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Today's Headline Is ANS LNG. Yesterday's Headline Was ANS Propane. Is Either Economical?
If you missed yesterday's story on ANS propane or Monday's review of the OCS-EPA issue, please consider clicking to them today. We believe these are two of the most important Alaska developments of the year!
Commentary. The Alaska Dispatch's Rena Delbridge (NGP Photo) is among the best oil and gas reporters ever to grace
our State and today she brings us the story of a marriage between the Alaska Gasline Port Authority (AGPA) and Fairbanks Natural Gas (FNG). We wrote of this possibility yesterday in our propane commentary as an idea, a possibility, but today, Rena reports the idea to be fact. In order for the plan to take form, the AGPA apparantly seeks an anchor industrial customer, Golden Valley Electric Association (GVEA). Since GVEA officials attended the Alaska Natural Gas Development Authority's (ANGDA) Propane meeting last week, one wonders if the Fairbanks Coop has concluded that LNG is cheaper for ratepayers than ANS propane or naptha for generation of power. Should GVEA take a new LNG gas supply agreement to the Regulatory Commission of Alaska (RCA) for approval, the comparisons will surely be studied as a record is built in that docket. Yesterday, I supposed that the propane project might be the least controversial seen recently. This Port Authority announcement today means that LNG gas may end up being in direct competition with Liquid Propane Gas--at least in some markets among some customers. While parties might dispute this conclusion it is indisputable that if GVEA commits to LNG its capacity to provide a home for ANS propane will be thereby limited. Yes, I think we can conlude that the concept of competition will again rear its head between North Slope LNG and propane schemes. Get ready for more bickering, particularly if one side needs a subsidy or other help from the Legislature...and when one or both parties structure some kind of utility gas sale involving approval by the RCA. -dh * Pipelines International. General Counsel for the Alaska Gasline Port Authority Bill Walker has said that if Alaska’s natural gas is to reach outside markets, the state government must invest in the construction of a North Slope pipeline. (Today on the Dan Fagan Show, KFQD, Anchorage, Walker said he would set aside his Alaska Gasline Port Authority responsibilities as a candidate for Governor. So, now Alaska has the incumbent governor who favors the AGIA process {Like his predecessor, Sarah Palin} and one dedicated to an LNG scenario for ANS gas. -dh) * Calgary Herald. TransCanada Corp. said Monday that one of its natural gas pipelines in northern Ontario ruptured on Saturday, but there were no injuries and supplies were rerouted to alternate lines.
our State and today she brings us the story of a marriage between the Alaska Gasline Port Authority (AGPA) and Fairbanks Natural Gas (FNG). We wrote of this possibility yesterday in our propane commentary as an idea, a possibility, but today, Rena reports the idea to be fact. In order for the plan to take form, the AGPA apparantly seeks an anchor industrial customer, Golden Valley Electric Association (GVEA). Since GVEA officials attended the Alaska Natural Gas Development Authority's (ANGDA) Propane meeting last week, one wonders if the Fairbanks Coop has concluded that LNG is cheaper for ratepayers than ANS propane or naptha for generation of power. Should GVEA take a new LNG gas supply agreement to the Regulatory Commission of Alaska (RCA) for approval, the comparisons will surely be studied as a record is built in that docket. Yesterday, I supposed that the propane project might be the least controversial seen recently. This Port Authority announcement today means that LNG gas may end up being in direct competition with Liquid Propane Gas--at least in some markets among some customers. While parties might dispute this conclusion it is indisputable that if GVEA commits to LNG its capacity to provide a home for ANS propane will be thereby limited. Yes, I think we can conlude that the concept of competition will again rear its head between North Slope LNG and propane schemes. Get ready for more bickering, particularly if one side needs a subsidy or other help from the Legislature...and when one or both parties structure some kind of utility gas sale involving approval by the RCA. -dh * Pipelines International. General Counsel for the Alaska Gasline Port Authority Bill Walker has said that if Alaska’s natural gas is to reach outside markets, the state government must invest in the construction of a North Slope pipeline. (Today on the Dan Fagan Show, KFQD, Anchorage, Walker said he would set aside his Alaska Gasline Port Authority responsibilities as a candidate for Governor. So, now Alaska has the incumbent governor who favors the AGIA process {Like his predecessor, Sarah Palin} and one dedicated to an LNG scenario for ANS gas. -dh) * Calgary Herald. TransCanada Corp. said Monday that one of its natural gas pipelines in northern Ontario ruptured on Saturday, but there were no injuries and supplies were rerouted to alternate lines.