Parnell, in a speech to an oil and gas industry group in Anchorage, said he wants the major North Slope players - Exxon Mobil Corp., BP and ConocoPhillips - to coalesce behind a project that would allow for liquefied natural gas to be shipped overseas. He wants them to do this under the framework of the Alaska Gasline Inducement Act. If they do, the state can be flexible, including talking tax and royalty terms, he said.
Saturday, October 29, 2011
Sunday, October 23, 2011
While Alaska continues to jaw about gas lines and LNG (TIM BRADNER LINK) / (BILL WALKER LINK), the Canadians are all in. For the second week in a row we have news about LNG projects at Kitimat (KITIMAT LINK).
Sunday, October 16, 2011
This week ConocoPhillips purchased Marathon's share of the Kenai LNG plant (LINK) and the Kitimat B.C. LNG project received an export license (LINK). The Kenai plant is scheduled to be mothballed and may be converted to and IMPORT terminal.
Sunday, October 9, 2011
The options for Alaska's gas seem to be getting odder each day. Now we have a suggestion of LNG ice breakers. (LINK to Dermot Cole article). According to Pedro Van Meurs:
If there is a dramatic way to improve the economics of North Slope gas, it may be to export it without a pipeline, he writes. Use icebreakers to get to the North Slope and ship LNG by tanker to a place like Dutch Harbor, where it would be transferred to regular tankers. A project along those terms could start in 2018 and make the gas economical enough to compete with the Yamal project in Russia. Van Meurs also notes, however, that he is not an expert on icebreakers or North Slope ice conditions, but he thinks that with the thinning of the summer ice, there will some a time (sic) when this could workApparently this is not totally outlandish. Some firms are already working on Ice Class LNG ships. (LINK) I'll file this under things I won't see before I retire.
Saturday, October 8, 2011
Mega Projects like the Alaska Gas Pipeline don't get funded on the basis of a sky high spot price, but $19/MMBTU LNG vs. $3.48/MMBTU gas in the lower 48 should stimulate a new long term LNG strategy by Japan and Alaska. (LINK). The LNG price paid vs. lower 48 gas price leads to two conclusions. 1) Alaska gas is stranded indefinitely and 2) Either the Gulf Coast or Alaska have an opportunity to strike long term deals with Japan for LNG sales.
Saturday, October 1, 2011
Governor Parnell on Huckabee talking about taxes and drilling in Alaska, no mention of the gas pipeline:
Governor Parnell on Huckabee from Office of Governor Sean Parnell on Vimeo.
Also noticed this LNG video this week.
LNG: The Facts from Center for Liquefied Natural Gas on Vimeo.
LOL moment at the 3:58 min mark when the spokesman takes a gulp from a beaker of water cooled by LNG evaporation. Nice video, but imagine OUTBOUND LNG instead of inbound LNG.
In other news: Australia will become the Qatar of LNG. (LINK) By 2020 Australian LNG exports could top 100 mtpa compared to 77 mtpa from Qatar. For comparison, the volume of gas available from Alaska equals 35 mtpa in LNG. A full scale Alaskan LNG export project seems unlikely, but Alaskan gas could supply North American markets if and when shale gas derived LNG is exported from the Gulf Coast.
This week Chevron moved forward with a $28B investment in the Western Australian Wheatstone 8.9 mtpa LNG project (LINK).