Saturday, December 28, 2013
Friday, December 20, 2013
Friday, December 6, 2013
I found this publication by GE interesting (Age of Gas Link).
Good data source for all things gas and LNG.
Page 31 has a good chart - it shows the cost of gas transport via pipeline and LNG ship.
Page 54 graphs the relative cost of power vs. various energy sources. Spoiler alert - Gas combined cycle is the winner.
Wednesday, November 20, 2013
Saturday, October 19, 2013
Wednesday, October 9, 2013
Sunday, September 22, 2013
That's what former Alaska Governor Frank Murkowski says. (JUNEAU EMPIRE LINK). Murkowski's quote:
“I think we should take TransCanada out of the equity stream for this project,” Murkowski said. “This is an equity interest, which in my opinion, belongs solely to the State of Alaska.”TransCanada's role in the Alaska Gas Pipeline dates back to the pre-shale gas days of Sarah Palin, AGIA, and much higher gas prices:
Murkowski's logic is sound. TransCanada has performed the requested task, they have done a good job, but the market place changed and their involvement in the Alaska Gas Pipeline no longer serves a need.
This chart shows the ratio of oil prices to natural gas prices over the same time range - Alaskans, heating their homes with oil are especially hard hit by this market shift:
Saturday, September 14, 2013
(Reuters) - Alaska has signed an agreement with the Japan Bank for International Cooperation (JBIC) to investigate natural resource exports in a renewed sign of demand for the state's natural gas, officials said on Wednesday.
Link Press Release
Link REI LNG Project Slides
Link More REI Slides (15-20 mmtpa concept)
Link : REI-LNG website
Liking the sound of this: "A large-volume natural gas pipeline and export facilities"
Update: Interesting context for the agreement with Japan: The last Japanese nuclear plant has been closed (LINK)
Friday, August 23, 2013
Saturday, August 3, 2013
The Alaska Gas Pipeline and associated LNG plant is, according to all the evidence I can gather, dead for at least another decade. The slides presented with the ExxonMobil second quarter earning conference call still list Alaska as one of the "Upstream LNG future opportunities". See page 17 of the presentation slide set.
They did mention that pesky concept of fiscal and regulatory regime for the umpteenth time but I don't expect Alaska to sit up and listen, Tanzania might get in the game, but Alaska can't stop hating long enough to cut a good durable deal. In the mean time other projects emerge or fade in response to market forces.We also continue to assess other LNG opportunities in Alaska, Australia, Russia and Tanzania. A range of factors will be considered before any final investment decision is made, in particular, the fiscal and regulatory regime, market conditions, and capital costs.(Transcript Link)
The Russian Shtokman project has been canceled. This project was an offshore version of the Alaska project with a combination of gas exports via pipeline and 15 MTPA of LNG. The gas production rate was about half of the Alaska gas project size and the stated cost was about a quarter of the cost of the Alaska gas project. The cost estimate seems light and I suspect the refined cost estimate pushed the project over the cliff of feasibility. Chalk up another victory to North American shale gas I expect other marginal project to be cancelled as shale gas LNG moves forward.
New project of the week - $12 Billion TransCanada Energy East Project. The project involves conversion of a gas pipeline to oil and a total of 2700 miles of line across the Canada. Shipping for 900,000 BPD of the 1.1 million BPD capacity has already been contracted.
Saturday, July 20, 2013
- Open Season: Notice was provided to the Commission on May 3, 2012 that the first binding Open Season was terminated as of that date.
- Public Outreach: A Stakeholder Engagement Plan was filed with the FERC on April 5, 2010. No engagement has occurred in the past quarter.
- Pipeline Right-of-Way and Engineering: Pipeline engineering and technology development work initiated to date has been completed and documented.
- Gas Treatment Plant (GTP): Engineering deliverables have been archived for potential future use.
- Environmental Planning and Permitting: No Environmental planning or permitting work has been conducted in the past quarter, although invoices for 2012 work continue to be processed.
- Project Meetings: The project had no additional contact with federal, state, and local agencies that have regulatory approval or other interests regarding the Project in 2Q2013.
- Project Activity in Canada:FERC requested an update of Project activities in Canada in these activity reports. Completed remaining field program work and permit requirements with federal and territorial and provincial governments.
Here's a look at the AGIA funds expended as of the January 2013 report:
Friday, June 21, 2013
If you think this is good news for the Alaska gas line and LNG project you would be wrong.
The 4 BCF / 30 MTPA LNG project is being developed by WCC LNG, an entity owned by Exxon Mobil and Imperial Oil Resources. The project will be built in the Kitimat and Prince Rupert area.
The project will be based on Canadian shale gas resources but may ultimately recieve gas from other sources:
The LNG Terminal will access gas primarily from the WCSB. Given the ntegrated nature of the North American gas markets and pipeline network, gas supply could also potentially come from other Canadian or North American basins over the life of the LNG Terminal.So maybe some day an Alaska gas line to Canada may send gas to an export terminal in Canada. By someday I mean decades from now.
