LNG - Liquefaction of natural gas is achieved by cooling the gas to Ð259¡ F. The process was developed on a large scale during the first quarter of the 20th century to simplify the transportation and storage of natural gas, since the liquid state is l/600th the volume of the gaseous state.

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March 21, 2008

* New LNG terminal planned for Long Island Sound

March 17, 2008

* Natural gas drilling rig shortage - Oregon example

March 15, 2008

* Alaska gas pipeline needs govt guarantee

February 22, 2008

This is from the front page of today's The Eagle, of College Station, Texas.

See full text of this story via the web version of this article.

January 20, 2008

Natural gas - Alaska Highway pipeline proposal not ready for prime time

In her State of the State speech last week, Alaska Gov. Sarah Palin said her plan for delivering a natural gas pipeline to Alaska is working. The proof, she said, is that "a respected pipeline construction company, TransCanada, submitted a proposal that meets all of Alaska's requirements." ... Critics note TransCanada's proposal is rife with clues that it will take far more than a newfangled state license and $500 million in seed money to launch the state's most important and elusive economic development project. While not demanding -- it can't, under terms of Palin's Alaska Gasline Inducement Act, or AGIA -- the company is suggesting a pipeline might need billions in new financial backing from the U.S. government. To some, TransCanada is signaling the foundation is not yet in place for the 1,715-mile, $26 billion Alaska Highway pipeline the company has proposed. And that Alaska's government risks wasting years and huge sums of money by throwing in now with TransCanada. "They've already admitted they can't do the job, so why are we giving them $500 million and a state license?" said Andrew Halcro, an AGIA critic who in 2006 ran for governor as an independent against Republican Palin. ... For example, TransCanada's application suggests that U.S. government assume some of the project risk by acting as a "bridge shipper." This means if the new pipeline fails to attract enough paying customers to fill it up, the government would cover some of the shipping fees, known as tariffs -- potentially billions of dollars over time. ... Halcro said he can only imagine the reaction in Congress if TransCanada and the state ask for more federal financial help. "There's going to be a tremendous amount of laughter. Congress is going to look right back at Alaska and say, "Excuse me, you people have $40 billion in the bank,' " he said, referring to the state's Permanent Fund.

[Source: Wesley Loy, "TransCanada's gas line bid is cause for concern, critics say | Firm suggests more money needed", Anchorage Daily News, January 20, 2008, p. A-1]

March 23, 2007

The only reason we don't have natural gas shortage in North America is that post-Katrina winters have been mild

... people have forgotten that two years ago hurricanes destroyed a lot of facilities in the Gulf of Mexico resulting in loss of a "significant amount of production" and leading to concern about a possible natural gas shortage over that winter. Two warm winters followed, and that "very, very fragile supply and demand balance" in North America has been forgotten... "If we have a cold winter I'm here to tell you, we may very well be seeing schools shut down if it's a colder than normal winter. And that's one of the reasons there's a real sense of urgency that we need to get this project to get some legs and get some traction."

There's another issue. That gap until Alaska gas comes online was supposed to be filled with liquefied natural gas. But will LNG be a dependable source of natural gas to fill that gap? LNG is a global commodity and LNG owners are looking for the highest price market and that isn't in North America. LNG facilities are operating at less than a 50 percent load factor, and the combination means there isn't going to be as much LNG as was expected and the market is going to be more volatile and North America will be unlikely to be able to compete with Europe in the winter.

Source: Doug Krenze (VP of Enbridge, a Canadian pipeline company), March 14, 2007 testimony before Alaska state House Resources committee, cited by Kristen Nelson (Petroleum News), "Enbridge says gas a must | Tells legislators North America supply-demand balance 'extremely fragile'", Petroleum News, v12 n12, Week of March 25, 2007]

August 23, 2005

LNG terminal dispute between states of NJ and Delaware

New Jersey recently asked the U.S. Supreme Court to stop Delaware from standing in the way of plans by New Jersey and BP Crown Landing LLC to build a liquefied natural gas import terminal in Logan Township, across the [Delaware River] from Claymont.

A boundary quirk from Colonial days gave all of the waterway from Claymont to the northern tip of Artificial Island to Delaware. Because most of the proposed 2,000-foot delivery pier at the LNG site would stand in Delaware, the state has argued the LNG project would violate its Coastal Zone Act ban on new bulk delivery docks in the river.

