Data Dump and Walker Talk

This week the Alaska LNG project submitted a series of draft environmental and socioeconomic reports to the Federal Energy Regulatory Commission (FERC).  FERC is responsible for conducting the environmental review of the project.

You can find the files at the FERC elibrary site (FERC LINK) and search docket number PF14-21:

 

I'm still downloading and sorting through the documents - so far I don't see anything shocking or new but I'll post any snippets of interest.

Other project news of interest: Gov. Bill Walker  and his team are in New York explaining how they will manage through the current dip in oil revenues. (LINK to Alaska Journal of Commerce).  Whatever misgivings Gov. Walker may have about the project it is now his job to promote the project and represent the project as a source of future revenue.  We should all wish him good luck on his mission to protect the State's bond ratings.  Those ratings play a huge role in the cost of capital to build the project.  At today's low interest rates no one talks much about financing the project, but stay tuned - the day will come when interest rates matter a lot and the date of first revenue matters a lot. 

Speaking of Gov. Walker's misgivings, this week the Governor spoke to lawmakers and indicated in a conditional sort of way that he would drop his Point Thomson lawsuit  (Alaska Dispatch Link) and quote from Alaska Dispatch story: 

Walker said he will move to dismiss his lawsuit after introducing legislation Friday intended to address his concerns.

We'll see what he expects to get out of this legislation but the story in Juneau should flange up with the story in New York. (LINK TO GOV. WALKERS COMMENTS) 

Finally here's a link to an editorial from my favorite Okie Boone Pickens (FORBES LINK) "To Kill A Pipeline...Or Two: The Sad Reality Of Obama's Energy Thinking"  Boone may be an Okie but understands that Obama's Alaska wilderness plans can will kill Alaska oil.  It's off topic for this Alaska LNG project blog, but what's bad for TAPs is bad for LNG too. 

Dream Killer?

I guess we're all waiting for the new governor to show some sign that the Alaska LNG project is still on track.  Early indications are not good:

Amanda Coyne Link

DOE Approval, a New Governor, and BBQ

So little tangible progress is being made that I've cut way back on keeping up with this blog, but this week was semi news worthy.

First - DOE approved the Alaska LNG Project LLC 14-96 application to export up to 20 MTPA.  That's a hurdle, not the last hurdle or the biggest hurdle, but good news all the same. (DOE LINK)

Second - Bill Walker won a close race for Governor and unseated Sean Parnell.  For all I know he may be the guy that pushes the project over the next batch of hurdles, however sometimes he scares me and I fear he'll be a deal killer out of the Sarah Palin mold.  But Walker is brighter than Sarah Palin and I think he is truly dedicated to getting the project built.  He may increase the State equity position and that's OK as long as the percentage stays below 50%.  Above that the sparks may fly.

At this point I'm going to stay optimistic and wish Walker all the best luck.

A note of thanks to outgoing Governor Sean Parnell.  He inherited a mess from Sarah Palin, but he cleaned up that mess and got the project back on track, took care of the Point Thomson issues and forged some monumental deals.  Although progress has been slow I don't think Parnell was the problem - he was actually the leader pushing with all he had to get it done.

FYI - every time I type "Bill Walker"  it comes out "Bill Miller" as in Austin Texas BBQ, guess I've been away from Texas too long. so excuse me in advance if I mistype the new Governors name every once in a while - it happens.

Project Pulse: Flatlined

 

The latest Alaska Pipeline Project's Pre-Filing Status Report for 2ed Quarter 2013 is a one pager that shows less progress than the last no-progress report (LINK TO FERC ELibrary).

Here's the content of the report:

• 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.

Aside from Bill Walker no one seems to be agitated by this de facto termination of the project. According to some observers it's not time to blow down the North Slope gas. (LINK).  If it's not time to blow down the gas why does Alaska continue to burn AGIA money?

Here's a look at the AGIA funds expended as of the January 2013 report:

 

If the Quarterly FERC report is an accurate indication of the project health why do Alaskans continue to shovel money at it?