Comment: Alaskan investors have have been trying to engineer an economically feasible, North Slope LNG export project for over 40 years.
British Columbia, also has LNG fever. It struggles with a half dozen economically feasible export schemes — occasionally confounded by Aboriginal claims, environmental activist obstruction and now, low LNG prices flowing from depressed world economies and a plethora of competitive LNG projects (See CBC review below).
Unlike Alaska, the overwhelming majority of worldwide LNG export projects do not carry the burden of having to finance an 800 mile Arctic gas pipeline. And the majority also enjoy lower labor rates, less costly logistics and friendlier weather. Alaskans are beginning to understand that its government cannot force the economics to be attractive. Hopefully, they will also come to the conclusion that any future funding of government pipedreams should be suspended.
If and when Alaska’s North Slope gas becomes competitive, the private sector will embrace both the profit potential and the risk of failure.
That’s as it should be. -d
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CBC. Shell Canada made one of the biggest moves of 2018 in the natural gas industry by deciding to move ahead with a $40-billion liquefied natural gas export facility on B.C.’s coast.
Construction is underway, but patience is needed since it will take five years to construct. Until then, the industry seems stuck with low prices, a lack of spare export pipeline space, and stagnant demand.
Shell leads the consortium behind LNG Canada, the planned export facility in B.C.
We are pleased to bring our readers this morning’s presentation by Alaska’s incoming State Senate President, Cathy Giessel. She addresses a number of resource issues, pointing out her view as a professional Nurse Practitioner that good health and healthy families are enhanced by a favorable economic climate. In Alaska’s case, a favorable economic climate is created by wise management of Alaska’s significant natural resource reserves. With her leadership, and that of Governor Mike Dunleavy, many believe that Alaska is in very good hands! -dh