WASHINGTON, Jan 26 (Reuters) – U.S. President Joe Biden on Friday paused approvals for pending and future applications to export liquefied natural gas (LNG)from new projects, a move cheered by climate activists that could delay decisions on new plants until after the Nov. 5 election.
The Department of Energy (DOE) will conduct a review during the pause that will look at the economic and environmental impacts of projects seeking approval to export LNG to Europe and Asia where the fuel is in hot demand.
[…]
Biden said in a statement: “During this period, we will take a hard look at the impacts of LNG exports on energy costs, America’s energy security, and our environment.”
The pause “sees the climate crisis for what it is: the existential threat of our time,” said Biden, a Democrat.
Administration officials vowed that the pause would not hurt allies, as it has an exemption for national security should they need more LNG.
Biden’s pause of new LNG export approvals will have no effect on:
Bad weather (AKA climate change)
Short-term US energy prices
Global natural gas consumption
This has to be the most idiotic sentence in US presidential history:
My Administration is announcing today a temporary pause on pending decisions of Liquefied Natural Gas exports – with the exception of unanticipated and immediate national security emergencies.
They paused the permit approvals for new LNG facilities. It can take ten years to go from permitting, to construction to loading up the first LNG tanker. This “pause” does not apply to currently operation LNG facilities or those under construction.
The Biden administration has paused new Department of Energy (DOE) approvals of proposed liquefied natural gas (LNG) export projects. This decision will not affect current export projects or those under construction.
The Pause Violates the Natural Gas Act and Administrative Procedure Act
LNG 21 Mar 2024 | 23:01 UTC
Sixteen US states challenge White House ‘pause’ on LNG permits
Author Corey Paul Editor Giselle Rodriguez Commodity LNG
Louisiana, Texas and more than a dozen other Republican-led states sued the Biden administration March 21 seeking to overturn its suspension on issuing key new LNG export permits.
The lawsuit in a federal Louisiana court argued that the White House ran afoul of the Natural Gas Act and flouted the Administrative Procedure Act when it hit “pause” on the permits in late January. The suit, filed in the US District Court for the Western District of Louisiana by sixteen state attorneys general, names President Joe Biden, the Department of Energy and agency officials as defendants.
The Biden maladministration has lost nearly every oil & gas related lawsuit filed in Western District of Louisiana and the Fifth Circuit. The fact that the Natural Gas Act effectively requires the Department of Energy to approve LNG permits should make this one a piece of cake.
Under the Natural Gas Act, the DOE is required to approve such authorizations unless it finds that doing so would not be in the public interest.
The United States exported more liquefied natural gas (LNG) than any other country in 2023. U.S. LNG exports averaged 11.9 billion cubic feet per day (Bcf/d)—a 12% increase (1.3 Bcf/d) compared with 2022, according to data from our Natural Gas Monthly.
LNG exports from Australia and Qatar—the world’s two other largest LNG exporters—each ranged from 10.1 Bcf/d to 10.5 Bcf/d annually between 2020 and 2023, according to data from Cedigaz. Russia and Malaysia were the fourth- and fifth-highest LNG exporters globally over the last five years (2019–23). In 2023, LNG exports from Russia averaged 4.2 Bcf/d, and exports from Malaysia average 3.5 Bcf/d.
U.S. LNG exports increased in the first half of 2023 after Freeport LNG returned to service in February and ramped up to full production by April. Relatively strong demand for LNG in Europe amid high international natural gas prices supported increased U.S. LNG exports during the year. U.S. LNG exports set monthly records late last year: 12.9 Bcf/d in November, followed by 13.6 Bcf/d in December. We estimate that utilization of U.S. LNG export capacity averaged 104% of nominal capacity and 86% of peak capacity across the seven U.S. LNG terminals operating in 2023.
The countries that imported the most U.S. LNG were the Netherlands, France, and the UK, with a combined 35% (4.2 Bcf/d) of all U.S. LNG exports. LNG imports increased in the Netherlands after the Gate LNG regasification terminal was expanded and two new floating storage and regasification units (FSRUs) were commissioned. Germany began importing LNG in 2023 when three new FSRUs were commissioned. We expect another four terminals (three of which are FSRUs) to come online between 2024 and 2027.
In Asia, Japan and South Korea each received 0.8 Bcf/d of LNG exports from the United States, the fourth- and fifth-highest U.S. LNG export volumes by country in 2023. Japan, China, and India increased LNG imports from the United States by a combined 0.6 Bcf/d compared with 2022. The Philippines and Vietnam started importing LNG in 2023; the Philippines imported LNG cargoes from the United States only in October and November.
