Alaska officials are looking to China and what some believe will be that country’s strong demand for natural gas to help the state advance its long-held pipeline dreams.
Alaska Governor Sean Parnell has invited an official with China’s National Energy Administration and others to visit Alaska, following up on a trade mission Lieutenant-Governor Craig Campbell helped lead to China in December.
Campbell returned from that trip believing the rapidly developing nation, already a leading export market for such Alaska products as seafood, zinc and lead ore, could also become a major investor in or export market for Alaska natural gas or its byproducts.
The potential for Alaska is huge, said Alaska Natural Gas Development Authority chief executive Harold Heinze, who was with Campbell on the trip.
Heinze said he saw several possibilities for China, from building a plant to convert ethane to pellets that would be used in manufacturing to signing on with a major natural gas pipeline project. Ethane is a component for plastics that he says is found in the Prudhoe Bay region.
“One thing you look for in a partner is, do they have money and do they have more money than you. And these guys have money,” he said, adding: “They’re major players in the world.”
In theory, if the interest and money are there, that could also spur progress on a pipeline that many Alaskans have long looked to for new jobs, reliable energy and as a source for more state revenue amid projections of slumping oil production.
But there are plenty of uncertainties, from permitting and pricing — how gas holds up against other energy sources — to what China’s true long-term demands for gas will be over alternatives like coal, and the level of competition Alaska would face from other producers to meet the gas demand.
And there are the various pipeline options and plans, each with diehard constituencies and questions about their viability.
Estimates released last month by the companies working with the state to advance a major line put the project costs at US$20 billion to US$41 billion, depending on the route.
One route, the cheaper option, estimated at US$20 billion to US$26 billion, would run from the harsh North Slope to Valdez, Alaska, where gas would be liquefied at a facility that another entity would build and then shipped elsewhere, possibly overseas. The plant cost isn’t included in the estimates.
The costlier option envisions a pipeline going from the North Slope to Canada, where gas could move on existing systems to North American markets.
But there have been numerous other proposals through the years to move North Slope gas, even a bullet line to move the gas to the most populated part of the state, southcentral Alaska.
“The Chinese may, because they’re interested in resources, they may be able to do things and invest in things that don’t look economic in market terms,” said James Jensen, a consultant in natural gas economics.
“In fact, if the Chinese said, ‘Gee, if we could get this thing going and we could tie up a certain amount of American gas for our own use,’ they might do something that I wouldn’t think would be economic,” he said. “But they might do it.”
Officials with TransCanada Corp, based in Calgary, Alberta, and Irving, Texas-based Exxon Mobil Corp, say the project is economically viable and hope to move toward an “open season,” when they can court gas producers and try to secure commitments for shipping deals, by May.
The companies, in a recent filing with federal regulators, estimated 991 billion cubic meters of proven gas reserves on the North Slope.
Through a process in which TransCanada beat out applicants including a Chinese company several years ago, the state agreed to reimburse up to US$500 million of the eligible costs of the project.
A TransCanada spokeswoman declined comment on whether there had been interest from China on the project, saying: “All discussions with individual customers are confidential and we would not be able to discuss any individual details as a result of that.”
A rival project by Britain’s BP PLC and Houston-based ConocoPhillips is also moving ahead.
Campbell said he was not advocating any specific project, but he’d like Chinese officials to visit “earlier, rather than later.”
They have indicated a “huge demand,” for natural gas, he said, and Alaska wants a market.
‘SWASTICAR’: Tesla CEO Elon Musk’s close association with Donald Trump has prompted opponents to brand him a ‘Nazi’ and resulted in a dramatic drop in sales Demonstrators descended on Tesla Inc dealerships across the US, and in Europe and Canada on Saturday to protest company chief Elon Musk, who has amassed extraordinary power as a top adviser to US President Donald Trump. Waving signs with messages such as “Musk is stealing our money” and “Reclaim our country,” the protests largely took place peacefully following fiery episodes of vandalism on Tesla vehicles, dealerships and other facilities in recent weeks that US officials have denounced as terrorism. Hundreds rallied on Saturday outside the Tesla dealership in Manhattan. Some blasted Musk, the world’s richest man, while others demanded the shuttering of his
Taiwan’s official purchasing managers’ index (PMI) last month rose 0.2 percentage points to 54.2, in a second consecutive month of expansion, thanks to front-loading demand intended to avoid potential US tariff hikes, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. While short-term demand appeared robust, uncertainties rose due to US President Donald Trump’s unpredictable trade policy, CIER president Lien Hsien-ming (連賢明) told a news conference in Taipei. Taiwan’s economy this year would be characterized by high-level fluctuations and the volatility would be wilder than most expect, Lien said Demand for electronics, particularly semiconductors, continues to benefit from US technology giants’ effort
ADVERSARIES: The new list includes 11 entities in China and one in Taiwan, which is a local branch of Chinese cloud computing firm Inspur Group The US added dozens of entities to a trade blacklist on Tuesday, the US Department of Commerce said, in part to disrupt Beijing’s artificial intelligence (AI) and advanced computing capabilities. The action affects 80 entities from countries including China, the United Arab Emirates and Iran, with the commerce department citing their “activities contrary to US national security and foreign policy.” Those added to the “entity list” are restricted from obtaining US items and technologies without government authorization. “We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,” US Secretary of Commerce Howard Lutnick said. The entities
Minister of Finance Chuang Tsui-yun (莊翠雲) yesterday told lawmakers that she “would not speculate,” but a “response plan” has been prepared in case Taiwan is targeted by US President Donald Trump’s reciprocal tariffs, which are to be announced on Wednesday next week. The Trump administration, including US Secretary of the Treasury Scott Bessent, has said that much of the proposed reciprocal tariffs would focus on the 15 countries that have the highest trade surpluses with the US. Bessent has referred to those countries as the “dirty 15,” but has not named them. Last year, Taiwan’s US$73.9 billion trade surplus with the US
RSS