This news combined with the Petronas Canada LNG project announcement leads me to believe that Canada will export LNG before North Slope gas is exported.
The cost of the WCC project is not stated and the project is not approved yet. This non-Alaska Exxon Mobil LNG terminal may become a powerful bargaining chip in negotiations with the State of Alaska. Alaskans won't like that and I'll bet Exxon Mobil comes out the winner no matter which project goes forward.
The good news for Alaska, is that the Canadian upstream is not as developed as the North Slope upstream which means the unit cost of West Coast Canadian LNG may be within 10% of the cost of North Slope LNG exported from South Central Alaska - that 10% may offer room to negotiate.
Friday, May 31, 2013
Sunday, May 26, 2013
Pacific NorthWest LNG Ltd. has awarded Front-End Engineering and Design (“FEED”) contracts for its proposed liquefied natural gas (“LNG”) facility in British Columbia to three international engineering contractors - Bechtel, KBR/JGC joint venture, and Technip/Samsung Engineering/China Huanqiu joint venture.The project timeline currently aims for an investment decision in 2014 and project completion in 2018.
Also - Real progress on L48 LNG projects : LINK
Sabine Pass Liquefaction Project ( In Construction) 2.2 BCFD equivalent with room to expand, customers and financing locked in.
Feeeport LNG (clearing permitting hurdles) 2.0 BCFD equivalent, customers signed on, construction planned to start later this year.
Once again Alaska is getting left behind. Every day and every time I hear about another project announcement I grow a little closer to the "never going to happen" point of view for the Alaskan LNG project.
Friday, May 17, 2013
At long last an Alaska LNG customer's concept for a project. (LINK)
At first read I noted something you rarely see in Alaska Gas Pipeline or Alaska LNG project proposals - as sense of urgency.
Tuesday, April 30, 2013
Another study is in the works. LINK
Screenshots of the good bits:
I'm not sure how to interpret this. It could mean the state or other parties want an equity share in the project. It will give the State another study to point at. As time passes I'm beginning to join the "never gonna happen" camp.
Monday, April 15, 2013
Tuesday, April 9, 2013
Saturday, April 6, 2013
The progress and possibilities of American LNG projects have been neatly summarized in a competitive bracket format (Article Link), (Bracket PDF Link).
There are no Western Canadian projects on the bracket, but Alaska's Gas Pipeline / LNG project is listed as a wildcard.
It's a good summary and informative in terms of the projects that are competing for LNG investment dollars.
Spoiler alert - Alaska may not be winning!
Saturday, March 30, 2013
Sunday, February 24, 2013
The project concept letter from last week was brief and left readers wanting more detail. This week Mr. Steve Butt Senior Project, Manager Alaska LNG Concept Selection provided a presentation "Progress Exxon/Mobil ConocoPhillips BP &, TransCanada Have Made to Advance North Slope, Natural Gas Development"
Thanks to Matt Buxton, Government Reporter, Fairbanks Daily News-Miner for providing the links.
I think you'll find the presentation is more informative than the letter.
Saturday, February 16, 2013
The North Slope producers and TransCanada have released a letter to Alaska Governor Sean Parnell (LINK to Letter). According to the letter the group has completed the concept selection phase.
Posted by AK Engineer at 2:58 AM
Thursday, February 14, 2013
I didn’t see this coming. Looks like a crafty deal. Possible new source of capital for the Alaska gas line? Coordinated development of the Arctic. Free market at work - gotta love it
Exxon-Mobil Rosneft Arctic Deal LINK
Saturday, February 2, 2013
The Alaska Stand Alone Pipeline (ASAP) annual plan is out (LINK).
The 500 MCFD pipeline has grown from a "wet" gas 24" diameter (at 2500 psi) pipeline to a dry or lean gas 36" diameter (at 1480 psi) pipeline.
The change reflects a drop in value of natural gas liquids (NGL) due to - you guessed it - the lower 48 shale gas miracle. No NGLs means no propane for rural Alaska.
The project cost increased slightly to 7.7 B$ from 7.5 B$ (+/-30%)
The report inindicates that RFQs (Request for Qualifications) and RFPs (Request for Proposals) have been sent to qualified firms and that negotiations will start in January 2013.
The project lacks and agreement with and LNG anchor tenant. Summary shown below (click to enlarge)
Posted by AK Engineer at 3:28 AM
Sunday, January 13, 2013
Normally I look forward to reading a report titled "Alaska Pipeline Project's Pre-Filing Status Report 4th Quarter 2012 under PF09-11" The report documents that nothing remotely akin to progress is going on in Alaska..
The positive gas project news report of the week came from the Canadians, From Bloomberg:
Progress Energy Canada, purchased by Petronas last month for C$5.2 billion, selected Calgary-based TransCanada to build the Prince Rupert pipeline, which will be capable of expansion to 3.6 billion cubic feet a day, according to today’s statement. The project is TransCanada’s second proposed pipeline to an LNG export terminal on the West Coast, following its previously announced Coastal GasLink pipeline.
Posted by AK Engineer at 4:00 AM