Obama quashes Keystone XL in bid to boost climate leverage

WASHINGTON — Ending a seven-year political saga, President Barack Obama killed the proposed Keystone XL pipeline on Friday, declaring it would have undercut U.S. efforts to clinch a global climate change deal at the center of his environmental legacy.

Obama’s decision marked an unambiguous victory for environmental activists who spent years denouncing the pipeline, lobbying the administration and even chaining themselves to tractors to make their point about the threat posed by dirty fossil fuels. It also places the president and fellow Democrats in direct confrontation with Republicans and energy advocates heading into the 2016 presidential election.

The president, announcing his decision at the White House, said he agreed with a State Department conclusion that Keystone wouldn’t advance U.S. national interests. He lamented that both political parties had “overinflated” Keystone into a proxy battle for climate change but glossed over his own role in allowing the controversy to drag out over several national elections.

“This pipeline would neither be a silver bullet for the economy, as was promised by some, nor the express lane to climate disaster proclaimed by others,” he said.

Although Obama in 2013 said his litmus test for Keystone would be whether it increased U.S. greenhouse gas emissions, his final decision appeared based on other factors. He didn’t broach that topic in his remarks, and State Department officials said they’d determined Keystone wouldn’t significantly affect carbon pollution levels.

Instead, the administration cited the “broad perception” that Keystone would carry “dirty” oil, and suggested approval would raise questions abroad about whether the U.S. was serious about climate change.

“Frankly, approving this project would have undercut that global leadership,” the president said.

Obama will travel to Paris at the end of the month for talks on a global climate agreement, which the president hopes will be the crowning jewel for his environmental legacy. Killing the pipeline allows Obama to claim aggressive action, strengthening his hand as world leaders gather in France.

Though environmental groups hailed Friday as a “day of celebration,” Obama’s decision was unlikely to be the last word for Keystone XL.

TransCanada, the company behind the proposal, said it remained “absolutely committed” to building the project and was considering filing a new application for permits. The company has previously raised the possibility of suing the U.S. to recoup the more than $2 billion it says it has already spent on development.

“Today, misplaced symbolism was chosen over merit and science. Rhetoric won out over reason,” said TransCanada CEO Russ Girling. His criticism was echoed by Republicans including House Speaker Paul Ryan, who said Obama had rejected tens of thousands of jobs while railroading Congress.

“This decision isn’t surprising, but it is sickening,” Ryan said.

On the other side, climate activists noted the widespread assumption early in Obama’s presidency that he’d eventually approve Keystone, and said his apparent about-face proved how effective a no-holds-barred advocacy campaign could be.

“Now every fossil fuel project around the world is under siege,” said Bill McKibben of the environmental group 350.org.

Already, the issue has spilled over into the presidential race. The Republican field is unanimous in support of Keystone, while the Democratic candidates are all opposed — including Hillary Rodham Clinton, who oversaw the early part of the federal review as Obama’s first-term secretary of state.

TransCanada first applied for Keystone permits 2,604 days ago in September 2008 — shortly before Obama was elected. As envisioned, Keystone would snake from Canada’s tar sands through Montana, South Dakota and Nebraska, then connect with existing pipelines to carry more than 800,000 barrels of crude oil a day to specialized refineries along the Texas Gulf Coast.

But Democrats and environmental groups latched onto Keystone as just the type of project that must be phased out if the world is to seriously combat climate change. Meanwhile, Republicans, Canadian politicians and the energy industry argued the pipeline would create thousands of jobs and inject billions into the economy. They accused Obama of hypocrisy for complaining about a lack of U.S. infrastructure investment while obstructing an $8 billion project.

Source: Obama quashes Keystone XL in bid to boost climate leverage – Your Houston News: News: barack obama, keystone xl, environment,

Army seeks to hide truth with threat to deport foreigners in lumad fact-finding mission – Karapatan

The Army’s threat to seek the deportation of foreigners who joined a recent fact-finding mission on atrocities against lumad in Surigao del Sur is part of military efforts to divert attention from its complicity in the continuing human rights violations committed against indigenous people.

Source: Army seeks to hide truth with threat to deport foreigners in lumad fact-finding mission – Karapatan

Protests ahead of historic Taiwan-China summit

Protesters tried to storm parliament in Taiwan overnight as the island’s leader Ma Ying-jeou left for a historic summit in Singapore with Chinese President Xi Jinping.

The meeting will be the first between leaders of the two sides since their 1949 split following the Chinese civil.

Closer ties with China have sparked fears over Beijing’s growing influence with President Ma’s opponents accusing him of selling out Taiwan by attending the summit.

The meeting comes ahead of presidential and parliamentary elections in Taiwan in which the independence-leaning Democratic Progressive Party (DPP) is favoured to win, something Beijing is desperate to avoid.

The Nationalists, also known as the Kuomintang (KMT), retreated to Taiwan after losing the civil war to the Communists, who are still in charge in Beijing.

Taiwan has never formally declared independence from Beijing, which sees it as a renegade province to be reunified with the mainland, by force if necessary.

Around 100 protesters tried to storm the heavily-guarded parliament building in Taipei carrying “Taiwan independence” banners, but were stopped by police.

There were no arrests.

Source: Protests ahead of historic Taiwan-China summit

Buyers Have Upper Hand In Liquefied Natural Gas Market

(MENAFN – Gulf Times) Next year, on a remote island off Australia’s western coast, the world’s most expensive liquefied natural gas export terminal will start shipping cargoes into a market that has changed vastly since 2009, when the project was approved.

Chevron’s 54bn Gorgon LNG facility, initially budgeted at 31bn, was supposed to have begun operations in 2014. Labour disputes have delayed it, and lower LNG prices have potentially reduced its profitability. LNG producers no longer have the bargaining power they once did.

Weakening demand in Asia combined with an increase in LNG supply is giving the world’s biggest buyers not only cheaper gas but also more say on how contracts are designed.

“The buyers have the upper hand,” says Neil Beveridge, an analyst at Sanford C Bernstein.

LNG suppliers have historically been able to lock customers into 20-year contracts, with clauses that restrict the resale of gas. In Japan, the world’s largest LNG market, two of the country’s largest utilities have teamed up to gain leverage and demand more flexibility. Jera, a joint venture of Tokyo Electric Power and Chubu Electric Power, says it will no longer sign contracts that give producers control over the destination of the product.

If buyers succeed in negotiating better terms, the LNG market could become more like the one for crude oil, where producers, suppliers, and traders all compete for profits through constant buying and selling. That would require a fully functioning spot market, where supplies are traded for immediate delivery, a development that’s still a decade away, Beveridge says.

By then, Australia could be the world’s top LNG exporter. For the first time in eight years, exports from Qatar shrank in 2014. Qatar still provides about a third of the world’s LNG, but customers are also lining up for new supplies from Australia and the US.

Gorgon will join three other LNG megaprojects that have been completed recently along Australia’s east coast and will tap the country’s vast gas deposits.

In the US five LNG projects under construction will export cheap natural gas unlocked by the shale boom. The first will begin exports in 2016. Over the next decade the US is likely to become a net exporter of natural gas and compete with Australia to be the world’s leading LNG supplier.After these projects come online, it may be a while before any others are built.

“LNG is the last of those sectors where we’re seeing a wave of new projects hit the market,” says Daniel Hynes, a commodity strategist at Australia & New Zealand Banking Group.

“It’s coming at a time when demand is weakening across the board. It’s clearly a tough market.”

Source: It’s a buyer’s market as new supplies flow from US, Australia | MENAFN.COM