|
DOE Conditionally Approves Freeport LNG Exports to Non-FTA Nations
|
|
May 17, 2013
Link
|
|
|
Today, the U.S. Department of Energy (DOE) issued an order conditionally granting Freeport LNG Expansion L.P. and FLNG Liquefaction, LLC's application to export up to 1.4 Bcf/day of domestically produced LNG from the Freeport LNG Terminal on Quintana Island, Texas to nations without a Free Trade Agreement with the United States. DOE's authorization is conditioned on the satisfactory completion of the environmental review process at FERC. Read more in the press release.
|
 |
|
Tolling Agreements Signed for Cameron LNG Capacity
|
|
May 17, 2013
Link
|
|
|
Yesterday, GDF SUEZ S.A., Mitsubishi Corporation, and Mitsui & Co., Ltd. announced that they have signed 20-year tolling capacity and joint-venture agreements for development, financing and construction of LNG export facilities at the existing Cameron LNG import terminal in Hackberry, La. The tolling agreements subscribe the full nameplate capacity of the three-train, 13.5 million-tonnes-per-annum (Mtpa) facility that will provide an export capability of 12 Mtpa of LNG, or approximately 1.7 billion cubic feet per day (Bcfd), and the full regasification capacity of 1.5 Bcfd. Each tolling agreement is for 4 Mtpa. The joint-venture agreement calls for affiliates of GDF SUEZ, Mitsubishi (through a related company jointly established with Nippon Yusen Kabushiki Kaisha) and Mitsui each to acquire 16.6-percent equity in the existing facilities and the liquefaction project. A Sempra Energy affiliate will retain 50.2 percent.
|
|
|
|
Golden Pass Products Requests Initiation of FERC Pre-Filing Process for LNG Export Terminal
|
|
May 17, 2013
Link
|
|
|
Golden Pass Products LLC (Golden Pass) and Golden Pass Pipeline LLC have requested that FERC initiate the pre-filing environmental review process for construction of LNG export facilities at Golden Pass's existing LNG import terminal at Port Arthur, Texas. Golden Pass intends to construct three liquefaction trains and related facilities capable of producing a total of 15.6 metric tons of LNG per year and modifications to the existing interconnected pipeline. Copies of the request can be accessed here, and the complete docket for the Golden Pass project can be found on eLibrary by searching for Docket No. PF13-14.
|
|
|
|
Moniz Confirmed as DOE Secretary
|
|
May 17, 2013
Link
|
|
|
Law360 reports that the U.S. Senate yesterday confirmed Ernest Moniz as the new Secretary of the U.S. Department of Energy (DOE). The article states that Moniz supports the deliberative approach to LNG exports taken by former DOE Secretary Chu.
|
|
|
|
New Report Concludes U.S. LNG Exports Will Increase Jobs with Minimal Price Impacts
|
|
May 16, 2013
Link
|
|
|
A new report from ICF International, prepared for the American Petroleum Institute, estimates that increased exports of U.S. LNG will create between 73,100 to 452,300 new domestic jobs between 2016 and 2035. The report projects domestic natural gas price increases of $0.32 to $1.02 per MMBtu and U.S. GDP growth between $15.6 to $73.6 billion annually during the same time period due to the increased LNG exports. Read more in the press release.
|
|
|
|
Mexico Pays Near Asian Prices for Spot LNG Cargoes
|
|
May 14, 2013
Link
|
|
|
According to articles in Bloomberg and Reuters, due to increased gas demand that could not be met by U.S. gas pipeline supplies, Mexico's state-owned electric utility Comision Federal de Electricidad recently entered into contracts for spot LNG cargoes at prices near those paid by Asian nations for LNG. The utility historically purchases U.S. gas pipeline supplies at Henry Hub-linked gas prices, but additional U.S. supplies could not be obtained because U.S. pipeline imports into Mexico are running at capacity.
|
|
|
|
Sierra Club Files Comments Opposing Automatic Approval of U.S. LNG Exports to European Union Nations
|
|
May 14, 2013
Link
|
|
|
Sierra Club recently filed comments with the Office of the United States Trade Representative on the proposed Transatlantic Trade and Investment Partnership opposing, among other things, inclusion of a provision for "national treatment for trade in gas" that would require automatic approval of U.S. LNG exports to European Union nations. Sierra Club argued that such a provision would increase domestic gas prices and result in increased pollution from expanded hydraulic fracturing. Read more in the press release.
|
|
|
|
Indian Company Eyeing Nova Scotia for Possible LNG Export Terminal Site
|
|
May 10, 2013
Link
|
|
|
Reuters reports that Indian company H-Energy has signed an option agreement with the government of Nova Scotia to assess the feasibility of constructing an LNG liquefaction facility and export terminal on the Strait of Canso. The report states that the agreement provides H-Energy with exclusive rights to buy the site if feasibility studies prove satisfactory.
