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Permalink Reply by Steve P on August 7, 2013 at 19:47

link doesn't work for us cheap non-suscribers

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Permalink Reply by Henry on August 8, 2013 at 0:47

That is good.  Imagine if these terminals ever actually exported the full amount -- 5.6 Bcfe/day.  That is roughly one Haynesville well/day for 20 years, or 7300 wells.  I might actually get leased after all if this ever happens.  

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Permalink Reply by jffree1 on August 8, 2013 at 3:26

Fuel Fix:

"The Obama administration licensed a third company to broadly sell U.S. natural gas overseas on Wednesday, renewing fears that widespread exports of America’s bounty could spike domestic prices for the fossil fuel.

In conditionally approving exports from a $2 billion facility in Lake Charles, La., the Energy Department has now put U.S. companies on track to eventually export as much as 5.6 billion cubic feet of gas per day to Japan and other countries that aren’t free-trade partners with the U.S.

And 19 other export applications are still pending at the Energy Department, propelled by U.S. natural gas producers’ zeal to capitalize on growing demand in Europe and Asia."

http://fuelfix.com/blog/2013/08/07/feds-approve-lake-charles-lng-ex...

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Permalink Reply by dbob on August 8, 2013 at 3:34

BTW, my crystal ball says the next project in line(Dominion in Maryland)gets approval and then everything else in line in the lwoer 48 gets kiboshed.

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Permalink Reply by olddog573 on August 8, 2013 at 5:27

Yeah they can't let the gulf coast get all the LNG plants so Maryland will get approved but I wouldn't hold my breath on the others.  Another high lite for increased usage is the big NG pipeline being installed from I think Alabama to Florida to displace coal.

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Permalink Reply by Skip Peel - Mineral Consultant on August 8, 2013 at 9:13

The list of new plants and expansions using natural gas as a power source and/or feed stock in the lower Mississippi River Corridor and the Gulf Coast is two letter size sheets long single spaced.  LNG export facilities are a couple of lines on a list of investments totaling in excess of $100B.  This new demand will reinvigorate the market for natural gas produced in LA and TX and make up for the residential and industrial natural gas markets lost to Marcellus Shale production.

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Permalink Reply by Bobi Carr ("parker") on August 8, 2013 at 9:23

I hope it also reinvigorates natural gas prices.

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Permalink Reply by Skip Peel - Mineral Consultant on August 8, 2013 at 9:36

Bobi, IMO it will help incrementally.  I think the new demand will lift prices for Haynesville and EagleFord gas but I don't know if that will be enough to push them past $4 to $4.50.  There are two dynamics that much reach some sort of healthy balance.  Operators are constantly innovating to drive down the cost to produce an mcf so profits improve even in lower price environments.  And all these industrial investments depend on relatively cheap natural gas prices.  I don't think these chemical industry companies would be making these investments if they thought the price of natural gas was going to rise to a point where their profitability is threatened.

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Permalink Reply by Skip Peel - Mineral Consultant on August 8, 2013 at 9:25

The industrial uses extend to and support the market for natural gas liquids (NGLs).  NGL price is critical to make possible all the "wet gas"/liquids plays that are emerging as new infrastructure makes them feasible.

Incitec Pivot, Dyno Nobel, Cornerstone Chemical Break Ground On $1 Billion Industrial Project In Jefferson Parish - LA Economic Development news release (excerpt), emphasis added is my own

"This project will be one of many that will upgrade natural gas and natural gas liquids to value-added chemicals primarily for consumption within the U.S. as we leverage our natural resource advantage to lead the world out of the global recession.”

Link to full article: http://louisianaeconomicdevelopment.com/index.cfm?md=communication&...

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