Tag Archives: LNG

Spectra CEO Greg Ebel excuses for lack of methane pipeline delivery

How does Spectra’s northern cold snap excuse for fracked gas apply to Florida, the target for the Sabal Trail, Hillabee, and Florida Southeast Connection methane pipelines? And if Spectra CEO Greg Ebel gets his wish to export gas, which T. Boone Pickens already explained will drive up domestic prices, how will higher gas prices help northern cities? Maybe Spectra’s pipelines aren’t for warming up cold houses; maybe they’re for corporate profit at the expense of landowners, taxpayers, ratepayers, and all those “natural” gas bus riders who will be surprised when their fares go up. Maybe we should stop the Sabal Trail pipeline and see if the fracking house of cards falls apart.

Jonathan Fahey wrote for AP 10 March 2014, Natural gas industry struggles to keep promises,

There’s plenty of natural gas in the ground, everyone seems to agree. But the harsh weather this winter shows there are obstacles to producing it, and more pipelines have to be built.

The bitter temperatures boosted demand for natural gas to heat homes and businesses. But wells in some places literally froze, making it difficult for some drillers to keep gas flowing. And the high demand clogged pipelines, so even when there was enough production, the gas couldn’t get where it needed to go.

Shortages cropped up, and prices in some places soared to record levels. Californians and Texans were asked to reduce their power consumption because utilities were running low on gas to run power plants. Montana State University in Billings had to cancel classes for a day because of a natural gas shortage.

Jim Fuquay amplified that chilly northern point for the Fort Worth Star-Telegram 11 March 2014:

Prices in New England briefly spiked to record levels. Californians were asked to reduce their power consumption because utilities were running low on gas to run power plants.

If the problem is cold weather in the north, why does Spectra want to build a pipeline to sunny Florida?

Curiously, the Star-Telegram omitted this point from the AP story; I’ve emphasized the redacted point: Continue reading Spectra CEO Greg Ebel excuses for lack of methane pipeline delivery

Turtle Bayou Gas Storage Company Denied by FERC

This is the denied application Kevin Bowman gave me, and that John Peconom also gave me:

Turtle Bayou Gas Storage Company, LLC Docket No. CP10-481-000

ORDER DENYING APPLICATION FOR CERTIFICATE AUTHORIZATIONS
(Issued June 16, 2011)
1. On August 9, 2010, Turtle Bayou Gas Storage Company, LLC (Turtle Bayou) filed an application in Docket No. CP10-481-000 under section 7(c) of the Natural Gas Act (NGA),1 requesting a certificate of public convenience and necessity under Part 157, Subpart A, of the Commission’s regulations2 authorizing the construction and operation of a salt dome natural gas storage facility and associated pipeline facilities in Chambers and Liberty Counties, Texas. In addition, Turtle Bayou seeks a blanket certificate under Part 157, Subpart F, of the Commission’s regulations to engage in certain eligible construction activities3 and a blanket certificate under Part 284, Subpart G, of the regulations to provide open-access transportation services, including storage service.4 Turtle Bayou also requests authority to charge market-based rates for its storage services, and accordingly seeks a waiver of certain filing, accounting, and reporting requirements. As discussed below, the Commission denies Turtle Bayou’s application for the requested certificate authorizations.

1 15 U.S.C. ยง 717f(c) (2006).

2 18 C.F.R. Part 157 (2011).

3 Id.

4 18 C.F.R. Part 284 (2011).

There’s also this: Continue reading Turtle Bayou Gas Storage Company Denied by FERC

Keyspan LNG and Algonquin Pipeline denied by FERC

This is the denied application that John Peconom gave me:

KeySpan LNG, L.P. and Algonquin Gas Transmission LLC

KeySpan LNG, L.P. Docket Nos. CP04-223-000 and
CP04-293-000
Algonquin Gas Transmission LLC Docket No. CP04-358-000
ORDER DENYING AUTHORIZATION UNDER SECTION 3
AND DISMISSING CERTIFICATE APPLICATION
(Issued July 5, 2005)
  1. In this proceeding, KeySpan LNG, L.P. (KeySpan) requests authority under section3 of the Natural Gas Act to site, construct, and operate a liquefied natural gas (LNG) terminal at its existing LNG storage facility in the City of Providence, Rhode Island.1 In a related application, Algonquin Gas Transmission LLC (Algonquin) requests authority under section 7(c) of the Natural Gas Act to construct and operate 1.44 miles of 24-inch diameter pipeline in order to transport natural gas from KeySpan’s proposed terminal to Algonquin’s existing interstate pipeline system.2
  2. In essence, KeySpan is proposing Continue reading Keyspan LNG and Algonquin Pipeline denied by FERC

Orders Denying Certificates

Given months to find them, all FERC could come up with for orders denying certificates was for two liquid natural gas (LNG) facilities. Each did have an associated pipeline request, but neither was for a stand-alone pipeline application. I do thank John Peconom and Kevin Bowman for providing these documents. However, really, is this all there is?