In Latin America, U.S. LNG exports to Brazil continued to decline last year as Brazil continued to primarily use hydropower for electricity generation. U.S. LNG exports to Brazil peaked in 2021, when the country experienced its worst drought in more than 90 years.
Data source: U.S. Energy Information Administration, Natural Gas Monthly Note: Percentages shown denote year-on-year change in U.S. export volumes. Europe includes Türkiye.
Let this sink in: The United States oil & gas industry went from zero-point-zero LNG exports in 2016 to becoming the “world leader” in LNG exports (~14 Bcf/d) in 2023. This is akin to the New York Mets going from cellar dwellers from 1962–1968 to World Series champions in 1969… Or NASA going from JFK’s 1961 goal “of landing a man on the moon and returning him safely to the earth” before 1970, to Neil Armstrong’s “one giant leap” 84 days prior to the Mets’ World Series victory.
New York Mets? Moon landing? LNG exports???
Former Mets manager Casey Stengelhad such low expectations for the still-fledgling Mets that he once said man would walk on the moon before the Mets win a championship. As Steven Marcus of Newsday aptly points out, Stengel was correct, but by only three months.
The Amazing (or Miracle) Mets and Apollo 11 were examples of incredible achievements… Essentially going from startups to world champions in less than a decade. In less than eight years, the US oil & gas industry went from net importers of to the world champions of LNG exports. Putting the brakes on LNG exports would be as dumb as cancelling the Apollo program after its most successful mission, Apollo 17, or the New York Mets trading away a young Nolan Ryan for a washed up infielder in 1971.
Increased U.S. Natural Gas Exports” ≠ Higher U.S. Prices
We are able to export natural gas because we produce more than we consume. If natural gas exports were prohibited, we wouldn’t have excess natural gas production.
While short-term disruptions in supply and demand can trigger short-term upward and downward spikes in prices, as in 2022, prices were far higher when the US was a net importer, rather than exporter, of natural gas.
What would happen if the Biden maladministration did actually halt LNG exports? The US market would suddenly be oversupplied by almost 12 Bcf/d of production. This would cause natural gas prices to collapse, shale gas producers would slash production and oil producers would ramp up flaring of associated gas. The largest Marcellus producer recently announced production cuts due to natural gas falling below $2/mcf.
PITTSBURGH, March 4, 2024 /PRNewswire/ — EQT Corporation (NYSE: EQT) (“EQT” or the “Company”) today announced it made the strategic decision to curtail approximately 1 Bcf per day of gross production beginning in late February in response to the current low natural gas price environment resulting from warm winter weather and consequent elevated storage inventories. The Company expects to maintain this curtailment through the month of March and will reassess market conditions thereafter. Curtailments are expected to total approximately 30 to 40 Bcf of net production during the first quarter.
Other Marcellus and Haynesville operators have also recently announced production cuts.
Making Russia Great Again
API on LNG Permit Pause: A ‘Win for Russia’ and ‘Broken Promise to U.S. Allies’
WASHINGTON, January 26, 2024 – The American Petroleum Institute (API) today released the following statement from President and CEO Mike Sommers on the Biden administration’s announcement to pause approvals of new LNG export facilities, unnecessarily increasing project wait times at a time of geopolitical turmoil and rising coal use around the world.
“This is a win for Russia and a loss for American allies, U.S. jobs and global climate progress. There is no review needed to understand the clear benefits of U.S. LNG for stabilizing global energy markets, supporting thousands of American jobs and reducing emissions around the world by transitioning countries toward cleaner fuels. This is nothing more than a broken promise to U.S. allies, and it’s time for the administration to stop playing politics with global energy security.”
The announcement undercuts President Biden’s own pledge to send increased U.S. LNG supplies to our allies overseas to help end dependence on Russian gas. The pledge also committed the United States to “maintaining an enabling regulatory environment” for LNG.
WASHINGTON, April 2 (Reuters) – U.S. officials are open to ending President Joe Biden’s pause on approvals of liquefied natural gas exports to get a Ukraine aide package passed in Congress but want to wait to see the entire proposal before making any decisions, two White House sources said on Tuesday.
Biden, a Democrat, in late January had paused approvals for pending and future applications to export the supercooled fuel after protests about the booming industry from activists concerned about its impact on climate change.
If the response to “the existential threat of our time” is to transfer future (beyond 2030) LNG sales from US companies to Russia, Qatar, etc… And they might be willing to trade the pause for another $95 billion for Ukraine… It just might not be very “existential.”
