LOW-COST DOMESTIC PIPELINE GAS VERSUS HIGH-COST FOREIGN LNG

The RE proponents in New England are opposed to additional gas lines gas to bring more gas to New England, and are opposed to additional gas storage systems. They support the RE proponents in New York State and Massachusetts, who have blocked pipelines to bring low-cost, domestic natural gas from Pennsylvania.

http://www.windtaskforce.org/profiles/blogs/conservative-law-founda...

Legislatures in Massachusetts and New York State have been preventing the timely construction of new gas lines to provide more low-cost, domestic natural gas to New England, but these same Legislatures think paying three times the New England price for imported LNG is quite all right. Higher energy costs would become even more of a headwind for the NE economy.

They do not want to build pipelines and storage systems, because that would “lock us into fossil fuels”. They want to force New Englanders to rely on Russian and Middle East LNG, at three times the prices of domestic pipeline gas, to get us through high demand crunches in winter. That LNG would be delivered to an LNG terminal (owned by ENGIE, a French company), in Everett, MA, by foreign-owned LNG tankers, built in Korea, which would increase our trade deficit.

They do not mention New England LNG markets would remain highly profitable and become even more profitable for foreigners, such as Russia, the UK, France and Korea.

NOTE: Exelon announced the Mystic Station generating plant, 1700 MW, is due to retire effective May 31, 2022.  The plant and its fuel source, a neighboring LNG import terminal at Everett, MA, were explicitly identified by ISO-NE as critical to the region’s fuel security. ISO-NE has determined losing Mystic would pose an unacceptable risk to power system reliability in winter.

http://isonewswire.com/updates/2018/7/31/update-on-iso-nes-operatio...

Here are some additional sources: 

http://www.vnews.com/Column-OilSavesGrid-ma-14865099

https://atomicinsights.com/performance-new-england-power-grid-extre...

https://www.forbes.com/sites/judeclemente/2018/01/07/what-happens-w...

https://www.forbes.com/sites/davidblackmon/2018/01/03/governor-andr...

https://www.masterresource.org/pipeline-obstructionism/protesters-a...

https://www.energyindepth.org/russian-lng-or-pipelines-for-new-engl...

Gas Supply Shortage of Dec 24, 2017 - Jan 8, 2018

Here is an article of the cold snap Dec 24, 2017 - Jan 8, 2018. It would be utterly stupid/economically unwise to rely on Russian and Middle East LNG, shipped in through the ENGIE LNG terminal, at three times the price of domestic pipeline gas, in the middle of winter, as advocated by RE proponents, who oppose desperately needed new gas lines and gas storage systems.

http://www.windtaskforce.org/profiles/blogs/a-likely-scenario-durin... 

NOTE: Per the US Jones law, it is not allowed to ship US LNG between US ports, i.e., Louisiana to Everett, MA, which enables the French to do lucrative business at the expense of the NE economy.

NOTE: The Conservative Law Foundation, CLF, and other RE proponents, such as Acadia Center, New Hampshire Office of the Consumer Advocate, PowerOptions, RENEW Northeast, Vermont Energy Investment Corporation, etc., have been obstructing increased pipeline gas from Marcellus for several years. However, pipeline capacity to the Midwest has been increased. Midwesterners, instead in New Englanders, get to enjoy even more of the benefits of low-cost domestic gas.

NOTE: Massachusetts Attorney General Maura Healey would rather import high-cost, Russian and Middle East LNG instead of using low-cost, domestic pipeline gas. 

Electricity Cost of Domestic Natural Gas versus Foreign LNG

This section provides some numbers that are not well known among lay people.

- 1 million metric tons LNG = 48.7 billion cubic feet natural gas = 52 trillion Btu. That energy quantity, if combusted in an efficient combined-cycle gas turbine plant, at 50% efficiency, would generate 52/(3212/0.5) x 10^12 kWh = 8.095 TWh.

