Report Projects Significant Spending for LNG Terminal Construction

The American Press reports that economic projections indicate construction spending will remain strong in Calcasieu Parish, La., due in part to the anticipated development of several LNG import terminals.  The H.C. Drew Center for Economic Development estimates that construction costs may reach $1.5 billion for the development of three FERC-approved facilities, with an additional $2.4 billion possible if three more terminals go forward.  

Mexico Evaluates Potential Contract for Peruvian Natural Gas

People’s Daily Online reports that Mexico’s Federal Electricity Commission is contemplating a 25-year, 500 MMcf/d natural gas supply contract with Peru LNG for an estimated $25 billion. Peruvian officials plan to discuss the potential deal with Mexican Foreign Minister Luis Derbez during a visit beginning today. 

Lynn City Council Members Tour KeySpan Storage Facility After Intrusion

Lynn City Council members visited KeySpan’s LNG storage facility Tuesday night, nearly two weeks after two intruders entered the premises and scaled a tank. KeySpan officials were on hand to answer questions from the councilors, but were requested to appear at a September 12 City Council meeting to discuss what measures the company has taken to prevent another security lapse. The Daily Item has the story.

Exxon Seeks Local Contractors for Golden Pass

The Beaumont Enterprise reports that ExxonMobil is working to hire local vendors, suppliers and subcontractors for construction of its Golden Pass LNG terminal in Sabine, Texas. Exxon’s primary contractor, Chicago Bridge & Iron Co., met earlier this week with local contractors and minority businesses. According to the vice president of project development, site work is underway and dredging for the berths will begin shortly. [News article no longer available]

Crown Landing: Timing of FERC Decision Appropriate

In letter dated August 30, 2006, Crown Landing LLC urges FERC to disregard Delaware’s contention that FERC may not grant conditional authorization to site, construct, and operate an LNG terminal “until a state has acted under its CZMA and CAA delegated federal authority.” Conditions contained within FERC’s approval of the Crown Landing terminal “withhold authorization to conduct activity until CZMA and CAA requirements are met, thereby complying with the requirements of those statutes,” the company writes. Letters from Crown Landing, the State of Delaware, and DNREC may be found in the FERC e-Library in Docket No. CP04-411.

WGI Reports on Status of U.S. LNG Terminals

World Gas Intelligence today reports on the LNG terminals proposed for the United States that failed to materialize and the few that are still on track. For instance, oil majors ExxonMobil and BP scrapped their respective proposals in Texas due to other commitments and “business decisions.” The article highlights the success of independent LNG developers such as Cheniere Energy and Freeport LNG, but at least one analyst cautions that once supply contracts expire, it may be difficult for the independent terminal developers to secure short-term spot market deals due to the limited amount of uncommitted LNG. [Subscription required]

PGW Still Going Forward With LNG Project

Citing a “fiduciary obligation to the ratepayers,” David Griesing, Philadelphia Gas Works’ vice president of strategic planning, says the company is still pursuing plans to construct its Freedom Energy Center LNG terminal in Philadelphia despite failed negotiations with Hess LNG in March.  During a July 26 Philadelphia Gas Commission budget proceeding, Griesing said that last year’s supply interruptions in the Gulf of Mexico and decreased natural gas production abroad led PGW to believe “it’s still early enough in the game” to consider the project. According to the Philadelphia Weekly, PGW is also weighing alternatives for its existing storage tanks in Port Richmond, such as barging LNG to the tanks from Northeast terminals like Dominion’s Cove Point LNG facility.

Residents Express Concerns About Proposed Calhoun LNG Terminal

Concerned residents met with FERC officials and Calhoun LNG representatives on Thursday to discuss the potential impacts that the proposed LNG terminal in Port Lavaca, Texas, may have on public safety, local real estate values, and the environment. Some attendees expressed concern that foreign workers who may be hired for the project may pose a terrorist threat. The Port Lavaca Wave provides local coverage of the meeting.

Op-ed Discusses Bradwood Landing Meeting

According to an Oregon resident, the Oregon Department of Transportation stated at an August 3 meeting on Bradwood Landing that the Astoria Bridge would remain open while LNG vessels traveled to the terminal.  The Daily Astorian carries the opinion piece, which praises the meeting and notes the “historical safety of LNG shipping.”

Homeland Security Drill to Involve Everett LNG Terminal

Federal and Massachusetts state law enforcement officials and emergency response personnel on September 17 will participate in a homeland security drill that will test their preparedness for multiple terrorist attacks. Dubbed “Operation Poseidon,” the emergency response drill will focus on multiple incidents in and around Everett, Mass., including a scenario in which “evidence suggest[s] that the Distrigas facility and an LNG tanker in Everett have been targeted by terrorists.” Julie Vitek, a Distrigas spokesperson, emphasized the company’s ongoing commitment to working with local, state, and federal officials to ensure that LNG is transported safely. Today’s edition of The Boston Globe has the story. [Free registration necessary]