If built, the terminal would receive up to three tankerloads of LNG weekly, each carrying as much as 50 million gallons of the superchilled fuel. The terminal would be capable of storing enough natural gas to meet the daily energy needs of 5 million homes.

[Source: Victor Greto (delawareonline.com) , "How much industry can a river take? South of Trenton, the Delaware is a commercial hub, tainted by pollution", The News Journal (DE), August 23, 2005]

August 23, 2005

* Louisiana Governor supports three projects to reduce reliance on natural gas for electricity generation

October 2, 2004

* New Mexico - Kerry opposition to Bush oil & gas drilling plan could help Democrats here

June 3, 2004

* China considers building many LNG terminals, to bring gas from Australia and Iran

March 29, 2004

Electricity costs at TVA: nuclear 2.5 cents/kWh, coal 4.5 cents/kWh, gas 6 cents/kWh

According to William Baxter, one of three directors of the Tennessee Valley Authority, TVA nuclear power costs 2.5 cents per kilowatt hour, compared to 4.5 cents for coal and 6 cents for natural gas. [Source: David R. Francis, "After nuclear's meltdown, a cautious revival", The Christian Science Monitor, March 29, 2004]

February 22, 2004

Wisconsin court nixes gas plant, because wind wasn't considered seriously enough

Earlier this month, Dane County Circuit Judge Moria Krueger told the state Public Service Commission to start over and re-evaluate the environmental impact of two 545-megawatt power plants under construction in downtown Port Washington by Wisconsin Energy Corp. State law calls for the Public Service Commission to give preference to environmentally friendly forms of power generation when debating whether to approve power plant projects. The judge's ruling stemmed from a lawsuit filed by Bob Owen of Middleton against the $650-million project because he believes the PSC has ignored this statute and given short shrift to recommendations of a state study on climate change issued more than five years ago. "It appears that the people that are appointed to the Public Service Commission have no interest whatsoever about whether there is a habitable planet for their children or their grandchildren. They never have taken global warming seriously. I consider it a severe threat, which is growing more and becoming more severe."

[Source: Thomas Content, "Wind-energy proponent proves he's a force to be reckoned with", Milwaukee Journal Sentinel, February 22, 2004, p. 1D]

July 26, 2003

Welcome, LNG tankers, sez Calvert County on Chesapeake Bay

The big energy news here in Maryland today is the first liquified natural gas tanker docking at Cove Point in more than twenty years. The 22-million gallons of LNG carried by the 820-foot-long ship, the Norwegian-flagged Norman Lady, represents enough energy to power 10 million homes for a day. Cove Point owner, Dominion, expects a new tanker to arrive every ten days at first, eventually reaching one every four days. Cove Point has enough pipeline capacity to send out the Norman Lady's cargo in about three days. With natural gas prices unseasonably high, and no prospects for lowering in sight, Cove Point is coming on line at a great time, business-wise. There's only three other import-capable LNG ports in the US. Dominion's chairman and chief executive, Tom Capps, said he expects Cove Point to become the biggest LNG facility in the US, moving a billion cubic feet of gas every day. Calvert County expects Cove Point to pay about $2.5-million a year in county taxes

Refs: Dan Thanh Dang (Sun Staff), "First LNG load arrives", Baltimore Sun, July 26, 2003
Raymond McCaffrey (Wash Post staff writer), "First Tanker in 23 Years Docks at Cove Point; Security Fears Linger as Liquefied Gas Shipments Cruise Near Nuclear Power Plant", Juy 26, 2003, p. B3

July 25, 2003

Prices for natural gas are at 25-year highs. The shortage has become so acute, firms using natural gas are laying off workers. One association has warned that if prices remain where they are today, consumers will see expenses rise in everyday areas such as food and heating.

... Cove Point's debut [Cove Point, Maryland -- the nation's biggest liquified natural gas facility] comes at a crucial time in the nation's thirst for energy. It also opens up a new avenue for natural gas. Only 1 percent of the nation's liquefied natural gas is imported.

Prices for the product have spiraled upwards recently. The American Chemistry Council described natural gas prices as being similar to paying $16 a gallon for milk or $9.21 a gallon for gasoline. Natural gas is trading at six times the price it did three years ago. "America is facing the worst drought in natural gas stocks in the nation's history," the association said in a prepared release.

