TODAY WE ARE VERY PROUD OF THE EPA AND HERE’S WHY!


And Today …

…we draw reader attention to the enormous waste of money called the Alaska LNG Project.

Tomorrow …

Alaska Governor Bill Walker. Northern Gas Pipelines photo by Dave Harbour

…we will draw attention to the enormous waste and foolish decision making accompanying the subsidized, so-called Interior Energy Project: a misguided and uneconomic effort to provide ‘affordable’ gas to the Fairbanks area.  What do the two projects have in common: Alaska Governor Bill Walker, their biggest advocate!

1.  News.  State still seeking major LNG customer by year-endAlaskajournal.com  The Alaska Gasline Development Corp. won’t be asking for additional … pursue the Alaska LNG Project and the smaller Alaska Standalone Pipeline, known as the ASAP project. … “Are we going to be able to deliver a gas customer?

A proposed Alaska LNG export terminal would be located at the end of an 800 mile Arctic gas pipeline…. This scheme to monetize Alaska North Slope gas competes with worldwide tidewater projects with less expensive logistics, less infrastructure burden to finance and lower labor costs. Alaska’s governor and the state’s government owned pipeline project, in desperation and in the midst of fiscal crisis, seeks federal support subsidies to compensate for the uncompetitive pipeline bureaucracy it has created. -dh

2.  Comment: Alaska’s government controlled, bureaucrat run LNG export project is uneconomic today.  Nevertheless, at a time when the state’s subsidy-supported government is withering in face of a fiscal crisis, Governor Bill Walker still allows millions to be spent romancing potential Asian buyers.  But Larry Persily’s links today demonstrate how foolhardy it is for Alaska’s remote, high cost gas, its high industry salaries, its unpredictable climate and geology and its expensive logistics to compete with so many ECONOMIC tidewater LNG projects.  In the current and foreseeable low cost gas environment, Alaska’s competitors are mostly at tidewater, with lower labor and logistical costs and don’t have to build an 800 mile Arctic gas pipeline just to get the gas to a tidewater liquefaction plant.

a.  Yamal LNG expects to ship first cargoes in November

b.  Japan’s largest LNG importer makes progress on new contract terms

c.  India will work with Japan on LNG deals, looking for lower prices

d.  Shell sees hope for its LNG Canada project in demand growth

e.  Delays can hurt chances for Canadian LNG projects, says exec

f.  Petronas looks at other options for monetizing Canadian gas reserves

g.  Rosneft looks to break Gazprom’s monopoly on Russian gas exports

h.  India still waiting to see if Iran will accept offer to develop gas field

i.  Opponents of canceled LNG project in B.C. continue battle in court

j.  B.C.’s opposition to oil pipeline, tanker traffic does not extend to LNG

k.  Algeria (i.e. unlike Alaska) changes law to attract more foreign oil and gas investment

l.  BP signs on as customer for new (i.e. economically feasible) Permian Basin gas liquids pipeline

j.  (Note: the above are just a few of Alaska’s more economically viable competitors!)

So why aren’t all of these sophisticated folks begging to be a part of an Alaska LNG project.  Why?  Same reason the state’s three top producers have said, “Now is not the time”.

-dh