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Alaska Producers Envision LNG Export ‘Mega-Project’

Alaska North Slope producers are considering building one of the world’s largest and most expensive liquefied natural gas projects, according to a letter the companies sent this week to Gov. Sean Parnell. The exports primarily would target Asian markets.

The early concept envisions a project costing $45 billion to possibly more than $65 billion, with exports of 15 million to 18 million metric tons of LNG annually, the equivalent of 2 billion to 2.4 billion cubic feet a day of natural gas.

 

Asian LNG buyers push back on high prices

Asian buyers have gone public with their distress over the high prices they’re paying for liquefied natural gas. The premium they pay over natural gas prices in Europe and North America no longer is rational, fair or reflective of supply-and-demand fundamentals for LNG, they say.

But at Japan’s first LNG Producer-Consumer Conference this month, LNG sellers urged caution in tinkering with a supply chain that provides tens of billions of dollars a year of natural gas to resource-poor nations like Japan, South Korea and Taiwan, or resource-hungry nations like China and India.

The dialogue was pragmatism on one side vs. frustration on the other.

Conference promotes Valdez as site for LNG export terminal

The liquefied natural gas conference in Valdez, Alaska, was all about touting the benefits and attractions of building an LNG export terminal at the port city for shipping Alaska North Slope gas to Asia. But several speakers acknowledged the problems in getting anything built anywhere in Alaska to move natural gas to market.

"There is a great division among communities," Alaska U.S. Rep. Don Young told the audience via video link from his congressional office in Washington, D.C.  Alaska municipalities need to get together on a single LNG project, rather than battle for the role of host city, Young told the 120-plus attendees at the Sept. 13-14 Alaska LNG Summit 2012 sponsored by the Alaska Gasline Port Authority, promoters of the Valdez option. 

 

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