By on August 25, 2016
Normzig, “No matter how many speeches are made or how many permits are issued and how many rainbow forecasts are shown, the only way BC is getting LNG plants anytime soon is if they build them with taxpayer money.”
Conventional wisdom in the liquefied natural gas (LNG) sector is that no new projects will be built for several years, given the vast cost can’t be reconciled with the current low prices.
The wave of LNG building in recent years has seen eight projects being built in Australia, with five now operating and the remaining three nearing completion, and five in the United States, the first of which has starting shipping cargoes.
The era of mega-LNG projects appears to be over, at least for now.
The average breakeven cost for the recent projects is $12.60 per mmBtu, a price well above the current levels.
Substantial volumes of additional LNG that can come to market in the coming years from existing facilities at considerably lower prices when compared to the huge cost of developing new plants …
LNG World News, August 23, 2016:
The Alaska Gasline Development Corp, owned by the state of Alaska, said it plans to assume full management of the $45 billion-plus Alaska LNG Project by the end of this year.
…Once transitioned, the Alaska Gasline Development Corporation will be responsible for managing the project going forward including applying for regulatory approval, securing the commercial commitments from gas sellers, shippers, and buyers necessary to acquire the equity and debt financing that will be required to complete the project and prepare to start.
When we initiate creative ways for taxpayers to subsidize oil and gas, there’s nothing better than having another of their senior people help us transfer investment risks to the public while still ensuring that profits stay with the industry.