{"id":18081,"date":"2017-02-09T13:24:14","date_gmt":"2017-02-09T18:24:14","guid":{"rendered":"http:\/\/www.l-a-k-e.org\/blog\/?p=18081"},"modified":"2017-02-09T13:24:51","modified_gmt":"2017-02-09T18:24:51","slug":"georgia-power-new-acquisition-agls-pivotal-lng-exporting-through-jaxport","status":"publish","type":"post","link":"http:\/\/www.l-a-k-e.org\/blog\/2017\/02\/georgia-power-new-acquisition-agls-pivotal-lng-exporting-through-jaxport.html","title":{"rendered":"Georgia Power new acquisition AGL’s Pivotal LNG exporting through Jaxport"},"content":{"rendered":"

\r\nBack in May 2015, Southern Company CEO Tom Fanning and Georgia Power\r\nCEO Paul Bowers both told me “If we can’t do coal, we have to do pipelines”<\/a>.\r\n\r\n\"I-75<\/a>\r\nA year in the making, Southern Company bought pipeline company AGL Resources.\r\nTurns out AGL Resources is also an LNG export company,\r\nexporting through Jacksonville by LNG containers on trucks.\r\nAnd the plot thickens with\r\n\r\nthe pending corporate takeover\r\nof CSX Railroad by the former CEO of Canadian Pacific<\/a>,\r\ngiven that CSX depends a lot on carrying coal, which remember\r\nis what Southern Company is rapidly getting away from.\r\nCould CSX want to carry LNG?\r\nMeanwhile, LNG containers are already rolling\r\n\r\ndown I-75 and I-10 to Jaxport<\/a>,\r\napparently through Atlanta, Macon, Valdosta, and Lake City.\r\n

\r\nSouthern Company PR, 1 July 2016,\r\n\r\nSouthern Company and AGL Resources complete merger, create a leading U.S. energy company<\/a>,\r\n\r\n\r\n

\r\n

\r\nSouthern Company (NYSE: SO) and AGL Resources today announced the\r\ncompletion of a merger creating one of America’s leading energy\r\nproviders.\r\n<\/p>\r\n

\r\n“This merger brings together two utilities recognized for\r\noutstanding reliability, world-class customer service and a\r\ncommitment to inventing America’s energy future,” said Southern\r\nCompany Chairman, President and CEO Thomas A. Fanning. “The\r\nstrategic combination of industry leaders with similar business\r\nmodels and values enhances our ability to serve customers and\r\ncommunities as we together deliver tomorrow’s energy solutions.”\r\n<\/p>\r\n

\r\nAGL Resources has become a wholly owned subsidiary of Southern\r\nCompany, which now has 11 electric and natural gas utilities with\r\noperations across the U.S. The addition of AGL Resources’ network of\r\nnatural gas assets and businesses provides a broader, more robust\r\nplatform for long-term success.\r\n<\/p>\r\n

\r\n“Southern Company is now positioned to deliver even greater customer\r\nand shareholder value by playing offense in developing the\r\ninfrastructure necessary to meet America’s growing demand for\r\nnatural gas,” said Fanning.\r\n<\/p>\r\n<\/blockquote>\r\n

\r\nThis AGL Resources acquisition is in addition to\r\nSouthern Company’s September 2016 completed acquisition of half of Kinder Morgan’s Southern Natural Gas (SONAT)<\/a>.\r\n(Which means SO now owns all or part of both<\/em> pipelines on my property.)\r\n

\r\nThat July SO PR goes on about the financing for the AGL Resources acquisition,\r\nbut says nothing about Liquified Natural Gas (LNG).\r\n

\r\nFor that we go to\r\nSouthern Company’s rebranding of AGL Resources’ LNG web page<\/a>,\r\n

\r\n

AGL Resources’ LNG facilities\r\n<\/H4>\r\n

\r\nLNG plays an important role in AGL Resources’ strategy to meet the\r\ngrowing demand for safe, reliable natural gas in the states served\r\nby its utilities. Pivotal LNG, a wholly owned subsidiary of AGL\r\nResources, is at the forefront of bringing an environmentally\r\nfriendly, cost-effective alternative fuel to companies and\r\nindustries that today rely primarily on liquid fuels such as diesel\r\nand propane. AGL Resources and Pivotal LNG currently own and operate\r\nsix liquefaction facilities and sell LNG as an alternative fuel for\r\ntransportation and other high horsepower applications in the\r\nwholesale market. AGL Resources also uses each of its LNG facilities\r\nfor peak-shaving, which supply gas when customer demand is highest.\r\n<\/p>\r\n

