For decades, Alaska was Japan’s sole supplier of liquefied natural gas, or LNG — a version of the substance used to heat homes and electrify power plants. Those exports stopped when competition from other producers edged Alaska out of the picture.
Chastain manages the $39-billion Alaska Liquefied Natural Gas project, which would construct an 800-mile pipeline to send North Slope natural gas to Nikiski, where it would be liquified, shipped out and sold., though the costs of constructing the pipeline have long been considered prohibitive. Cahill said LNG project developers are noticing and, like Alaska LNG, trying to push their projects to the finish line while the timing is right.
That high project cost has stymied the Alaska plan in the past. And Cahill said he still sees that as a big hurdle. Plus, Persily said, he’s skeptical that buyers overseas will want to sign long-term contracts with gas companies as renewable energy picks up steam.Industry analyst Jason Feer from intelligence firm Poten & Partners said it’s true that the Gulf Coast is better positioned to deliver gas to Europe.“I think that sort of dynamic, where you might see Gulf Coast LNG being pulled to Europe, may create opportunities for projects on the west coast,” Feer said.
Plug into the Canadian line. Trade NG for water….