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Alaska’s Shut-in Gas Dilemma

January 13, 2012

Alaska has a huge reserves of natural gas which the State is yearning to develop and get to market.

Factors to consider:


A pipeline to the lower 48 is not going to happen. Shale gas discoveries have changed the project economics in a negative way.

To build a pipeline from the North Slope to either Anchorage or Valdez would require investment of $6-12 B. The economics are not compelling for any one company, but there may be a business case for the three majors working together.

The option of shipping LNG from Point Thompson, on the North Slope, will undoubtedly get looked at.