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A major natural gas pipeline in Alaska would carry up to 3.5B cubic feet of gas a day and...

A major natural gas pipeline in Alaska would carry up to 3.5B cubic feet of gas a day and include five off-take points to provide gas for Alaskans, according to the companies behind the proposed liquefied natural gas project: XOM, BP, COP and TRP. The group previously said the project could cost more than $65B.
Comments (6)
  • With the price of gas being what it is this another project that may never be able to finance itself.

     

    There are other factors at work that may tip the balance to GO. One is the reinjection of gas into producing (oil) formations. This means some of the gas is getting produced again. Not good performace but oil production may pay to take away the gas. Then things work!

     

    Also there are (state and fed) royalty issues that may drive the operators to produce gas.

     

    At this point I do not think buyers will pay a premium to get Alaka gas. Maybe BC and Alaska producers could make something happen together. It's just money.
    15 Feb 2013, 06:22 PM Reply Like
  • This is the short view of the NG world market. The US market is not set up for NG. Europe and Asia are. The name of the game is LNG export. The London LNG price is $10.55 MMbtu and the Asian price is $17.70 MMbtu date 2/15/2013. That is why there is interest in NG.
    Obama has sacrificed the US coal industry which has increase the NG for power generation. The trucking industry will switch to LNG or CNG, it will take time but it will happen.
    Do not forget that the projects that see light today will come on line in 5 to 8 years. By then NG will be equal if not bigger then Oil.
    15 Feb 2013, 10:42 PM Reply Like
  • I agree with you, Ousaou. The conversion to natural gas is a major investment trend. The action will not be in natural gas itself because there is too much of stuff in the ground. Rather, the action will be with major pipeline companies and those leading the conversion of power plants and engines away from coal and petrol.
    16 Feb 2013, 06:37 AM Reply Like
  • 65 billion is a lot of money. Lots of projects to supply gas coming in at 20% of that price. I do not see this going anywhere other than the drawing board.
    16 Feb 2013, 08:27 AM Reply Like
  • NG is definitely the future.....except all of a sudden we have all this oil.
    16 Feb 2013, 12:45 PM Reply Like
  • Because of all the adversarial problems with building the Northern Gateway and other pipelines through British Columbia, I expect sooner or later projects of this nature will happen. Perhaps the railway from Prince George, BC to Alaska is also a possibility.
    17 Feb 2013, 04:31 AM Reply Like
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