Almost There

After years of nattering nonsense we are starting to hear the right kind of stories about the Alaska Gasline project - stories about customers. All those cliches about "the customer is always right" are true.   LNG is not a commodity (yet) so Alaska must have a long term buyer lined up and participating in the LNG project.

The good news includes a piece in the Alaska Dispatch by Amada Coyne. Apparently a Japanese group called Resources Energy Inc is in Alaska with boots on the ground exploring a gas project.

The next bit of good news comes from the Asia Pacific Energy Research Centre LNG Producer - Consumer Conference recently held in Tokyo.  All of the presentation slides are worth reading, but its great to see Alaska Department of Resources Commissioner Dan Sullivan making the case for Alaska gas to a group of buyers (Dan's Slides).

A smart LNG buyer would negotiate to buy Alaskan gas at a tidewater and be a major equity partner in an LNG facility.  The good news is that there are some smart buyers out there and the stars may start aligning soon.

A Good Week

Good news #1.  Alaska Governor Sean Parnell is making the rounds in Korea and Japan doing what an Alaskan Governor should have been doing since the price of natural gas tanked four years ago.  The Governor's web site features a picture of the Governor smiling, standing next to the US Ambassador to South Korea. That's worth one cowbell, but no more.  Next time the photo op needs to include a living breathing smiling LNG customer.  LNG buyers are making a push to de-link LNG prices from crude oil prices (LINK).  This could be the right time to offer the first delinked LNG supply.  Imagine a long term contract based on cost plus a fixed fee with cost escalators to track inflation rather than the roller coaster linkage to crude oil prices.  Reduced risk for the buyers, producers, and transporters should make a project more appealing.  It's time to get creative Governor.  Buyers want to commoditize LNG - run with that.

Good news #2  Great Bear wants to accelerate their drilling program. Actions speak louder than words.  Keep it up!

September is drawing to a close - still hoping for some more good news.

More Cowbell - Thanks Lisa

The Alaska Gas Pipeline project has a fever and the only cure is more cowbell.  This week Senator Lisa Murkowski earned the coveted Alaska Gas Pipeline Blog three cowbell award for her efforts to push the project to potential Asian LNG buyers (LINK), and quote:

Murkowski discussed Alaska’s resource base and proximity to Asia with Ambassador Ichiro Fujisaki of Japan and Ambassador Choi Young-jin of South Korea. Murkowski said the ambassadors showed interest in the potential for an Alaska natural gas pipeline and liquefied natural gas project to deliver affordable energy to Asia.

Good job Lisa, that gas ain't gonna sell it's self. Governor Parnell and Senator Begich, don't despair, there's more awards out there. 

Murkowski Markets Alaskan Gas

Lisa Murkowski is on the road marketing Alaskan Gas - (LINK) Quote:

WASHINGTON, D.C. – U.S. Sen. Lisa Murkowski, R-Alaska, yesterday continued her efforts to develop new markets for Alaska’s 35 trillion cubic feet of natural gas on the North Slope by raising the potential of providing a long-term, stable supply of energy to Japan with Japanese Prime Minister Yoshihiko Noda at a dinner hosted by U.S. Secretary of State Hillary Clinton.

“Alaska’s gas is the perfect fit to meet Japan’s energy needs,” Murkowski said. “An LNG line from the North Slope could deliver long-term, stable energy supplies to Japan at a reasonable price. Such a project would be a win-win, both in terms of energy security and environmental policy for Alaska and Japan.”

Murkowski’s conversation with Prime Minister Noda follows a series of meetings she helped lead last week in Washington, D.C., with members of Japan’s Parliament. Murkowski, who is the vice-chair of the U.S. Japan Interparliamentary Group, discussed the benefits of Alaska natural gas to Japan with members of the Diet.

Good Job Keep it up -