|
|
|
|
Commercial Framework Agreement Signed for Golden Pass LNG Exports
|
|
May 9, 2013
Link
|
|
|
Golden Pass Products LLC announced today that affiliates Qatar Petroleum International and ExxonMobil have signed a Commercial Framework Agreement to sell up to the full 15.6 million metric ton annual output of the proposed liquefaction and export terminal project to be located at Golden Pass Products' existing import terminal in Sabine Pass, Texas. The agreement also provides shipping and sales opportunities to existing and new markets, including leveraging the sponsors' long-term arrangements for international imports via the United Kingdom's South Hook facility.
|
|
|
|
House Panel Hears Testimony Supporting LNG Exports
|
|
May 7, 2013
Link
|
|
|
The U.S. House of Representatives Subcommittee on Energy and Power held a hearing today on "U.S. Energy Abundance: Exports and the Changing Global Energy Landscape," focusing on LNG exports. Witnesses testified in support of LNG exports, with one witness advocating efforts to address increased greenhouse gas emissions related to increased LNG exports. Testimony from the hearing can be found here.
|
|
|
|
Japan Continues Push for U.S. LNG Supplies
|
|
May 7, 2013
Link
|
|
|
The Japan Times reports that Japanese Trade Minister Toshimitsu Motegi met with U.S. Department of Energy (DOE) Acting Energy Secretary Daniel Poneman in Washington last week to request U.S. government approval of LNG exports to Japan. According to the report, Poneman told Motegi that he fully recognizes that access to U.S. LNG supplies is an urgent issue for Japan, which does not have a Free Trade Agreement with the United States providing for automatic approval of LNG exports, and that DOE will examine each LNG export project under federal law. Motegi took Poneman's remarks as "very positive."
|
|
|
|
CEAA Seeks Comments on Environmental Review for Prince Rupert LNG Project
|
|
May 7, 2013
Link
|
|
|
The Canadian Environmental Assessment Agency (CEAA) is seeking comments on whether a federal environmental assessment is required for BG Group affiliate Prince Rupert LNG Limited’s proposed LNG export project (Project). The Project involves construction of an LNG liquefaction plant and export terminal on Ridley Island at the Port of Prince Rupert in British Columbia. Comments are due by May 27, 2013. Read more in the Public Notice.
|
|
|
|
Dominion Cove Point LNG Certificate Application Raises Protests from Shippers and Environmental Groups
|
|
May 7, 2013
Link
|
|
|
|
Shell NA LNG LLC (Shell) and BP Energy Company (BP) filed protests against Dominion Cove Point LNG's (Cove Point) FERC application to construct LNG liquefaction and export facilities at its existing LNG import terminal in Lusby, Md. Shell alleges that Cove Point has not demonstrated (1) that the proposed export project will not degrade the services that Shell currently takes from Cove Point, and (2) that existing customers will not subsidize the costs of the export project. BP alleges unduly preferential conduct stating that Cove Point provided its existing customer Statoil Natural Gas LLC with a unique opportunity to turn back its import capacity, while BP was not offered such an opportunity. BP also protested Cove Point's proposed tariff revisions and requested that FERC require Cove Point to resubmit the tariff proposal after FERC has cured BP’s discrimination allegation. Shell's protest can be found here and BP's protest can be found here.
A coalition of environmental groups, including EarthReports, Inc. (dba Patuxent Riverkeeper), Potomac Riverkeeper, Inc., Shenandoah Riverkeeper, Sierra Club, and Stewards of the Lower Susquehanna, Inc., also filed comments opposing the export project, alleging that approval will increase industrial activity and pollution in impaired waters, sensitive wetlands, and intact forest in Maryland and Virginia, and will induce upstream gas production and associated pollution in shale gas regions to the north. The groups asked FERC to prepare a comprehensive environmental impact statement for the project. The comments can be found here. The complete docket for the Cove Point project can be found on eLibrary by searching for Docket No. CP13-113.
|
|
|
|
Study Finds Small Businesses Will Benefit from U.S. LNG Exports
|
|
May 6, 2013
Link
|
|
|
A new study released by the Small Business & Entrepreneurship Council found that small U.S. businesses in the energy sector experienced job growth in recent years due to increased oil and gas production, and that increased LNG exports will continue to expand job growth for such companies. Read more in the press release.
|
|
|
|
Articles Predict Obama Will Support Increased LNG Exports
|
|
May 6, 2013
Link
|
|
|
Articles in the Financial Times [subscription required] and Reuters report that President Obama will likely support increased exports of U.S. LNG supplies. The articles cite statements made by the President during a tour of Central America that the United States would likely be a net gas exporter within the coming years and that Central America could benefit from U.S. gas supplies.
|