Wednesday, November 16, 2011

Best use of Shale Gas - Export it

Cheniere project moving forward to export lower 48 shale gas (LINK).

The cost: $5 Billion for two trains producing a total of 9 million tons per year.(LINK2)

You can use the unit rate to estimate the cost of an Alaskan LNG export plant.  The Cheniere volume is roughly 25% of the proposed Alaska gas line volume. Add "Alaska" factors and you find that $25 billion is need to build the plant that could export the full 4.5 BCFD of Alaska gas.  That's on top of the pipeline cost.

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