Port authority in LNG receiving discussions

The Alaska Gasline Port Authority said Aug. 5 that it is in discussions with four proposed LNG receiving terminals to place Alaska gas.

The companies, and the locations of the proposed liquefied natural gas receiving terminals, include:

• North Star Natural Gas/LNG (for a terminal which would be near Bradwood, Ore.);

• Penguin LNG (for an offshore terminal which would be near Camp Pendleton, Calif.);

• Crystal Energy LNG (in the permitting stage for an offshore terminal near Ventura, Calif.); and

• Kitimat LNG Inc. (which is permitting a terminal near Kitimat, British Columbia).

“Several agreements have also been entered into as a result of the discussions and negotiations,” the authority said. It also said that Sempra Energy, which has withdrawn from previous involvement in Alaska, is building a receiving terminal in Baja California which could also receive LNG from Alaska.

MOU for shipping requirements

The authority said it is proposing to advance the project’s start-up date “by initially using the state’s royalty share of North Slope gas,” which it has applied to the state to purchase, and said representatives met recently with Alaska Gov. Frank Murkowski and members of his gas negotiating team. Earlier this year the authority made gas purchase offers to the North Slope producers.

The authority said American Ship Group/TOTE, with which it has been working for several years to address U.S. shipping requirements, recently submitted a memorandum of understanding that meets “target cost for shipping the LNG from Valdez to U.S. West Coast ports with U.S. built vessels.” The authority said the cost is equivalent to using foreign vessels, which would also be an option for delivery to non-U.S. ports.