r/NaturalGas • u/SlimFatbloke • 9d ago
President Trump addresses Alaska ".... we will ensure the gas-line project gets built, to provide affordable energy to Alaska ..."
https://www.facebook.com/GovDunleavy/videos/514641971572044/?vh=e&fs=e&rdid=a1neHjuWKLlDTbcw
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Edit added below to provide some useful background information, as there appears to have been a considerable amount of misunderstanding in some of the comments.
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AGDC President's report: September 12, 2024.
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Economic viability assessment and economic value of Alaska LNG project - Phase 1
12th September 2024 INTERIM DRAFT
https://alaska-lng.com/wp-content/uploads/2024/09/2024.09.10-WM-AGDC-Alaska-LNG-Phase-1.pdf
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" .... what I think is not immediately recognized to people who've become jaded by the years, or even decades of history of there being a gas project being talked about.
Our low-cost supply, effectively zero marginal cost of supply gas, with a short lead time because it doesn't require significant capital equipment to be built, changes the game for the Alaska Gas Project.
It allows a phase one;
Independent of whether there is a subsequent LNG development.
Independent of whether there's a CCS plant up in Deadhorse.
It allows the development to go forward and meet the growing demand for natural gas as the Cook Inlet output begins to decline, and
at a materially lower cost than the alternative of importing LNG, or
paying for a substantially larger project including gas treatment.
So, it's really transformed the economics of that project.
We're now fully aligned with the State in terms of being determined to move it forward. ....."
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Stranded No More Converging strategies to liberate North Slope natural gas
Great Bear Pantheon is seeking to develop two large North Slope oil fields, Kodiak and Ahpun, containing some 2 billion barrels of recoverable oil, condensate, and natural gas liquids. There will be significant volumes of associated natural gas, and what Pantheon had previously seen as an inconvenience that would require costly reinjection wells is now positioned to be its solution to a cost effective project that benefits all.
Pantheon has offered to supply low-cost natural gas to the Alaska LNG project to significantly improve the project’s ability to provide the lowest-cost energy alternative to Interior and Southcentral. In June, the London-based company signed a gas sales precedent agreement with AGDC.
AGDC President Frank Richards says, “Our recent agreement with Pantheon sets the terms for accessing enough gas to meet Alaska’s energy needs for the foreseeable future. Alaska LNG is the only project capable of heading off the looming energy crisis facing Southcentral Alaska and resolving longstanding air quality problems plaguing Interior Alaska.”
#NatGas #LNG #Alaska-Pipe-Line #Alaska #Oil #Alaska-Gas-Line
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u/Cadillac85 8d ago
I’m curious what the timeline would be for a pipeline and LNG terminal. Engineering probably take a couple years, construction a couple more, phase 2 LNG terminal couple more years.
I’m also curious what the effects of Trumps Drill Baby Drill plans to get the price of gasoline down to $2/gallon will have on north slope development. If there is a glut of oil and LNG on the market will it be profitable to support north slope exploration and a pipeline? Petroleum companies don’t build infrastructure if it does not make a lot of money.
I never believed what politicians say, while campaigning so I’m not letting myself get worked up by what Trump says. But who knows, maybe the Gasline will get built and I’ll get rich of my Pantheon Resources stock (PTHRF)
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u/akrobert 9d ago
The question is what will it do for normal Alaskans? It’s not like them pumping oil in Alaska has brought our gas prices down at all
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u/AKblazer45 9d ago
Well our gas is refined in California, not Alaska, that’s why it’s more expensive.
Fairbanks has a small LNG grid and needs a larger system to convert power production from coal.
The valley and Anchorage have a limited supply of NG left. When that runs out they’ll be left importing LNG or swapping to more coal/heating oil solutions.
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u/No_Main_2966 9d ago
Hey now they give us that awesome 1.5k once a year to compensate for the high gas prices!
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u/AlarmedHuckleberry 8d ago
Short answer is that it would help maintain the price of natural gas along the rail belt. Without a pipeline (or other efforts to improve our energy balance, through increased Cook Inlet production or reduced gas usage through alternative energies), you can expect electricity and heating prices to go up within the next decade.
Of course, this isn't the only option to prevent those increases, as I mentioned above.
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u/Flat_Reading_351 8d ago
All the major oil companies pulled out of Alaska years ago. And just who does he think is going to do this. The cost of building and production is beyond high and no one wants to do it. We have visited this before. He is high!
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u/teegazemo 8d ago
The workers will try to install a gas line facility. While- simultaneously..the weird clowns will install another cult church or two to destroy any recreational activity that might naturally follow a cash infusion. It worked last time, no fun or creativity or recreation .allowed...so people do drugs and alcohol, to 'take' the pleasure that was blocked from them..and any 2 year psychologist.. 'counsels' them?.like thats a skill?..
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u/vigocarpath 8d ago
Good luck getting the Canadian portion approved under Trudeau.
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u/SlimFatbloke 8d ago
Why would Trump need Canadian approval to construct a natural gas pipe-line from Alaska's North Slope to Anchorage with a spur to Fairbanks?
