China looks to Alaska gas in a bet on a costly and complex project
12-11-2017 11:08 AM
Readers
Baghdad News -
Three Chinese government agencies, Sinopec, the Chinese sovereign wealth fund, China Investment Corp. (CIC) and the Bank of China, joined forces with Alaska and a local state-owned firm to boost LNG investment in US territory. It plans to invest up to $ 43 billion.
The basic idea is to achieve a 1,200-km pipeline project linking giant fields in northern Alaska with the Arctic and a future plant for liquefaction in the south, a station from which to send gas to China. The project is of great benefit to the United States. It will save about 12,000 jobs and eventually cut $ 10 billion a year in the US trade deficit, says the governor of Alaska.
As for China, "diversification of supplies ensures its energy security," IHS analyst Jennie Yang told AFP, especially as gas transfers will not carry dangerous sea routes. But the agreement, initial and non-binding "will not necessarily be achieved," she stressed.
The Alaska LNG gas pipeline project is being approved by a federal body that asked for its opinion in April. In the best case scenario, it is expected to issue its opinion in late 2018, but it can issue it later, thus delaying the agenda.
Large oil groups, such as BP, ConocoPhillips and Exxon Mobil, were originally involved in the gas pipeline project, but fell last year because of costs that could exceed $ 60 billion and the estimated duration of the complex workshop.
At the same time, natural gas prices are falling. Since then, prices have been low, and new fields are being invested, from Australia to the Gulf of Mexico, at a lower cost than in Alaska.
But the head of China's APCO WorldWide Advisory, James McGregor, said that "the Chinese are patient with their money" and the idea that their future imports will compensate for the investment. "This project will not come to light if China does not participate," he said.
Others seem more cautious. Wood Mackenzie, director of Wood Mackenzie's gas department, said the project, "at a very early stage," was "like a speculative project" because "its economic model has not been clarified." She added that the final decision "will probably need a few years" and the workshop "to at least four years." So Sinopec can find "somewhere else, at a better price, the LNG" you need.
A major trade pact signed in May between Beijing and Washington provides for accelerated export of US liquefied natural gas (LNG) to China, where demand is growing. China's natural gas consumption, driven by tough environmental policies, economic recovery and urban expansion, rose 17 percent in the first nine months of this year, CNPC said.
It can triple by 2040, while Beijing is keen to reduce total coal presence, using less energy to cause pollution.
The bulk of China's imports of liquefied natural gas ($ 8.9 billion last year) comes from Australia and Qatar, but this offer may not be enough to quench its thirst. That is why the Asian giant is diversifying its purchases. Beijing is looking for Russian resources.
12-11-2017 11:08 AM
Readers
BEIJING (AFP) -
betting that China intends to make significant investments in a gas pipeline in Alaska, the US liquefied natural gas, to meet the growing demand has to diversify their supply, but this ambitious project seems costly and complicated. It was one of the major announcements of a package of trade deals unveiled Thursday at a summit in Beijing between US President Donald Trump and his Chinese counterpart Xi Jinping.
betting that China intends to make significant investments in a gas pipeline in Alaska, the US liquefied natural gas, to meet the growing demand has to diversify their supply, but this ambitious project seems costly and complicated. It was one of the major announcements of a package of trade deals unveiled Thursday at a summit in Beijing between US President Donald Trump and his Chinese counterpart Xi Jinping.
Three Chinese government agencies, Sinopec, the Chinese sovereign wealth fund, China Investment Corp. (CIC) and the Bank of China, joined forces with Alaska and a local state-owned firm to boost LNG investment in US territory. It plans to invest up to $ 43 billion.
The basic idea is to achieve a 1,200-km pipeline project linking giant fields in northern Alaska with the Arctic and a future plant for liquefaction in the south, a station from which to send gas to China. The project is of great benefit to the United States. It will save about 12,000 jobs and eventually cut $ 10 billion a year in the US trade deficit, says the governor of Alaska.
As for China, "diversification of supplies ensures its energy security," IHS analyst Jennie Yang told AFP, especially as gas transfers will not carry dangerous sea routes. But the agreement, initial and non-binding "will not necessarily be achieved," she stressed.
The Alaska LNG gas pipeline project is being approved by a federal body that asked for its opinion in April. In the best case scenario, it is expected to issue its opinion in late 2018, but it can issue it later, thus delaying the agenda.
