More Cowbell - Thanks Lisa

The Alaska Gas Pipeline project has a fever and the only cure is more cowbell.  This week Senator Lisa Murkowski earned the coveted Alaska Gas Pipeline Blog three cowbell award for her efforts to push the project to potential Asian LNG buyers (LINK), and quote:

Murkowski discussed Alaska’s resource base and proximity to Asia with Ambassador Ichiro Fujisaki of Japan and Ambassador Choi Young-jin of South Korea. Murkowski said the ambassadors showed interest in the potential for an Alaska natural gas pipeline and liquefied natural gas project to deliver affordable energy to Asia.

Good job Lisa, that gas ain't gonna sell it's self. Governor Parnell and Senator Begich, don't despair, there's more awards out there. 

Canada LNG

Shell / KOGAS / Mitsubishi / PetroChina have announced a 12 MTPA LNG plant on Canada's west coast (LINK).  That's about half the size of the possible Alaskan LNG project.  The LNG Canada plant will be located in Kitimat B.C. home of another LNG project Kitimat LNG (LINK).  At 5 MTPA the total of the two plants is less than the possible Alaskan LNG project.

I say "possible" Alaskan LNG project for two reasons 1) LNG isn't crude oil, the potential margins and profits are much less,  and 2) Competition is heating up and Alaska is way behind Australia, the U.S. Gulf Coast and now Canada.

Maybe economies of scale will tip the balance, but remember "You can't dabble at LNG"  Alaska continues to lack the key ingredient of buyer participation.  Until a Japanese, Korean, or Chinese LNG buyer signs up for a portion of Alaskan LNG project we're all just dabbling at LNG.

One Message: Alaskan LNG

At long last Alaskan leadership is on message with the same story: LNG.  Lower 48 shale gas killed the gas pipeline to Canada.  The pipeline is headed to a tidewater LNG plant.  We can still argue about the route, taxes, branch lines, straddle plants and natural gas liquids, but consider the main project objective settled.

On Wednesday Dept of Natural Resources Commissioner Dan Sullivan and Dept. of Revenue Commissioner Bryan Butcher approved TransCanada's Project Plan Amendment (PPA) which switches the gasline focus to commercialization of Alaskan gas a LNG for export (LINK to approval letter).

Meanwhile Senator Lisa Murkowski is in Japan talking Alaskan LNG (LINK).  DNR Commissioner Dan Sullivan also pitches Alaskan LNG in Asia (Slides).  Of course Governor Parnell is on message with his support of the LNG project (LINK). Finally the North Slope producers are aligned (LINK).

Looks like the end of the beginning.

Murkowski Markets Alaskan Gas

Lisa Murkowski is on the road marketing Alaskan Gas - (LINK) Quote:

WASHINGTON, D.C. – U.S. Sen. Lisa Murkowski, R-Alaska, yesterday continued her efforts to develop new markets for Alaska’s 35 trillion cubic feet of natural gas on the North Slope by raising the potential of providing a long-term, stable supply of energy to Japan with Japanese Prime Minister Yoshihiko Noda at a dinner hosted by U.S. Secretary of State Hillary Clinton.

“Alaska’s gas is the perfect fit to meet Japan’s energy needs,” Murkowski said. “An LNG line from the North Slope could deliver long-term, stable energy supplies to Japan at a reasonable price. Such a project would be a win-win, both in terms of energy security and environmental policy for Alaska and Japan.”

Murkowski’s conversation with Prime Minister Noda follows a series of meetings she helped lead last week in Washington, D.C., with members of Japan’s Parliament. Murkowski, who is the vice-chair of the U.S. Japan Interparliamentary Group, discussed the benefits of Alaska natural gas to Japan with members of the Diet.

Good Job Keep it up -