Saturday, October 17, 2009

Propane and Propane Accessories

Will propane wean Alaska off fuel oil? The Alaska Natural Gas Development Authority thinks so. Here's a link to a presentation on the scope of the project and the potential benefits (LINK).

Does it make sense? Sure - especially if displacement of high dollar naptha at GVEA can base load the project while additional users build infrastructure and convert to propane.

It's also makes even more sense at higher oil prices (and by the way the April 2010 crude futures are trading in the $80/bbl range).

It also makes sense to begin adapting local energy markets for natural gas liquids (NGL) that will be produced when the Alaska Gas Pipeline comes on line.

1 comment:

Brett Chandler said...

Not to mention, every barrel of oil saved by propane conversion means another barrel of oil Alaska can ship south...