- If Russian and Middle East LNG, the electricity cost would be $6.12 million/8.095 TWh = 7.56 c/kWh, fuel only

- If US pipeline gas, the cost would be 2.75/8.5 x 7.56 = 2.45 c/kWh, fuel only

The below table uses the HHV and LHV from the afdc URL to calculate the LHV not stated in the extension URL.

https://www.energyindepth.org/russian-lng-or-pipelines-for-new-engl...

https://www.eenews.net/stories/1060076897

https://www.extension.iastate.edu/agdm/wholefarm/html/c6-89.html

https://www.afdc.energy.gov/fuels/fuel_comparison_chart.pdf

Pipeline Gas and LNG Wholesale Prices

APPENDIX 1

LNG Deliveries to Everett, MA ,During 2017/2018 Gas Shortage

Delivering the LNG: The Christophe de Margerie, a Russian-owned icebreaking tanker, named after the deceased former CEO of Total, motored into Isle de Grain, UK, on Dec. 28, according to market information provider ICIS. It unloaded LNG from the new Yamal gas/oil plant in Russia. See URLs and Note.

https://www.reuters.com/article/lng-yamal-shipping/table-arc7-class...

https://photos.fleetmon.com/vessels/eduard-toll_9750696_2272589_XLa...

https://www.vesselfinder.com/?p=2511

The Gaselys, a French-owned tanker, arrived at Isle de Grain, UK, which is a large LNG storage facility in the UK that receives gas from many sources, including the Netherlands, Norway, Middle East, Russia, etc.

It took on a cargo of commingled LNG, including LNG from the Christophe de Margerie, an ice-breaking LNG carrier; LNG capacity 172,600 m3, or 77,670 metric ton.  See Note.

Isle de Grain left the port on Jan. 7 

It arrived at the ENGIE terminal (owned by a French company) in Everett, Mass., three weeks later and delivered its payload.

Both tankers were built in Korea.

Everett LNG Terminal: LNG is imported from Trinidad and Tobago, where the gas is cooled to -260 F, turned into LNG, reducing the volume by 1/600th, then shipped to Everett.

The gas fields of Trinidad and Tobago have had decreasing outputs due to depletion, which means increased likelihood of more expensive LNG from Louisiana and highly expensive LNG from Russia and the Middle East, while various NE energy measures are being implemented during the next few decades.

Average LNG density = 450 kg/m3 x 0.62428 = 28.1 lb/ft3, depends on gas composition and temperature.

Everett has 2 LNG tanks, each 180 feet tall.

Everett LNG storage is about 160,461 m3, or 3.4 bcf (gas equivalent after gasifying the LNG); peak vaporizing capacity 1.0 bcf/d; maximum continuous 0.715 bcf/d,

GDF Suez Gaz NA, a Frenchcompany, owns the LNG plants in Trinidad and Tobago that supply most of the LNG to Everett.

It is amazing how much of the LNG infrastructure, and LNG storage plants, and LNG fleets are built and owned by foreigners! See URL.

http://www.windtaskforce.org/profiles/blogs/the-eu-and-internationa...

https://www.eenews.net/stories/1060076897

http://www.powermag.com/everett-lng-terminal-at-the-crossroads/?pag...

https://www.linkedin.com/pulse/lng-terms-tonsyear-cubic-meters-btus...

NOTE: Shipments of Russian oil and gas are not subject to sanctions, but “US persons and those in the US” are prohibited from financing Novatek, the lead company in the construction of Yamal LNG. The French, our friendly trading partner, took advantage of that.

- Yamal LNG; operated by Yamal LNG company; owned by Russian independent gas producer Novatek (50.1%), Total, a French company (20%), CNPC (20%) and Silk Road Fund (9.9%); capital cost $27 billion; capacity 16.5 million mt LNG, 3 trains.

- Yamal LNG 2: operated by Yamal LNG company; owned by Novatek (60%), Total (20%); Others (20%); capital cost $25.5 billion; capacity 19.8 million mt LNG, 3 trains.

https://www.ft.com/content/56f19604-fd6d-11e7-a492-2c9be7f3120a

https://www.bloomberg.com/news/articles/2017-12-14/russia-dreams-bi...

https://www.total.com/en/media/news/press-releases/yamal-lng-projec...

APPENDIX 2

In the below table are some process parameters for an LNG production train with a capacity of 5 million metric ton /y. It takes about 34.6 million standard ft3/h of gas from the well to yield 28.6 standard ft3/h of LNG, equivalent to 571 metric ton/h of LNG.

https://www.linkedin.com/pulse/lng-terms-tonsyear-cubic-meters-btus...

* The HHV is of the gas vaporized from LNG.