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OIL AND GAS
Cameron LNG will have few environmental drawbacks, FERC says
by Daniel J. Graeber
Washington (UPI) May 1, 2013


House panel passes measure to expedite LNG licenses
Washington (UPI) May 1, 2013 - Rep. Cory Gardner, R-Colo., said legislation he drafted in the House Energy and Commerce Committee would clear the "logjam" of LNG export licenses.

The House Energy and Commerce Committee passed Gardner's measure by a vote of 33 to 18. The Republican congressman said the so-called Domestic Prosperity and Global Freedom Act would expedite the decision-making processes for facilities seeking an export license for liquefied natural gas.

"The majority of LNG export applications are waiting in a long line," Gardner said in a statement. "We must break the logjam that is currently taking place at DOE, and move toward construction of these LNG export facilities."

The federal government needs to determine if exporting LNG to countries without a U.S. free-trade agreement is in the public's interest before granting an export license.

Jack Gerard, president of the American Petroleum Institute, said Gardner's measure would position the United States, the world leader in natural gas production, as "an energy superpower."

Gardner said Wednesday his measure is in part a response to Russia's grip on the European energy sector.

Members of the European Union lack free-trade deals with the United States. It's the private sector, not the federal government, which determines LNG destinations.

There may be some environmental impacts from the Cameron liquefied natural gas in Louisiana, but they'll be manageable, a U.S. regulator said.

The Federal Energy Regulatory Commission issued its final environmental impact statement on the Cameron LNG facility. It said Wednesday the construction and operation would result in some environmental damage, but that damage would be rendered "less-than-significant" by the company's proposed mitigation strategies.

There was no statement from the project company on FERC's assessment.

The project will be able to export about 12 million tons of LNG sourced from U.S. natural gas basins each year. In February, it received regulatory approval to ship LNG from a terminal in Cameron Parish, La., to countries that don't have a U.S.-free trade agreement, such as India and Japan.

Cameron is the sixth such project in the United States to receive non-FTA approval since 2011.

Construction is scheduled to start this year and full-scale operations should commence in 2019.

Saipem to help with offshore installations for BP-led group
Milan, Italy (UPI) May 1, 2013 - Italian company Saipem said it won a $1.8 billion contract from BP for engineering and construction work at the Shah Deniz field off the coast of Azerbaijan.

Saipem will transport and install pipelines and associated infrastructure for operations at the second phase of the Shah Deniz field, located about 50 miles off the coast of Azerbaijan in waters as deep as 1,800 feet.

Saipem CEO Umberto Vergine said the Caspian basin is a strategic area that could eventually help meet European energy needs.

"I'm very pleased that Saipem will be involved in the development of Shah Deniz stage 2, which will ultimately deliver gas to Europe," he said in a statement Wednesday.

Last year, the BP-led consortium working in the natural gas field selected the Trans-Adriatic pipeline as its conduit for European consumers. The pipeline is part of the Southern Corridor, a network of pipelines planned to add diversity to a European market dependent on Russian natural gas.

BP estimates the second stage of Shah Deniz will be able to produce more than 560 billion cubic feet of natural gas per year, adding to the 310 billion produced annually from the initial phase.

First gas from the second phase is expected in late 2018.

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