FERC approves Kinder Morgan's Gulf LNG project

[thackney]

FERC approves Kinder Morgan's Gulf LNG project
https://www.houstonchronicle.com/business/energy/article/FERC-approves-Kinder-Morgan-s-Gulf-LNG-project-14102776.php
 July 17, 2019

Federal regulators gave Houston's Kinder Morgan the green light to build its Gulf LNG export project in Mississippi, once again overcoming opposition from some Democrats concerned about LNG terminals' impacts on climate change.

The Federal Energy Regulatory Commission approved the Gulf LNG project in a 3-1 vote Tuesday.

It's the fifth liquefied natural gas export project the agency has approved so far this year as it catches up with a backlog of applications for new LNG projects. Developers are racing to build new terminals to take advantage of growing supplies of natural gas unleashed by the U.S. shale boom and increasing demand for LNG globally.

Kinder Morgan originally developed the Gulf LNG site as a liquefied natural gas import terminal in 2009. But with record production from U.S. shale plays creating a surplus of natural gas, the Houston company filed an application with FERC in July 2015 seeking permission to redevelop part of the site as an export terminal.

The proposed project would add 11.5 million metric tons of new capacity to Kinder Morgan's terminal in Pascagoula, Mississippi, which would include two liquefaction plants. The project will also modify the existing Gulf LNG Pipeline allow for  bidirectional flow....

[IsailedawayfromFR]

FERC approves Kinder Morgan's Gulf LNG project
https://www.houstonchronicle.com/business/energy/article/FERC-approves-Kinder-Morgan-s-Gulf-LNG-project-14102776.php
 July 17, 2019

Federal regulators gave Houston's Kinder Morgan the green light to build its Gulf LNG export project in Mississippi, once again overcoming opposition from some Democrats concerned about LNG terminals' impacts on climate change.

The Federal Energy Regulatory Commission approved the Gulf LNG project in a 3-1 vote Tuesday.

It's the fifth liquefied natural gas export project the agency has approved so far this year as it catches up with a backlog of applications for new LNG projects. Developers are racing to build new terminals to take advantage of growing supplies of natural gas unleashed by the U.S. shale boom and increasing demand for LNG globally.

Kinder Morgan originally developed the Gulf LNG site as a liquefied natural gas import terminal in 2009. But with record production from U.S. shale plays creating a surplus of natural gas, the Houston company filed an application with FERC in July 2015 seeking permission to redevelop part of the site as an export terminal.

The proposed project would add 11.5 million metric tons of new capacity to Kinder Morgan's terminal in Pascagoula, Mississippi, which would include two liquefaction plants. The project will also modify the existing Gulf LNG Pipeline allow for  bidirectional flow....

Interesting.  Bet not too many pipelines are setup that way

[Hoodat]

Dang, would love to get in on this.

[thackney]

Interesting.  Bet not too many pipelines are setup that way

No they are not.  It takes a lot more connections to have pumping/compressors to be able to inlet and outlet the different directions.  They would not build separate systems to move through the pipeline different directions typically.  They would have complicated valving set up with run permissives that check valve positions depending on the operation typically.

[Hoodat]

Interesting.  Bet not too many pipelines are setup that way

Only in the last few years has the law been changed allowing LNG exports.  That's why all the old pipelines were set up for one direction - in.

[thackney]

Only in the last few years has the law been changed allowing LNG exports.  That's why all the old pipelines were set up for one direction - in.

The US has been exporting LNG for decades.

Liquefied U.S. Natural Gas Exports (Million Cubic Feet)
https://www.eia.gov/dnav/ng/hist/n9133us2a.htm

[Hoodat]

The US has been exporting LNG for decades.

Liquefied U.S. Natural Gas Exports (Million Cubic Feet)
https://www.eia.gov/dnav/ng/hist/n9133us2a.htm

@thackney

That has not been my experience working with LNG facilities in Sabine Pass / Cameron.  Facilities set up for import are recently refitted for export.  But first, they had to get permission from the government to export LNG.  Help me understand what changed?

