Headlamp – MURKOWSKI SAYS STEEL TARIFFS COULD RAISE COST OF ALASKA NATURAL GAS PROJECT

United Steelworkers file suit. The United Steelworkers filed suit against BP last week, arguing that the oil giant violated an agreement with the union when it outsourced work to a Prudhoe Bay contractor in 2016. Five union-represented workers lost their positions in the outsourcing. The union wants BP to restore the workers’ jobs and cancel the contract with NANA Management Services to run a sewage treatment facility, according to a union grievance report included in the lawsuit, filed in U.S. District Court in Anchorage. The complaint comes after BP made other contractual changes over the last year that are expected to reduce union workforces, as BP seeks to save money amid low oil prices. Union workers typically earn more than their non-union counterparts, studies show.

Unanswered questions or unquestioned answers? Alaska Gasline Development Corp. officials will meet with U.S. Federal Regulatory Commission staff in Washington, D.C. March 22 to clarify the Commission’s request for information on a number of issues on the proposed Alaska LNG Project. Among those is a reevaluation FERC has requested of Port MacKenzie, in the Matanuska Susitna Borough, as the site of a large natural gas liquefaction plant and terminus of a large-diameter gas pipeline from the North Slope. Nikiski, on the Kenai Peninsula, is currently the proposed site of the LNG plant and pipeline terminus. Dave Cruz, Chair of AGDC’s Board, said he does not believe the federal regulators derail the proposed Liquid Natural Gas Pipeline.

From today’s Washington Examiner, Daily on Energy:

MURKOWSKI SAYS STEEL TARIFFS COULD RAISE COST OF ALASKA NATURAL GAS PROJECT: Sen. Lisa MurkowskI, chairwoman of the Senate Energy and Natural Resources Committee, said Friday that Trump’s tariffs on imported steel could add $500 million to the cost of a major natural gas export terminal planned in her home state of Alaska.

“The back of the envelope numbers with these tariffs, we might be in a situation where it might be as much as half a billion dollars added on the most expensive infrastructure projects that we have seen with this country,” the Alaska Republican said at the CERAWeek energy conference in Houston.

Exporting to China: Alaska in November struck a $43 billion joint development deal with China on an 800-mile pipeline to bring natural gas from the North Slope to Asia.

‘Confusing message’: Murkowski also said the tariffs complicate relationships with countries that are importing more U.S. oil and natural gas, such as South Korea. “It sends a confusing message,” she said.

First Reads:

United Steelworkers sue BP after it cut union-represented positions on North Slope
Anchorage Daily News, Alex DeMarban, March 11, 2018

AGDC to meet with FERC March 22 to discuss LNG Project
Mat-Su Valley Frontiersman, Don Mateer, March 10, 2018