Tuesday, August 14, 2018

Aramco, Air Products, ACWA forming $8B+ gasification/power JV

Saudi Aramco, U.S.-based Air Products and ACWA Power Monday announced the signing of a term sheet to form an $8 billion-plus gasification/power joint venture, located at Jazan Economic City, Saudi Arabia.

The JV will purchase the gasification assets, power block and the associated utilities from Saudi Aramco for over $8 billion, Kallanish Energy finds. These assets are currently under construction and will be transferred to the JV upon start-up, currently scheduled for 2019.

The JV will serve Saudi Aramco's Jazan Refinery and terminal at JEC, a megaproject that will process heavy and medium crude oil to create liquefied petroleum gas, sulfur, asphalt, benzene and paraxylene, and add 400,000 barrels per day (Bpd) of refining capacity.

"The gasification/power JV will be central to the self-sufficiency of our megaprojects at Jazan,” said Abdulaziz M. Al-Judaimi, Saudi Aramco senior vice president of Downstream. “The JV will enhance the overall value of the refinery and integrated gasification combined cycle power plant, and aid in transforming the province by positioning JEC for additional foreign direct investment and private sector involvement."

The JV will own and operate the facility under a 25-year contract for a fixed monthly fee. Saudi Aramco will supply feedstock to the JV, and the JV will produce power, hydrogen and other utilities for Saudi Aramco.

Industrial gases giant Air Products will own at least 55% of the JV, with Saudi Aramco and ACWA Power owning the balance. The JV builds upon the importance and recognition infrastructure assets in the region are being developed and operated under the Public Private Partnership (PPP) model.

ACWA Power is a developer, investor and operator of a power generation and desalinated water production plants currently operating in 10 countries in the Middle East, north Africa, southern Africa and southeast Asia.

The company is owned by the Public Investment Fund of Saudi Arabia, the Saudi Public Pensions Agency and the International Finance Corp. (a member of the World Bank Group) and seven Saudi conglomerates.


What the DRBC Ought to be Doing Instead of Playing Fracking Games

Tom.jpg?resize=75%2C95Tom Shepstone
Shepstone Management Company, Inc.

The DRBC is fiddling with fracking games while Camden, Philadelphia, Trenton and Trenton burns with a pollution fever caused by raw sewage in the Delaware.

The DRBC has spent massive energy, time and money pursuing an unjustified fracking ban at the behest of special interests. Those special interests (e.g., the Delaware Riverkeeper a/k/a Povertykeeper and the Clean Air Council) have been financed by uber-rich foundations such as the Heinz Endowments while it’s benefactors are invested in Ukrainian oil and gas.

Meanwhile, the Delaware River is being massively polluted with raw sewage the DRBC is doing nothing about and is incapable of solving. It’s fiddling with fracking games while raw sewage is being dumped into the river for the residents of Camden, Philadelphia, Trenton and Wilmington to deal with. So much for all its feigned DRBC concern over drinking water.

Here’s the story from the Allentown Morning Call (emphasis added):

More than 9 million gallons of sewage-laden water spilled into the Little Lehigh Creek on Aug. 4, about a week after Lehigh County communities tied to the region’s notoriously leaky sewer system explained to the EPA how they planned to fix it.

Heavy rain tends to flood the aging sewer system, leading to overflows of sewage from Kline’s Island Wastewater Treatment Plant into the Little Lehigh. That’s what drew the EPA’s attention in 2009, when the agency issued an administrative order demanding they stop sewage from overflowing into the Little Lehigh Creek.

The recent overflow was the first in more than two years.

More than 3 inches of rain on Aug. 3 caused the bypass of 9.22 million gallons between 4:30 a.m. and 6:30 p.m. on Aug. 4, according to a document LCA submitted to the EPA…

The leaky sewer is one of those classic municipal issues that “is boring, but it’s expensive, and you can’t ignore it,” said Robert Ibach, Upper Macungie Township manager…

Late last year, the EPA asked the communities tied into Kline’s Island to submit a plan detailing how they will stop the overflows. Agency officials suggested the communities focus on fixing the leaky infrastructure instead of expanding capacity at the treatment plant, an about-face from what the LCA had been planning…

The DEP raised the red flag about the sewer overflows

Well, let’s hope so. Imagine 9 million gallons of raw sewage entering the stream above where your community gets its drinking water. That water goes directly into the Little Lehigh Creek, from there into the Lehigh River and then on into the Delaware River at Easton, a mere 15 miles away. Here’s an overview from Google Earth:


Perhaps that’s the reason for this problem noted earlier by the Povertykeeper:

As one of our readers notes, “The elevated bacteria, and basically sewage, between Trenton and Philadelphia they are mentioning is fed directly into the fresh water intakes for North Philadelphia!

