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There has been much talk about, FERC Meetings, Rallies and NMFS. But behind the scenes is quite a collection of bad news for local LNG projects.
One of the major players in the LNG market has backed out of a project in Alaska to export LNG. The main reason given was the difficulty of shipping LNG to Asia from Alaska. The LNG would have to go to Asia because “shipping Alaska LNG only makes financial sense if it is exported to Asia, where it is more valuable.”
According to the LNGlawblog January imports were the lowest in 5 years. January is not a strong month, but this total would be the 3rd lowest monthly total in 68 months. Higher gas prices worldwide, combined with low U.S. prices have caused U.S. import facilities to run at well under 50% capacity.
Today Williams Northwest Pipeline sent a letter to FERC suggesting that there is no need for 2 LNG pipelines.
“It is apparent there is insufficient infrastructure in the Molalla area to receive the 1.5 billion standard cubic feet per day of natural gas proposed by the Oregon LNG pipeline,” wrote Pam Barnes, team lead of regulation and rates for Williams.
In the letter, Barnes says the existing pipelines that branch out from Molalla don’t have enough capacity to move even half of the gas proposed to be delivered from Oregon LNG’s proposed import terminal near Astoria.
Peter Hansen is not worried and expected Williams position.
“We are certainly well aware of the limitations of the existing and un-modified pipeline infrastructure,” Hansen wrote in an e-mail. “There were no surprises in Williams Northwest Pipeline’s submittal.”
The Argus has more….
UPDATE
In a surprising development, the Staff of Clatsop County has recommended to deny Bradwood the needed Amendments to the County comprehensive land use plan and dredging.
Clatsop County has released its staff report reviewing Bradwood Landing LLC’s consolidated application for multiple land-use permits and approvals for a proposed liquefied natural gas marine terminal and related facilities at Bradwood east of Astoria.
The staff report recommends the Planning Commission deny Bradwood Landing’s application based on facility size, road access, public safety, fish habitat and decommissioning issues.
The 226-page report can be viewed on the county’s web site at www.co.clatsop.or.us and will be distributed to public libraries in Astoria, Seaside, Warrenton, Clatskanie and Cathlamet, Wash., and at Knappa High School. Copies can be purchased at the Clatsop County Community Development Department office at 800 Exchange St., Astoria.
From the Daily News
Just before a deadline this month to speak up, the ports of Kalama and Vancouver warned the Federal Energy Regulatory Commission that tankers carrying liquified natural gas (LNG) could “wreak havoc on shipping in the Columbia River.”
A Northern Star Natural Gas executive asserted the fear is unfounded and fueled by misinformation about the company’s plans to bring ships upriver and unload natural gas at Bradwood, Ore., an old mill site across the river from Cathlamet.
Portland, Longview and Woodland port officials said in interviews that they share Kalama and Vancouver’s concerns about how their clients would be affected by the special attention the U.S. Coast Guard began giving LNG tankers after Sept. 11, 2001.
Lots more tidbits on the flip….
From the County:
The Clatsop County Board of Commissioners will consider legal action to enable the county participate in the siting process of an LNG terminal at Bradwood at its meeting June 28 in Seaside.
Well, Tom Freel has come out for LNG in a big way on Coastwatch Blog.
It seems he makes a good argument, but to make a good argument you need the facts to back it up, sadly the facts are lacking…..
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