\r\nThe largest, the Riverdale LNG plant located in Riverdale, Ga., has\r\nstorage capacity of 31 million gallons or 2.56 billion cubic feet\r\n(Bcf) of natural gas in its two storage tanks. Located south of\r\nAtlanta, the plant is supplied by two interstate pipelines. It is\r\nconnected to Atlanta Gas Light’s beltline pipeline system for\r\ndistribution of gas to the Atlanta market. The plant is able to\r\ndeliver 400,000 Dth\/day of gas during peak send-out.\r\n<\/p>\r\n

\r\nThe Cherokee LNG plant, located north of Atlanta in Ball Ground,\r\nGa., has a single storage tank with a capacity of 24.4 million\r\ngallons or 2 Bcf equivalent of natural gas. The 934-acre site was\r\ndesigned to accommodate a second tank of equal capacity if\r\nwarranted. This plant receives supply from three pipelines and can\r\ndeliver an equivalent of 625,000 Dth\/day of peak send-out to Atlanta\r\nGas Light’s Atlanta market.\r\n<\/p>\r\n

\r\nAGL Resources also owns and operates an LNG plant in Macon, Ga. This\r\nplant’s single tank storage capacity is 18 million gallons or the\r\nequivalent of 1.5 Bcf, although the plant is capable of delivering\r\nup to 140,000 Dth\/day. The Atlanta Gas Light distribution system has\r\nbeen constructed in a way to allow this plant’s send-out to be sent\r\ninto the Atlanta area of the system if demand requires it.\r\n<\/p>\r\n

\r\n\r\n\"I-75<\/a>\r\n<\/p>\r\n

\r\nIn Tennessee, AGL Resources subsidiary Chattanooga Gas receives peak\r\nday supplies from its Chattanooga plant, which holds the equivalent\r\nof 1.2 Bcf. This facility is supplied by two pipelines and can\r\ncurrently deliver up to approximately 62,000 Mcf\/day to the\r\nChattanooga Gas market, a load limited amount.\r\n<\/p>\r\n

\r\nAGL Resources also owns an approximately 60,000 gallon-per-day\r\nliquefied natural gas facility located in Trussville, Alabama. The\r\nTrussville facility is AGL Resources’ first LNG facility dedicated\r\nsolely to the merchant market.\r\n<\/p>\r\n<\/blockquote>\r\n

\r\nThat web page says there’s another AGL LNG plant in Virginia,\r\nin addition to the ones listed above that are in the traditional\r\nsoutheast Southern Company territory.\r\n

\r\nSome of those AGL LNG facilities will be trucking LNG to Jacksonville\r\nfor export, most likely the ones closest to Jaxport, namely the\r\nones in Macon, Ballground, and Riverdale, Georgia.\r\nThat’s right: bomb trucks rolling down I-75 and I-10.\r\n

\r\nAGL’s Jaxport deals go back several years.\r\nRichard Nemec, Natural Gas Intelligencer, 6 January 2015,\r\n\r\nAGL Unit Signs Pact For LNG Marine Transport in Florida<\/a>,\r\n

\r\n

\r\nA unit of Atlanta-based AGL Resources Inc. and WesPac Midstream LLC\r\nhave signed a long-term agreement with marine shipper TOTE Inc. to\r\nprovide liquefied natural gas (LNG) for two new TOTE container ships\r\noperating out of Jacksonville, FL.\r\n<\/p>\r\n<\/blockquote>\r\n

\r\nCrowley Maritime PR, 22 September 2014,\r\n\r\nPivotal LNG to Deliver Liquefied Natural Gas to Carib for use in Puerto Rico<\/a>,\r\n

\r\n

\r\n(ATLANTA, Ga.; September 21, 2014) \u00ad\u00ad Pivotal LNG, Inc., a\r\nsubsidiary of AGL Resources (NYSE: GAS), announced this week a\r\nlong-term agreement to sell liquefied natural gas (LNG) to Crowley\r\nMaritime Corp. subsidiary Carib Energy LLC (“Carib”).\r\nThe LNG will be delivered to Puerto Rico. This is the first delivery\r\nof LNG for industrial customers in that U.S. territory.\r\n<\/p>\r\n

\r\n“We are pleased to work with Crowley to support industries in Puerto\r\nRico with the delivery of cost-effective, emission-reducing LNG,”\r\nsaid Stephen Cittadine, president of Pivotal. “Pivotal continues to\r\nexpand its LNG portfolio, thereby reducing dependency on other\r\npetroleum products used by Puerto Rico as well as other U.S.\r\nterritories.”\r\n<\/p>\r\n

