alaska north slope gas commercialization
DESCRIPTION
Valdez infrastructure*FLNG*LNG export plant*Future growth potential*TRANSCRIPT
Alaska North Slope Gas Commercialization:
An update from the Alaska Gas Pipeline Project Office
04/10/2023 – Kurt Gibson, Director
04/10/2023 Alaska Statute 43.90.010(1)-(4)
Gas Pipeline Project Office
• Created by legislature in 2007 as part of a broader law -
Alaska Gasline Inducement Act, (AS 43.90) –designed to
expedite construction of a natural gas pipeline that:– Facilitates commercialization of ANS gas
– Promotes exploration & development of ANS oil & gas resources
– Maximizes benefits to Alaskans from development of state oil &
gas resources
– Encourages oil & gas lessees … to commit to ship natural gas
from ANS for transportation to markets in this state or elsewhere
04/10/2023
Gas Pipeline Project Office
• Streamlining of state regulatory process – providing value by reducing project delay
• Coordinate among all State-backed efforts– AGDC is the organization responsible for satisfying in-state energy
needs– ANGDA was created by voter initiative to “construct or cause to be
constructed”
• Coordinate among State agencies directly involved in crafting a balanced and effective fiscal agreement– Department of Natural Resources– Department of Revenue– Department of Law– Others less directly involved
04/10/2023
Gas Pipeline Project Office
• Shared risk during development phase– History of false starts– Lack of alignment among key actors– State’s sense of urgency
• Key State interests– Lowest reasonable transportation rate
• Project cost• Tariff terms
– Access for natural gas explorers• Expandability• Periodic solicitation
04/10/2023
Project State of Play
• Gas Pipeline Project is over 30 years old– Much is known– Much remains unknown– Suite of Project Risks is unique
• Since 2007– First Open Season (APP)– Second Open Season (Denali)– Field work and Resource Reports which support any project
04/10/2023 7
Project State of Play
• Global Energy Market is Dynamic– Technological progress– Geopolitical uncertainty
• Current alignment among parties is unprecedented– Independent pipeline company - TransCanada– Global energy giants – ExxonMobil, BP, ConocoPhillips– End-user interest?
• Regulatory and Technical work must continue to progress while Commercial alignment develops
04/10/2023
Governor’s leadership
• October 2011 AOGA Address – Pursue “commercial alignment on … a large diameter pipeline to tidewater”
• January 2012 State of the State Address– “harden (the) numbers on an Alaska LNG project (and) … identify a
pipeline project with an associated timeline” by the end of Q3 2012
• March 30, 2012 Announcement– CEO letter affirming the three ANS majors commitment to pursuing the
Governor’s directive– Resolution of Pt Thomson litigation
• Align under an Alaska Gasline Inducement Act framework and examine the potential for consolidation of natural gas transportation infrastructure projects
04/10/2023
Key State Interests
• Open North Slope Basin to broad portfolio of investors
• Lowest reasonable transportation rate• Project cost• Tariff terms
• Access for natural gas explorers• Expandability• Periodic solicitation