Large oil groups, such as BP, ConocoPhillips and Exxon Mobil, were originally involved in the gas pipeline project, but fell last year because of costs that could exceed $ 60 billion and the estimated duration of the complex workshop.
At the same time, natural gas prices are falling. Since then, prices have been low, and new fields are being invested, from Australia to the Gulf of Mexico, at a lower cost than in Alaska.
But the head of China's APCO WorldWide Advisory, James McGregor, said that "the Chinese are patient with their money" and the idea that their future imports will compensate for the investment. "This project will not come to light if China does not participate," he said.
Others seem more cautious. Wood Mackenzie, director of Wood Mackenzie's gas department, said the project, "at a very early stage," was "like a speculative project" because "its economic model has not been clarified." She added that the final decision "will probably need a few years" and the workshop "to at least four years." So Sinopec can find "somewhere else, at a better price, the LNG" you need.
A major trade pact signed in May between Beijing and Washington provides for accelerated export of US liquefied natural gas (LNG) to China, where demand is growing. China's natural gas consumption, driven by tough environmental policies, economic recovery and urban expansion, rose 17 percent in the first nine months of this year, CNPC said.
It can triple by 2040, while Beijing is keen to reduce total coal presence, using less energy to cause pollution.
The bulk of China's imports of liquefied natural gas ($ 8.9 billion last year) comes from Australia and Qatar, but this offer may not be enough to quench its thirst. That is why the Asian giant is diversifying its purchases. Beijing is looking for Russian resources.
"Investing billions in fossil energies is contrary to the need to reduce climate warming, a battle that China wants to continue to the end," said Laurie Maliferta of Greenpeace, a non-governmental organization.
Today at 5:18 am by Rocky
» utube MM&C 5/7/24 Iraq Dinar- IQD Update - Regional Trade - A Progession of Reforms - A Global Bac
Today at 5:17 am by Rocky
» A government meeting to discuss financing and implementation mechanisms for the Development Road Pro
Today at 5:12 am by Rocky
» Al-Sudani: Iraqi banks are on the right track with financial transfers
Today at 5:11 am by Rocky
» Al-Khazali: The Turkish side is still imposing its conditions on Iraq
Today at 5:08 am by Rocky
» Rights: We refuse to amend the bylaws of Parliament under political influence and desires
Today at 5:07 am by Rocky
» Nechirvan Barzani: We want to address all problems with Iran and begin a new phase of relations
Today at 5:05 am by Rocky
» Today, Iraq and Iran signed the minutes of a joint meeting related to trade
Today at 5:03 am by Rocky
» KPMG International begins auditing the revenues of telephone companies operating in Iraq
Today at 5:02 am by Rocky
» Oil: The seventh batch of equipment for the gas manufacturing project in the Nasiriyah and Gharraf f
Today at 5:01 am by Rocky
» Al-Sudani assures the French ambassador of Iraq’s openness to “fruitful” partnerships
Today at 5:00 am by Rocky
» Government move to install gold screening devices at 4 airports
Today at 4:59 am by Rocky
» Sudanese Advisor: The oil sector is witnessing a rapid renaissance
Today at 4:58 am by Rocky
» Opening offices specialized in employing people with disabilities
Today at 4:57 am by Rocky
» Infrastructure and investment projects for the water sector in Iraq
Today at 4:56 am by Rocky
» Adopting the electronic system in the next census
Today at 4:55 am by Rocky
» Al-Sudani chairs the first meeting to restructure the government apparatus
Today at 4:54 am by Rocky
» Business Council: Efforts to open a branch of the Chinese Bank in Iraq
Today at 4:53 am by Rocky
» Iraqi diplomacy is balanced openness
Today at 4:52 am by Rocky
» The head of the Integrity Commission told Al-Sabah: We are the people’s eyes on the government and s
Today at 4:51 am by Rocky
» Baghdad Provincial Council: The capital is facing a new urban and service phase
Today at 4:49 am by Rocky
» Customs, security and economic aspects
Today at 4:48 am by Rocky
» Central Governor: We face “increasing challenges” in complying with international laws
Today at 4:48 am by Rocky
» Payment of end-of-service benefits to employees referred to retirement for the month of May
Today at 4:46 am by Rocky
» Billions “evaporated”.. What is the truth about closing the “theft of the century” file in Diyala?
Today at 4:45 am by Rocky
» The Minister of Labor approves the extinguishment of debts owed by transgressors from the families o
Today at 4:43 am by Rocky
» How did Washington comment on Nechirvan Barzani's visit to Tehran?