\r\nRecently the Federal Energy Regulatory Commission (FERC) issued an\r\norder to provide clarity around Pivotal’s methods of delivery of LNG\r\nfrom the U.S. mainland to U.S. territories. The FERC order confirms\r\nthat Pivotal can sell LNG designated to be transported by waterborne\r\nvessel to all U.S. territories. To make this possible, Pivotal will\r\nload LNG onto international shipping organization (ISO) containers.\r\nThe ISO containers will then be transported via truck to Crowley’s\r\nwaterborne vessels in Jacksonville, Fla., and then delivered to\r\nCarib’s customers in Puerto Rico.\r\n<\/p>\r\n<\/blockquote>\r\n

\r\nThis is the same Crowley Maritime and Carib Energy that since 27 July 2011\r\n\r\nhas been authorized by the U.S. Department of Energy Office of Fossile Energy (FE)\r\nto export LNG from Martin County, Florida<\/a>,\r\npicking it up that LNG at some of the several\r\nFE-authorize\r\nLNG export operations in Martin County<\/a>, right at the end of the\r\nTransco → Sabal Trail → FSC pipeline chain.\r\n

\r\nBack to the Crowley PR:\r\n

\r\n

\r\n“Pivotal LNG is a proven leader in supplying LNG to the\r\neastern United States, and we are certainly pleased to have them\r\nprovide LNG for our markets in Puerto Rico,” said Crowley Vice\r\nPresident Greg Buffington. “Our LNG supply agreement with\r\nPivotal, coupled with Crowley’s recent success of obtaining a\r\nsmall-scale export license from the Department of Energy, allows us\r\nto meet the current and future energy needs of our customers in the\r\nregions where we do business.”\r\n<\/p>\r\n<\/blockquote>\r\n

\r\nThat’s pretty rich mentioning only Puerto Rico, when \r\nFE granted Crowley Maritime on 10 September 2014\r\n\r\nFinal Order No. 3487 Granting Long-Term Multi-Contract Authority to Export LNG in ISO Containers by Vessel to Non-Free Trade Agreement Nations in Central America, South America, or the Caribbean<\/a>.\r\nCrowley\r\n\r\nalready had since 2011 FE authorization to export to Free Trade Agreement Nations<\/a>.\r\nSo basically Crowley can export LNG to most any country in the world.\r\nWhich means so can Pivotal LNG, AGL Resources, and Southern Company,\r\nrolling their bomb trucks down I-75 and I-10 to get to Jaxport.\r\n

\r\nBack again to the Crowley PR:\r\n

\r\n

\r\nPivotal filed a petition with FERC on April 11, 2014 (Docket No.\r\nRP14-732-000). The order released by FERC was announced on Sept. 4.\r\nFor more information about LNG solutions, please visit\r\n\r\nwww.pivotallng.com<\/a> or follow Pivotal on LinkedIn<\/a>. \r\n<\/p>\r\n<\/blockquote>\r\n

\r\nThe clarification requested by FERC could be about truck vs. rail.\r\n

\r\nUnfortunately, FERC then threw up its hands and disclaimed any jurisdiction over Pivotal LNG.\r\nLNG World News,\r\n7 Aprll 2015,\r\n\r\nFERC disclaims jurisdiction over Pivotal LNG facilities<\/a>,\r\n

\r\n

\r\nThe U.S. Federal Energy Regulatory Commission has issued an order\r\ndeclaring that Pivotal LNG and its affiliates that produce the\r\nchilled gas for export by a third party would not be subject to the\r\nCommission’s NGA section 3 jurisdiction.\r\n<\/p>\r\n<\/blockquote>\r\n

\r\nI’m assuming NGA refers to the Natural Gas Act, with Section 3 referring\r\nto\r\n15 U.S. Code 15B §717b (e) LNG Terminals (3)<\/a>,\r\n

\r\n

\r\n(A) Except as provided in subparagraph (B), the Commission may\r\napprove an application described in paragraph (2), in whole or part,\r\nwith such modifications and upon such terms and conditions as the\r\nCommission find necessary or appropriate.\r\n<\/p>\r\n<\/blockquote>\r\n

\r\nThe LNG World News article continues:\r\n

\r\n

\r\nIn addition to its Trussville, Alabama LNG facility, Pivotal\r\nrequested the commission declare four other existing liquefaction\r\nand storage facilities, operated by its affiliates, will be\r\nnonjurisdictional. The affiliated facilities are the Riverdale LNG\r\nfacility in Riverdale, Georgia; the Cherokee LNG facility in Ball\r\nGround, Georgia; the Macon LNG facility in Macon, Georgia; and the\r\nChattanooga LNG facility in Chattanooga, Tennessee, FERC said in its\r\nnotice.\r\n<\/p>\r\n

\r\nPivotal submitted a petition requesting the commission determine\r\nthat Pivotal, as well as its affiliates, would not be subject to\r\neither NGA section 3 or section 7 jurisdiction if LNG produced at\r\nthe LNG facilities was transported by waterborne vessel to end users\r\nin noncontiguous states and territories (e.g., Hawaii or Puerto\r\nRico).\r\n<\/p>\r\n

