Sunday, January 31, 2016
Saturday, October 3, 2015
The State of Alaska is struggling to get the gas pipeline and LNG project back on track. A new report by Black and Veatch lays out the risk, cost and advantages of moving forward without TransCanada (TC). LINK TO REPORT.
The participation of TC is a legacy of the Palin years and the AGIA process. Governor Parnell ended AGIA and now Governor Walker is looking to buy out TC.
The world has moved on over the years and soon interest rates will increase and weed out marginal projects like the Alaska LNG project. The project is not a project without customers willing to commit to buying the product. Maybe the time is right for the State to tidy up the partnership, get aligned and pull the project out of the ditch before it is too late.
Posted by AK Engineer at 1:27 PM
Saturday, July 11, 2015
I guess I have a pretty bad skill set when it comes to picking the next big project. Back in 2005 I thought the AK pipeline was the next big one...then Sarah and Shale gas and global economic problems set in. At this point I'm about 100% certain that I won't see work on the big job unless they pull ancient codgers out retirement to read drawings for the new breed of people that call themselves engineers.
If I was a betting man I'd say that Gov. Walker is the new Sarah. Things are off track and you just don't get the idea that the required level of alignment has occurred or ever will occur. Now low oil prices are casting a long shadow over the finances of all the participants including the State of Alaska.
The next big one: The $36 billion Pacific Northwest LNG project located in British Columbia. Work will include everything from drilling wells, to building a pipeline and building the LNG plant. The project has played hard ball with all concerned and it appears they have driven a hard bargain with British Columbia.
See you there maybe? (C U N B C ?)
LNG project construction in Prince Rupert could begin later this year: Minister
25-year tax shelter ; BC-Pacific NorthWest deal promises compensation for tax hikes, regulatory changes
LNG protected from tax hikes for 25 years in deal with B.C. government
Posted by AK Engineer at 12:28 PM
Friday, March 6, 2015
HB 132 seeks to constrain the Alaska Gasline Development Corporation (AGDC) and prevent them from any planning activities related to expanding the size and scope of the Alaska Stand Alone Pipeline (ASAP).
Governor Walker responds to HB132 from Alaska Governor Bill Walker on Vimeo.
Gov. Walker makes good points and and defends his objective to develop the big gasline project (AKLNG) and work in parallel to make the ASAP option economically viable.
Watch this press conference video - I was real happy to hear the Governor mention competition, the marketplace and potential customers. This guy understands the trade offs and risk. He also understands that the neighbors next door are poised to win the LNG race.
Speaking of Canada, they recently came up with a brilliant way to boost the economics of LNG projects. (Globe and Mail Link). The Canadian approach is to allow LNG projects to depreciate the projects more quickly. We 'Mericans could benefit from this idea and I don't know why Alaskan politicians aren't taking the hint. Accelerated depreciation is absolutely the best idea I've heard yet. The idea mitigates the financial risk of spending tens of billions of dollars on a mega project. I don't agree with the term tax break - it's more of a way of shifting the time the taxes are collected.
Redefining the timing of tax collection is the best idea ever because the government won't collect any taxes from un-built projects. I hope Senators Lisa Murkowski, Dan Sullivan, Representative Don Young, and Governor Walker warm up to this idea and take note of what Canada has done - it's truly a project enabling action that is 100% in the hands of the politicians. Aside from Gov. Walker exactly what are the rest of Alaska's politicians doing to more the project forward?
Friday, February 13, 2015
This week the Alaska LNG project submitted a series of draft environmental and socioeconomic reports to the Federal Energy Regulatory Commission (FERC). FERC is responsible for conducting the environmental review of the project.
You can find the files at the FERC elibrary site (FERC LINK) and search docket number PF14-21:
Walker said he will move to dismiss his lawsuit after introducing legislation Friday intended to address his concerns.
Thursday, January 29, 2015
The sleepy AK LNG project is generating a flurry of FERC filings. None are monumentally interesting or overly informative, but if you are following the project take a look and enjoy the filings:
1) Summary of the 10/29/14 telephone conversation re Alaska Gasline Development Corporation's Alaska LNG Project under PF14-21
2) Summary of the 10/28/14 Telephone conversation re Alaska Department of Natural Resources' Alaska LNG Project under PF14-21
3) Summary of the 2014-January-2015 conference call between FERC Staff, Alaska LNG Project Staff et al re the Bi-Weekly Pre-filing Process conference call for the Alaska LNG Project under PF15-21.
4) Summary of the 10/27/14 Interagency Meeting re laska Gasline Development Corporation's Alaska LNG Project under PF14-21.
5) Summary of the 10/30/14 Telephone conversation re Alaska Gasline Development Corporation's Alaska LNG Project under PF14-21.
This sounds chilling (i.e. what fresh regulatory horrors are brewing?):
- In addition, the project will require an Alaska National Interest Lands Conservation Act section 810 evaluation. (BLM and the DOI)
- There is a new arctic policy, which this project will be the test case for its development. This policy is an integrated approach to approving development or projects in the arctic region. This group is wondering how to integrate its process into the National Environmental Policy Act process. (DOI)
7) Alaska LNG Project - Community Meetings Summary Letter by Alaska Gasline Development Corporation, BP Alaska LNG LLC, ConocoPhillips Alaska LNG Company, ExxonMobil Alaska LNG LLC, TransCanada Alaska Midstream LP under PF14-21.
Other News: H.R. 351, The LNG Permitting Certainty and Transparency Act passed the House of Representatives with a vote of 277-133. Bill Link
Sunday, January 18, 2015
I guess we're all waiting for the new governor to show some sign that the Alaska LNG project is still on track. Early indications are not good:
Amanda Coyne Link