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Hawaiian Electric drops Fortis LNG deal upon failed merger; Sempra pursuing bigger LNG dreams


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Hawaiian Electric drops Fortis LNG deal upon failed merger; Sempra pursuing bigger LNG dreams

Hawaiian Electric drops Fortis LNG deal, power plant upgrades after mergercrumbles

has droppeda plan to import LNG from western Canada and convert its oil-fired power plant to natural gas followingthe collapse of its proposed merger with NextEraEnergy Inc.

The planto convert Kahe and buy LNG from a FortisInc.-owned facility located on the coast of British Columbia is tooexpensive to pursue without the resources completion of the merger would have brought,Hawaiian Electric said in a July 19 statement. Under the agreement, Fortis wouldhave provided 800,000 metric tons of LNG over 20 years from its Tilbury LNG terminalin Delta, British Columbia, starting in 2021. The agreement reached in May was contingent on completion ofthe merger.

NextEraannounced the terminationof its $4.3 billion bid for Hawaiian Electric on July 18 after the Hawaii PublicUtilities Commission issued an order that said the companies to show that deal was in the publicinterest.

Sempra continues testing Aliso Canyon, pursuing bigger LNG dreams

is weathering uncertaintyfor new and old infrastructure alike, company officials told analysts during a July19 presentation in New York City.

Morethan five months after utility subsidiary SouthernCalifornia Gas Co. sealed off a breached well at the Aliso Canyon storage facility, thefield's other 114 wells are still undergoing testing, SoCalGas President and CEODennis Arriola said during the company's July 19 analyst day. The company has completedthe first phase of state-mandated well testingand has moved onto the second phase, which involves a more detailed assessment ofeach well's integrity.

Turningto newer facilities, Sempra LNG and Midstream President Octávio Simões acknowledgedthat overzealous interest in developing LNG export projects coupled with low oilprices have thrown the global LNG marketplace for a loop. But Sempra still seesopportunity opening up toward the end of the decade. With the first three CameronLNG LLC trains halfway complete and a recent U.S. Department of Energy for expansion, Semprais confident in its export prospects, he noted.

Exelon subsidiary applies for 6-mtpa LNG export project in Texas

subsidiaries asked FERCfor the go-ahead to build a medium-sized natural gas liquefaction and export facilityin Texas.

AnnovaLNG Common Infrastructure LLC and affiliates filed an abbreviated application fora certificate to own and operate the LNG project on July 13. Annova LNG asked FERCto approve the project by March 30, 2018. The company plans to begin constructionof the project in the third quarter of 2018.

"Themid-scale size of the facility would meet the requirements of multiple foreign purchaserswhose annual demand is best met with increments of 1 mtpa," the company saidin the application.

Cameron LNG gets DOE nod on expansion's non-FTA export volumes

-linked Cameron LNGLLC received authorization from the U.S. Department of Energy to export an additional1.41 Bcf/d from a proposed expansion project at its Louisiana terminal to countriesthat do not have a free-trade agreement with the U.S.

The DOEorder increases Cameron LNG's authorized export capacity to 3.53 Bcf/d for a 20-yearperiod. (DOE Office of Fossil Energy Docket No. 15-90-LNG)

"ReceivingDOE's authorization is an important step forward for the Cameron LNG expansion project,"Sempra LNG & Midstream President Octávio Simões said in a July 18 statement."We appreciate the support and leadership of the community and our federal,state and local officials for their commitment to this project that will provideincremental benefits to the economy, while meeting market demand for new LNG supplies."

Report: Cheniere to shutter Sabine Pass in September for maintenancework

will shut downits Sabine Pass LNG export plant in September for planned maintenance, Reuters reportedJuly 19, citing "sources with knowledge of the matter."

So far,the plant has exported 17 cargoes from its firstliquefaction train since its firstshipment in February. Train 2 is expected to begin exporting LNG cargoin August.

FERC must clarify why Dominion could treat customers differently at CovePoint

A federalappeals court asked FERC to explain why a deal allowing Statoil Natural Gas LLC to give up contracted services atDominion Resources Inc.'sCove Point LNG import terminal was not unfair to BP Energy Co., another Dominion customer that did not getthe same opportunity.

The U.S.Court of Appeals for the District of Columbia Circuit said FERC appeared to treatthe BP plc subsidiarydifferently from Statoil because BP Energy possessed protections under Natural GasAct Section 7, such as the release and retention of contracted-for terminal services,that Statoil, which had a contract based under Section 3 of the Natural Gas Act,did not.

"Ifthe reasonable inference from the challenged orders is that the turn back opportunityis intended to compensate for the open access protections provided to BP Energybut not Statoil by NGA § 7, then the commission has not so far demonstrated thatStatoil does not receive the same or comparable benefits under its contract withDominion," the D.C. Circuit wrote.

Court denies challenge to FERC environmental review of Dominion CovePoint

FERCdoes not have to consider climate change and other indirect impacts of increasednatural gas exports for proposed LNG export projects, a federal appeals court saidas it denied an environmentalist challenge to the approval of Dominion Resources Inc.'s Cove Point LNG export terminal.

Alongwith earlier decisionsfrom the U.S. Court of Appeals for the District of Columbia Circuit, the opinionsupported how FERC calculates the climate effects of individual gas projects. Thecommission says many climate change effects are impossible to measure or connectwith individual gas projects. The U.S. EPA and environmental groups, meanwhile,have pushed the commission to do more.

The D.C.Circuit denied a petition filed by several environmentalgroups that argued FERC had failed to consider all of the environmentaleffects of converting the Cove Point LNG terminal from an import facility to anexport facility. The commission is required to consider environmental effects ofenergy projects in its jurisdiction under the National Environmental Policy Act,or NEPA.