Port Authority proposes B.C. LNG landing

The Alaska Gasline Port Authority has submitted a third draft contract to the State of Alaska under the Alaska Stranded Gas Development Act, proposing movement of LNG to a receiving terminal in British Columbia, as well as to U.S. West Coast ports.

Shipment to British Columbia does not require Jones Act tankers, the authority said Aug. 22. For the U.S. West Coast, the authority said it has a memorandum of understanding with the American Shipping Group/Totem Ocean Trailer Express to ship liquefied natural gas “with a Jones Act-compliant price quote that is competitive with foreign built LNG tankers.”

The authority said its economic analysis indicates it would provide a well head of $2.56 per million British thermal units.

The authority proposes purchasing the state’s royalty gas “to the maximum extent available.”

But the project would need additional volumes of gas, and the authority requests the state’s assistance in negotiating for additional gas. That assistance would include negotiating third-party commitments, enforcing the state’s legal rights “to terminate existing leases/unit agreements, potentially bringing suit against leaseholders in the unit for a failure to meet a duty to develop or market ANS gas and assistance in the statutory clarification of AGPA’s right to the use of eminent domain to acquire the needed gas from leaseholders.”

—Petroleum News