Reality

The market had been able to rise in most cases Thursday despite declining cooling load, but it had to face up to the reality of generally weak weather fundamentals Friday. Prices fell by double-digit amounts across the board, and by half a dollar or more at a majority of points. The previous day’s 20.2-cent drop by September futures and the weekend loss of industrial load were additional factors contributing to the cash softness.

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.

The Neptune Deepwater Port, the offshore liquefied natural gas (LNG) facility to be located 10 miles off the coast of Gloucester, MA, is one step closer to reality after SUEZ LNG NA LLC received all of the necessary permits from state officials in Massachusetts. The LNG terminal, which will deliver 400-750 MMcf/d of natural gas to New England markets, is expected to ramp up in 2009.

The Neptune Deepwater Port, the offshore liquefied natural gas (LNG) facility to be located 10 miles off the coast of Gloucester, MA, is one step closer to reality after SUEZ LNG NA LLC received all of the necessary permits from state officials in Massachusetts. The LNG terminal, which will deliver 400-750 MMcf/d of natural gas to New England markets, is expected to ramp up in 2009.

Despite five-year-old promises of significantly increased liquefied natural gas (LNG) imports in the United States, the reality is that not much has been done to transform LNG from a niche business to a mainstream operation, according to James W. Duncan, director of Structured Products for ConocoPhillips Gas & Power.

Despite five-year-old promises of significantly increased liquefied natural gas (LNG) imports in the United States, the reality is that not much has been done to transform LNG from a niche business to a mainstream operation, according to James W. Duncan, director of Structured Products for ConocoPhillips Gas & Power.

The cash market finally bowed — but not totally — to the reality of weak weather fundamentals and the steadily diminishing possibility of Tropical Storm Florence even reaching North America, much less the Gulf of Mexico. Although a majority of points recorded moderate losses Thursday, there were still quite a few that were flat to a dime higher.

Cash prices finally faced up to the reality of weak fundamentals Friday with across the board plunges. Many points fell more than a dollar as moderate weather, brimming storage coffers, pipeline OFOs, prior-day screen softness and the usual weekend drop in industrial load ganged up on a market that had been mostly rising in the previous three days with little visible means of support.

A large number of companies want to bring a lot of liquefied natural gas (LNG) to North America over the next few years. However, the reality is not a lot of projects will make it past the drawing board, and world LNG supplies are limited and in demand by other countries. Nevertheless, since its rebirth in the past few years, LNG is now being touted as the “next” energy commodity, the saviour for North America’s dwindling natural gas supplies and growing demand, and companies both large and small are getting in on the act.