I asked John Peconom of FERC for a list of denied pipeline applications at the Moultrie makeup Sabal Trail Open House 27 January 2014, and again after the Valdosta FERC Scoping Meeting 4 March 2014, and each time Peconom said he would get me a list, including the actual orders denying some pipelines. At the Moultrie FERC Scoping Meeting 5 March 2014, I pointed out to the hundred-or-so attendees that I still hadn’t gotten a list.

After the Moultrie meeting, Kevin Bowman of FERC gave me a slip of paper with this written on it:

Turtle Bayou Gas
CP10-481-000
June 2011

See separate post.

Then John Peconom of FERC sent me an email message with these two links in it: Continue reading Orders Denying Certificates

Spectra CEO expects to export fracked gas

We don’t have to guess that Spectra wants to export from the Gulf; Spectra CEO Greg Ebel says so, and Spectra has already started development on an export pipeline in the other place he named at the same time.

Mike Lee wrote for Bloomberg 17 January 2012, Spectra Expects to Be Involved in North American LNG Exports,

Spectra, based in Houston, owns pipelines that carry gas along the U.S. Gulf of Mexico and from fields in British Columbia, two areas where export terminals have been proposed, Ebel said in an interview at Bloomberg headquarters in New York today.

Cheniere Energy Inc. (LNG) is exploring multibillion-dollar projects to convert import terminals in Louisiana and Texas to liquefy and export gas. Apache Corp. (APA), EOG Resources Inc. (EOG) and Encana Corp. have proposed a liquefied natural gas export terminal at Kitimat on Canada’s West Coast.

“Our pipelines go right by all those facilities, really,” Ebel said. “You’ll probably see three to six of those get built. I would expect we’ll have some involvement in all of them.”

And, once again, this has nothing to do with any alleged energy need by Florida; it’s all about Continue reading Spectra CEO expects to export fracked gas

Authority to Import and Export Gas by U.S. Department of Energy

Here’s a new way “entitled” fracking fossil fuel companies have gamed the system for LNG exports, currently to “Free Trade Agreement nations”, which will probably include India and China if the Trans-Pacific Parternship (TPP) gets approved. Even without exports, methane pipelines are to sell the “large amount of natural gas in the U.S.” produced by “the shale revolution”, which is fracking. The Sabal Trail pipeline isn’t about any alleged energy need in Florida. It’s about profits from fracking at the expense of your land.

Department of Energy notice 6 May 2013, Authority to Import and Export Gas: Constellation Energy Commodities Group Inc., et al.

The Office of Fossil Energy (FE) of the Department of Energy gives notice that during March 2013, it issued orders granting authority to import and export natural gas and liquefied natural gas and vacating prior authority. These orders are summarized in the attached appendix and may be found on the FE Web site at http://www.fossil.energy.gov/programs/gasregulation/authorizations/Orders-2012.html. They are also available for inspection and copying in the Office of Fossil Energy, Office of Natural Gas Regulatory Activities, Docket Room 3E-033, Forrestal Building, 1000 Independence Avenue SW., Washington, DC 20585, (202) 586-9478. The Docket Room is open between the hours of 8:00 a.m. and 4:30 p.m., Monday through Friday, except Federal holidays.

Issued in Washington, DC, on May 6, 2013.
John A. Anderson,
Manager, Natural Gas Regulatory Activities, Office of Oil and Gas Global Security and Supply, Office of Fossil Energy.

That web page includes a list of “DOE/FE Orders Granting Import/Export Authorizations”. The export orders are mostly for export to Canada and Mexico, plus two for “export LNG by vessel” from “the Lake Charles LNG Terminal” and “the proposed Gasfin LNG Export Project in Parish, Louisiana” to “Free Trade Agreement nations.”

Here’s DoE’s list of current NATURAL GAS IMPORT & EXPORT REGULATION – FREE TRADE AGREEMENT (FTA) COUNTRIES AND LNG EXPORTS: Continue reading Authority to Import and Export Gas by U.S. Department of Energy

Farmer and lower income folks are people –James & Tracy Ryder to FERC

Filed with FERC 2 December 2013:

James & Tracy Ryder, Tallahassee, FL.

Sirs:

We have been contacted by Sabal Trail Transmission, LLC regarding their proposed natural gas pipeline. In their contacts with us, they requested permission to survey our property in reference to one of the proposed corridors since we are already encumbered with the SONAT pipeline that run through the middle of our property. We were told that we should sign the consent because they would use eminent domain to access our property against our will if need be. In a public meeting we were told they were putting in a 24″ line that would provide gas to mid and south Florida. We have later learned that they are intending to put in a 36″ line that would not serve Florida, but would provide for exports from Florida. Sabal Trail has not been providing accurate, or clear information to the public regarding these pipeline endeavors. When we asked about alternate corridors, we were told they would not consider the alternate corridor that was originally proposed due to the fact that there were many people impacted.

Seriously, Brooks County may be the home to many a farmer and lower income folks, but I assure they are people and don’t deserve to be exploited for the potential gains in revenue and exportation of our limited natural resources. Continue reading Farmer and lower income folks are people –James & Tracy Ryder to FERC

Stop this rape of the “stakeholders” homes, farms, and lands –Sandra Y Jones to FERC

Filed with FERC 31 December 2013:

Sandra Y Jones, Moultrie, GA.

