Thursday, January 29, 2009

The Value of Alaskan LNG

Here's an article from Bloomberg with details of the Japanese purchase of Nikiski LNG. The price paid for the LNG caught my eye - $8.8 /MMBTU.

“The Alaskan contracts are hugely symbolic to the Japanese and I can’t see them giving them up or letting another buyer get access to those volumes,” said Tony Regan, an oil and gas consultant based in Singapore. “There are bigger renewals due this year from Australia and Indonesia.”
Here's my question - The Japanese pay a good price for Alaskan LNG, they are the largest LNG importer in the world, they sign long term contracts - Why haven't they expressed an interest in an equity position in an Alaskan LNG project using North Slope Gas?

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