Viability

Oregon officials and news media were examining the viability of two remaining (liquefied natural gas) LNG receiving terminal projects last weekend following the bankruptcy of NorthernStar Natural Gas Corp. and its abandonment of the Bradwood Landing LNG project along the Columbia River. Based on news media reports, NorthernStar spent $100 million during the past six years of permitting for the Bradwood site, but company officials were unavailable to verify that estimate.

With the economic viability of added underground natural gas storage in California already verified by utility and merchant developers currently pursuing proposals, state regulators later in October will hold a one-day hearing on a unique, urban-based storage project in the heart of the state capital, Sacramento. The California Public Utilities Commission (CPUC) will use the public input as part of its ongoing review and environmental assessment.

With the economic viability of added underground natural gas storage in California already verified by utility and merchant developers currently pursuing proposals, state regulators later in October will hold a one-day hearing on a unique, urban-based storage project in the heart of the state capital, Sacramento. The California Public Utilities Commission (CPUC) will use the public input as part of its ongoing review and environmental assessment.

Claiming that action by FERC is long overdue and threatening their project’s viability, Jordan Cove Energy Project LP (JCEP) and Pacific Connector Gas Pipeline LP (PCGP) have called on FERC to approve their requests for certificates to build a liquefied natural gas (LNG) import terminal and associated pipeline facilities to serve the Pacific Northwest and portions of California and Nevada.

California’s natural gas outlook contains growing uncertainty fueled by an inadequate pipeline/storage system, declining viability for liquefied natural gas (LNG) imports, and added U.S.domestic supplies from shale carrying too much carbon-emitting baggage, according to three draft reports developed by the California Energy Commission (CEC) staff that were released last Wednesday.

California’s natural gas outlook contains growing uncertainty fueled by an inadequate pipeline/storage system, declining viability for liquefied natural gas (LNG) imports, and added U.S.domestic supplies from shale carrying too much carbon-emitting baggage, according to three draft reports developed by the California Energy Commission (CEC) staff that were released Wednesday. They will be part of a CEC workshop next Thursday in Sacramento.

In a move that has relevance for the viability of new liquefied natural gas (LNG) supplies in California, ICA Fluor, a U.S.-Mexico joint venture, announced Wednesday it has obtained a $100 million contract from Sempra Energy to build a key part of its Energia Costa Azul LNG receiving terminal that is set to open in the next quarter along the Pacific Coast of North Baja California, Mexico. ICA Fluor was tapped to build a nitrogen injection plant and an onsite electric generation facility within the existing Sempra LNG facility.

Questioning the viability of a major proposed new coal plant by a well-heeled Sempra Energy unit in his state, Reno-based Sierra Pacific Resources CEO Walter Higgins last Monday bullishly outlined his companies’ plans for the largest energy project it has ever undertaken in Nevada. He noted there is plenty of room for other new power plant projects in the state, but their developers should seek interconnections with one of his company’s two utilities.

Increasing demands and roadblocks by aboriginal groups in Canada are contributing to fears the Mackenzie Valley Gas Pipeline Project may suffer the same fate of a similar Mackenzie project nearly 25 years ago, which was abandoned in the face of aboriginal rights claims.