Alaska LNG: Least Economic
Our comment: In our archives we provide significant evidence that Alaska supports the least economic U.S. LNG export projects–one of the least economic in the whole world. Alaska LNG projects have been promoted, considered, argued and studied since the early 1970s and every single effort has resulted in a conclusion that the LNG project du jour was uneconomic, infeasible, etc. With this history, we find it no surprise, therefore, that private industry believes the current Alaska LNG export project, burdened by the cost of an 800 mile Arctic gas pipeline, remains infeasible at this time. Only temporarily elected and appointed politicians and bureaucrats spending other people’s money would continue to spend hundreds of millions on such a venture — especially when their state is experiencing a fiscal crisis, subsidized budgets and the largest unemployment rate in the nation. -dh
The race is on to be the first to reach a Final Investment Decision for the next round of U.S. liquefaction/LNG export terminals along the Gulf Coast. And like the Kentucky Derby, being first – or, at worst, second or third – is a do-or-die proposition, because only a very small number of these projects are likely to line up the multibillion-dollar commitments needed to push them over the FID line. The tried-and-true approach of LNG project financing has been to secure a stack of long-term Sales and Purchase Agreements from international LNG trading companies or huge overseas utilities, and that’s the tack being taken by Venture Global LNG, which is developing two projects near the Louisiana coast that, if built, would consume a total of nearly 4 Bcf/d of U.S. natural gas. In today’s blog, “Coming Up, Part 3 – Venture Global’s Two Louisiana Projects Would Double U.S. LNG Exports,” Housley Carr continues our series on the next round of liquefaction/LNG export terminals “coming up” with a look at Venture Global’s Calcasieu Pass and Plaquemines projects.