FERC OKs start of Elba Express expansion

Spanish Market: Natural gas
07/06/16

The US Federal Energy Regulatory Commission (FERC) today authorized Kinder Morgan to start construction of additional north-to-south capacity on its Elba Express pipeline in Georgia, to serve regional gas demand and the planned Elba Island LNG export terminal.

Midstream company Kinder Morgan owns the existing Elba Island LNG import terminal near Savannah, Georgia, and will own the planned export facility at the same site. It also owns the 189-mile (304km) Elba Express pipeline that was placed into service in 2010 to send regasified LNG from Elba Island northwest to the regional grid. It connects with Transcontinental pipeline along the Georgia-South Carolina border, as well as with the Southern Natural Gas pipeline in Georgia.

FERC on 1 June approved construction and operation of the LNG project and expansion of the Elba Express pipeline, but Kinder Morgan needed to file implementation plans to get further approvals to start construction of various parts of the project. Kinder Morgan on 3 June filed an implementation plan for the pipeline modifications.

Today's order did not authorize construction to start on the planned $2bn LNG export terminal. Kinder Morgan previously told Argus it plans to start construction of LNG export facilities by early August.

New or expanded compression would be built along the Elba Express pipeline in Hart, Jefferson, Effingham and Chatham counties, Georgia, as well as in Jasper county, South Carolina. The three-phase pipeline expansion has an estimated cost of $343mn.

Elba Express has signed seven precedent agreements with six shippers for 769mn cf/d of new north-to-south capacity.

Phase 1, which would add 686.6mn cf/d of north-to-south capacity, will have three parts. The first two parts will come on line in November and December, adding 590mn cf/d of southbound capacity for regional customers and the liquefaction terminal. The third part will come on line August 2017, increasing new southbound capacity to 686.6mn cf/d to provide the remaining gas for the planned first six liquefaction trains.

Phase 2 would add 138.1mn cf/d of southward capacity by November 2017, primarily to serve the remaining four liquefaction trains. Phase 3, which would add 229.4mn cf/d of southward capacity for regional demand, is scheduled to be finished by June 2019.

The US Department of Energy has authorized Elba Island to export up 4mn t/yr to countries that have free trade agreements (FTAs). With FERC construction authorization, the agency can now evaluate an application to export the amount to non-FTA nations.

Shell has signed a binding 20-year deal for all the planned liquefaction capacity. Shell and BG previously contracted for about 70pc of the planned additional southward capacity on Elba Express. Shell in February completed its acquisition of BG.

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09/04/25

Tokyo may use Alaska LNG as leverage in US tariff talks

Osaka, 9 April (Argus) — Tokyo will likely use the possibility of purchases from the US' proposed 20mn t/yr Alaska LNG export project, as part of wider efforts to reduce the US' trade deficit with Japan, to negotiate for a better tariff deal. US president Donald Trump's 10pc tariff on imports from all countries took effect on 5 April, with exemptions for some commodities . The higher "reciprocal" taxes are due to enter into force at 12:01 ET (04:01 GMT) on 9 April, including Japan at 24pc. The Japanese government on 8 April held its first ministerial task force with prime minister Shigeru Ishiba attending, to discuss potential measures against new US tariffs. Details are still under consideration, but Ishiba is ready to use every possible method to mitigate the impact of looming US tariffs on the Japanese economy, as he sees this as a "national disaster". Japan, a long-standing ally of the US, is unlikely to respond in kind to the US tariff and will instead seek mutually beneficial solutions. Ishiba is aiming to present Trump with a package of measures across a wide range of issues, such as in the energy, agriculture, shipbuilding and automobile sectors, rather than piecemeal requests. The package could include Japan's stance on the Alaska LNG project and ethanol developments, Ishiba stated on 7 April when responding to questions in the Diet. Tokyo may use the Alaska LNG as part of its tariff negotiation, as buying more US LNG could ease Japan's trade surplus against the US. The trade imbalance between Japan and the US stood at ¥8.64 trillion in 2024, equivalent to about $58.6bn at current exchange rates, Japanese customs data show. Japan's LNG purchases from the US rose by 15pc on the year to 6.34mn t in 2024, accounting for nearly 10pc of the country's total LNG imports. Japan has committed to continuing strengthening energy security and co-operation with the US, as well as South Korea, leveraging US LNG along with other energy sources and technologies in a mutually beneficial manner, the countries said in a joint statement after the trilateral foreign ministers' meeting in Brussels on 3 April, just after Trump announced the baseline 10pc taxes on 2 April. Ishiba had already mentioned the idea of ramping up purchases of US LNG, as well as ethanol, ammonia and other resources, when he visited Trump in Washington in February . But he emphasised the importance of stable and reasonable prices for such LNG imports. Alaska LNG has made little progress in recent years and is yet to secure any offtake agreements. But it has drawn interest, after Trump devoted one of his first executive orders to the development of Alaskan energy. South Korea's energy minister expressed the country's interest in the project during a visit in late March , while Taiwan's state-owned CPC signed an initial agreement to invest in and purchase LNG from the project, according to Taiwan's Ministry of Economic Affairs . Auto deal But it remains unclear if a possible purchase of Alaska LNG alone would satisfy Washington and help reduce tariffs. The Trump administration has expressed strong dissatisfaction against Japanese non-tariff barriers on US car deliveries. "US automakers face a variety of non-tariff barriers that impede access to the Japanese and Korean automotive markets, including non-acceptance of certain US standards, duplicative testing and certification requirements, and transparency issues", the US government said on 2 April. Japan imported around 23,000 units of passenger vehicles from the US in 2023, according to the industry group Japan Automobile Importers Association, and this is near one-tenth of all deliveries from European nations. Tokyo appears to be struggling to find breakthrough solutions on this decades-long bilateral economic issue. There must be a variety of reasons on why American cars are not coming into the Japanese market, while Japanese cars are selling well in the US, said the Japanese minister for trade and industry Yoji Muto on 8 April. "We still need more time to figure that out." Ishiba on 8 April appointed the minister of state for Economic and Fiscal Policy, Ryosei Akazawa, as a negotiator for the trade talks with the US government. By Motoko Hasegawa and Yusuke Maekawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US faults EU carbon fee during tariff fight

