Open Season - It's a Go!

Today marks a significant milestone in the process to build the Alaska Gas Pipeline. TransCanada and ExxonMobil (Alaska Pipeline Project - APP) have announced (LINK) the beginning of the open season.

Two options are on the APP menu - Pipeline to Alberta, or Pipeline to Valdez for a future LNG plant.

Later this year the Denali Pipeline (LINK) will get cracking with their open season for a competing pipeline to Canada.

The score so far for those playing the game at home:

TransCanadaExxonMobil (APP) Using other peoples money (AGIA) +1, First Open Season +1, Multiple Options including an All Alaska option +1 (Subtotal +3). Denali Pipeline: Still in the game +1, Second out of the chute -1, no all Alaska option -1 (Subtotal -1). Both projects get a -1 for failing to join up and push for one project.

Side note - An 18 month stretch of mega overtime (OT) is coming to an end for me, so I have more time to devote to fishing, and attending to this blog. I've been in the constant OT game for over a decade and I'm look forward to some 3 day weekends. On the other hand - I'd like to see a pipeline project slide into gear. With a bit of luck that might just happen. Your thoughts are always appreciated- Thanks.

A Job Posting!

You heard it here first! One of my goals for this sleeply little blog is to pass on any news of jobs on the Alaska Gas Pipeline.

Job Title: Senior Project Engineer
Agency: Office of the Federal Coordinator for Alaska Natural Gas Transportation Projects Job Announcement Number: OFC-010-0004
SALARY RANGE: 100,500.00 - 130,500.00 USD /year
OPEN PERIOD: Tuesday, April 13, 2010 to Friday, April 23, 2010
SERIES & GRADE: AD-130008010819-00/00
POSITION INFORMATION: Full-Time Permanent DUTY LOCATIONS: 1 vacancy - Anchorage, AK
WHO MAY BE CONSIDERED: Applications will be accepted from United States citizens and nationals

(LINK)

Good Luck! And provide some feedback (positive or negative) if you apply for the job.

Denali Open Season Announced

The Denali open season was announces this week. Here's a few links:

Denali Request for Approval of Plan for Conducting an Open Season (FERC File)

FERC Elibrary Page with additional Files

NOTICE OF REQUEST FOR APPROVAL OF PLAN FOR CONDUCTING AN OPEN SEASON

Great news all around - The cards are on the table

Compare to the Alaska Gas Pipeline

FERC Gives Go-Ahead for Open Season

I'm still reading and digesting this FERC Order (LINK).

Essentially FERC is satisfied with the TranCanada / Exxon open season plan.

It documents the fact that all parties are not in total agreement, but the process is moving forward.

The Bottom Line:

X Conclusion95. Conditioned on the modifications required herein pertaining to the opening of the data rooms and the revisions to the Compliance plan and standards of conduct, herein, the Commission finds that TC Alaska’s detailed plan for conductingan open season for the purpose of making binding commitments for the acquisition of initial capacity on the Alaska Pipeline Project is in conformance with theOpen Season regulations and it is therefore approved. We encourage TC Alaska and potential shippers to work together to resolve any issues arising during the implementation of the open season plan, during the open season, or the during negotiations after the close of the open season.

Catch up News Links

Here's some dibs and dabs of Alaska gas pipeline related links:

Cook Inlet needs $2.8B Transition into an IMPORTER of LNG - OUCH



The Concerned misses AGIA (HA!)

And this from Dermot Cole (LINK)

Big honking LNG deal somewhere other than Alaska (LINK) China spends $60B on LNG - Beats buying worthless US Bonds.

Rena Delbridge's take on Alaska losing the LNG game (LINK)

Every time I see an In-State gasline story I hear the faint sound of a bong bubbling (LINK). If an in state line solves in state gas needs that's nice - but the big money is in winning the game as a global competitor. To quote Kenny Powers "I do SPORTS. Not try to be the best at exercising"

Alaska: Confronting the Prospect of 6 Billion Barrels of Stranded Gas by Steve LeVine. Denali make the case against LNG.

Geopolitics of oil. You guessed it - China

Exxon-XTO, One step closer to tying the knot. There's gas in them there shales.

Delays for the Mac-D pipeline.

BP goes for the North Slope Heavy oil (The best use for stranded gas?)

Some hope for a gas powered future - Nuke Plant Delayed.

Alaskan Advocate - Bookmark this guy.

AGIA a FLOP?

Say it ain't so! AGIA a FLOP? Ted Stevens thinks the big pipeline to Canada is a no-go. (LINK). He favors the line to Valdez and LNG for the global market. Sometimes it's tough to see how big oil get get a decent rate of return on the big line to Alberta.

“I have now changed that position and now support the bullet line, but I think it should go to Kenai and I support the construction of the line to Valdez. I asked for the privilege of speaking to you to try to explain to Alaskans why I have so drastically changed my position. I think that these lines are needed not only for the needs of Alaska but I think we need to concentrate on processing as much of our gas as possible into LNG.”

I've made the point before that big oil needs gas for Canada to fuel tar sand projects, but marketing LNG to the Asian market is not a bad "Plan B".

In terms of scale and level of project difficulty think Trans Alaska Pipeline + Exxon's Papua New Guinea LNG Project.

In terms of global finance wouldn't be nice to reverse the flood of dollars headed to China? Instead of Canadians with a hand out for taxpayer AGIA cash why not do business with end users with funds to invest?

Now that Uncle Ted has said it - will anybody listen?

Proposed Regulations for Alaska Gas

Alaska Department of Natural Resources Division of Oil and Gas have published regulations aimed at setting values on Alaska gas for royalty purposes. See below:

The Proposed Regulation LINKS:

(11 AAC Royalty Election Under Alaska Gasline Inducement Act.)

(Gas 15 AAC Gas Production Tax Exemption under Alaska Gasline Inducement Act)

Quote:

This chapter applies only to a person that qualifies for royalty inducements provided in AS 43.90.300, AS 43.90.310, AS 43.90.330 and this chapter, by acquiring firm transportation capacity in the first binding open season of the project described in 11 AAC 25.020, or that holds a voucher issued by the commissioners under AS 43.90.330 and this chapter. For these persons, it: (1) establishes a method that the person, if qualified, may elect to use in calculating the monthly value of the state’s royalty share of gas shipped in firm transportation capacity acquired through a commitment made as provided in 11 AAC 25.020(b); and (2) establishes terms that a person, if qualified, may elect to govern the state’s exercise of its right to switch between taking its royalty-in-value or in-kind for gas to be shipped in firm transportation capacity acquired through a commitment made as provided in 11 AAC 25.020(b).

More information available at the DNR DOG website (LINK)