Department of Energy Filing

From Governor Parnell's website:

July 21, 2014, Anchorage, Alaska – After ensuring that Alaska’s gas could go to Alaskans first, Governor Sean Parnell today lauded Alaska’s LNG Project for applying to export liquefied natural gas (LNG). The application was submitted to the U.S. Department of Energy.

“We are building Alaska’s future with a gasline to heat our homes and fuel Alaska’s businesses,” Governor Parnell said. “Alaska’s LNG Project is on the right track with hundreds of Alaskans out in the field this summer working to secure permits and hundreds more working to refine the engineering and design challenges of the project. I am committed to getting Alaska’s gas to Alaskans and then to markets beyond. I look forward to continued progress on this important project.”

The application requests authorization to export up to 20 million metric tons per year of LNG for a period of 30 years. The application seeks to export to countries that have existing free trade agreements with the U.S. and to non-free trade agreement countries.

Link to Platts (more detail)

Alaska-LNG website press release

North Slope Producer Applies for LNG Export Licence

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.

• LINK TO APPLICATION DOCUMENTS
• LINK TO APPLICATION

There's talk of an Alaska LNG project announcement soon (no later than 30 Jun 13).  That may just be wishful thinking -The WCC application has all but one of the ingredients needed for an Alaska LNG project, i.e. it's not in Alaska.

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.

Really?

Seriously, this is a "project progress report"?

LINK

The report reads like a project close out report - all done.

No Up Side

"Alaska's fiscal regime is broken" According to Dan Seckers, a tax expert with Exxon Mobil.  He went on to characterize the ACES tax rules as having "no upside" due to progressivity.

From 360north.org:

Project Progress Report posted on line

Here's a link to the progress report letter.

More analysis to follow.

Another bite at the apple

From Petroleum News:

Point Thomson case on ice: Judge grants state’s call for timeout as it appeals ruling to Alaska Supreme Court, Wesley Loy

A judge has ordered a temporary halt to the Point Thomson case pending the state’s appeal of a recent unfavorable ruling to the Alaska Supreme Court.

The one-page order from state Superior Court Judge Sharon Gleason of Anchorage, issued Feb. 11, came over the objections of ExxonMobil and other oil companies with a stake in the rich Point Thomson oil and gas field on Alaska’s eastern North Slope.

Fresh off a significant victory in Gleason’s court, the companies had opposed the State of Alaska’s request for a timeout in a case that’s not yet run its course.

Gleason granted the state’s motion to stay the Superior Court proceedings until the Supreme Court either rejects the state’s petition, or accepts and acts upon it.

(Court Case Info Link)

Enough already - Stick a fork in it - It's done!