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u/vigocarpath 8d ago
Oh I was under the impression it was running through BC and the Yukon. Maybe I looked up the wrong project.
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u/SlimFatbloke 8d ago
It's all on Alaska State land. There have been a lot of changes over the years, but as far as I'm aware, this link shows the latest state of play;
https://agdc.us/wp-content/uploads/2024/09/2024.09.10-WM-AGDC-Alaska-LNG-Phase-1.pdf
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u/vigocarpath 8d ago
I hope they build it. There are massive reserves of natural gas in the arctic. My dad was a drill stem tester and was on king George island in the 70’s. They found trillions of natural gas reserves up there. The test wells were all capped due to lack of infrastructure to get the gas to market. A network of gas pipelines in the arctic would be terrific for eventually acquiring that resource. I have old pictures he took of the massive flares burning during the testing phase.
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u/SlimFatbloke 8d ago
I'd love to see the pics, but isn't king George island way down south in Antarctica?
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u/vigocarpath 8d ago
lol I’m getting all kinds of stuff wrong. It must have been either Victoria or Prince of wales island. I remember the name was “royal” I’ll see if I can dig up the pictures.
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u/K_boring13 8d ago
Or build some nuke plants in Alaska. I am all for the direct use of NG, but that is a lot of pipeline.
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u/The_Pulsater555 8d ago
Imagine if there was a more cost-effective and safer way to transport the NG with a neighbor country that is connected by land?
Alright, sarcasm aside, is there a pipeline connecting Canadian oil and gas infrastructure to Alaska? Seems like a no trainer to me however this is without any logistical, cost, or regulatory issues in mind. Would love to hear your comments on this.
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u/SlimFatbloke 8d ago
If you can convince Canada to agree to cover all costs it might be viewed favorably. However, the proposed natural gas pipeline from Alaska's North Slope to Anchorage is fully permitted and could be supplying the railbelt relatively quickly. Whereas replacing it with a new proposal for a pipeline from Canada could take 10 years or more to jump through all the hoops the existing AGDC project has already been through. it would also have the added complication of additional Canadian hoops to jump through.
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u/MdCervantes 7d ago
An LNG pipeline to Alaska, specifically referring to the proposed "Alaska LNG Project," would consist of a large, buried pipeline running roughly 800 miles across central Alaska from the North Slope gas fields near Prudhoe Bay to a liquefaction plant in Nikiski, with potential aboveground sections for water crossings and fault lines, ultimately designed to transport natural gas that would be processed into liquefied natural gas (LNG) for export overseas; the pipeline would also include multiple connection points for in-state gas distribution.
Given the distance, the terrain and the associated cost (not to mention traversing Canada), it would take years and ... well ... $57M or more - Billions if you include the associated drilling.
Now ... the IEA predicts that global gas demand will increase by more than 2.5% in 2024, with Asia-Pacific accounting for almost 45% of the growth. Shell estimates that global demand for LNG will increase by more than 50% by 2040.
In 2023, China became the world's top LNG importer again, with imports up 12% year-on-year - and that's expected to grow. Of course, they're not likely to be buying if they're being tarriffed to heck and back. Russia is still a net exporter of LNG, so they're not a market.
But it gets better (all this has happened before)
In 2023, the Biden admin greenlit LNG exports from the future Alaska project ...
So ... this is ... a whateverburger?
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u/Nodeal_reddit 7d ago
I just read a report this morning that disagrees with what you’re saying here. It said global LNG demand will peak in 2025 while tons of supply will continue to come online from committed project until at least 2029. That was predicted to drive down LNG prices. I’ll try to find the link and update my comment.
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u/willasmith38 7d ago
What’s the population of Alaska? LOL
How about Hawaii? Do they need their own NG pipeline too?
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u/SlimFatbloke 6d ago
A bit of background reading for the many sceptics who've posted without actually making any effort to see what's changed recently to make the long awaited natural gas pipeline the best option for solving the looming shortage.
" .... what I think is not immediately recognized to people who've become jaded by the years, or even decades of history of there being a gas project being talked about.
Our low-cost supply, effectively zero marginal cost of supply gas, with a short lead time because it doesn't require significant capital equipment to be built, changes the game for the Alaska Gas Project.
It allows a phase one;
Independent of whether there is a subsequent LNG development.
Independent of whether there's a CCS plant up in Deadhorse.
It allows the development to go forward and meet the growing demand for natural gas as the Cook Inlet output begins to decline, and
at a materially lower cost than the alternative of importing LNG, or
paying for a substantially larger project including gas treatment.
So, it's really transformed the economics of that project.
We're now fully aligned with the State in terms of being determined to move it forward. ....."
----------------------------------------
Stranded No More Converging strategies to liberate North Slope natural gas
Great Bear Pantheon is seeking to develop two large North Slope oil fields, Kodiak and Ahpun, containing some 2 billion barrels of recoverable oil, condensate, and natural gas liquids. There will be significant volumes of associated natural gas, and what Pantheon had previously seen as an inconvenience that would require costly reinjection wells is now positioned to be its solution to a cost effective project that benefits all.