[Hoodat]

The first shipment of U.S. LNG from the lower 48 states left in February 2016 from Cheniere Energy’s Sabine Pass Liquefaction Project, and since then the U.S. has shipped LNG to Europe, Asia and South America. There are six terminals currently under construction that are expected to come online by 2020.

https://lngexports.com/#/?section=the-world-lng-market

[thackney]

@thackney

That has not been my experience working with LNG facilities in Sabine Pass / Cameron.  Facilities set up for import are recently refitted for export.  But first, they had to get permission from the government to export LNG.  Help me understand what changed?

Alaska had a small LNG export for several decades.  Getting permits for each LNG export is always a specific challenge.

The Kenai Liquefied Natural Gas (LNG) Plant began
operating in 1969, and for more than 40 years has been the
only LNG export plant of domestic production in the United
States.

http://static.conocophillips.com/files/resources/fact-sheet_kenai-lng_current.pdf

[thackney]

...from the lower 48 states...

But number 49....

[Hoodat]

So technically, LNG exports were not allowed from the lower 48 prior to 2016 because the government had not issued any permits for LNG export.  It was incorrect of me to assume that it was a blanket ban on LNG exports.  Thanks for the info.

[thackney]

 

So technically, LNG exports were not allowed from the lower 48 prior to 2016 because the government had not issued any permits for LNG export.  It was incorrect of me to assume that it was a blanket ban on LNG exports.  Thanks for the info.

 

[catfish1957]

F___  KMI.....

One of my worst investments ever.  79% loss as of last look.

[thackney]

F___  KMI.....

One of my worst investments ever.  79% loss as of last look.

It is all in the timing...

Buy on Jan 15, 2016 and it looks pretty good.

Buy on April 24, 2015 and you start looking for a window to jump out of....

[catfish1957]

It is all in the timing...

Buy on Jan 15, 2016 and it looks pretty good.

Buy on April 24, 2015 and you start looking for a window to jump out of....

'

Was long on this POS for divy reasons.  (15+ years)

Partners  pissed away a good business model, and now I am just biding my time to include it a captial loss dump.

And don't worry, I am batting about .900 on the investment front.

[thackney]

'

Was long on this POS for divy reasons.  (15+ years)

Partners  pissed away a good business model, and now I am just biding my time to include it a captial loss dump.

And don't worry, I am batting about .900 on the investment front.

That buy low, sell high is tougher than it sounds.

If you are interested in some GE stock, let me know.....

[IsailedawayfromFR]

So technically, LNG exports were not allowed from the lower 48 prior to 2016 because the government had not issued any permits for LNG export.  It was incorrect of me to assume that it was a blanket ban on LNG exports.  Thanks for the info.

Yes, it was definitely not a ban on natural gas exports via LNG.  There was in place, however, a cumbersome process of review including Environmental Review which effectively dampened LNG export projects.  Likely a holdover problem from the disaster of gas regulation caused by Carter's administration which, among other items, prohibited new natural gas power generation projects in favor of, for example, coal generated power. (What a change we have now since the enviro-wackos have stepped into power).

Removing Restrictions on Liquid Natural Gas Exports: A Gift to the U.S. and Global Economies
https://www.heritage.org/energy-economics/report/removing-restrictions-liquid-natural-gas-exports-gift-the-us-and-global

The importing of LNG was a robust business for years in 4 or 5 separate regasification terminals such as Cove Point that were later mothballed.

Only since the advent of unconventionals and the ability to access via advanced horizontal drilling/staged fraccing have the abundant nature of natural gas in this country been realized, resulting in turning regasification terminals into liquefaction sites.

The travesty is that Carter set this country back a long time with his dictates which were based upon the premises of the scarcity of natural gas in the US, a premise now found to be totally discredited.  And natural gas prices that exist now are far less in prices than at that time, adjusted for inflation.

[Joe Wooten]

That buy low, sell high is tougher than it sounds.

If you are interested in some GE stock, let me know.....

I'm waiting for a corporate raider like Icann to try to bust up GE and sell off the profitable parts like the gas turbine division.....