Dan Sullivan Pitching Alaskan LNG?

According to this story by Steve Levine  (LINK) Dan Sullivan is visiting China and Japan pitching the security of LNG from Alaska.  There's also another related story by Levine (LINK).

Apparently there's a 14 slide presentation he presents.  I've asked the DNR for a copy (can't find it on their website).

Quotes from the Steve Levine story:

When Dan Sullivan, Alaska's bare-knuckles natural resources chief, stands before a decisionmaker from China or Japan, he whips out a 14-slide PowerPoint and minces no words: You may be currently buying natural gas from Russia, Qatar or Australia, but take my advice. Get some security in your energy portfolio -- add Alaskan gas.
Perhaps, but Sullivan must also persuade the oil companies, which will have to spend an estimated $40 billion to develop the necessary pipeline and LNG infrastructure. Alaska's Parnell is pushing the companies for a serious draft working plan for LNG export, along with an aggressive construction timetable, by September. Given the level of planning and preparation required for such projects, a rapid effort would have the LNG facility completed in about 2019, Sullivan estimates. If the companies can promise all that, Sullivan says, the governor is prepared to put a reasonable long-term tax and royalty deal before the state Legislature for approval in its next session, which begins in January.

If true this is true then it's good news, but why isn't this story more widely reported and discussed?  I look forward to some more information on Dan's trip.  It's good to know someone is out pushing the project.

Trend Spotting

It's always dangerous to imagine you've detected a trend in natural gas, but here are four data points that might line up to help the prospects for the Alaska Gas Pipeline:

1) Shale gas producers are shutting in wells and backing away from dry shale gas prospects (LINK1) (LINK2)

2) There's a current trend to export refined products from the US (Downstream Today "US Could Become Net Fuel Exporter")

3) There's a project underway to convert the Cheniere LNG import terminal into an export terminal. (Cheniere Working On Deal To Send Liquefied Natural Gas To China).

4) LNG prices are firming up in Asia, (LNG's Asia Premium to U.S. Gas Advances to 20-Month High: Energy Markets)

Global gas prices are diverging as U.S. customers switch to cheaper, domestically produced gas from shale deposits, while Asian importers continue to pay prices linked to oil. Shale gas will account for 34 percent of U.S. production by 2035, compared with 18 percent in 2008, Energy Department estimates show.

Maybe it's a trend, maybe it will bear out over time. On a BTU basis LNG is less expensive than oil. The resurgence of Asian demand and devaluation of the dollar may drive the economics for an LNG export terminal in Valdez - It's time to lock in some long term contracts. Something to look forward to when the open season agreements are made public. As always my glass is half full and my fingers are crossed.

Speaking of trends it looks like Lisa, or Leza Murkowski or Mercawski will retain her Senate seat. This is good news for the Alaska Gas Pipeline, Alaska may have dodged a bullet. (Comic)