Shepstone Management Company, Inc.
LNG facilities are happening many places, the forces of economics being irresistible. New LNG facilities are even coming to the DRBC region! Oh, the irony!
Our good friend Jim Willis has a story at Marcellus Drilling News that should warm the hearts of our readers. It should also make everyone wonder how the heck the DRBC expects to get away with a fracking ban, given its hypocrisy. It’s about LNG and worldwide demand for it that can be satisfied with Appalachian Basin shale gas. That LNG demand is creating opportunity for LNG facilities in three of the DRBC states.
The state DRBC Commissioners from Delaware, New Jersey and Pennsylvania all took positions in favor of a fracking ban in the region long before there were even any hearings on the measure. It’s as political as it gets, in fact. Yet, there are proposals for LNG facilities in three of those states. The reason is obvious. There is demand to be satisfied. A story from Azerbaijan, of all places, speaks to this demand (emphasis added):
Since their Joint Statement of 25 July 2018 in Washington D.C., when President Juncker and President Trump agreed to strengthen EU-US strategic cooperation including in the area of energy, EU imports of liquefied natural gas (LNG) from the US have increased by 181 percent, Trend reports citing the European Commission.
‘With a share of 12.6 percent of EU-LNG imports in 2019 so far, the U.S. is Europe’s third biggest supplier of LNG. The European Union is ready to facilitate more imports of liquefied natural gas from the US, if the market conditions are right and prices competitive. This will allow US exporters to further diversify their European markets whilst contributing to the EU’s objectives of security of supply and diversification…
Compared to the period before the 25 July 2018 Joint Statement, cumulative EU imports of US LNG are up by 181 percent at 7.9 billion cubic meters until early March 2019.
Europe, of course, is not only part of the world needing our LNG, but it’s an extremely important one. The stuffy Europeans who continue to want to live off accumulated capital rather than violate political correctness via fracking are, once again, choosing to depend on us to defend what’s left of their freedom. So shall it ever be, apparently, as Germany demonstrated with its foolish Energiewende. Still, we must acknowledge the future benefits this portends for rural areas here, who will produce the gas they refuse to produce there.
This demand is leading to more LNG facilities in the DRBC region, where ironically we can’t produce the gas to feed those facilities.
First, there is this story of a possible new LNG export facility in New Jersey, written up in the Delaware News Journal:
A New York energy company plans to build a liquified natural gas port on the Delaware River near the First State, according to a recent securities filing.
It is the latest proposal for a long-controversial idea to allow cargo ships containing the condensed, liquid version of the combustible fuel to sail through Delaware Bay, past New Castle and Wilmington and under the Delaware Memorial Bridge.
The company, New Fortress Energy, did not disclose the specific location for the proposed LNG port, but said it would be along the Delaware River and 195 miles from its natural gas liquifying facility northwest of Scranton, Pennsylvania.
A number of ports near or in Delaware roughly match that description, including those in Wilmington and Chester and Philadelphia in Pennsylvania. But the evidence points to New Jersey.
Three years ago, New Fortress Energy proposed a fuel terminal and port for a property it owns in Gloucester County, New Jersey – one that for decades had been home to a DuPont dynamite factory…
In recent months, several postings for job openings located at the New Jersey site have appeared online, including for a construction engineer with expertise in LNG…
“Tanker trucks will transport LNG from our liquefier (in Pennsylvania) to a port on the Delaware River, at which point LNG will be transloaded directly to large marine vessels,” New Fortress Energy said in its January filing. “There is approximately a five-day sail time from a Delaware River port to our downstream terminals in the Caribbean.”
Ultimately, New Fortress Energy could have the capacity to export more than 7 million gallons of LNG a day.
The bolded part is about the New Fortress LNG facilities in Wyalusing, Pennsylvania which, though it’s outside the DRBC region, is being built in a DRBC state. More irony.
Then, there’s this from the same story:
LNG packs a concentrated amount of energy within an enclosed space because it is cooled to minus 260 degrees Fahrenheit, occupying 1/600th of the volume of its gaseous form.
The storage advantages have caused companies along the Delaware River for decades to capitalize on its benefits at a handful of sites.
Delmarva Power recently announced a plan to build a $40 million, 500,000-gallon LNG storage facility at its property in Red Lion. Next door is a Bloom Energy fuel cell farm that converts natural gas into electricity.
Delmarva has maintained another LNG storage facility south of Wilmington for decades.
Such storage allows Delmarva to maintain a supply of gas for customers during the coldest days of the year while avoiding spiking energy costs that occur during such high-demand periods, Delmarva spokesman Jacob Sneeden said.
The company is in ongoing discussions with the Delaware Department of Natural Resources and Environmental Control to obtain a permit through the state’s Coastal Zone Act, he said.
So, we have three DRBC states accommodating, entertaining or likely to entertain LNG facilities (opposed by all the usual suspects, of course). This, as the agency considers adopting a fracking ban already promised by the Commissioners from those states before they even held a hearing. That’s how ridiculous the ban is, how unlikely it is to survive a legal challenge.
This post appeared first on Natural Gas Now.