Kenai + Exxon + Australia = LNG Thursday

Borough Approved Intervenor Status In Alaska LNG Project
Jennifer Williams, KSRM, September 12, 2018

The Federal Energy Regulatory Commission (FERC) approved the Kenai Peninsula Borough’s late motion to intervene in the proceedings for the proposed Alaska LNG project. The borough is now the third municipality in the state to be granted intervenor status on the project, the other two being Valdez and the Matanuska-Susitna Borough. John Quick, the Kenai Peninsula Borough Mayor’s chief of staff, told the Kenai Borough’s public advisory committee on the project August 6: “Right now we have Valdez and Mat-Su hemming and hawing for this project, and they’re intervenors. If we’re not at the table, we’re not at the table. So I think this will put us in a better position to have a bigger voice from the borough, and do everything we can to make sure this project lands in Nikiski.”

Our Take: Three municipalities with the power to intervene…on a $43 billion project.

Alaska-producer deal extends Point Thomson development deadline
S & P Global Platts, September 12, 2018

Alaska has agreed to extend a key deadline in a 2012 lawsuit settlement with ExxonMobil and BP over development of the Point Thomson gas and condensate field 60 miles east of Prudhoe Bay on Alaska’s North Slope. The deal was reached to facilitate ExxonMobil’s agreement to supply its North Slope gas, both at Point Thomson and in Prudhoe Bay field, to the proposed $43 billion-plus Alaska LNG Project, state Commissioner of Natural Resources Andy Mack said Tuesday.

Our Take: Deadlines that ignore the free-market aren’t good for anyone. Good move by the state.

AUSTRALIA ‘MAY KEEP POWERS TO RESTRICT LNG EXPORTS AFTER 2023’
Shardul Sharma, Natural Gas World, September 12, 2018

With east coast gas supply situation expected to remain precariously balanced for the foreseeable future, some sort of policy that gives powers to the Australian federal government to restrict gas exports in order to ensure adequate domestic supply may continue even after the Australian Domestic Gas Security Mechanism (ADGSM) ceases in 2023, Wood Mackenzie said in a note September 12. The ADGSM was introduced by the federal government July 1, 2017, amid gas shortages on Australia’s east coast markets. It gives the federal government power to restrict gas exports to ensure there is adequate gas supply to meet domestic demand until January 1, 2023. The federal government has yet to exercise this power. Australian Labor Party, which is in opposition at present, recently said it will put in tighter controls on LNG exports to rein in rising domestic gas prices and ease supply shortage if it wins the elections. The party said that, if elected, it will strengthen the ADGSM.