LNG Export

Tue, 2011-11-15 13:37Steve Horn
Steve Horn's picture

Fracking Leads To Export Bonanza: Another Unconventional Gas Export Terminal Submitted to US DOE by Sempra

On November 11, Sempra LNG, a subsidiary of Sempra Energy, submitted an export proposal to the Federal Energy Regulatory Commission (FERC).

Sempra explained in a press release,

Sempra Energy has become the sixth US company, and fourth in the US Gulf, with formal intentions to export US natural gas as LNG (liquefied natural gas), having filed a request with US regulators…The California-based company asked the US Department of Energy (DOE) for consent to send up to 1.7 billion cubic feet (bcf)/day (0.05 million cubic metres/day) to free-trade-friendly countries for 20 years. Sempra said the [this] was the first in a two-part process, with a request to export to non-free-trade nations to follow.

This comes on the heels of the huge announcement by Cheniere Energy, Inc. and BG Group, in which the two corporations agreed to work together to export natural gas from the Sabine Pass LNG Export Terminal located on the Gulf Coast in Louisiana to the global market. DeSmogBlog covered that deal in depth in an article titled, “Massive Natural Gas Export Deal Inked by BG Group, So Much for Industry's 'Domestic Energy' Claims.”

Sempra's prospective LNG export facility is located on the Calcasieu Channel, 18 miles from the Gulf of Mexico in Hackberry, La, which is approximately 148 miles east of Houston, Texas, and 230 miles west of New Orleans, Louisiana. It appears much of the gas will be shipped off to Europe, as in August 2005, Sempra LNG signed an agreement with Eni, an Italian oil and gas conglomerate, to supply 40 percent of their LNG export capacity to Eni. 

Fracking for unconventional gas for “energy independence” and “national security” purposes? Once again, the facts reveal the contrary.

Thu, 2011-10-27 13:34Brendan DeMelle
Brendan DeMelle's picture

Massive Natural Gas Export Deal Inked by BG Group, So Much for Industry's "Domestic Energy" Claims

The natural gas industry's favorite public relations ploy about the necessity of hydraulic fracturing (fracking), the process through which “clean natural gas” is now procured, is that the patriotic gas industry is championing the shale gas boom for domestic consumption and for “national security purposes.” We now know definitively that this is pure propaganda.

Enter the smoking gun, a 20-year $8 billion agreement signed between BG Group, short for British Gas Group, and Houston-based Cheniere Energy.

The deal calls for BG Gas to export liquefied natural gas, or LNG (natural gas that has been converted temporarily to liquid form for ease of storage or transport), from Cheniere's Sabine Pass LNG export terminal, located on the Gulf Coast in Louisiana, out to the highly profitable global market, chiefly in Asia and Europe. 

Reuters referred to the deal as “a new chapter in the shale gas revolution that has redefined global markets.”

The Wall Street Journal reports that BG is thrilled that it will now be able to “buy gas comparatively cheaply and sell it for much higher prices in Europe and Asia.” The deal is just the beginning of a huge industry rush to export U.S. gas, according to the paper:

 Energy companies in the U.S., Canada and Australia are planning or have already begun building more than a dozen projects to liquefy and export natural gas as they seek to capitalize on growing demand for liquid-gas imports. Asia is the hottest market: its demand for liquefied gas is expected to grow 68% between 2010 and 2020, according to advisory firm Poten & Partners.

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