January 29, 2016
Gas Drilling Awareness for Cortland County
January 29, 2016
July 15, 2015
Most of the proposed U.S. liquefied natural gas export projects won’t get built amid stiffening competition from foreign competitors who will flood the market with the supercooled gas as demand begins to slow, a new study finds.
Five U.S. LNG projects already under construction, including Cheniere’s two terminals in Louisiana and Corpus Christi, will cross the finish line, but beyond that, construction appears “increasingly unlikely” for the remaining proposals, according to the latest study unveiledby a task force of natural gas experts assembled by the Brookings Institution, a Washington D.C.-based thinktank.
It’s the latest report to raise doubts about the flurry of multi-billion dollar proposals announced in recent years that would soak up vast supplies of cheap U.S. natural gas destined for markets in Asia.
“We believe it will be increasingly difficult to finance new LNG projects, due to high upfront costs in combination with a substantial number of uncertainties which influence supply and demand,” the report said.
Developers have been rolling out proposals on the assumptions that U.S. natural gas prices will remain at record low levels while LNG prices in Asia and Europe remain high, offering North American exporters attractive margins. Developers also placed bets that U.S. LNG, which is linked to natural gas prices, would allow them to hold a competitive edge over foreign suppliers, whose LNG is tied to crude prices, which were relatively high until they began falling late last year.
The report found that there are flaws in those assumptions that call into question whether U.S. LNG projects will be successful.
“While the projected number of North American LNG export facilities is massive, closer examination of the projects’ financial realities offer a more nuanced story,” the report stated.
U.S. natural gas prices are expected to rise slowly, which could undercut the competitive advantage of U.S. LNG exports unless developers figure out cheaper ways to liquefy, transport and re-heat the gas. Natural gas faces stiffer competition from other competing fuel sources, such as cheap coal and renewables, and that waning demand makes it increasingly difficult for North American LNG projects to turn a profit, the report found. And collapsing crude prices gave a fresh advantage to rival oil-linked LNG projects in other countries.
With international oil price hovering just under $60 per barrel, Australia is more competitive than U.S. exporters when it comes to supplying LNG to lucrative and high-demand Asian markets, the report found.
U.S. projects are “poised to compete favorably” in the global marketplace because they’re cheaper to build, particularly the so-called “brownfield” projects that call for converting import terminals into export facilities. Developers also have access to cheaper energy and “significant skilled labor at a reasonable cost” compared to other countries.
But swelling demand for materials and labor could erode the U.S. advantage at a time when falling oil prices are making foreign projects more attractive, the report found.
“Given all these uncertainties, possible constraints and the fact that a significant amount of projects are permeating the market in the coming years, it may be increasingly difficult to finance projects going forward,” the report said.
You might know that Brookings is a conservative leaning think-tank.
After a quick search, I found the below linked report at their site, which may be the one being written about in the above report from Fuel Fix (what a lovely name!)
This could be useful to those fighting pipeline build-out.
November 10, 2013
local CNG stations/prices http://www.cngprices.com/station_map.php
October 29, 2013
Sometime next year, if all goes according to plan, an ordinary tractor-trailer rig will pull up to an oil and gas drilling pad in a US shale play that is flaring a lot of gas because it is not close to any pipelines
or other gas-gathering infrastructure. In the span of just a few hours or at most a few days, workers will set up a uniquely small liquefied natural gas plant on that drilling pad that fits entirely within the confines of that 53-foot-long rubber-tired trailer. This plant will allow the drilling company to convert the flared gas to LNG right on site, as well as separate out the even more valuable butane, propane and other natural gas liquids (NGLs).
The company can then truck both of those commodities to market, or even use some of the LNG to fuel drilling rigs in that same shale play that have been consmall LnG plants could have big market impacts
verted to run on LNG instead of diesel. At least that’s the plan for DresserRand, a Houston-based company that designs and builds compressors, turbines and a host of other heavy equipment and engineering solutions for the oil, gas and power sectors in the US and abroad. Dresser-Rand recently signed a licensing agreement that allows it to manufacture and sell a newly developed type of LNG plant that is much smaller and more mobile than any other liquefaction technology on market. Brad Dickson, Dresser-Rand’s vice president and chief marketing officer, says the technology will allow exploration & development companies to capture and monetize gas and the more valuable NGLs that they are currently flaring off in remote locations that do not have. . .
October 17, 2013
DEC has Quietly Proposed New, Weak Rules for LNG Facilities
Keith Schue and Sandra Steingraber have scrutinized the regulations. They will present their analyses of the weaknesses and provide fodder for your comments to DEC.
Furthermore, the companies don’t have to post bonds to cover the costs of accidents to the environment, people, or property, or to close the facilities when they are no longer of use. This leaves the taxpayers to foot the bill.
Wiki-page by Chip Northrup and Keith Shue, on what comments to make: http://www.sourcewatch.org/index.php/New_York_LNG_regulations The Return of 30 Days: Infrastructure Regs: http://www.thirtydaysoffrackingregs.com/index.php –web page by Sandra Steingraber giving background on a different comment to make each day between now and Nov. 4