Morning Headlamp — Still no deal for interior gas project

Deal or no deal. Interior Energy Project officials were expected to present the Alaska Industrial Development and Export Authority board of directors with a recommendation to finalize its partnership with Salix Inc. to expand the small Southcentral liquefied natural gas plant currently serving Fairbanks, but no recommendation was made at the Aug. 10 meeting. “I can appreciate the board members’ frustration that we haven’t moved the ball forward as much as we had hoped,” IEP team lead Gene Therriault said during the Aug. 10 meeting. “I can assure you, though, the members of the team have been very responsive to make sure those entities that we’re negotiating with — that we have quick turnaround to make sure that the entities are not waiting on information from ourselves.” The expanded Point MacKenzie LNG plant would be ready for increased production sometime in 2018 if a deal can be reached soon.

Members of the public are being called on to comment on new reports detailing the work involved in creating Alaska’s proposed liquefied natural gas project. Report drafts were submitted to the Federal Energy Regulatory Commission last month and public feedback is encouraged. The documents say the state’s project with partners BP, ConocoPhillips and Exxon Mobil Corp will have direct socioeconomic effects throughout Alaska.

According to Alaska Dispatch News, foreign-flagged tankers have called on Prince William Sound to haul Alaska oil, including one with a reported destination of China. Officials said the ships, chartered by BP, have helped keep North Slope oil flowing as maintenance occurs on facilities and vessels involved in the traditional route followed by North Slope oil once it reaches Valdez — from Prince William Sound to West Coast refineries.


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First Reads

Interior gas project still lacks key deals to move forward
Alaska Journal of Commerce, Elwood Brehmer, August 17, 2016

Reports on Alaska’s major gas project open to public comment
The Associated Press, August 18, 2016

Foreign-flagged vessels, bound for Asia, begin Alaska crude deliveries
Alaska Dispatch News, Alex DeMarban, August 17, 2016

BOEM director hears support for OCS drilling in Alaska
Alaska Journal of Commerce, Tim Bradner, August 17, 2016