Monday, July 30, 2012

Point Thomson EIS Released

USACE has released the final environmental impact study for ExxonMobil's Point Thomson project. (LINK to NewsMiner Story).  Link to EIS Webpage  Link to the Final EIS.

I think this is more news worthy than the non binding open season.  I'll give this a read and comment later.  Hopefully no show stoppers.

Another Open Season

OK, we're off to the races with a non-binding open season intended to gauge buyer interest in Alaska gas.  Pardon me if I'm not too excited,  but this is only done to fulfill AGIA requirements.  From Bloomberg:

The Alaska Pipeline Project being developed by TransCanada Corp. and Exxon Mobil Corp. will judge interest in shipping natural gas from Alaska's North Slope to a terminal in southern Alaska or Canada.
The companies said Monday they will conduct a nonbinding solicitation from Aug. 31 to Sept. 14 to identify shippers who might want capacity on the pipeline.
I think I like the way the Canadians do it better, you know where they get customers to take equity positions then move forward with a plan. (LINK).  Looking forward to Sept 14th.

Friday, July 27, 2012

Shell Canada LNG Export License Application

Since the Alaska Gas Pipeline and LNG plant plans are in yawn mode, take a look at the Export License Application filed by LNG Canada Development Inc., (Shell Canada, Korea Gas, Mitsubishi, and PetroChina) (LINK).

The annual maximum stated in the application is 1180 BCF, or 3.2 BCF/D which is about the same as the various pipeline options proposed for Alaska.

Section 4.4 of Appendix D (Ziff Energy) addresses Alaska Gas projects in very uncertain terms:

The LNG Option is being explored more thoroughly at time of writing. Project estimates for a 3 Bcf/d pipeline to Valdez are in the order of $20-26 Billion. Costs and economics of transporting and liquefying Alaska production will be dependent on many factors including final size and nature of facility and related pipeline, and are unknown at time of writing.
Section 6.3 foresees the possibility of future "Northern Gas"

Northern Gas (Alaska/Mackenzie Delta): could flow beginning in 2025 at the earliest and, assuming favourable economic conditions, could expand up to 7% of North American supply in
2045. Although discussions for a liquefaction facility and pipeline to Valdez, Alaska are at a preliminary stage, these could impact the supply of Northern gas to North America, if economics were favourable to LNG exports. If Northern Gas is transported to Western Canada, the pipelines would be the costliest component of each project, while another $8 Billion would be needed for Mackenzie field development. Once they are built, the pipelines will have a low variable cost and will continue to flow. Expansion projects (compression) will have low incremental cost and will be likely economic.

 Once again we are in hold mode waiting for 30 July Alaska LNG progress report.

Thursday, July 19, 2012

Export Application Filed

The Alaska Gasline Port Authority has filed an application to export 2.5 bcfd (19 million metric tons per annum) to Asia / Pacific Rim Free Trade Agreement (FTA) countries.  (LINK).

The filing indicates that AGPA plans to export LNG from Valdez.

Monday, July 2, 2012

Good Luck Great Bear

There's no news to discuss on the Alaska Gas Pipeline front but I did take note of Great Bear Petroleum's efforts on a shale oil well (LINK):

Alaska-based independent Great Bear Petroleum is now drilling its first North Slope test well to assess the potential for production of oil from shale formations in the region, similar to the way oil is being produced in the Bakken and Eagle Ford shale formations of the Lower 48 states, the president of Great Bear said Friday.
More production from a new resource will help refill TAPS and may contribute to a new source of gas production.  Without risk takers and innovators like these we would all be sunk.  

I wish them the best of luck and a safe and productive project.  

Losing Our Shirts on Natural Gas

So it's official - Exxon is not happy with dirt cheap natural gas (LINK):

On Wednesday Exxon Chief Executive Rex Tillerson broke from the previous company line that it wasn't being hurt by natural gas prices, admitting that the Irving, Texas-based firm is among those hurting from the price slump. 
"We are all losing our shirts today." Mr. Tillerson said in a talk before the Council on Foreign Relations in New York. "We're making no money. It's all in the red."