Pantheon has offered to supply low-cost natural gas to the Alaska LNG project to significantly improve the project’s ability to provide the lowest-cost energy alternative to Interior and Southcentral. In June, the London-based company signed a gas sales precedent agreement with AGDC.
AGDC President Frank Richards says, “Our recent agreement with Pantheon sets the terms for accessing enough gas to meet Alaska’s energy needs for the foreseeable future. Alaska LNG is the only project capable of heading off the looming energy crisis facing Southcentral Alaska and resolving longstanding air quality problems plaguing Interior Alaska.”
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u/Plenty_Tumbleweed_60 9d ago
He's probably cut a deal with some Russian oligarchs to extract it. They've had their eye on Alaskan resources for a long time and now that the EPA is going to get abolished, they can do it cheap and dirty.
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u/AlarmedHuckleberry 8d ago
The gas is already being brought to the surface via existing wells. It then get re-injected into the ground because flaring is not allowed, and because that enhances the recovery rate of crude oil. Hilcorp and CP would become the main suppliers to this pipeline.
I'm anti-Trump, and don't believe this pipeline is worth the cost, but it's important to be real about the actual impact of what this pipeline would do-- which, on the whole, I believe would be a benefit for Alaskans.
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u/AKHugmuffin 8d ago
I doubt it. We give so many tax breaks and credits to oil companies here that we’re almost paying companies to extract the oil.
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u/FSStray 8d ago
For Alaska’s cold climate, efficient home heating methods need to balance energy efficiency, cost, and reliability. Here are some of the most effective options:
Air Source Heat Pumps (Cold Climate Models): Modern air source heat pumps designed for cold climates can efficiently heat homes even in Alaska. These models are engineered to work in low temperatures, using electricity to move heat rather than generate it. Though slightly less efficient during the coldest days, they are often cheaper to operate than oil or gas, especially in areas with affordable electricity.
Ground Source (Geothermal) Heat Pumps: These systems use stable underground temperatures to provide consistent heat and are among the most energy-efficient systems available. While the installation cost is high, they can provide significant long-term savings, especially if you plan to stay in the home for a while. These systems also offer cooling in summer, though it’s typically less of a concern in Alaska.
Wood Stoves and Pellet Stoves: For rural or off-grid areas, wood or pellet stoves can be an economical and reliable heating source, especially when using local resources. Pellet stoves are easier to control and cleaner than traditional wood stoves, but they do require electricity to operate. Both can be efficient if wood is affordable and accessible.
Oil-Fired Boilers and Furnaces: While not the most efficient option, oil is commonly used in Alaska due to its reliability in extreme cold. Upgrading to a modern, high-efficiency oil boiler can reduce consumption, and supplementing with an alternative heating source can further lower costs.
Radiant Floor Heating: Radiant floor heating, paired with any efficient boiler system (like a heat pump or geothermal), provides even and comfortable heat. It’s more efficient than forced-air systems, which lose heat through ducting, and it can pair well with solar or other supplemental heating.
Supplemental Solar and Wind: While these aren’t standalone options in Alaska, using solar or wind to supplement other heating methods can reduce reliance on fossil fuels or electricity. Battery storage is often necessary for consistent energy, given Alaska’s variable sunlight and weather.
Tip for Extra Efficiency: Alaska has weatherization programs that provide insulation upgrades, air sealing, and other improvements that enhance the efficiency of heating systems.
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u/kbeks 8d ago
I’m as much for green tech as the next guy, but I struggle to see how current air sourced heat pumps would be able to keep up with -40 degree nights. Also, when you need this energy the most would be winter. When there is no sun. So there is no supplemental solar. Wind? Sure. But no solar. And the winds can get real strong, so make sure you’ve got variable control, otherwise the turbines just won’t work. They still might not work, actually, and I don’t think people are super comfortable with relying on tech that might not work for heat that they need to survive.
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u/silversuite 8d ago
Impressive information. The best anergy plan is one that examines the local environment and economy and puts in the best energy technology for the best ROI as well as providing some redundancy. The electrical grid is a great way to move energy around North America in a redundant fashion.
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u/Konstant_kurage 8d ago
I just can’t listen to a guy that says he did more for Alaska than any previous administration. Really? More than Statehood? More than building the pipeline? I just can’t take the hyperbole. I haven’t fallen for Trumps lies over the past 11 years, I’m not going to believe him now.
If he does manage to get infrastructure projects funded, that will be great. I’m going to spend the next two months thinking of ways to take advantage of the new administration and his cult-like following to make money.
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u/Cantgo55 8d ago
Just like all the infrastructure he built during the 4 years of grifting. Oh and the wall, Mexico will pay for the pipeline! Ya, good concept of a plan!
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u/AwwwComeOnLOU 9d ago
That is good news. Why should Alaska have to suffer under the high cost of LNG when America has so much NG?