Exporting American Natural Gas

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The question is often asked, “Will this pipeline be used for export?”  Answers vary due to technicalities and half truths.

The destination of the NED pipeline is the hub in Dracut, Massachusetts.  Therefore TGP/KM can claim that the NED pipeline doesn’t export gas to Canada.  They can also state that they don’t choose or restrict where the natural gas is used since they are a transportation company, not a distribution company.

However reviewing the TGP/KM NED documentation and understanding that the Dracut hub offers connection to the Maritimes & Northeast Pipeline unravels these half truths.  This identifies the path for natural gas flowing through NED to supply Canada and other overseas destinations through export of liquid natural gas (LNG).

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NED was previously named NEP (Northeast Expansion Project)

TGP held a successful open season (to solicit interest from potential customers for the proposed project) that closed March 28, 2014, which generated significant interest from local gas distribution companies (LDCs), electric generators, producers, industrial end users in New England and Atlantic Canada, as well as developers of liquefied natural gas projects. [1]

 5/26/2015: The USA Department of Energy authorizes Pieridae Energy (USA) Ltd. to export American natural gas

Pieridae Energy (Canada) Ltd. (Pieridae) is pleased to announce that the Department of Energy of the USA has granted Pieridae Energy (USA) Ltd. long-term multi-contract authorization to export natural gas to Canada for end use in Canada and to export LNG produced from such natural gas from Canada to countries with which the USA has entered into a free trade agreement requiring national treatment for trade in natural gas (“FTA countries”). The authorization issued on May 22, 2015 is granted in response to an application by Pieridae Energy (USA) Ltd. to export up to 292 billion cubic feet (Bcf) per year of natural gas (0.8 Bcf per day) via the Maritimes Northeast US and Canada pipelines. The natural gas exported to Canada will be purchased by Pieridae and will then be processed at the proposed Goldboro LNG liquefaction facility located in Goldboro, Nova Scotia and exported as LNG to FTA countries.  Read more …

2/14/2015: Pipeline expansion could carry natural gas right out of the region

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Left out of the talking points that support expanding pipelines in New England are the efforts by energy companies to deliver that natural gas to Canada for export overseas.

Documents show that developers are already moving forward with this concept. Last October, Pieridae Energy filed a federal application to send domestic natural gas from Massachusetts to Nova Scotia, where it would be converted to liquefied natural gas (LNG) and exported. According to Peiridae, a company in Germany has already agreed to buy the exported LNG. Read more …

7/18/2014: H-Energy’s planned LNG plant for Melford garners global clients
H-Energy, a subsidiary of Mumbai’s Hiranandani Group, also said Friday that front-end engineering and design work on the Nova Scotia project has started and will be finished by the end of the year. A final decision on whether to proceed with the venture will be made by mid-2016. The developer also said it will ask the National Energy Board in October to grant an export permit for the venture. Environmental approval for the project, one of two LNG export facilities in the works for the Strait area, will also be sought. Read more …

6/20/2014: Downeast LNG Gets Back Up With Bidirectional Project
Gas from the Marcellus which is projected by some to be a 25 Bcf/d monster in a few years could be picked up by Downeast at Wright, NY. Or gas could be sourced from Dawn, ON, Girdis said. The Dawn supply would be a mix of western Canadian gas and U.S. gas. Wright would offer a Marcellus-Utica-Canadian gas mix. “We’ve been in discussions with a number of parties, producers and others, that have suggested they’re willing to commit gas at a fixed-price, long-term contract,” he said.

Downeast plans to contract for 300 MMcf/d of firm pipeline capacity, enough to support a new pipeline but not so much as to harm other New England gas consumers such as local distribution companies, industrials and power generators, Girdis said. Read more …

5/6/2014: Nova Scotia’s LNG hopes rest on securing gas supply
The crisis in Ukraine is adding fuel to Nova Scotia’s plans to become a liquefied natural gas export hub, though questions persist about where the developers will get the natural gas to feed their ambitions.

Pieridae president Alfred Sorensen accompanied Prime Minister Stephen Harper on a visit to Germany last month, and met with Chancellor Angela Merkel. Western leaders are looking for ways to reduce the near-total dependence of eastern Europe, and Ukraine specifically, on Russian gas supplies.

But he faces a major hurdle in Nova Scotia: there isn’t enough natural gas being produced in the Maritimes to support an LNG plant. And there are both pipeline and political challenges to the company’s plan to import gas from the United States. Read more …

4/7/2014: Movin’ Out—Exporting U.S.-Sourced LNG from the Maritimes
With Marcellus natural gas production expected to continue increasing, several companies are proposing projects to pipe a portion of the output through New England to Canada’s Maritime Provinces, where the gas would be liquefied and exported to Europe, Latin America and maybe even Asia. Some offshore Atlantic Basin gas production from Sable Island and Deep Panuke would be mixed in too. Such plans for as many as four new LNG export facilities in Nova Scotia and New Brunswick hinge on the development of new pipeline capacity through New England to the existing Maritimes & Northeast Pipeline (MNP), which would be reversed to flow north. Is this a golden opportunity or an overreach? Today we examine prospects for exporting Marcellus gas through new Eastern Canadian LNG facilities. Read more …