Reminder, Biden is just an installed punching bag to take the heat as a distraction. He has to do what he is told and not complain otherwise the whole Biden clan goes to jail(or deported to Haiti). Just imagine what was held over Obama’s head.
As for NG, the country could use the extra money right now. But some day the US will need it at home.
The states are going to have to go after the federal cabal that is cannibalizing the country for its own benefit. They also need to realize the judicial system has morphed into a protection racket for those in the beltway sucking the life out of the country.
It will get ugly, maybe it is time for the states to file conspiracy charges against the Feds and DNC and ban the Democratic party.
Thanks to fracking, the US will have abundant natgas for many decades to come. Recovery factor for fracked shale OIP now runs 2-3% because of viscosity. Recovery factor for fracked shal natgas in place now runs 18-25%. And one massive gas shale, the Utica, has hardly been developed (except on its shallow western edge) because it mostly underlies the Marcellus, so more expensive to drill. No need yet.
Qatar and Australia LNG supplies Asia because of geographic proximity. The natural US LNG market is Europe. Joe is doing them no favors.
Biden is certainly a lawbreaker. Ignored the laws of economics and caused Bidenomics inflation. Ignored immigration laws and caused a mass invasion. Now ignoring the law requiring LNG projects get permitted. Unlawfully tried to get DoT to force states to count federal highway CO2 emissions when Congress gave DoT no such remit (reg just stopped by a federal judge as ‘arbitrary and capricious’).
Not looking good for Biden on Nov 5. Disastrous presidency, plus old and cognitively impaired.
Rud, the Utica Shale extends into southern Quebec but the same insane environmentalism has stalled exploration for years. In a large part, apparently, due to pressure by the idealogues of Équiterre, one of whose leaders is our minister of the environment and climate change, a true nutcase by the name of Stephen Guilbeault.
Do not underestimate the ability of activist attorneys general in key swing states to rig elections again in their states. They don’t have COVID-19 as an excuse to violate state election law, rules, and procedures this time. It will be interesting to see how they do loosen ballot deadlines and verification this time. Because they will absolutely try.
J Boles
April 3, 2024 3:57 pm
I love NAT GAS! I have 3 appliances that use it, the furnace, water heater, and the clothes dryer.
I have a natural gas water heater, furnace, and fireplace, and I plan to install a natural gas range. Your comment got me to thinking I should run the line to my laundry room also to have the option of a natural gas dryer too.
I got you both beat. Range, water heater, dryer, furnace AND gas logs installed in a wood burning fireplace. That is the home in Vegas.
At our cabin I must use propane. There I have propane cooktop, clothes dryer, water heater and furnace. The fireplace is only wood burning, and burning NOW to keep us (my wife) nice and toasty. This time of year we only need the furnace from about midnight till 6 when I start the fireplace in the morning. Nice sunny day today and passive solar, south facing wall mostly windows, will warm the cabin so I will probably let the fire burn out by noon.
Oh, I forgot the propane BU generator at the cabin. Nice to have the ability to live a normal life even when the power goes out due to storms or fallen trees.
Beta Blocker
April 3, 2024 4:18 pm
For the next several decades, combined cycle gas turbine (CCGT) will be the cheapest way to generate electricity — assuming a reliable supply of natural gas is readily available at currently low prices.
Here in the US Northwest, the Northwest Power Planning Council’s long term plan for maintaining the adequacy of the region’s power supply is to build 3000 Mw nameplate of additional wind and solar combined with seriously-pursued energy conservation measures.
Voices in the region’s power utilities are quietly raising concerns behind the scenes out of public view that this plan is certain to fail. Demand for a reliable supply of electicity here in the US Northwest is slowly but steadily growing. Much of that growth in demand is being driven by a steady stream of incoming refugees from America’s larger cities and from states like California.
Currently, the quickest way to meet a steadily increasing demand for reliable 24/7/365 power is to build a CCGT power plant — assuming there is a ready and reliable supply of natural gas to feed it.
The argument is being made that even if the region’s mostly green politicians suddenly reversed course and allowed new gas-fired plants to be constructed, we don’t have enough pipeline capacity in the US Northwest to support an increased number of CCGT plants. Moreover, constructing new pipeline capacity in this region is a non-starter. It just won’t happen.
The Association of American Railroads claims that transport by rail can be a safe and economical means of transporting LNG from its point of liquification to its point of consumption. Thus we can build a CCGT power plant wherever it can be serviced by rail transport, thus avoiding the problem of a lack of adequate pipeline capacity.
Here is my question: As the failure of the Green New Deal reaches critical mass proportions in the coming decade, is it possible we will begin to see LNG which had been slated for future export become a domestic supply of rail-transported fuel for new-build gas-fired plants which are replacing shuttered coal-fired plants?
