RE:RE:RE:Canadian LNG is a jewel' says Enbridge CEO The pipeline to NS does not and never has existed. And Sorensen has finally started publicly admitting it- since there is no chance if that is not resolved. The pipeline does exist. But from Quebec through Maine (to the Enbridge owned M&NE) it is nowhere near large enough even for a smaller floating LNG plant. And that too small pipe is at virtually 100% capacity.
That is just one of the problems with your assertions- but the biggest one. Its a hoot you saying I just make assertions.
Saying taxpayer assistance is required- that one is probably hard to prove. But they have never had an investor. Made a full court press for a billion dollars in front end investment from the Feds. And when this went public, James Millar their flack said (his words) that the project probably could not go forward without that aid. And it was cancelled 3-4 months after he said that.
The smaller plant is only more viable on paper. Still no one buying- and how much more ideal could conditions get. Enbridge isnt dumb enough to follow your advice. They would not bite even if the project was handed to them for $0 (and several hundred million in debt).
But then- Enbridge would not even buy into a solid LNG project.
ofirme wrote: I keep hearing tax payer's assistance, but why would it be needed for a floating lng 0.4 - 0.8 bcf/d
volume when the pipeline to the shore already exists?
If Enbridge thinks this is such a Jewel (which is for them - collecting fees on someone else's
investment), why would they not just do it themselves? they need growth projects big enough to
move the needle for them. they could pay Pieridae to go away a couple of hundreds of millions.
pieridae could surely use that money... the proposed floating lng project needs no government
assistance other than to shield them from crazy taxes (you can go ahead and call that assistance,
but being reasonable is not assistance). the gas volumes from the northeast of the u.s is about to
surpass the pipeline capacity out of the area. that is if mvp actually goes into service. if its not,
it will be interesting to see how the u.s increases ng production beyond its lng capacity increases.
In summary: the gas is available, the pipeline to NS exists and the government there needs the
utilization to go up, so the cost of operations per unit of gas will go down.
The economics of lng is pretty much $2.5 per mcf - $3 per mcf. the only thing that is needed for a
$2B investment per 0.35 - 0.4bcf/d is a guaranteed customer at a certain fixed formula of pricing.
Germany? who knows. the point is that the facts do not always agree with your assertions.