A Department of Energy report indicates that over the next 20 years, consumption of natural gas in the United States is projected to grow by more than 50 percent. Production, if it grows at the rate of the last 10 years, will increase by only 14 percent

Cove Point's opening should put a damper on prices, said American Gas Association spokeswoman Peggy Laramie. "In such a tight supply market, any additional quantity will play a very important role of meeting consumers' needs in the heating season ... and liquefied natural gas will be an increasingly important component of the nation's energy mix."

[Source: Kevin Conron (staff writer, Gazette newspapers), "Cove Point prepares for first liquefied natural gas shipment", July 25, 2003

June 27, 2003

Preliminary generation data from DOE for 2002

Total US electricity demand increased by 2.7% in 2002 compared to 2001. Natural gas-fired output rose 8.2 percent. The electricity mix looked like this:

Coal - 1,905 billion kWh
Nuclear - 780 billion kWh
Gas - 601 billion kWh
Renewables - 292 billion kWh

[For more info, see info nugget 20030627-005]

* East Timor and Australia to get big LNG project

* Natural gas has jumped from 9% to 18% of USA electricity in ten years

* Natural gas price has tripled in 3 yrs; N-plants now produce much cheaper (1/3-to-1/2) power

* Natural gas - heavy dependence on gas is as bad as heavy dependence on oil

* Construction lead time - nukes = 8-10+ years, coal = 5-8 years, gas = 2-4 years

* Electric plant capital cost thumbrule - coal is double gas, nuc is double coal

* Entergy - natural gas prices have soared in last 3 years, while coal and nuclear prices haven't

June 3, 2003

June 10 House hearing moved up to AM

The Energy and Air Quality Subcommittee hearing on Tuesday, June 10, 2003, entitled "Natural Gas Supply and Demand Issues," has been changed to a hearing of the Full Committee. The hearing will begin at 10:00 a.m. in 2123 Rayburn House Office Building. At 2:00 p.m., the Committee will receive testimony from The Honorable Alan Greenspan. Other witnesses will be by invitation only. This event will be open to the public and webcast live. For the latest information, please visit http://energycommerce.house.gov/108/Hearings/06102003hearing944/hearing.htm

May 24, 2003

June 10 House hearing to be webcast

The House Committee on Energy and Commerce's Subcommittee on Energy and Air Quality has scheduled a hearing on "Natural Gas Supply and Demand Issues" for Tuesday, June 10, 2003, at 2:00 p.m. in 2322 Rayburn House Office Building. This event will be open to the public and webcast live. For the latest information, please visit http://energycommerce.house.gov/108/Hearings/06102003hearing944/hearing.htm

May 14, 2003

Natural gas price rise to boost electricity bills this summer - 33% rise in San Antonio is also partly due to STP-1 shutdown

San Antonio residents can expect to see a bigger-than-expected jump in their utility bills.

Higher natural gas prices and less power from the South Texas Project nuclear plant mean the average electric bill in San Antonio, Texas could go up 33 percent this summer compared to last year, City Public Service officials said yesterday.

Steve Bartley, CPS director of regulatory relations, said the higher monthly bills are the result of two things: customers are expected to use more electricity this year to run their air conditioners (it was pretty rainy last summer), and power is projected to be more costly to produce, mainly because of higher natural gas prices.

Although natural gas prices have dropped from a high of $20 per thousand cubic feet in February, Bartley said the utility is projecting it will pay an average market price of $5.75 this summer. That's 60 percent higher than the $3.50 paid last summer.

Throughout the year, CPS generates about 15 percent of its electricity with natural gas, 46 percent with coal and 27 percent with nuclear power. Another 12 percent comes from purchased power and wind-generated. However, more natural gas is used in the summer to help CPS fire up backup generators to meet peak demands.

Another factor, Bartley said, is that CPS will be getting only about half the electricity the utility normally does out of its 28 percent ownership of the nuclear power plant in Bay City. Last April, a routine inspection revealed signs of a leak from the Unit 1 reactor's coolant system. The reactor was shut down; it's unknown when it will return to service.

Bartley said other factors also affect the price of natural gas, including a shortage of gas in storage, economic reverberations from Gulf War II and the oil industry strike in Venezuela.