Doubt it. Natgas pipelines are ubiquitous in the US. When FPL converted their old (1970’s) oil fired generating stations in West Palm Beach and Fort Lauderdale (combined over 4GE) to new CCGT a few years back, they just dug up and enlarged an existing south Florida natgas pipeline to insure supply.
That is Florida. We don’t have the necessary pipeline capacity here in the US Northwest, and New York state and New England are in a similar situation, mostly because their regional green politicians have not and will not allow new pipeline capacity to be added.
This doesn’t mean that new CCGT plants couldn’t be constructed near suitable ocean ports in New England and in New York state when the regional Net Zero crash test dummies eventually hit the windshields, in which case the LNG might then be delivered by ocean-going tankers.
My understanding is that the eastern parts of New England import LNG from the US Gulf to maintain supplies since NY refuses to allow any new pipelines to traverse their area. Maybe all the testing of the seabed to put in bird choppers could be of benefit IF undersea pipelines were to be build around the NY blockade. Of course the pipelines would need to go through NJ and they are as leftist as NY.
I am not sure of the economics, but LNG storage on the site of the CCGT also allows a few days of generation without incoming fuel from a pipeline or rail cars, mitigating supply disruptions. Some CCGTs in Japan have adopted that strategy.
In most places, the balance to be made between energy reliability & security and energy cost is a public policy decision made through the public service commissions, or whatever similar governing agencies are called in a particular country.
It would seem that having a few days of LNG on hand for pipeline service interruptions is a perfectly rational requirement to impose on a new-build CCGT plant, although doing so will raise the cost of the electricity being generated. Not a lot, but some.
It would seem that having a few days of LNG on hand for pipeline service interruptions is a perfectly rational requirement to impose on a new-build CCGT plant
Just like they make bird choppers keep a couple of days of wind stored?
And solar fields keep a couple of days of sun stored?
Until the unreliables are required to provide backup, the reliables should NOT be required to do so.
Just another way to raise the price of reliable generation so that GREEN electricity can be shown to be CHEEPER!
Drake, it’s my expectation that when the regional crash test dummies hit the windshields in the mid 2030’s, after a series of deadly blackouts, a crisis response rebound will occur in which reliability concerns replace climate change concerns, at least for a time. When that happens, new construction of gas-fired plants will be approved, but with a requirement that at least two days of fuel remain onsite in case of fuel delivery interruptions.
Gas power generation is efficient and highly dispatchable – can be fired up and running in a short time. That’s an advantage in areas where summers are hot and you need the electricity for air conditioning. The problem with gas fired power generation as I understand it is that Power Gen competes with household use for heat in the winter. This can be a problem and make the grid fragile, as happened in Texas a couple of years ago. Better to keep some coal, hydro, nuclear, etc in the mix so as not to be too reliant on it. But to answer your question, LNG should be a part of the powergen mix since it need not rely on just in time pipeline delivery.
ntesdorf
April 3, 2024 4:26 pm
Toe-less Joe shoots himself in the foot yet again.
Leo Durocher, Ernie Banks, Ron Santo, Fergie Jenkins, et al… vs Al Weis…
For the season, Weis batted .172 with one home run and twelve RBIs, backing up Bud Harrelson and Ken Boswell at the middle infield positions.
On July 15, 1969, facing the first place Chicago Cubs at Wrigley Field, he hit a three-run home run off former Met Dick Selma to lead the second place Mets to a 5–4 victory.[7] Weis hit his second of two home runs for the season the following day, and the Mets won again to close the gap to just four games in the National League East.[8]
My grandfather was a great sports fan going back to his high school athletic days in the early 1900’s. We watched the whole 1968 series. Some number of latter-day high school students, myself included, found it necessary to skip school while the series was on.
Sports Illustrated had an outstanding analysis of the 1968 series as well, back in the days when it was the thinking man’s sports magazine, as opposed to the agendized wokist propaganda rag it has become in recent times.
The 1968 World Series is the first one I clearly recall watching. I was just shy of 10 years old… I was rooting for the Cardinals… Mostly because I thought Mike Shannon’s baseball card was really cool.
Edward Katz
April 3, 2024 5:58 pm
Canada’s Prime Minister Justin Trudeau seems to be taking lessons from Biden in refusing to export that country’s natural gas reserves to a number of countries willing to buy it. This refusal is obviously another misguided effort to avoid exporting a fossil fuel that supposedly is contributing to, if not mainly responsible for, the putative “climate crisis”. Except Trudeau and his misguided advisers are apparently unaware that if their potential LNG customers can’t get the Canadian product, they’ll import it from elsewhere, so the emissions will be produced regardless. And if they can’t get LNG, the solution will be simple: just burn coal instead. That way the emissions will be doubled, at least. Who says the planet can’t be saved?
