Dramatic Reversal for Natural Gas on Chesapeake Bay

Talk about an energy turn-around.

In a sign of how drilling for natural gas in the Marcellus shale formation is transforming the region’s energy landscape, owners of a liquid natural gas import terminal on the Chesapeake Bay want to transform the facility to export gas.

The Virginia-based Dominion power company announced yesterday that it has applied to the U.S. Department of Energy for approval to rebuild the Cove Point liquid natural gas (LNG) terminal in southern Maryland into a “bi-directional” facility, capable of exporting up to 1 billion cubic feet of natural gas per day, according to the company’s website.

Since it was built in 1978, Cove Point -- one of the largest LNG terminals in the U.S. -- has been the docking point for massive ships importing super-cooled, liquefied natural gas from countries around the world, including Algeria, Trinidad, Nigeria, Norway and Venezuela.

But import now will become export.

Why? Surging natural gas production in the U.S. from the Marcellus shale, a formation of black rock permeated with gas that lies under Pennsylvania, New York, Western Maryland, West Virginia and Ohio, and the nearby Utica shale, according to Dominion.

“Increased natural gas production…has increased supplies in the U.S,” the company said on its website. “Producers are looking for ways to get their natural gas to markets.”

To start exporting gas from the U.S., Dominion would have to build facilities at Cove Point to cool natural gas into a liquid form, which takes up less space, making gas easier to transport in a ship.

The company wants to start construction on these new natural gas compression facilities in 2014, but first will need environmental and regulatory approvals from the Federal Energy Regulatory Commission, as well as state and local governments.

The change from import to export is surprising, in part because Cove Point facility was built -- and then expanded -- because of a perception that the U.S. was running out of natural gas, and so foreign fuel had to be shipped in. 

Now this storyline has a sudden plot reversal.

What do you think about natural gas being exported from the U.S.?  On one hand, energy independence and local jobs are good.

But on the other hand, producing natural gas through hydraulic fracturing has an environmental impact on the Chesapeake region. The downside includes increased truck traffic, the construction of gas pipelines, air emissions from drilling sites, runoff from drilling pads, and the cutting of trees to construct drilling sites.

How do you view the trade-offs, especially knowing that these sacrifices are for natural gas meant for overseas markets?

By Tom Pelton

Chesapeake Bay Foundation

(Photo by U.S. Department of Energy/AGA)

Comments

[Waddell Robey]

As you say in this report, the fuel independence and increased jobs are attractive, but the trade-offs in environmental costs are overwhelming. In balance, we, this nation, this planet will lose. Politicians directly chastise citizens who speak out against "fracking" and its impact as an environmental and public health threat, For some this scolding is very intimidating. I fear that the pipeline and associated industries will come about.

For the Chesapeake Bay, I see more harmful impact from a variety of sources including increased ship traffic. After the fact actions for repair, restoration or actual cessation of some of the drilling will be filled with delays, high costs, and more irreparable damage to the bay and its immense watershed.

One other highly serious impact is that this will delay our full commitment to alternative energy programs which will eventually cause serious commercial and public harm. The economic impact from this will outweigh what we are experiencing right now in this country.

Shouting "No Fracking" is falling on deaf ears in Congress, in the White House and in corporate America. Shouting "Help" as we begin to suffer from the effects of fracking will also fall on deaf ears. We are left with the Bay sadly singing to the politicians, you are "Killing Me Harshly With Your Indifference."

[גני אירועים]

one of the largest LNG terminal in the United States is a docking point for ships to bring the mass of super cold liquefied natural gas in countries around the world.

[V Appalachia]

There are many other downsides of industrial shale gas development for the Chesapeake region, and particularly for western Maryland, which sits above the Marcellus. If aquifers or surface water in the mountain counties are contaminated by fracking chemicals or methane, there will be impacts to residents and businesses who rely on water wells (and to the value of their property); to the tourism/recreation industry (western MD is the state's 2nd largest tourism destination); to the state and local tax base (through loss of tax revenue when property values drop); and to the quality of water flowing down the Potomac to the rest of the state. Attorney General Gansler has already acknowledged the threat fracking poses to the Bay via chemicals in the Susquehanna (http://www.oag.state.md.us/Press/2011/050211.html). Should industrial shale gas development take place in Maryland, the Potomac could be sending these chemicals downstream, as well.

The natural gas industry wants us to believe that if we assume these environmental risks and "trade-offs," we will lessen our dependence on "foreign" energy. But their ultimate goal is to create more demand, and conversion of Cove Point both proves and serves this point. I am aware of no law that requires the gas industry to make shale gas resources (which we are ultimately selling to them) available to the US market. If China and India are willing to pay more for the gas than US customers, our citizens and our environment will be paying the price for this development (that will serve the energy needs of countries with stronger economies than ours), while seeing little of the profit.

[בגדי מעצבים]

To start gas exports from the United States, Dominion would have to build facilities at cove point to cool the natural gas in liquid form, which takes up less space, which facilitates the transport of gas on a boat.

[Boitagoomia]

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[Facebook keylogger]

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