Exporting Natural Gas is Planned

by Dee Fulton on October 20, 2011

Indian Corp. Seeks to Secure Import Rights in US, Australia

Petronet, India’s largest importer of liquified natural gas (LNG), is maneuvering to acquire capacity in the proposed LNG terminals in the Unites Sates and Australia, The Economic Times reported. Five projects (in the US) have applied to US authorities for approval to export gas,” Petronet CEO and Managing Director A K Balyan told reporters here. “We are talking to some of them with an aim to tie up long-term volumes.”

Kinder Morgan Merges with El Paso

A few days ago, Kinder Morgan (KM) announced its plans to acquire El Paso Corporation. In the words of Peter Gardett, “The deal announcement is rife with precedent-setting statistics; the new Kinder Morgan will include the largest natural gas pipeline system in the US, the largest independent transporter of petroleum products and the largest independent terminal owner and operator in the country.” The deal also makes KM the fourth largest energy company in the US. Kinder said the company expects domestic US natural gas supply and demand to grow “at attractive rates for years to come.” The company will be expanding its role as part of a growing network of pipeline and storage assets bringing domestic natural gas from new fields to power plants and, potentially, even export terminals.

Seeking Energy Independence

Hey, what happened to domestic energy independence?  Wasn’t that part of the selling pitch to prod hesitant mineral rights owners into a lease contract?  Yes, it was.  And the move to export does not negate the fact that our need to import natural gas has been reduced dramatically. According to a last week’s update from the US Energy Information Administration,
“As domestic supply has grown, the need for imports has been reduced substantially. Since 2009, several terminals have begun to re-export LNG cargoes, and, more recently, explore the option to add liquefaction capacity to export domestically produced natural gas. Earlier this month, Dominion Resources asked permission from the U.S. Department of Energy to export domestically produced natural gas from its Cove Point facility in Maryland.”

When will we see natural gas fueled cars and handy natural gas service stations?  The West Virginia legislature voted to incentivize (that means, in this case,  giving industry a tax break at the expense of West Virginia taxpayers) the development of natural gas fuel stations in Senate Bill 465. According to this map, there are 2 compressed natural gas fueling stations in WV, but they don’t sell to the public.

{ 4 comments… read them below or add one }

RD Blakeslee October 20, 2011 at 9:55 am

From the article above: “When will we see natural gas fueled cars and handy natural gas service stations? The West Virginia legislature voted to incentivize (that means, in this case, giving industry a tax break at the expense of West Virginia taxpayers) the development of natural gas fuel stations…”

Tax Credits are granted to INDIVIDUALS by WV law, not just “industry” as implied in the article. Once again, FrackCheck’s unfair anti-industry bias is displayed by its false assumption in this case.

These credits are substantial, amounting to thousands of dollars for an automobile conversion or purchase and tens of thousands for home fueling infrastructure installed at home:


(f) “Qualified alternative fuel vehicle home refueling infrastructure” means property owned by the applicant for the tax credit located on a private residence or private home and used for storing alternative fuels and for dispensing such alternative fuels into fuel tanks of motor vehicles, including, but not limited to, compression equipment, storage tanks and dispensing units for alternative fuel at the point where the fuel is delivered or for providing electricity to plug-in hybrid electric vehicles or electric vehicles: Provided, That the property is installed and located in this state.

(c) Constructs or purchases and installs qualified alternative fuel vehicle refueling infrastructure or qualified alternative fuel vehicle home refueling infrastructure that is capable of dispensing alternative fuel for alternative-fuel motor vehicles.


Dee Fulton October 21, 2011 at 11:21 am

Your point appears artificial, sir. There is a Honda Civic available that runs on compressed natural gas (CNG) available through dealerships in California and New York, possibly more. But there isn’t an infrastructure of CNG refueling stations in West Virginia, thus I don’t think we’ll see many sales of CNG -fueled Civics to private individuals in WV. Without a CNG car, logic dictates that it is not likely that an individual will invest in a natural gas compressor or storage and dispensing units. This part of the law is like saying, “Hey, you’re invited to a great party….on the moon”.
The credit is valid for those who invest in electric cars and battery recharging equipment, but this discussion relates to natural gas.

Interestingly, I had a conversation with a friend who lives near a natural gas line, yet she has been told that natural gas is not available as a fuel choice. She relies on propane delivery. It appears that access to natural gas may be a constraining issue as well to those hoping to qualify for tax credit returns on nat gas fueling expenditures in their garage.

One of the points of my post is that the multinational gas companies are going into the export business, for the purpose of making profits, and that this will be achieved before investment in infrastructure allows our state and our nation to be weaned from foreign oil-derived petroleum gas for private transportation needs.

I do applaud your loyalty to this blog, Mr. Blakeslee. Thank you for your comments.


RD Blakeslee October 25, 2011 at 6:17 am

From the post above: “Your point appears artificial,sir.”

What’s “artificial” about it? The original article omits, and the post above minimizes, the fact that the law grants tax credits to individuals, while attacking “tax breaks to industry”

Industry will have to build infrastructure before individuals can use the gas, in most cases. So, industry will use its credits before individuals will. So what? To say it’s like “”Hey, you’re invited to a great party….on the moon” is a really poor analogy.

The Marcellus shale contains the second largest gas reserve in the world and the Utica shale, lying below it, is likely to contain the world’s largest. We have enough gas right here in this country to supply domestic needs AND a robust export trade, for many years.

If “multinational gas companies are going into the export business, for the purpose of making profits”, what’s wrong with that? Will not infrastructure development also occur with profit in mind? The delay in domestic infrastructure developement will be partly because of burdensome regulations in this country.


Clark Allison April 26, 2012 at 4:44 pm

Does anyone know of any plans to install a public, fast-fill, CNG station in Charleston, WV?


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