|
Glenfarne draws $115 billion in potential interest for Alaska LNG
Kristen Nelson Petroleum News
Glenfarne Alaska LNG "has completed the first round of its Strategic Partner selection process" for the Alaska LNG Project, the company said June 3, with participation from more than 50 companies from the United States, Japan, Korea, Taiwan, Thailand and the European Union. Collectively, those potential partners "formally expressed interest for over $115 billion of contract value for various partnerships with the Project, including equipment and material supply, services, investment, and customer agreements."
Glenfarne Alaska became the 75% owner of 8 Star Alaska on March 27. 8 Star Alaska is the subsidiary created by the Alaska Gasline Development Corp. to hold the assets AGDC has in the Alaska LNG Project; AGDC, on the state's behalf, retains a 25% interest.
Price advantage touted Glenfarne said the economic fundamentals of Alaska LNG "allow it to deliver LNG into Asia at prices that are lower than Henry Hub pricing from the U.S. Gulf Coast."
Brendan Duval, CEO and founder of Glenfarne, was in Anchorage the week of June 2 and scheduled to speak at the Alaska Sustainable Energy Conference June 5.
In the June 3 release, referring to the results of the company's first round of partner selection, he said: "the many expressions of interest received reinforce that the market recognizes Alaska LNG's advantaged economics, fully permitted status, and powerful federal, state, and local support."
Referring to plans for phase one, a pipeline delivering natural gas from the North Slope to Southcentral, he said: "The reality is being understood that the energy crisis in Southcentral Alaska can only be solved, in the long term, by the domestic portion of the pipeline, which is independently financially viable."
Phase 1 is an approximately 765-mile pipeline from the North Slope to Southcentral Alaska. Phase 2 will see the addition of compression, an additional 42 miles of pipeline under Cook Inlet, the Alaska LNG Export Facility in Nikiski and the gas processing facility on the North Slope.
Glenfarne said it expects a final investment decision on phase 1 to occur late in the fourth quarter of this year.
Worley Glenfarne Alaska LNG said in a May 27 release that it selected Worley for additional engineering and to prepare a final cost estimate for the Alaska LNG Pipeline in sufficient detail to achieve final investment decision for phase 1 of the project, the 765-mile portion of the 42-inch natural gas pipeline from the North Slope to Cook Inlet.
"Worley has also been selected as the preferred engineering firm for the Cook Inlet Gateway LNG import terminal and project delivery advisor to Glenfarne across the Alaska LNG projects," the company said.
Duval said Glenfarne is already in partnership with Worley on its Texas LNG project and described Worley as "one of the world's largest and most experienced engineering and project delivery firms with a long history of success in Alaska."
In a separate May 27 release Worley said it has been working in Alaska for more than 60 years, "delivering engineering, logistics, procurement, fabrication and construction, operations and maintenance (O&M), and field services, including for many of the projects and operators on the North Slope."
Gap analysis In a May 15 presentation to the Resource Development Council Rex Canon, CEO of Glenfarne Upstream and the head of Alaska Natural Gas Pipeline Development for Glenfarne, described the additional engineering work to be done prior to a final investment decision as gap analysis.
He also discussed the import facility, designed to fill the gap for Southcentral between Cook Inlet natural gas supplies and completion of phase 1 which will bring North Slope natural gas to Southcentral for in-state use.
Canon said the import facility is essentially a prebuild of portions of the Nikiski export facility, with tank and some marine construction. The planned storage, he said, will be enough to allow gasification of the LNG up to 300,000 mcf per day, which would be enough to meet peak demand.
--KRISTEN NELSON
| 