Justin is even dumber than Joe. We could be raising our prices t0 Europe right now if we’d built the pipelines to the east. But when the German Chancellor made a special trip to Canada begging us to do so, Justin said, well that’s nice but have you seen our cool hydrogen plant that will never be practical?
Joe’s plan is to let the projects go ahead post election. Justin doesn’t plan for any projects.
I do solemnly swear (or affirm) that I will faithfully execute the Office of President of the United States, and will to the best of my Ability, preserve, protect and defend the Constitution of the United States.
So he will, if he loses in November, do what TRUMP! did not do, pardon himself for all the crap he has done while in office and before as a senator and vice president. But I don’t think he will think of perjury and treason.
So prosecute him for both. Of course when his mental health is discovered the “best of my Ability” part may find him not guilty of perjury.
To address the imbalance, the bloc rushed to add facilities to import liquefied natural gas (LNG) by sea from friendlier nations. But with renewable power set to depress fossil fuel demand, some of the newly built infrastructure risks becoming redundant.
No need for imported “energy” when you are exporting every “energy” intensive industry to China, and forcing the poor to cut “energy” usage by raising the cost beyond their means to pay.
As I always ask Nick, why do YOU hate the poor and those living in Africa so much?
Only if they aren’t counting the costs of backup power. That’s a capital investment in fossil fuel plants and on-going expenses of keeping the boilers hot so the plant can come online in minutes rather than many hours, of maintaining plants in high-stress service, of keeping an adequate fuel supply, and of replacing fuel burned when the unreliables are out.
LNG exports will expose domestic prices to global market forces and raising domestic prices. While that may be mitigated by increasing domestic production, it will also more rapidly deplete our reserves.
Exporting natural gas (in the form of LNG) to western Europe not only makes sense economically, but it can be a formidable weapon against Russian expansionism.
When Russia attacked Ukraine in February 2022, many of the western European countries were afraid to follow US economic sanctions against Russia, for fear that if the Russians cut off the supply of natural gas, western Europeans would be unable to heat their homes or generate electric power during the winter.
Exporting LNG to western Europe could give these countries the courage to enforce the sanctions against Russia, if they can rely on the USA to supply their natural gas needs. This could also deprive Russia of the revenues from the sale of natural gas, which could indirectly hamper Russia’s pursuit of the war in Ukraine.
Attempting to “pause” the development of LNG export terminals for environmental reasons is just plain stupid. A large LNG export terminal takes years to build, since chilling methane down to its atmospheric boiling / condensation temperature (about -260 F) requires huge compressors and refrigeration systems, and respect for existing environmental regulations is built into the cost.
One notable LNG export plant whose construction was held up due to Joe Biden’s “pause” was the Calcasieu Pass 2 plant in Louisiana. While this may exceed the capacity of Biden’s addled brain, it is called Calcasieu Pass 2 because there is already an existing LNG export terminal at the same site, which is in a natural harbor along the south coast of central Louisiana, sheltered from the waves of the Gulf of Mexico. The environmental impact of the new plant is likely similar to that of the existing plant, and has already been evaluated.
Even from the point of view of CO2 emissions, cutting back on natural gas makes no sense. Natural gas is by far the cleanest burning of all the fossil fuels, emitting less than half the CO2 as coal for the same net energy yield, and it also emits less real pollutants such as sulfur oxides and particulate matter.
Also, if we don’t export LNG to Europe, then the Europeans will burn the same amount of natural gas from Russia, which results in the same amount of CO2 emissions. What difference does it really make to the climate if the CO2 comes from burning American or Russian gas?
That cockwomble, Trudeau, has gone one better. He has told two countries leaders that, yes we have LNG, no, we’re not going to use it and no, you can’t have it either because there’s no good business case for selling LNG. When we develop our hydrogen fuel process we can sell you that, just wait, it won’t be long.
Reminder, Biden is just an installed punching bag to take the heat as a distraction. He has to do what he is told and not complain otherwise the whole Biden clan goes to jail(or deported to Haiti). Just imagine what was held over Obama’s head.
As for NG, the country could use the extra money right now. But some day the US will need it at home.
The states are going to have to go after the federal cabal that is cannibalizing the country for its own benefit. They also need to realize the judicial system has morphed into a protection racket for those in the beltway sucking the life out of the country.