Yet, the DRBC is consumed with fracking games. What a bunch of corrupt irresponsible demagogues these people are,

The post What the DRBC Ought to be Doing Instead of Playing Fracking Games appeared first on Natural Gas Now.


Monday, August 13, 2018


"As America withdraws from the same global system it created in 1944, the consequences to the USA will be almost negligible. Safely ensconced in its continental “dominion from sea to sea,” the USA will enjoy the fruits of its seemingly endless bounty without major disruption or threat. Domestic shale energy will only accelerate America’s withdrawal. Meanwhile, the rest of the world will return to “normal.” Minus the guarantees of the American security blanket, ethnic and regional antipathies will flare once again. Military spending will continue to balloon. Wars and rumors of wars amongst major nations will return. Large powers will bang into each other as they scour the world for ever-scarcer resources and markets. Business costs will rise and friction will reign. People outside the United States viscerally know this and it scares them to death. This seems to be one of the primary reasons so much of the world hates Donald Trump. He has given a voice and a face to their worst fear: a world where America can no longer be counted on." Andrew R. Thomas PhD Associate Professor of International Business Editor-in-Chief, Journal of Transportation Security University of Akron M: 440-463-2375 www.andrewrthomas.us Joseph F. Barone ShaleDirectories.com 610.764.1232 jbarone@shaledirectories.com www.shaledirectories.com


Oryx extends open season for Delaware Basin system

Oryx Midstream Services II said Friday it’s extending the joint open season for its proposed crude oil gathering and trunk line transportation system that will serve the liquids-rich Delaware Basin in Texas/New Mexico.

The joint binding open season launched July 10, and was initially scheduled to conclude on Aug. 9. Given the strong demand received for the proposed gathering and transportation system, Oryx has elected to extend the open season through Aug. 31.

The new system is expected to consist of roughly 400 miles of new gathering and transportation pipeline, with approximately 650,000 barrels per day of throughput capacity and more than 1.5 million barrels (Mmbbl) of storage capacity.

The new gathering and transportation system will span the Delaware Basin and is expected to provide services to Lea and Eddy counties in New Mexico, and Loving, Reeves, Ward, Winkler and Culberson counties in West Texas, Kallanish Energy reports.

Construction on the new system has begun and the regional transportation pipeline, which will connect Oryx’s Carlsbad station to the Crane and Midland, Texas, market hubs, is expected to be fully commissioned during the fourth quarter of this year. 

The full system is expected to be complete in the second quarter of 2019. Upon completion, and when combined with Oryx Midstream Services assets, Oryx’s total Delaware Basin system capacity will exceed 850,000 Bpd.


New York Energy Policy Is Now A Function of the Elitist Mobocracy

Tom.jpg?resize=75%2C95Tom Shepstone
Shepstone Management Company, Inc.

New York energy policy is now being determined through elitist mobocracy as policy-makers everywhere attempt to appease virtue-signaling trust-funder types.

New York energy policy is a complete disaster. Energy In Depth has a great piece up noting the insanity and pointing out what Andrew Cuomo recently told Politico:

“I don’t build any fossil-fuel plants anymore, and I banned fracking, and I have the most aggressive renewable goals in the country.”

EID also demolishes Gov. Corruprocrat’s plan to divest the New York State Common Retirement Fund from fossil fuel investments, a move that could cost New York State’s pensioners more than $1 trillion.

Meanwhile, a group of trendy types from Cooperstown motored a half-hour south to Oneonta to oppose a natural gas decompressor facility there on the theory businesses being forced to burn oil in the winter should go solar rather get the additional natural gas they need. It is, in both cases, an elitist mobocracy that is setting New York energy policy.

