Alaska's Plans To Sell Natural Gas to China

[I AM NOT THAT GUY 5,715]

Alaska's Plans To Export LNG To Asian Markets Is Huge For Oil And Gas Majors

ConocoPhillips, Exxon Mobil and BP stand to gain from the Alaskan government’s decision to export liquefied natural gas to Asian markets. Alaska wants a $50 billion pipeline and export complex to be built to develop natural gas that is stranded on its icy North Slope. These companies were given until the end of the month to come up with a plan to pipe the gas southward to an Alaskan port and condense it into LNG for export.

China imports vast quantities of crude oil besides using humongous quantities of coal to keep its economic engine humming. However, given the current discourse surrounding climate change and its own residents’ constant complaints about the heavily polluted air and water, China is keen to move to cleaner fuels. Gas is a logical choice owing to its low carbon content. According to the EIA, Chinese consumers used 39 billion cubic feet a day of natural gas in the first quarter of 2012. This demonstrates ample market demand for gas.

Having made a policy decision to replace nuclear power with other sources of energy in the wake of the Fukushima disaster, we believe that Japan will opt for LNG as one of the alternative sources. As nuclear energy is replaced gradually, demand for LNG will increase. India has also been increasing LNG imports to meet the energy demands of a fast-growing economy. With gas output from the much-hyped Krishna-Godavari basin, located on its eastern coast, not meeting expectations, it will be forced to import more.

The second factor is the explosion in gas output in the U.S. caused by the shale gas boom. It dashed Alaska’s hopes of building a pipeline to the Lower 48 U.S. states which no longer need the relatively expensive North Slope gas. The next logical step is to liquefy the gas and ship it at significant price premiums to Japan, China, and other countries across the Pacific Rim. In July this year, Asian gas buyers paid almost six times the futures prices in the U.S., where gas prices have been driven low by the shale boom. It is estimated that Alaska may be able to generate as much as $20 billion annually in gas sales.

http://www.forbes.com/sites/greatspeculations/2012/10/01/alaskas-plans-to-export-lng-to-asian-markets-is-huge-for-oil-and-gas-majors/

[Bad_Daddy 2,209]

That's not going to happen until they get that gas line through from Prudhoe Bay...a line which should have been put in over 20 years ago but the politicians up here don't do much other than take bribes and drag their feet. Selling gas to the Chinese will be a tough one though seeing how they get most of their gas from Russia who has a direct gas line to China. That still leaves South Korea, Japan, and Taiwan which are all good markets.

[I AM NOT THAT GUY 5,715]

That's not going to happen until they get that gas line through from Prudhoe Bay...a line which should have been put in over 20 years ago but the politicians up here don't do much other than take bribes and drag their feet. Selling gas to the Chinese will be a tough one though seeing how they get most of their gas from Russia who has a direct gas line to China. That still leaves South Korea, Japan, and Taiwan which are all good markets.

Southern California Gas Company has been stashing LNG shipped down from Alaska in old well heads all over the area for decades. I know a geological engineer whose job is to map out the underground structures and evaluate their integrity. They don't use the Alaskan stuff anymore, just store it since the pipeline from Texas was completed, and that Texas stuff is cheap. And now with all this shale gas coming online, who knows whether they will still be hoarding all that Alaskan gas. It is amazing how much has already been pumped back underground, and even more amazing how much more room they keep finding. Last she told me, and this was twenty years ago, they have enough natural gas stored already to take care of Southern California's needs for almost a century.

[Gary and Alla 3,694]

Sure. They are gonna sell it to someone! Just like the Canadians will sell their oil to China if we don;t buy where it will be transported in ships instead of a safe and monitored pipeline and will be burned in less efficient and more polluting equipment in China. Great idea for the environment!

Do environmentalists really think if they block a pipeline that Canada will just abandon their petroleum industry, leave the oil in the sahle and lay everyone off?

Edited October 2, 2012 by Gary and Alla

[Bad_Daddy 2,209]

Southern California Gas Company has been stashing LNG shipped down from Alaska in old well heads all over the area for decades. I know a geological engineer whose job is to map out the underground structures and evaluate their integrity. They don't use the Alaskan stuff anymore, just store it since the pipeline from Texas was completed, and that Texas stuff is cheap. And now with all this shale gas coming online, who knows whether they will still be hoarding all that Alaskan gas. It is amazing how much has already been pumped back underground, and even more amazing how much more room they keep finding. Last she told me, and this was twenty years ago, they have enough natural gas stored already to take care of Southern California's needs for almost a century.

That gas is good for pumping into oil wells to bring the oil up. Sometimes they mix it with water, force feed it down the well and up comes the oil. It's a bummer though that we haven't got that line in yet. Every year they ####### around it cost that much more once they get it started. Palin blew $500 million having Trans Canada do a study on it, and study that could have been done for a quarter of that cost by an American company. I think she got a kick back out of that one.

[Bad_Daddy 2,209]

Sure. They are gonna sell it to someone! Just like the Canadians will sell their oil to China if we don;t buy where it will be transported in ships instead of a safe and monitored pipeline and will be burned in less efficient and more polluting equipment in China. Great idea for the environment!

Do environmentalists really think if they block a pipeline that Canada will just abandon their petroleum industry, leave the oil in the sahle and lay everyone off?

Alaska had to take the Feds to court in order to sell our gas out of country. That was something like 30 years ago and Alaska won so they buit a L&G plant at the Kenai port. It's doing nothing now though for the fact all the local easy to get gas is used up and were counting on the gas from the North Slope.

[natty bumppo 297]

1349204307[/url]' post='5730929']

That's not going to happen until they get that gas line through from Prudhoe Bay...a line which should have been put in over 20 years ago but the politicians up here don't do much other than take bribes and drag their feet. Selling gas to the Chinese will be a tough one though seeing how they get most of their gas from Russia who has a direct gas line to China. That still leaves South Korea, Japan, and Taiwan which are all good markets.

Add the reported 50 new VLCCs to be built into the china fleet of 60 VLCCs and their tanker fleet will be looking for cargo.

[Mr. Big Dog 10,747]

Sure. They are gonna sell it to someone! Just like the Canadians will sell their oil to China if we don;t buy where it will be transported in ships instead of a safe and monitored pipeline and will be burned in less efficient and more polluting equipment in China. Great idea for the environment!

Do environmentalists really think if they block a pipeline that Canada will just abandon their petroleum industry, leave the oil in the sahle and lay everyone off?

Ask Nebraska. They're not fond of that pipeline.