Today at 4:42 am by Rocky
» The honeymoon is over and the salary crisis continues. Baghdad and Erbil exchange accusations, but s
Today at 4:41 am by Rocky
» Why has Iraq not submitted a file to stop burning gas over the past years?
Today at 4:39 am by Rocky
» A slight increase in the exchange rate...more than 146 thousand per 100 dollars
Today at 4:38 am by Rocky
» Do Iraq's debts pose a threat to the economy? Parliament answers
Today at 4:37 am by Rocky
» Agriculture explains the mechanism of implementing the calendar program and its economic gains
Today at 4:36 am by Rocky
» President Masoud Barzani meets an Iraqi parliamentary delegation
Today at 4:34 am by Rocky
» Parliamentary criticism of the government’s delay in sending the budget schedules despite the approa
Today at 4:33 am by Rocky
» A report reveals the existence of an undeclared “Iraqi-British” agreement regarding asylum seekers
Today at 4:32 am by Rocky
» Alternative energy... advanced stages of the largest solar energy station in Iraq
Today at 4:31 am by Rocky
» Its delay raised concerns... it is likely that the 2024 budget schedules will be approved today
Today at 4:30 am by Rocky
» The industry reveals the reasons why Russian companies stopped reconstructing 7 factories in Anbar
Today at 4:29 am by Rocky
» Billions evaporated.. What is the truth about closing the theft of the century file in Diyala?
Today at 4:28 am by Rocky
» Nouri Al-Maliki to the Saudi Ambassador: Iraq is open to all countries of the world
Today at 4:26 am by Rocky
» An Iraqi generation that “does not fear” America and Iran.. Nadim Al-Jabri explains his expectations
Today at 4:25 am by Rocky
» After 9 years.. the third session of the Trade and Investment Framework Agreement between Iraq and A
Today at 4:22 am by Rocky
» “These are our goals.” The Turkish President talks about his visit to Iraq last month
Today at 4:21 am by Rocky
» Romanowski: The Iraqi judiciary is independent and the Federal Court seeks to consolidate democracy
Today at 4:19 am by Rocky
» Deputy: The presidency of Parliament will remain vacant until the end of the current session
Today at 4:17 am by Rocky
» Political: The Iraqi economy is threatened by American hegemony because of the coordination administ
Today at 4:16 am by Rocky
» Politician: Salem Al-Issawi will not become Speaker of Parliament
Today at 4:15 am by Rocky
» Planning reveals the mechanism for examining gold in local markets
Today at 4:14 am by Rocky
» Including railway connectivity and water shares... Iraq and Iran are discussing a number of common i
Today at 4:12 am by Rocky
» Oil is preparing to export gas oil after achieving self-sufficiency
Today at 4:11 am by Rocky
» Trade is preparing to hold a number of specialized exhibitions in Baghdad and the provinces
Today at 4:09 am by Rocky
» Erdogan: Our goal is to raise the volume of trade with Iraq to more than 20 billion dollars
Today at 4:08 am by Rocky
» Al-Sudani confirms Iraq's openness to fruitful partnerships with French companies
Today at 4:07 am by Rocky
» Determining the launch date for the activities of the 48th session of the Baghdad International Fair
Today at 4:06 am by Rocky
» Al-Sudani receives a delegation from the Union of Arab Banks
Today at 4:05 am by Rocky
» utube 5/3/24 MM&C Iraq Dinar Update - Expectation - Implementation - Activation - New Exchange Rat
Yesterday at 7:30 am by Rocky
» “Services” asks the Central Bank about billions of foreign banks in Iraq
Yesterday at 7:27 am by Rocky
» Central Bank: Iraqi banks still face challenges in complying with international laws and standards
Yesterday at 7:24 am by Rocky
» Parliamentary bloc: The Central Bank offers hard currency to “mafias” on a golden platter.. The Suda
Yesterday at 7:20 am by Rocky
» The Iraqi Central Auction witnesses a rise in foreign remittances to $267 million
Yesterday at 7:19 am by Rocky
» Wednesday.. The session to elect the President of the Iraqi Parliament is heading towards “Al-Issawi
Yesterday at 7:14 am by Rocky
» The Union of Arab Banks proposes 4 “important” points for Iraqi banks to meet compliance standards
Yesterday at 7:12 am by Rocky
» In the document... the Central Bank decides to return the “Al-Mal” Bank to work... in this case