It will get ugly, maybe it is time for the states to file conspiracy charges against the Feds and DNC and ban the Democratic party.
You have to high light everyone involved…..
Democrat, not Democratic. They hate REAL democracy.
Branden can eff up anything !
😉
That is what Obama said—and he should know.
Thanks to fracking, the US will have abundant natgas for many decades to come. Recovery factor for fracked shale OIP now runs 2-3% because of viscosity. Recovery factor for fracked shal natgas in place now runs 18-25%. And one massive gas shale, the Utica, has hardly been developed (except on its shallow western edge) because it mostly underlies the Marcellus, so more expensive to drill. No need yet.
Qatar and Australia LNG supplies Asia because of geographic proximity. The natural US LNG market is Europe. Joe is doing them no favors.
Biden is certainly a lawbreaker. Ignored the laws of economics and caused Bidenomics inflation. Ignored immigration laws and caused a mass invasion. Now ignoring the law requiring LNG projects get permitted. Unlawfully tried to get DoT to force states to count federal highway CO2 emissions when Congress gave DoT no such remit (reg just stopped by a federal judge as ‘arbitrary and capricious’).
Not looking good for Biden on Nov 5. Disastrous presidency, plus old and cognitively impaired.
Rud, the Utica Shale extends into southern Quebec but the same insane environmentalism has stalled exploration for years. In a large part, apparently, due to pressure by the idealogues of Équiterre, one of whose leaders is our minister of the environment and climate change, a true nutcase by the name of Stephen Guilbeault.
Do not underestimate the ability of activist attorneys general in key swing states to rig elections again in their states. They don’t have COVID-19 as an excuse to violate state election law, rules, and procedures this time. It will be interesting to see how they do loosen ballot deadlines and verification this time. Because they will absolutely try.
I love NAT GAS! I have 3 appliances that use it, the furnace, water heater, and the clothes dryer.
I have a natural gas water heater, furnace, and fireplace, and I plan to install a natural gas range. Your comment got me to thinking I should run the line to my laundry room also to have the option of a natural gas dryer too.
I got you both beat. Range, water heater, dryer, furnace AND gas logs installed in a wood burning fireplace. That is the home in Vegas.
At our cabin I must use propane. There I have propane cooktop, clothes dryer, water heater and furnace. The fireplace is only wood burning, and burning NOW to keep us (my wife) nice and toasty. This time of year we only need the furnace from about midnight till 6 when I start the fireplace in the morning. Nice sunny day today and passive solar, south facing wall mostly windows, will warm the cabin so I will probably let the fire burn out by noon.
Oh, I forgot the propane BU generator at the cabin. Nice to have the ability to live a normal life even when the power goes out due to storms or fallen trees.
For the next several decades, combined cycle gas turbine (CCGT) will be the cheapest way to generate electricity — assuming a reliable supply of natural gas is readily available at currently low prices.
Here in the US Northwest, the Northwest Power Planning Council’s long term plan for maintaining the adequacy of the region’s power supply is to build 3000 Mw nameplate of additional wind and solar combined with seriously-pursued energy conservation measures.
Voices in the region’s power utilities are quietly raising concerns behind the scenes out of public view that this plan is certain to fail. Demand for a reliable supply of electicity here in the US Northwest is slowly but steadily growing. Much of that growth in demand is being driven by a steady stream of incoming refugees from America’s larger cities and from states like California.
Currently, the quickest way to meet a steadily increasing demand for reliable 24/7/365 power is to build a CCGT power plant — assuming there is a ready and reliable supply of natural gas to feed it.
The argument is being made that even if the region’s mostly green politicians suddenly reversed course and allowed new gas-fired plants to be constructed, we don’t have enough pipeline capacity in the US Northwest to support an increased number of CCGT plants. Moreover, constructing new pipeline capacity in this region is a non-starter. It just won’t happen.
The Association of American Railroads claims that transport by rail can be a safe and economical means of transporting LNG from its point of liquification to its point of consumption. Thus we can build a CCGT power plant wherever it can be serviced by rail transport, thus avoiding the problem of a lack of adequate pipeline capacity.
Here is my question: As the failure of the Green New Deal reaches critical mass proportions in the coming decade, is it possible we will begin to see LNG which had been slated for future export become a domestic supply of rail-transported fuel for new-build gas-fired plants which are replacing shuttered coal-fired plants?
Doubt it. Natgas pipelines are ubiquitous in the US. When FPL converted their old (1970’s) oil fired generating stations in West Palm Beach and Fort Lauderdale (combined over 4GE) to new CCGT a few years back, they just dug up and enlarged an existing south Florida natgas pipeline to insure supply.
