Closer

A coalition of Democratic senators led by Sen. Jeff Bingaman of New Mexico has called on Interior Secretary Dirk Kempthorne to keep closer tabs on the status of oil and natural gas production from federal lands that have already been leased.

North America’s first liquefied natural gas (LNG) storage and transshipment facility at Grassy Point on Placentia Bay in southeastern Newfoundland moved a step closer to reality with the Monday release of an environmental assessment report on the project by Canada’s Environmental Assessment Agency.

A proposed liquefied natural gas (LNG) facility and marginal wharf project in Nova Scotia is closer to reality after sponsors Keltic Petrochemicals Inc. and Maple LNG Ltd. received another nod of approval from the province’s environment minister. The project, formerly named Keltic LNG, would provide 1 Bcf/d to a power plant and petrochemical complex in Goldsboro, NS. The C$5 billion complex last year received a favorable preliminary environmental review pending several conditions from the Nova Scotia Environmental Assessment Board (EAB) (see Daily GPI, Feb. 27, 2007). Nova Scotia Environment Minister John Baird said the project “is not likely to cause significant adverse environmental effects.” Baird also oversees the Canadian Environmental Assessment Agency, which administers the federal environmental assessment process. The project has been referred favorably to Transport Canada and Fisheries and Oceans Canada, for appropriate action. The environmental assessment decision was based on the “conclusions and recommendations” of the EAB, results of a public comment period and mitigation measures submitted by Maple, Baird said. Keltic Petrochemicals and Maple are proposing to construct and operate a marginal wharf, LNG marine terminal, transfer pipelines, LNG storage tanks and regasification facilities. LNG and feedstock materials will be shipped via the LNG marine terminal and marginal wharf. A copy of the decision may be found at www.ceaa.gc.ca under reference number 05-03-10471.

As the winter heating season gets closer, forecasters — government and private — are still in agreement that a very warm winter is on the way for much of the nation, especially east of the Rockies. If the forecasts are confirmed, the natural gas and power markets could be in for lower prices as demand for both commodities lays off.

As the winter heating season gets closer, the AccuWeather.com long-range center continues to drive home the point that a very warm winter is on the way for much of the nation, especially east of the Rockies. If the forecast is confirmed, the natural gas and power markets could be in for lower prices as demand for both commodities lays off.

While in the short term North American natural gas markets may be weak, they will eventually strengthen and move back closer to oil prices as globalization of the commodity continues to unfold, according to Goldman Sachs & Co. economist David Greely. In the long term, the global trade and pricing of natural gas will be set by Russia, with its 54 Bcf/d of gas production, he said.

While in the short-term North American natural gas markets may be weak, longer term they will strengthen and move back closer to oil prices as globalization of the commodity continues to unfold, according to Goldman Sachs & Co. economist David Greely. He added that down the road, the global trade and pricing of natural gas will be set by Russia with its 54 Bcf/d of gas production.

The Bureau of Land Management’s (BLM) Utah office has canceled its Nov. 13 oil and natural gas lease sale so it can take a closer look at what impact drilling on the sale properties would have on wildlife habitat.

The dismantling of former gas and power titan Aquila Inc. moved a step closer to completion last week. Great Plains Energy Inc., the parent company of Kansas City Power & Light, received approval from its shareholders to issue common stock for its acquisition of Aquila.