08/04/25

US faults EU carbon fee during tariff fight

Washington, 8 April (Argus) — President Donald Trump's administration is citing the EU's upcoming tariff on carbon-intensive imports as one of the "unfair trade practices" that justified a tariff response. Trump has said a 20pc tariff on most EU goods and a higher tariff on many other key trading partners — set to take effect after midnight — are "reciprocal" to other countries' tariffs and non-tariff barriers, even though those tariffs are calculated based on each country's trade deficits and imports with the US. Trump has yet to even identify which trade policies he wants other countries to change before he would withdraw tariffs his administration expects will raise $600bn/yr in new revenue. But the US Trade Representative's office, in a social media post on Monday made in "honor" of Trump's tariffs, identified the EU's Carbon Border Adjustment Mechanism (CBAM) — which will collect a carbon-based levy on imports such as steel, cement and fertilizer — as one of the examples of what it sees as an unfair trading practice. The Trump administration estimates $4.7bn/yr of US exports would be affected by the CBAM, which is set to take effect in 2026. "These EU regulations undermine fair competition, penalizing US companies while providing advantages to EU-based competitors," the US Trade Representative's office wrote in a series of posts on Tuesday that also criticized India and Thailand for imposing import restrictions on ethanol produced in the US. White House officials say more than 70 countries have approached the administration seeking deals on the tariffs since they were announced nearly a week ago. But with just hours before the tariffs take effect, Trump has yet to announce any definitive agreements to withdraw the tariffs. Instead, he has rejected offers from countries to zero out some of their tariffs. European Commission president Ursula von der Leyen on Monday said the EU was "ready to negotiate" on tariffs, and would zero out its tariffs on industrial imports if the US agreed to do the same. But Trump on Monday said that offer was not enough. "We have a deficit with the European Union of $350bn, and it's gonna disappear fast," Trump said. "One of the ways that that can disappear easily and quickly is they're gonna have to buy our energy from us." Today, Trump said he had a "great call" with South Korea's acting president Han Duck-soo that created the "probability of a great DEAL for both countries." Trump cited a potential agreement that might include large-scale purchases of US LNG and investments tied to the 20mn t/yr Alaska LNG export project. Trump and his cabinet believe the tariffs will align with a goal to achieve "energy dominance" and increase the amount of US energy exported abroad. "At the end of the day, we're going to have growing American exports and reindustrialize the country," US energy secretary Chris Wright said today during an interview on CNBC. Trump's tariffs have already caused a selloff in equities and, according to many analysts on Wall Street, a higher likelihood of a recession. Oil prices have dropped because of a "sudden change in the economic outlook, whereas everyone just honestly 10 days ago was expecting modest but steady positive growth in the US", non-profit group Center for Strategic and International Studies' senior fellow Clayton Seigle said today. Republicans have largely backed Trump in his imposition of tariffs, with the hope the tariffs will be lifted as part of trade negotiations. But some Republicans have started criticizing the rationale for the tariff policy. "Whose throat do I get to choke if this proves to be wrong?" US senator Thom Tillis (R-North Carolina) said in a hearing today with the US trade representative Jamieson Greer. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US tariffs set to rise despite Trump talk of deals