\r\nOn September 4, 2014, the commission issued an order determining\r\nthat the transportation of LNG by nonpipeline means would not\r\nsubject Pivotal and its affiliates to the commission’s jurisdiction\r\nand that the LNG facilities owned by Pivotal and its affiliates\r\nwould not be “LNG Terminals” as defined by NGA section\r\n2. However, the September 2014 Declaratory Order was limited to\r\ntransactions in which LNG was subsequently transported by waterborne\r\nvessel to end users in noncontiguous states and territories.\r\n<\/p>\r\n<\/blockquote>\r\n

\r\n\r\n<\/a>\r\nThat story continues saying Pivotal further wants a declaratory\r\norder finding “that the LNG facilities it identifies would not be\r\ndeemed “LNG Terminals” subject to the commission’s NGA\r\nsection 3 jurisdiction when engaging in transactions which\r\nultimately result in any of the LNG they produce being exported.”\r\nPivotal wants that further clarification even for third parties.\r\n<\/p>\r\n

\r\nSuch as third parties who could ship LNG onwards from Puerto Rico or Hawaii\r\nto any FTA or non-FTA country?\r\nParties such as Crowley Maritime, which already has FE authorization to do that?\r\n

\r\nAfter all, as the co-founder of the company building the Jaxport LNG export facility, Texas oil man T. Boone Pickens says<\/a>,\r\n

\r\n

\r\n“The producers have gone out and drilled for the natural gas.\r\nThey should be entitled to get the best markets in the world, so let\r\nthem have it.\r\n

\r\n“Go ahead and move it out and sell it.\r\nI’d go ahead and let the gas go into the global market.”\r\n<\/p>\r\n<\/blockquote>\r\n

\r\nAfter all, they already fracked Pennsylvania to get that methane.\r\nNevermind your life at risk from LNG bomb trucks.\r\n

\r\nMore in a later blog post.\r\n

\r\n -jsq\r\n<\/p>\r\n

Investigative reporting costs money, for open records requests, copying, web hosting, gasoline, and cameras, and with sufficient funds we can pay students to do further research. You can donate to LAKE today<\/a>!<\/p>","protected":false},"excerpt":{"rendered":"Back in May 2015, Southern Company CEO Tom Fanning and Georgia Power CEO Paul Bowers both told me “If we can’t do coal, we have to do pipelines”. A year in the making, Southern Company bought pipeline company AGL Resources. Turns out AGL Resources is also an LNG export company, exporting through Jacksonville by LNG […]","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":true,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_links_to":"","_links_to_target":""},"categories":[203,8,18,6124,73],"tags":[9598,8759,9602,9603,9604,9601,9606,786,785,8751,6995,308,7129,8701,8708,1268,9607,8702,9608,4202,7731,12,7,8912,562,9416,9605,1024,1798,9609,9610,6597,8731,108,6966,7253,8789,6339,9600,7128,6,1643,9599,7689],"class_list":["post-18081","post","type-post","status-publish","format-standard","hentry","category-florida","category-georgia","category-georgia-power","category-natural-gas-2","category-safety","tag-agl-resources","tag-alabama","tag-bomb-trucks","tag-carib-energy","tag-cherokee-lng","tag-container-ships","tag-crowley-maritime","tag-federal-energy-regulatory-commission","tag-ferc","tag-florida","tag-florida-southeast-connection","tag-fracking","tag-fsc","tag-georgia","tag-georgia-power","tag-jacksonville","tag-jaxport","tag-lake","tag-liquid-natural-gas","tag-lng","tag-lng-export","tag-lowndes-area-knowledge-exchange","tag-lowndes-county","tag-marcellus-shale","tag-natural-gas","tag-natural-gas-act","tag-nga","tag-paul-bowers","tag-pennsylvania","tag-pivotal-lng","tag-puerto-rico","tag-sabal-trail-transmission","tag-safety","tag-southern-company","tag-spectra-energy","tag-t-boone-pickens","tag-tennessee","tag-tom-fanning","tag-tote-inc","tag-transco","tag-valdosta","tag-virginia","tag-wespac-midstream-llc","tag-williams-company"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p585fK-4HD","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/posts\/18081","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/comments?post=18081"}],"version-history":[{"count":3,"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/posts\/18081\/revisions"}],"predecessor-version":[{"id":18084,"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/posts\/18081\/revisions\/18084"}],"wp:attachment":[{"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/media?parent=18081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/categories?post=18081"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.l-a-k-e.org\/blog\/wp-json\/wp\/v2\/tags?post=18081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}