These past 15 months have been disappointing for LNG export licenses for Alaska. While for decades Alaska was the only state with two LNG export licenses to Asian countries, by the end of this month, Alaska will be without any LNG export license to Asia. The first export license was obtained for the Nikiski LNG export facility in 1969, which has been shipping LNG to Japan ever since. On March 6th, it was announced that that facility, now owned by ConocoPhillips, will not be filing for an extension of the export license. This is not because of the decline in market interest, but rather due to decline of natural gas supplies in Cook Inlet. That license will expire on March 31, 2013. A ConocoPhillips spokesperson acknowledged the possibility of that LNG export terminal being converted into an LNG import terminal to meet the natural gas needs for South Central Alaska. Continue reading
On March 7, the Department of Energy (DOE) dismissed the Alaska Gasline Port Authority’s (Port Authority) application for an export license with an invitation to re-file at a later date. DOE explained that a “source and security of natural gas supply to be imported or exported” must be demonstrated. In dismissing the Port Authority’s application, DOE also pointed to the lack of “availability” of a pipeline from the North Slope to Valdez and identification of a location for the LNG liquefaction facility.
The Port Authority, on behalf of five Asian companies, participated in the Solicitation of Interest held under AGIA in September 2012. According to Port Authority Chairman Dave Cobb, “The Port Authority was pleased to have responded to the AGIA open season with sufficient volume for a full LNG export project on behalf of specific Asian buyers. Unfortunately, we have yet to receive a response from the AGIA license holder TransCanada or their partner in AGIA, ExxonMobil. We will continue to work with the Department of Energy on our export license application to satisfy the issues raised in its letter.” said Chairman Cobb. Continue reading
ABC Alaska networks statewide (KYUR, KATN, KJUD) along with the Your Alaska Link newsroom are pleased to announce the launch of “On Point with Bill Walker” — a locally produced program hosted by Alaska’s very own, Bill Walker. This weekly program will be politically driven, centered around both federal and state government’s efforts, or lack thereof, in relation to energy. The subjects will relate to energy matters at hand and what is being done by our state legislature, energy companies and foreign interest to bring awareness in full disclosure to the Alaska public. Continue reading
Go to the Maximum Volume Pipeline website, www.akmvp.com/.
It has finally been agreed in the last year that Alaska should pursue an All Alaska gas pipeline over a project through Canada. Such a pipeline allows access to the Asian liquefied natural gas (LNG) markets, a factor that is necessary for shipment of volumes sufficient to provide cheap in-state energy and a market able to fully consume our resource potential. However, there is still a lot of noise and political posturing about which project the state should pursue.
Governor Parnell appears to be supporting two competing yet conceptually incompatible concepts. This includes the low volume bullet line sponsored by a state agency, the Alaska Gasline Development Corporation. As currently configured, it would be a state subsidized 36” low pressure project that can transport a maximum of 1.6 billion cubic feet per day, and which cannot ship natural gas liquids due to the cheaper, but thin steel selected for the pipeline. This project will take 10 years to build. The legislature is being asked to fund a total of approximately $400 million in engineering and permitting efforts on that project. Continue reading