08/04/25

US tariffs set to rise despite Trump talk of deals

Washington, 8 April (Argus) — Punitive taxes on imports from key US trading partners are set to rise on Wednesday despite President Donald Trump's claims of multiple trade deals in the making. Trump's 10pc baseline tariff on imports nearly every foreign country already went into effect on 5 April. The higher, "reciprocal" taxes will go into effect as scheduled, at 12:01am ET on 9 April, US trade representative Jamieson Greer told the Senate Finance Committee today. Trump, via his social media platform, said today he discussed a possible trade deal with South Korea and added that "we are likewise dealing with many other countries, all of whom want to make a deal with the United States." Greer told the Senate panel that more than 50 countries have reached out to the US to negotiate trade deals. Treasury secretary Scott Bessent separately claimed that more than 70 countries are interested in a trade deal with the US. Both Democratic and Republican senators on the Senate panel pressed Greer to explain whether negotiations would result in lowering tariff rates. But Greer outlined a process that he expects would lower foreign countries' tariff rates on US products and commit them to buy more US energy and other products. "There are things we can do with our trading partners, things that aren't always purely in the trade sector," Greer said. Possible subjects for trade negotiations could involve "export controls alignment or investment screening, alignment on energy, making sure that our partners are tied up with us with respect to LNG and other resources, as opposed to being dependent on other countries." The US is primarily looking to reduce trade deficits with those countries, Greer said. "What we have told them is, 'if you have a better idea to achieve reciprocity and to get our trade deficit down, we want to talk to you.'" Trump, in turn, suggested that a possible deal with South Korea could include "large scale purchase of US LNG" and "their joint venture in an Alaska Pipeline". The latter is a reference to the planned 20mn t/yr Alaska LNG project, which would be the most expensive liquefaction facilities ever built in the US if it becomes a reality. Trump has talked up potential support for Alaska LNG from Japan, South Korea and Taiwan for months. But the three countries still became subject to high tariffs. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US mid-Atlantic gas prices may rise on cold

08/04/25

US mid-Atlantic gas prices may rise on cold

New York, 8 April (Argus) — Spot natural gas prices across the mid-Atlantic this week may rise on an increase in heating demand resulting from colder weather. The mid-Atlantic in the week ending on 12 April was forecast to have 148 population-weighted heating degree days (HDDs), up by 37pc from a week earlier and 12pc more than the seasonal norm, according to the US National Weather Service (NWS). Below-average temperatures were expected across the northeast US, eastern midcontinent and southeastern Canada through 11 April, according to the private forecaster Commodity Weather Group. Normal seasonal weather was expected in all those regions from 12-16 April, the forecaster noted. The May price at Transco zone 6 in New York was $3/mmBtu, and the 12-month strip was $4.54/mmBtu, according to Argus forward curves. Mid-Atlantic spot prices last week rose on an increase in weather-related demand, despite the 31 March official end to the winter heating season. The Transco zone 6 New York index in the week ended on 4 April averaged $3.37/mmBtu, up by 9pc from a week earlier and 5pc higher than the April bid week price. The Tetco M-3 index over the period averaged $3.32/mmBtu, up by 10pc from a week earlier and 3pc higher than the April bid week price. By Julian Hast Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Oil companies far from Paris accord alignment: Report

08/04/25

Oil companies far from Paris accord alignment: Report

London, 8 April (Argus) — None of the 30 oil and gas producers assessed are close to being in line with Paris climate agreement targets "and some have regressed", a report from think-tank Carbon Tracker found today. Carbon Tracker flagged "backsliding, particularly around oil and gas production plans" from the producers assessed in its report, Paris Maligned III . The think-tank assessed 30 of the largest producers — a mixture of corporations and national oil companies — against six metrics. These included production plans, greenhouse gas (GHG) reduction targets and methane reduction targets. It did not assess producers based in countries subject to international sanctions. "Almost all producers are planning to increase oil and gas production in the coming years… Such growth plans are at odds with the Paris Agreement's 1.5˚C target and many are incompatible with a below 2˚C scenario", the report found. The Intergovernmental Panel on Climate Change — seen as the overarching consensus on climate science — notes that a substantial reduction in fossil fuels is needed in order to reach climate goals. The Paris agreement seeks to limit the rise in global temperatures to "well below" 2°C above pre-industrial levels and preferably to 1.5°C. The only producers assessed that are not planning to increase production are London-listed independent Harbour Energy and Spain's Repsol, Carbon Tracker found. Carbon Tracker ranked Repsol highest overall for alignment with Paris agreement goals and Harbour Energy in second place. European companies were ranked more highly in line with Paris goals, with seven of the top 10 places. Three state-owned oil companies — Mexico's Pemex, Algeria's Sonatrach and Kuwait's KPC — and US firms ExxonMobil and ConocoPhillips took the five lowest places in the ranking table. "Despite some political and market headwinds, investor engagement on climate risk remains strong, particularly in Europe", the report noted. Carbon Tracker this year scored companies on the extent to which they planned to cut methane emissions — specifically "near-zero methane by 2030" across upstream activities and "midstream gas assets where applicable", it said. This is in line with the decarbonisation charter which many of the companies assessed signed up to at the UN Cop 28 climate summit in December 2023. Companies' methane reduction plans "are typically more climate-aligned than their overall GHG targets", the report found. But "there is still considerable room for improvement because significant sources of methane emissions are overlooked", it added. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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