The role of the Park and Rockefeller families in influencing New York energy policy through the funding of Walter Hang and various shill organizations is well documented on these pages. It is an elitist mobocracy at work. Our friend Jim Willis at the invaluable Marcellus Drilling News carried a great story the other day illustrating how it works at the local level. Entitled “Anti Fossil Fuel Zealots in Oneonta, NY Oppose CNG Terminal,” it includes this analysis by Jim (emphasis added):

A boatload of anti fossil fuel zealots from Cooperstown put down their wine glasses long enough to pack an auditorium in nearby Oneonta. They were there to bloviate against a sensible plan to build a CNG “decompressor” facility to accept trucks loaded with CNG during wintertime and summertime when area supplies of natgas get dangerously low…

On really cold and really hot days there’s not enough natural gas in the region, and some large users of gas, like the local hospital and state university, actually have to stop using gas and switch to burning oil as a backup. It’s nuts.

To overcome lack of clean-burning gas supplies, the local economic development people are trying to chase down grants to build a decompression station that would be used for maybe two weeks out of the entire year.

Wednesday night the Oneonta Town Board held a hearing to get more details about the project. The loons from Cooperstown (i.e., Otsego 2000) turned out in force, some 100 of them, to protest the plan. Why? Because it’s a “fossil fuel.” What did the loons offer as an alternative to this sensible plan to truck in CNG only on days when it’s needed? They recommend “retrofitting old buildings to save energy” (i.e. throw on extra sweaters and turn the thermostat down), or switch to renewables. You know, solar and wind nirvana. What about when the sun doesn’t shine and the wind doesn’t blow? Just do without. It’d only be for a few days at a time…

Nobody is better at understanding these people than Jim. He’s a very funny guy to boot. Who knew there was such a thing as the Lake Glimmerglass Loon, after all? He was referring to an Oneonta Daily Star article that including these revealing tidbits on the shallowness of the mobocracy that manipulates New York energy policy from Governor Corruptocrat at the top to local officials at the bottom:

More than 100 people attended the Oneonta Town Board meeting Wednesday night, many in protest of a potential plan that would increase the supply of natural gas in the city.

Jody Zakrevsky, chief executive officer of Otsego Now, opened the meeting with an explanation for his grant proposal of $3 million through the state’s Consolidated Funding Application toward siting a natural gas decompression station in Oneonta.

Trucks carrying compressed natural gas would make deliveries during the coldest weeks of the year to the decompressor, which could cost as much as $17 million. Zakrevsky identified Otsego Now’s Oneonta Business Park as a possible site and said he was soliciting bids for the project.

When temperatures dip below 15 degrees, several local businesses have to switch from natural gas to heating oil, which is more expensive and pollutes more, he said. Although New York State Electric and Gas filed plans with the state Public Service Commission in 2015 to replace the 8-inch-diameter DeRuyter natural gas line that runs from Norwich to Oneonta with a 10-inch pipeline by 2020, the project has been stalled. Local residents have still been charged higher rates for the past two years, he said.

The State University of New York at Oneonta, A.O. Fox Memorial Hospital and Lutz Feed Co. are among the local businesses on interruptible service during the cold snaps…


A.O. Fox Memorail Hospital, Oneonta, NY (Google Earth photo)

Residents of the county rose to sharply criticize the decompressor idea, with many also arguing that the actual service interruptions were negligible and not the responsibility of local government…

Speakers urged the board to consider renewable energy options for the sake of the city and the planet.

Ellen Pope, executive director of Otsego 2000, said that the affected businesses should consider retrofitting old buildings to save energy and explore geothermal and solar power, which can still be efficient during cold weather.

After several spoke about the possibility of solar and geothermal solutions, including one man who said he was a geologist, supervisor Robert Wood said that geothermal energy could be a consideration in plans to build a new highway garage.

Reread the bolded part. Did you notice the odd reference to “residents of the county”? Well, that’s because Cooperstown happens to be in the same county as Oneonta, although they’re 23+ miles apart. Cooperstown is where high society lives and vacations. It has a per capita income 2.5 times that of Oneonta. Cooperstown no more reflects Oneonta than New York resembles Texas.

More importantly, consider the absurdity of what is suggested. Suggesting solar as a way to meet peak energy needs in cold, cloudy, snow-covered Upstate New York is nothing less than bizarre, yet this is what these trendy true-believers suppose is reality. It only demonstrates how far they’re removed from it; victims of privilege that has, they also believe, entitled them to careers in virtue signaling. They’re trust-funders, an elitist mobocracy that has descended on New York energy policy-makers and created anarchy from top to bottom. Is there any hope left for the Empire State? Not much, it appears.