Yesterday at 7:08 am by Rocky
» The Iraqi-American agreements and cooperation were the most prominent topics of Al-Araji and Romanow
Yesterday at 7:06 am by Rocky
» Al-Hakim meets a joint delegation of resolve and sovereignty and renews the call to hold a session t
Yesterday at 7:05 am by Rocky
» Nearly one billion dinars were recovered and 3 million liters of fuel intended for smuggling in Iraq
Yesterday at 7:03 am by Rocky
» Al-Sudani and the European Union ambassador discuss issues of economic partnerships, civil aviation,
Yesterday at 6:59 am by Rocky
» More than 950 million dinars... petroleum products announced their recovery
Yesterday at 6:57 am by Rocky
» Forming a committee to follow up on stopping the sale of the dollar to travelers
Yesterday at 6:54 am by Rocky
» The Minister of Justice visits Al-Muthanna Governorate to discuss mechanisms for developing judicial
Yesterday at 6:52 am by Rocky
» Agriculture: Farmers who were affected by the recent rains will be compensated
Yesterday at 6:51 am by Rocky
» Al-Rasheed issues a warning regarding applying for advances and loans
Yesterday at 6:49 am by Rocky
» Al-Rafidain announces the implementation of the comprehensive banking system in its main branch
Yesterday at 5:24 am by Rocky
» Al-Rasheed warns of offices and pages claiming to promote the Salaf
Yesterday at 5:22 am by Rocky
» Adviser to the Prime Minister: There are no conflicts in the route of the Baghdad Metro
Yesterday at 5:19 am by Rocky
» Al-Sudani: We are keen to develop the work of the TBI Bank and address the problems it faces
Yesterday at 5:18 am by Rocky
» Agriculture explains the mechanism of implementing the calendar program and its economic gains
Yesterday at 5:17 am by Rocky
» “The shocks have changed.” The Governor of the Central Bank explains the impact of the openness of I
Yesterday at 5:16 am by Rocky
» The President of the Association of Private Banks sends an “important” invitation to the Central Ban
Yesterday at 5:15 am by Rocky
» Al-Alaq: The Iraqi banking sector has witnessed significant qualitative developments in response to
Yesterday at 5:12 am by Rocky
» On behalf of Al-Sudani, the Minister of Planning sponsors the signing ceremony of a memorandum of un
Yesterday at 5:11 am by Rocky
» The Iraqi Travel Companies Association participates in the Arab Travel Market Exhibition
Yesterday at 5:10 am by Rocky
» The start of the work of the Iraqi-Jordanian Economic Forum
Yesterday at 5:07 am by Rocky
» Integrity Commission at the Arab Anti-Corruption Convention Conference
Yesterday at 5:06 am by Rocky
» Election of the Speaker of Parliament between amendment and disruption
Yesterday at 5:05 am by Rocky
» Plans to increase the real estate bank's capital
Yesterday at 5:03 am by Rocky
» The Central Bank sells more than $276 million in the currency auction
Yesterday at 5:02 am by Rocky
» Advisor to the Prime Minister: We are heading towards a complete transformation of the electronic pa
Yesterday at 5:01 am by Rocky
» Savings and financial inclusion
Yesterday at 5:00 am by Rocky
» Agriculture expects to market 6 million tons of wheat
Yesterday at 4:58 am by Rocky
» Al-Sudani chairs the first meeting of the Supreme Committee for Restructuring the Government Apparat
Yesterday at 4:57 am by Rocky
» Al-Sudani receives an official invitation to participate in the United Nations Climate Change Confer
Yesterday at 4:55 am by Rocky
» "Baghdad Today" in the southern refineries: The Azmara unit will reduce imported gasoline and hard c
Yesterday at 4:54 am by Rocky
» Al-Sudani stresses the importance of supporting the pillars of food security
Yesterday at 4:51 am by Rocky
» Kurdistan is an important oasis for investment. Security and economic stability eliminates the housi
Yesterday at 4:50 am by Rocky
» Politician: Comparing Al-Halbousi to Al-Maliki is not up for discussion
Yesterday at 4:46 am by Rocky
» The Kurdistan Democratic Party demands international supervision of the region's elections
Yesterday at 4:45 am by Rocky
» Al-Sudani heads to Italy next week on an official visit
Yesterday at 4:44 am by Rocky
» Warnings of challenges delaying budget approval, most notably the deficit
Yesterday at 4:43 am by Rocky