the U.S. Department of Energy (DOE) might revoke LNG export authority even after authorizing exports. The industry participants noted that portions of DOE's authorization of LNG exports from the Sabine Pass LNG facility suggest that DOE may assert authority to rescind an LNG export permit under the Natural Gas Act.
Separately, Platts LNG Daily also reports that an industry analyst with BP views the issues surrounding U.S. LNG exports as political, not economic, challenges. [Subscription required]
U.S. LNG exports may impact Chevron’s Australian gas pricing — Trefis, Boston, MA
American gas companies have managed to snap up two Liquefied Natural Gas (LNG) supply contracts with Asian players over the last two months on contracts that link prices to the U.S. benchmark known as the Henry Hub. Analysts at Bank of America believe that increasing gas exports from the U.S. could impact oil majors like Chevron that are developing multi-billion dollar LNG projects in Australia, targeting future demand from Asian countries. LNG prices in Asia are linked to crude prices. Sourcing cheaper gas from the U.S. could potentially weaken the 40 year old pricing standard in Asia, delaying LNG projects in Australia. ConocoPhillips and Exxon Mobi are also involved in LNG projects to target demand from countries like Japan, China and India.
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After 11 years in office, John Craig will not seek re-election to Saint Andrews council.
The issue with the fight against the establishment of LNG facilities in Passamaquoddy Bay was a surprise, he said, and it has taken a lot of council's time but he is hoping this is now dead with so much shale gas available.
"We had one of the biggest public meetings ever over that and filled the arena with more than a thousand people. I remember (Coun.) Mike Craig saying this is the most important issue because if we don't win this, nothing else matters.
"It took a lot of time, energy and money to fight that and thank goodness for Save Passamaquoddy Bay ended up picking up the ball for that instead of council.
"They are the ones that stayed on top of it. Thank goodness for [Save Passamaquoddy Bay-U.S.]. They are the real heroes because the people on the Canadian side were all against it whereas on the U.S. side they were not all opposed. I think the issue is dead but it is something that should be kept an eye on."
Save Passamaquoddy Bay is exceedingly thankful to Mayor Craig for his ardent support in fighting the local LNG proposals.
Mayor Craig coordinated the Canadian municipal governments around Passamaquoddy Bay in opposing the three local LNG proposals. Then, he enlisted the Federation of Canadian Municipalities.
The success of the 2005 August 22nd St. Andrews LNG Forum still impresses the memory with Mayor Craig leading the crowd in chanting "No means no!" to LNG.
On 2006 January 1, Mayor Craig presented the Mayor's 2006 "Volunteer Group of the Year Award" to Save Passamaquoddy Bay 3-Nation Alliance, for which we are all proud and grateful.
In his civilian vocation, John Craig owns the Fresh Mart grocery store in Blacks Harbour, NB.
Our thanks goes to our friend, and we wish him a prosperous future.