> On 2016-01-16, at 14:10, Mark Abramowitz <[email protected]> wrote:
> 
> On Jan 16, 2016, at 1:54 PM, Jan Steinman via EV <[email protected]> wrote:
> 
>> But almost all methane comes form natgas, no?
> 
> No. Nat gas is essentially methane.

I’m having trouble reconciling those two statements.

>> Methane is a “stranded market,” not suitable for shipping long distances, so 
>> “renewable methane” tends to be consumed right next to dairy farms, 
>> feedlots, etc. where it is produced.
> 
> Why can't you ship it? Soon (?) the U.S. will be a net exporter. Renewable 
> methane can be produced in one spot, cleaned up and put into the pipeline, 
> among other uses.

“Soon” is different from “now.”

There is great public opposition to pipelines and LNG terminals. This is why 
natgas is much cheaper in North America than it is in the orient.

Will this change? Perhaps, but today, natgas is essentially a stranded asset.

I could see this happening in the US to some extent, where industry is used to 
running roughshod over regulators and public interest. But here in BC, a 
combination of low prices and public resistance has pretty much killed dreams 
of natgas exports.

Intercontinental natgas trade also requires TONS of infrastructure investment, 
at a time when CAPEX is daily hitting record lows in the fossil fuel industry. 
As I mentioned, it is uneconomical to compress natgas, so it has to be 
cryogenically liquified, which also has an immense cost.

It’s a “catch 22:” low gas prices in North America make it difficult to invest 
for export, which would inevitably raise costs for millions of North Americans 
through higher home heating and electricity costs — a clear case of benefitting 
the 1% at the expense of the 99%. People are wising up to such things.

Jan

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