Sabal Trails Transmission LLC is attempting to install another 36 inch natural gas pipeline which will deliver 1 billion cubic feet of natural gas per day through Alabama, Georgia, and Florida based on a need for more fuel to run a new power plant.

They state this gas line will produce enough power for 4 million homes. They state their Gulfstream line, which they own with Williams Company, delivers 1.26 billion Bcf/day to Florida and that is enough to produce electricity for 4.5 million homes. Florida Gas Transmission sends nearly 3 billion Bcf/day. This line produces enough energy to power 13.5 million homes. This amount of natural gas would collectively produce enough power for twenty-two million homes according to Spectra’s information.

The total population for Florida is 19.32 million and 2.58 persons live in each household. According to the US Census 2012 repost, there are 9,031,051 households in the entire state. Also of interest is that presently only 60% of the power produced in Florida is produced by natural gas.

There is no need for this new pipeline. Sabal Trails is misrepresenting the truth. In a state where there are only 9,031,051 households why Continue reading Stop this rape of the “stakeholders” homes, farms, and lands –Sandra Y Jones to FERC

Solar learns faster than any other energy source –Citi GPS

Just as natural gas has beaten coal in less than five years, solar power is already beating gas, so betting on LNG exports or even fracked methane for domestic power is a bad investment. These are some implications of a new Citi GPS report.

The switch from gas to solar is already happening in Germany and in the U.S., according to Citi GPS in Energy Darwinism: The Evolution of the Energy Industry, October 2013, page 9:

…moreover, solar steals the most valuable part of electricity generation at the peak of the day when prices are highest. This effect has already caused the German utilities to release profit warnings, with some gas power plants in Germany running for less than 10 days in 2012, all of which makes some utilities reluctant to build new gas plants given fears over long term utilisation rates and hence returns.

And not just in Germany; see page 84:

This is not a ‘tomorrow’ story, as we are already seeing utilities altering investment plans, even in the shale-driven U.S., with examples of utilities switching plans for peak-shaving gas plants, and installing solar farms in their stead.

Wind is also beating coal; page 9 again:

Wind is already overshadowing coal in the second quartile. While wind’s intermittency is an issue, with more widespread national adoption it begins to exhibit more baseload characteristics (i.e. it runs more continuously on an aggregated basis). Hence it becomes a viable option, without the risk of low utilisation rates in developed markets, commodity price risk or associated cost of carbon risks.

By no “commodity price risk” they allude to wind requiring no fuel. And that’s also true of solar, as they spell out on page 90: Continue reading Solar learns faster than any other energy source –Citi GPS

FERC Commissioner pushes LNG exports to House Subcommitee

Commissioner Tony Clark’s LNG export comments are the pullquote in the U.S. House Committee’s own writeup. His testimony says a surplus of fracked gas in the U.S. is driving both LNG exports and new pipelines. Not customer demand in Florida: producer demand for new markets. Do we want a pipeline through our lands to profit fat cats in Houston?

Given Clark’s background as a public service commissioner in fracking North Dakota, he seems likely to be a fracking, LNG export, and gas pipeline advocate. New FERC Acting Chair Cheryl A. LaFleur’s testimony set the stage for Clark’s remarks:

Increased availability of domestic natural gas and its growing use in power generation also has implications for natural gas infrastructure, which Commissioner Clark will touch on in his testimony.

FERC Commissioner Phillip D. Moeller’s testimony included this Orwellian remark:
Over the last 22 months, the Commission has undertaken significant efforts to address the growing convergence of the natural gas and electric industries through seven technical conferences and regular updates. In November the Commission issued its final rule relating to communications regarding sensitive system information in an effort to open communication channels between interstate natural gas pipelines and operators of wholesale electric markets.

So we should pave the way for natural gas plowing through our property by making communications about it federally sensitive?

Written Testimony of Commissioner Tony Clark
Federal Energy Regulatory Commission
Before the Committee on Energy and Commerce
Subcommittee on Energy and Power
United States House of Representatives
Hearing on
Evaluating the Role of FERC in a Changing Energy Landscape
December 5, 2013

The large amount of natural gas in the U.S. is also creating an impetus for something that was nearly unimaginable ten or fifteen year ago, LNG export, as opposed to import terminals. This is an area of significant workload increase for the Commission.

Presently, the FERC has thirteen proposed LNG export terminals and three LNG import terminals in some phase of the permitting process. As you would expect, the reviews that entail safely siting large multi-billion dollar energy projects such as these are extensive.

Note he doesn’t say anything about deciding whether to site LNG export terminals, just doing it “safely”. So this FERC Commissioner seems in favor of what another House subcommittee is also pushing: LNG exports.

But what about pipelines? Those are also driven by fossil fuel company fracked shale gas gluts, not by customer demand:

As you might expect, the shale revolution in both liquids and natural gas production is having a tremendous impact on the work of the FERC. We see this Continue reading FERC Commissioner pushes LNG exports to House Subcommitee