PHMSA Approves Cove Point LNG Design Spill Criteria

The Pipeline and Hazardous Materials Safety Administration (PHMSA) sent a letter to FERC stating that it has no objection to Dominion Cove Point LNG’s (DCP) methodology for determining candidate design spills used to identify credible leakage scenarios and establish the siting for its proposed LNG export plant facilities, as required by PHMSA regulations.  PHMSA’s letter can be found here, and the complete docket for DCP’s proposed LNG export terminal can be found on eLibrary under Docket No. CP13-113.

Japanese Utilities to Invest $1.2 Billion In Freeport LNG Train 1

Bloomberg reports that Osaka Gas Company (Osaka) and Chubu Electric Power Company (Chubu) will each invest $600 million for their own 25% in shares of liquefaction Train 1 at Freeport LNG’s proposed export terminal near Freeport, Texas.  Train 1 is designed to produce 4.4 million metric tons of LNG per year starting in 2018.  Osaka and Chubu previously entered into tolling agreements covering 100% of the of the Train 1 liquefaction capacity.

DOE Approves ConocoPhillips Alaska and Annova LNG Applications to Export LNG to FTA Nations

The U.S. Department of Energy (DOE) has approved ConocoPhillips Alaska Natural Gas Corporation’s application to export 40 Bcf of LNG over a two-year period by vessel from the Kenai LNG Facility to nations with a Free Trade Agreement (FTA) with the United States requiring national treatment for trade in natural gas.  DOE’s order can be found here.  DOE will address ConocoPhillips’ application to export LNG to non-FTA nations separately.

DOE has also approved Annova LNG’s application to export 342 Bcf/year of LNG by vessel over a 30-year period from the proposed Annova LNG Terminal in Brownsville, Texas to FTA nations.  DOE’s order can be found here.

Alaska LNG Bill Moves Forward; Has Producer/Pipeline Support

Alaska Native News reports that legislation that would make the State of Alaska a participant in the Alaska LNG project (SB 138) was passed by the Alaska Senate Resources Committee and is now before the Senate Finance Committee.  According to the Juneau Empire, hearings are being held this week and project sponsors ConocoPhillips, BP, ExxonMobil and TransCanada are supportive of the bill and optimistic that the project can succeed.

Apache Seeking Buyers for Share of Proposed Kitimat LNG Project

Bloomberg reports that Apache Corporation is seeking to sell a share of its 50% interest in the proposed Kitimat LNG export terminal project in British Columbia.  Chevron Canada owns the remaining 50% of the project.  The article states that Apache has had serious discussions for the sale with buyers in Asian markets.

Petronas to Sell 25% Stake in Proposed B.C. LNG Terminal

Reuters reported that Malaysian oil company Petronas has agreed to sell an additional 25% share in its affiliate Progress Energy Resources’ Canadian shale gas assets and proposed LNG project. An Economic Times report states that Indian Oil Corporation will purchase a 10% share for $900 million, and the remaining 15% may be purchased by an undisclosed Chinese company.  Petronas affiliate Pacific NorthWest LNG has proposed to construct an LNG export terminal project at Prince Rupert, British Columbia.  Read more in The Globe and Mail article.

DOE Approves Delfin LNG Exports to FTA Nations

The U.S. Department of Energy (DOE) has approved Delfin LNG’s (Delfin) application to export, on its own behalf and as agent for others, 657.5 Bcf/year (1.8 Bcf/day) of LNG over a 20-year period to nations with a Free Trade Agreement (FTA) with the United States calling for national treatment for trade in natural gas.  Delfin will export the LNG from a proposed floating LNG terminal located 30 miles offshore Cameron Parish, La. The facility will be a deepwater port subject to the jurisdiction of the U.S. Maritime Administration.  DOE’s order can be found here.

Japanese Concerned With Further Delays On B.C. LNG Tax Details

The Globe and Mail reports that Keisuke Tsujimoto, the Vancouver-based manager for the Japan Oil, Gas and Metals National Corp., a branch of Japan’s energy ministry, has expressed concerns with the British Columbia (B.C.) Government’s plans to develop an LNG industry.  Mr. Tsujimoto’s reservations arise from the announcement that while enough information on the proposed LNG tax should be available by Fall 2014 to allow companies to make final investment decisions on LNG projects, the actual tax code may not be finalized until the Spring of 2015.  The article quotes Mr. Tsujimoto as stating “[i]f the tax is delayed, the B.C. government may lose this big opportunity for energy infrastructure. It needs to happen this fall.”  He also voiced concerns with possible labor shortages and environmental regulations.

Article Discusses Risks and Rewards of State Participation in Alaska LNG Project

An article in the Alaska Journal of Commerce discusses the benefits and risks of Alaska’s participation in the Alaska LNG project.  Benefits include up to $3 billion/year in new revenues; risks include increased construction costs, a drop in gas prices so as to make the project uneconomical, and risks related to take-or-pay contracts.

Canadian National Energy Board Approves Jordan Cove LNG Gas Export License

Yesterday, the National Energy Board of Canada issued an order approving Jordan Cove LNG L.P.’s application to export 1.55 Bcf/day of natural gas over 25 years from Canada into the United States.  The gas volumes would be transported via existing pipelines that cross the Canada/United States border near Kingsgate and Huntingdon, British Columbia.  Jordan Cove LNG ultimately intends to export the gas as LNG from its proposed terminal at the Port of Coos Bay, Ore.  Issuance of the gas export license is subject to approval by the Governor in Council.  Read more in the press release.