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Legislator paints less-rosy picture of gas exports to AsiaThe rapidly-changing global market for natural gas could end up stifling the value of exporting Alaska’s vast reserves to Asia, Rep. Scott Kawasaki, D-Fairbanks told a meeting of the state House Resources Committee on Friday. According to the Fairbanks Daily News-Miner, Kawasaki said burgeoning natural gas production in Russia could undercut Alaska’s hope of exporting liquefied natural gas to Asia. Such exports are part of Gov. Sean Parnell’s vision of how a gas pipeline from the North Slope to tidewater would best serve Alaskans. “We had the opportunity to meet with an expert on oil-and-gas tax policy, and part of the discussion was on commercializing North Slope natural gas," Kawasaki told the News-Miner. "I came away severely disappointed. With Russia trying to get a foothold in the Asia markets … The competition is pretty stiff.” However, Natural Resources Commissioner Dan Sullivan, who spent the afternoon answering legislators’ questions, said Asian buyers would prefer to buy from Alaska. “There’s no doubt that this is not a lay-up,” Sullivan said, “but if you look at the advantages that we bring — stable investment climate, stable political climate, diverse portfolio investment — China certainly doesn’t want to get all its gas from Russia. We’ve been a reliable supplier for Asia for over 40 years.” While optimistic, Sullivan acknowledged some of the difficulties Alaska faces and said he hopes private and public agencies can align on projects to build a natural gas pipeline. “We certainly have challenges, but sometimes in the state you hear too many doomsday scenarios and people think that there’s no hope,” he said. “But I think the hope, in terms of what we have for the future, is enormous.” In answer to Scott Kawasaki's concerns about Putin's efforts to sell Russian natural gas to Asia, I have this insight. I was in Singapore about two months ago when Putin visited China to close a natural gas deal. The front page of the Singapore newspaper featured Putin's arrival in China with a great motorcade and much fanfare. The following day the same paper had a small article showing Putin climbing aboard his plane with no big show. The article explained that no deal had been struck and there were no future plans to do so. The problem Russia has when dealing with any country is that it is Russia. In comparison, Alaska has a 41 year history of supplying natural gas to Asia - uninterupted. I encourage you to be a little more positive Scott. I`m surprised nobody on the committee asked "is China STILL interested in buying our quality wet gas..or Japan"? Mr Sullivan went selling Alaska gas Mr Kawasaki. Why don`t you do us all a favor and ask that question of him next time he`s testifying? The last I read Asia will need something like 40bcf a day additional LNG by 2030. Certainly Western pipeliners can market better than the new Czar Putin. And what country in their right mind is going to want to have to depend on Russia for ANYthing, let alone energy security? Ask Ukraine and Europe about that. Alaska has walked the walk for 40 years by being the only LNG export facility in the United States all that time! We`d better be ready to sell them (Asia) quality Alaska plastic gas pipe while we`re at it. There is our first value added products. Asia is going to need a lot, and purchase a lot, of high density gasline tie-in pipe for years before gas is effectively distributed. Alaska could certainly position itself to break into that market due to all the other reasons our gas would be marketable. It would have been helpful had Rep. Kawasaki named the person he talked to. Alaskans are capable of judging for themselves any "expert" opinion. ......."According to Frank Harris, an LNG expert at Wood Mackenzie, Asian demand for LNG is going to skyrocket to 241 million tons in 2020 from 138 million tons in 2010". (I bet Alaska gas could be flowing in 5 years if we put our noses to the grindstone. This is the country that rolled out one B-24 Liberator PER HOUR at the height of WWII. Ford quit making cars to make bombers! That was over 70 years ago. I reckon we can build a gas pipeline down a right of way that`s all ready, and the associated infrastructure. The cartel on the slope knows it too.) I suspect there is some truth here that many haven’t really thought too much about. To continue Commissioner Dan Sullivan metaphor, there a shot for NS gas to Asia, but committing to a taking one before getting the ball over the center line and time on the clock is playing a low percentage game. I’d like more actual information along with all feel good stuff. Having “big ideas” is overrated; having, as best as possible, all the details doesn’t get much applause but often works better. As someone who pays a bit of attention, the idea at the link seems like a good idea, although I can see problems with parts of the language. Controlling appointments, here to the task force, so as to make the task force truly neutral is the perpetual problem. http://www.legis.state.ak.us/PDF/27/Bills/SCR004A.PDF It seems to have gone nowhere, but the “big idea” is to get a handle on “real” reality, rather that have the usual suspects touting their respective big ideas. |
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