That is Florida. We don’t have the necessary pipeline capacity here in the US Northwest, and New York state and New England are in a similar situation, mostly because their regional green politicians have not and will not allow new pipeline capacity to be added.
This doesn’t mean that new CCGT plants couldn’t be constructed near suitable ocean ports in New England and in New York state when the regional Net Zero crash test dummies eventually hit the windshields, in which case the LNG might then be delivered by ocean-going tankers.
My understanding is that the eastern parts of New England import LNG from the US Gulf to maintain supplies since NY refuses to allow any new pipelines to traverse their area. Maybe all the testing of the seabed to put in bird choppers could be of benefit IF undersea pipelines were to be build around the NY blockade. Of course the pipelines would need to go through NJ and they are as leftist as NY.
I am not sure of the economics, but LNG storage on the site of the CCGT also allows a few days of generation without incoming fuel from a pipeline or rail cars, mitigating supply disruptions. Some CCGTs in Japan have adopted that strategy.
In most places, the balance to be made between energy reliability & security and energy cost is a public policy decision made through the public service commissions, or whatever similar governing agencies are called in a particular country.
It would seem that having a few days of LNG on hand for pipeline service interruptions is a perfectly rational requirement to impose on a new-build CCGT plant, although doing so will raise the cost of the electricity being generated. Not a lot, but some.
Just like they make bird choppers keep a couple of days of wind stored?
And solar fields keep a couple of days of sun stored?
Until the unreliables are required to provide backup, the reliables should NOT be required to do so.
Just another way to raise the price of reliable generation so that GREEN electricity can be shown to be CHEEPER!
Drake, it’s my expectation that when the regional crash test dummies hit the windshields in the mid 2030’s, after a series of deadly blackouts, a crisis response rebound will occur in which reliability concerns replace climate change concerns, at least for a time. When that happens, new construction of gas-fired plants will be approved, but with a requirement that at least two days of fuel remain onsite in case of fuel delivery interruptions.
Gas power generation is efficient and highly dispatchable – can be fired up and running in a short time. That’s an advantage in areas where summers are hot and you need the electricity for air conditioning. The problem with gas fired power generation as I understand it is that Power Gen competes with household use for heat in the winter. This can be a problem and make the grid fragile, as happened in Texas a couple of years ago. Better to keep some coal, hydro, nuclear, etc in the mix so as not to be too reliant on it. But to answer your question, LNG should be a part of the powergen mix since it need not rely on just in time pipeline delivery.
Toe-less Joe shoots himself in the foot yet again.
It’s amazing how many idiots still want to vote for Joe.
Dead people are registering in huge numbers.
69 Cubs choked
Leo Durocher, Ernie Banks, Ron Santo, Fergie Jenkins, et al… vs Al Weis…
https://en.m.wikipedia.org/wiki/Al_Weis#:~:text=For%20the%20season%2C%20Weis%20batted,to%20a%205%E2%80%934%20victory.
Gotta luv baseball!
I remember the ’68 Tigers. I was a lot smaller then. I had to jump up on the counter to get a drink of water out of the kitchen faucet.
Great series! Denny McClain, Mickey Lolich, Al Kaline, Willie Horton…. vs… Bob Gibson, Steve Carlton, Lou Brock… 😎
My grandfather was a great sports fan going back to his high school athletic days in the early 1900’s. We watched the whole 1968 series. Some number of latter-day high school students, myself included, found it necessary to skip school while the series was on.
Sports Illustrated had an outstanding analysis of the 1968 series as well, back in the days when it was the thinking man’s sports magazine, as opposed to the agendized wokist propaganda rag it has become in recent times.
The 1968 World Series is the first one I clearly recall watching. I was just shy of 10 years old… I was rooting for the Cardinals… Mostly because I thought Mike Shannon’s baseball card was really cool.
Canada’s Prime Minister Justin Trudeau seems to be taking lessons from Biden in refusing to export that country’s natural gas reserves to a number of countries willing to buy it. This refusal is obviously another misguided effort to avoid exporting a fossil fuel that supposedly is contributing to, if not mainly responsible for, the putative “climate crisis”. Except Trudeau and his misguided advisers are apparently unaware that if their potential LNG customers can’t get the Canadian product, they’ll import it from elsewhere, so the emissions will be produced regardless. And if they can’t get LNG, the solution will be simple: just burn coal instead. That way the emissions will be doubled, at least. Who says the planet can’t be saved?
Justin is even dumber than Joe. We could be raising our prices t0 Europe right now if we’d built the pipelines to the east. But when the German Chancellor made a special trip to Canada begging us to do so, Justin said, well that’s nice but have you seen our cool hydrogen plant that will never be practical?
