American Gas - February 2013 - (Page 18)

e u rope Is Shale Gas on the Horizon? Nations work on how to deal with “unadulterated good news” mike kemp/in pict u res/ corb is / ap imag es Outspoken London Mayor Boris Johnson describes hydraulic fracturing as an “answer” to a troubled nation’s prayers. 18 American Gas february 2013 LONDON — In Europe, shale gas mining and hydraulic fracturing have been nearly nonexistent, and a number of countries, such as France, Germany, and Bulgaria, have banned or suspended shale gas exploration. However, there are exceptions. For example, Poland is expected to enact a law this year to regulate shale gas production, opening the door to increased shale mining activity. The law, which is expected to take effect in 2015, “will certainly give a big impulse for intensifying gas exploration efforts in Poland,” Treasury Minister Mikolaj Budzanowsk told the AP in January. In December, the U.K. lifted a ban on hydraulic fracturing that had been in place since May 2011. The move, which is likely to lead to more test drilling, drew on analyses from the U.K.’s Department of Energy and Climate Change, an independent panel of experts, and the Royal Society and Royal Academy of Engineering. “My decision is based on the evidence,” said Energy and Climate Change Secretary Edward Davey in announcing the end of the ban. “It comes after detailed study of the latest scientific research available and advice from leading experts in the field.” More broadly, the European Commission has been analyzing shale gas issues since late 2011, and recently opened a public discussion period to take comments through March. After that, the commission says, it “will propose in 2013 a framework to manage risks, address regulatory shortcomings, and provide maximum legal clarity and predictability to market operators and citizens across the EU.” Such developments are important, but most observers don’t expect to see significant levels of commercial shale gas mining in Europe for many years. One question is how the regulatory environment will evolve. In its lifting of its hydraulic fracturing ban, for example, the U.K. also applied new oversight and controls that some consider unduly stringent. And as bans are lifted, anti-shale mining groups are likely to become more vocal. With the troubled U.K. economy, wrote London’s outspoken Mayor Boris Johnson in December, shale gas “seems an answer to the nation’s prayers.” But, he added, “In their mad denunciations of fracking, the Greens and the eco-warriors betray the mind-set of people who cannot bear a piece of unadulterated good news.” —Peter Haapaniemi state h o u se Sledding for Markets Alaska’s governor promotes LNG JUNEAU, AK — Alaska’s governor is hard at work developing new markets for Alaska’s vast gas reserves, both at home and around the world. In December, Gov. Sean Parnell proposed a $355 million financial package to jump-start construction of a natural gas liquefaction plant on the North Slope and development of a Fairbanks-area natural gas distribution system. The North Slope LNG plant would deliver gas via truck to Fairbanks and provide access to gas for road and river communities as well as southcentral Alaska. The target for first delivery is the latter half of 2015. “While we continue to aggressively pursue a gas pipeline to get Alaska’s gas to Alaskans, that project is, at a minimum, some years away,” said Parnell in a news release. “In the meantime, trucking gas from the North Slope is the best alternative—with the added benefit of preparing communities for an eventual connection to a pipeline.” The state legislature will consider the proposal in its 2013 session. Also in December, Parnell met in Juneau with Kangsoo Choo, the CEO and president of Korea Gas Corp., to discuss the possible export of LNG from Alaska to Asia. KOGAS is the world’s largest LNG buyer, operating three LNG terminals and pipelines that supply gas to power plants, gas utilities, and other buyers. The company has partnerships in LNG projects

Table of Contents for the Digital Edition of American Gas - February 2013

American Gas - February 2013
Table of Contents
President’s Message
Subject Index
Supplanting Coal, Creating Jobs
Digest
Issues
Updates
Need to Know
By the Numbers
People and Places
Fill ‘er Up—in the Driveway
Europe
State House
City Hall
Wall Street
Elm Street
On the Docket
Profile: Philip B. Jones
Law
Jobs
Buyer’s Guide: Meters
Marketplace
Headway

American Gas - February 2013