The post New York Energy Policy Is Now A Function of the Elitist Mobocracy appeared first on Natural Gas Now.


Sunday, August 12, 2018

Stored working-gas total keeps rising

The volume of working natural gas added to underground storage during the week ended Aug. 3, rose 46 billion cubic feet (Bcf), or 2%, from the previous week, the Energy Information Administration reports.

Total working gas in storage at Aug. 3, rose to 2.35 trillion cubic feet (Tcf), up from 2.31 Tcf one week earlier (all numbers are rounded). The latest total was down 671 Bcf, or 22.2%, from the year-ago total of 3.03 Tcf, and was down 572 Bcf, or 19.5%, from the five-year average of 2.93 Tcf.

Three of the five regions EIA divides the Lower 48 U.S. states into to track stored working gas, recorded a week-to-week increase in stored gas, while two had gas pulled from storage, Kallanish Energy finds.

The biggest week-to-week increase was reported in the Midwest region, up 27 Bcf, or 4.9%, during the week ended Aug. 3, to 579 Bcf. The total was down 190 Bcf, or 24.7%, from the year-ago total of 769 Bcf, and was down 153 Bcf, or 20.9%, from the five-year average of 732 Bcf.

The biggest week-to-week decrease in stored working gas was in the Pacific region, down 5 Bcf, or 5%, from 250 Bcf, to 245 Bcf. The region’s total was down 45 Bcf, or 15.5%, from the year-ago total of 290 Bcf, and was down 71 Bcf, or 22.5%, from the five-year average of 316 Bcf.


Beware of California Energy Policies: Be Very Afraid In Fact

VicFurman-423x512.jpgVictor Furman
Upstate New York Landowner Shale Gas Activist


California energy policies have led to an unmitigated energy disaster not unlike Germany’s Energiewende but some New Yorkers, of course, want to bring it on.

Back in July I was quoted in Binghamton PressConnects article regarding the Broome County solar farm I’ve also written about on this blog. I said a lie was “being pushed upon the community about solar energy,” and that I thought the public was “being shammed” along with the environment as “over 1,000 mature trees were cut down to build the solar project.” This generated a letter to the editor from contributor Leo Cotnoir titled “The true cost of fossil fuels.” It was all conjecture and I had to respond with some facts. I did so by relating what’s happening as a result of California energy policies Cotnoir seems to want to see implemented in New York. God forbid!

Cotnoir claimed solar energy was only slightly higher priced than other energy and actually suggested solar farms pay the total cost of producing their electricity. He also said fossil fuel plants, on the other hand, were “allowed to use the atmosphere as a free dump for their waste products.”

Finally, he asserted that if the “costs associated with global warming and air pollution were internalized — for example, by a carbon tax — the playing field would be level and solar electricity would easily find a place in a stable mix of energy sources.” None of this is even close to true.


Here are the facts.

Thanks to forced solar energy in a state that is privy to much more sun than New York, Californians already pay about 40 percent to 60 percent more for their electricity than residents of other states.

Data from the U.S. Energy Information Administration showed California households paying 17.97 cents per kilowatt hour for electricity, more than the national average of 12.75 cents, according to the latest data from November, 2016.

California policymakers are infatuated with renewable energy and electric vehicles. But the record-breaking heat wave that hit the state earlier this month, which left more than 30,000 customers in Los Angeles without electricity for several hours, is exposing the dangers of that infatuation.
Source: Manhattan Institute

Solar energy is not the magical cure-all that solar energy companies want the buyers to believe. Solar energy does compliment fossil fuels at this time, but is not ready to replace it. Not for a long time. All any consumer can ask for is honesty to make the best decision that serves their need.

Editor’s Note: It’s important to realize solar energy is hugely more expensive than gas and that it also fails to internalize many additional costs, such the need to duplicate energy systems to ensure a dipatchable energy backup and then starving it so the costs of those backup sources become unaffordable. This is the inevitable result of German and California energy policies.

The post Beware of California Energy Policies: Be Very Afraid In Fact appeared first on Natural Gas Now.