Headlamp – Update: ExxonMobil Plan of Development for Point Thomson

Point Thomson Update. In an article written September 26, for Platts, Tim Bradner concluded that a lower than expected production could “put the company in technical violation of the settlement.” Headlamp rarely, if ever, disagrees with Mr. Bradner, however, acknowledging that the design for the Initial Production System (IPS), the current Point Thomson Unit Project in the settlement agreement, is geared towards gas handling, with an objective of condensate production and noting the definition of IPS in the agreement is:

2.13 “Initial Production System” or “IPS” means the gas cycling facilities designed with capacity to produce and re-inject (cycle) 200 million cubic feet of gas per day utilizing reciprocal compression and with the objective of a minimum of 10,000 barrels per day of condensate for delivery into the TransAlaska Pipeline System (“TAPS”).

One could make the argument that the company has not breached the terms of the Settlement Agreement as claimed by the DNR since they are able to produce and handle 200 McfD of gas.

Prudentially unripe. With a court dismissing a challenge to federal rules on hydraulic fracturing, producers said it was time for President Trump to erase the law altogether. “The industry recognizes that every energy-producing area has different geologic, topographic, and hydrologic conditions, which is why the states are far more efficient and effective at regulating hydraulic fracturing than the federal government,” Barry Russell, the president and CEO of the Independent Petroleum Association of America, said in a statement.

15 years, what do you get? Qatar’s RasGas Co signed a 15-year liquefied natural gas (LNG) sales and purchase agreement with Bangladesh Oil, Gas and Mineral Corp (Petrobangla) on Monday, RasGas said in a statement late on Monday. Under the agreement, the Qatari company will supply 2.5 million tonnes of LNG every year to Petrobangla for 15 years. Deliveries will be made to Petrobangla’s floating storage and regasification unit (FSRU) near Moheshkhali Island in Bangladesh, marking RasGas’ first long-term contract delivered to a FSRU, the company said. The deal is Bangladesh’s first LNG import agreement and will help to cover the country’s domestic natural gas shortfall. The contract with the world’s biggest LNG exporter underscores the rise of South Asia as a new market for the fuel. Bangladesh’s first floating storage and regasification unit (FSRU), supplied by Excelerate Energy of the United States, is to be commissioned by April 2018. Its second, supplied by the country’s own Summit LNG of the Summit Group, is due for commissioning by next October. Bangladesh is also looking to add two additional floating LNG terminals next year. Bangladesh, a country of more than 160 million people, could import as much as 17.5 million tonnes of LNG a year by 2025, Nasrul Hamid, Bangladesh’s state minister for energy and power, told Reuters last month.

Birch asks Governor to cut costs. Lawmakers are supposed to head to Juneau for a special session next month, but one Anchorage representative is suggesting they stay in Anchorage. Rep. Chris Birch (R-Anchorage) sent a letter to Walker asking him to consider amending his special session proclamation. Birch says holding hearings in Anchorage would not only save the state money but also cut costs for members of the public who want to participate. “From my experience in local government, there’s nothing that can really replace the face to face discussion and dialogue that happens in the public testimony and hearings,” said Birch. “We’re not talking about moving the capital, we’re talking about a cost-savings, and permitting the public direct access to their legislature as they consider the important issues of anti-crime legislation and the governor’s proposed income tax.”  Next month’s special session will be the legislature’s fourth one this year. It’s scheduled to begin Monday, October, 23.

Begich scolds Walker for “show and tell and no action.” Former U.S. Senator Mark Begich is critical of Gov. Bill Walker’s call for a special session on new revenue next month. Walker is asking state lawmakers to consider a 1.5 percent, capped income tax on people who work in Alaska. “I think this October special session’s a lot of show and tell and no action. I think this is a total waste of time and energy,” said Begich, in an interview at the Bartlett Club’s luncheon Thursday. Begich blasted Walker’s proposal for being too regressive. “It’s only taxing wages, that means people that are working every single day and trying to make a living, they’re the ones that are going to be pinned,” said Begich. “When you look at what’s exempted: capital gains, dividends, basically for wealthier people, and I think that that’s an unfair tax system. I can’t wait to see the debate because I don’t think that’s going anywhere.”

Practical and Legal Hurdles for Teens. Alaska Gov. Bill Walker’s administration Wednesday rejected a proposal by a group of youth environmental activists that asked the state to start regulating emissions of climate-warming greenhouse gases. There are “practical and legal hurdles” to the Department of Environmental Conservation approving the request, Commissioner Larry Hartig wrote in a four-page denial letter dated Wednesday. Among them, he said, are that the regulations that the proposal asks for are too broad, that the Legislature might not budget enough money to carry them out and that the changes required to cut greenhouse gas pollution could hurt the state’s economy. “These decisions are inherently difficult and require consideration of many conflicts and tradeoffs, and balancing the needs of many constituencies,” Hartig wrote. He added a suggestion that the activists focus their attention on state lawmakers instead, writing: “Policy questions of this nature are best addressed in partnership with the Legislature.”

First Reads:

Erase fracking regulations, industry tells Trump
UPI, Daniel J. Graeber, September 26, 2017

Qatar signs 15-year LNG supply agreement with Bangladesh
O&G Links/Reuters, Jessica Jaganathan, September 26, 2017

Anchorage lawmaker asks to move special session
KTVA, Liz Raines, September 28, 2017

Begich: Oct. special session ‘total waste of time’
KTVA, Liz Raines, September 28, 2017

Alaska Gov. Walker’s administration rejects teen activists’ call for cutting carbon emissions
Alaska Dispatch News, Nathaniel Herz, September 28, 2017