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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    China looks to Alaska gas in a bet on a costly and complex project

    Rocky
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    • Post n°1

    China looks to Alaska gas in a bet on a costly and complex project Empty China looks to Alaska gas in a bet on a costly and complex project

    Post by Rocky Sun 12 Nov 2017, 3:33 am

    China looks to Alaska gas in a bet on a costly and complex project
    12-11-2017 11:08 AM    
    Readers
    China looks to Alaska gas in a bet on a costly and complex project Image
    Baghdad News -
    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.

    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.

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