Joe’s plan is to let the projects go ahead post election. Justin doesn’t plan for any projects.
Joke Biden for Prison 2024!
That will never happen. Democrats are a protected class.
Funny thing is that a POTUS swears:
So he will, if he loses in November, do what TRUMP! did not do, pardon himself for all the crap he has done while in office and before as a senator and vice president. But I don’t think he will think of perjury and treason.
So prosecute him for both. Of course when his mental health is discovered the “best of my Ability” part may find him not guilty of perjury.
EU’s energy security drive may have gone too far
https://www.reuters.com/breakingviews/eus-energy-security-drive-may-have-gone-too-far-2024-01-11/
Idiot.
So where do you see a demand growth in Europe? As far as I can see you argued with capacity growth, and that means nothing without the demand.
The big demand growth will be in Asia.
However, Europe has very little natural gas production, is in serious decline and the delta between consumption and production is widening.
The demand for imported natural gas will continue to grow, even if overall demand doesn’t.
On the other hand, US production, proved reserves are growing and production is outstripping demand by an ever-widening margin.
This is Data laughing at you:
No need for imported “energy” when you are exporting every “energy” intensive industry to China, and forcing the poor to cut “energy” usage by raising the cost beyond their means to pay.
As I always ask Nick, why do YOU hate the poor and those living in Africa so much?
How much money are European consumers saving thanks to renewables?
https://www.iea.org/reports/renewable-energy-market-update-june-2023/how-much-money-are-european-consumers-saving-thanks-to-renewables
Spanish Power Is Almost Free With Renewables Set for Record
https://www.bloomberg.com/news/articles/2024-02-29/spanish-power-is-almost-free-with-renewables-set-for-record
Only if they aren’t counting the costs of backup power. That’s a capital investment in fossil fuel plants and on-going expenses of keeping the boilers hot so the plant can come online in minutes rather than many hours, of maintaining plants in high-stress service, of keeping an adequate fuel supply, and of replacing fuel burned when the unreliables are out.
Fani — the face of the modern marxist-democrat party:
https://www.thegatewaypundit.com/2024/04/alan-dershowitz-fani-willis-committed-worst-crimes-should/
LNG exports will expose domestic prices to global market forces and raising domestic prices. While that may be mitigated by increasing domestic production, it will also more rapidly deplete our reserves.
Keep it here, keep it cheap.
The black curve is proved reserves…
Exporting natural gas (in the form of LNG) to western Europe not only makes sense economically, but it can be a formidable weapon against Russian expansionism.
When Russia attacked Ukraine in February 2022, many of the western European countries were afraid to follow US economic sanctions against Russia, for fear that if the Russians cut off the supply of natural gas, western Europeans would be unable to heat their homes or generate electric power during the winter.
Exporting LNG to western Europe could give these countries the courage to enforce the sanctions against Russia, if they can rely on the USA to supply their natural gas needs. This could also deprive Russia of the revenues from the sale of natural gas, which could indirectly hamper Russia’s pursuit of the war in Ukraine.
Attempting to “pause” the development of LNG export terminals for environmental reasons is just plain stupid. A large LNG export terminal takes years to build, since chilling methane down to its atmospheric boiling / condensation temperature (about -260 F) requires huge compressors and refrigeration systems, and respect for existing environmental regulations is built into the cost.
One notable LNG export plant whose construction was held up due to Joe Biden’s “pause” was the Calcasieu Pass 2 plant in Louisiana. While this may exceed the capacity of Biden’s addled brain, it is called Calcasieu Pass 2 because there is already an existing LNG export terminal at the same site, which is in a natural harbor along the south coast of central Louisiana, sheltered from the waves of the Gulf of Mexico. The environmental impact of the new plant is likely similar to that of the existing plant, and has already been evaluated.
Even from the point of view of CO2 emissions, cutting back on natural gas makes no sense. Natural gas is by far the cleanest burning of all the fossil fuels, emitting less than half the CO2 as coal for the same net energy yield, and it also emits less real pollutants such as sulfur oxides and particulate matter.
Also, if we don’t export LNG to Europe, then the Europeans will burn the same amount of natural gas from Russia, which results in the same amount of CO2 emissions. What difference does it really make to the climate if the CO2 comes from burning American or Russian gas?
That cockwomble, Trudeau, has gone one better. He has told two countries leaders that, yes we have LNG, no, we’re not going to use it and no, you can’t have it either because there’s no good business case for selling LNG. When we develop our hydrogen fuel process we can sell you that, just wait, it won’t be long.