Sunday, May 17, 2009

A Wally Hickel Primer: LNG to the Pacific Rim Won't be Competitive

In today's news, Governor Palin is talking about all options being discussed to include an LNG facility.

This is Hickel's baby and point blank, as I have have been stating here for the past two years, the LNG facility won't compete with Sakhalin.

The news a few days ago:

Gazprom to supply Asia

TOKYO - RUSSIAN gas monopoly Gazprom has signed an agreement with Japanese partners to build a pipeline that will supply Japan and other Asian countries with natural gas from northern Sakhalin Island.

The pipeline will at first 'secure energy resources for domestic consumers in (Russia's) east', Gazprom CEO Alexei Miller said late on Tuesday at a briefing that followed a Japanese-Russian business forum in Tokyo.

'After that, the delivery of gas and its processed products from Vladivostok into the Asian-Pacific region, including Japan, will become possible,' Mr Miller told reporters.

He said Gazprom, Japan's Agency of Natural Resources and Energy and two Japanese companies had signed an agreement on Tuesday to study the construction of processing facilities and the project's financing.

There is no way in hell that any LNG facility in Valdez is going to compete with Gazprom.

The facility has been argued ad nauseam and should be put to rest.

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