LNG Customer Meets with Governor Parnell

We need more stories like these - KOGAS CEO meets with Governor Sean Parnell (LINK).

Alaska Governor Sean Parnell and Mr. Kangsoo Choo, the Chief Executive Officer and President of Korea Gas Corp (KOGAS)

From CEO  Mr. Kangsoo Choo KOGAS website :

Expansion of participation in overseas network projects
We are assertively expanding participation in overseas network project in joint-venture with private sector. On the foundation of design/construction/operational technology and specialized manpower for production and supply facility, which are the core capacities of KOGAS, we will nurture KOGAS to become reputable gas major in the world by not only expanding construction and operation of overseas LNG terminal, LNG liquefaction plant and pipeline network but also by playing the role of bridgehead for advancement of domestic enterprises into overseas market..

Sounds like an equity partner for the LNG plant?

KOGAS is also a take-or-pay buyer of the Cheniere Energy Sabine Pass LNG project.  So far the Cheniere business plan for the Sabine Pass LNG plant seems to be working, i.e. long term take or pay contracts to pre-sale the LNG product.

 More on the same story from LNG WORLD (LINK)

Other tidbits -

Canadian competition: Petronas working on BC LNG (LINK)

Washington Post article on the market for US LNG (LINK)

ExxonMobil Energy outlook (LINK)

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.