Liquefaction

Cheniere Energy subsidiary Sabine Pass Liquefaction LLC is disputing claims that its application to export liquefied natural gas (LNG) would result in higher gas prices in the United States and the loss of domestic manufacturing jobs.

An abundance of shale natural gas reserves in China could one day cause the country to turn away from pipeline imports and liquefied natural gas (LNG), suggested analysts at Barclays Capital. But China must unlock the secrets of its shales and develop infrastructure to move the gas produced, both of which will delay any shale revolution in the People’s Republic.

An El Paso Corp. subsidiary and Spectra Energy Corp. have executed a memorandum of understanding to jointly develop the proposed Marcellus Ethane Pipeline System (MEPS) project.

Repsol last week brought online the first liquefied natural gas (LNG) liquefaction plant in South America in Pampas Melchorita, about 105 miles south of Lima, Peru. The plant, which is part of the Peru LNG project, represents an investment of US$3.8 billion, the biggest investment ever made in one project in the history of Peru, according to Repsol.

Undeterred by the stagnated global liquefaction development and liquefied natural gas (LNG) cargoes to the United States drying up, several western LNG project proponents stayed bullish in May about the long-term prospects for North America becoming a major LNG importer. Sempra Energy’s COO repeated this theme at an energy financial conference, and two major LNG proponents in Oregon told NGI they are not worried despite the recent negative indicators.

A privately held, Seattle, WA-based firm, Prometheus Energy, by the end of the year will begin commercial operations on a small-scale liquefaction plant at a landfill in Southern California, seeking to produce 5,000 gallons/day of liquefied natural gas (LNG) for the Orange County public transit bus system that already runs on LNG. Prometheus’ backers are betting that landfill, coal bed and various sources of uneconomic/”stranded” gas supplies can be tapped globally for the transportation market.

Atlantic LNG Co. of Trinidad and Tobago said that its $1.3 billion Train 4 liquefaction facility began producing liquefied natural gas (LNG) on Friday, “solidifying Trinidad’s position as the largest exporter of LNG to the United States.” However, the competition between the U.S. and Spain over LNG cargoes will remain a significant factor in determining how much LNG eventually arrives in U.S. ports.

Australia’s Woodside Petroleum said Monday that it will spend about AU$3 billion (US$2.28 billion) to build a natural gas liquefaction plant to serve its Pluto gas field off the coast of Western Australia. The estimated gas resource in the field totals 3.5 Tcf. Deliveries to the United States and Asia are scheduled to begin in 2010.

Atlantic LNG, the largest source of liquefied natural gas (LNG) exports to the United States, shut down its three liquefaction trains on Monday because of striking construction and tugboat workers. There was no word on when the strike would be lifted or when shipments would resume.