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Dear Friends and
Neighbors,
Special Session - Day 8
Gas Pipeline - CORRECTION
I had someone note an error.
In-State Demand
The "500" in
slides for "in-state" demand is unit of measure MMCFD -
not BCF.
Therefore
"500 MMCFD" =
182.5 BCF
Instate demand
(Utilities, Donlin, Agrium) = 210 BCF/year
So there is enough
in-state demand to meet the "500 MMCFD" or 182.5
BCF/year.
This is important.
Phase 1, carrying 182.5
BCF/year would supply in-state demand.
However, 42-inch size
line is oversized for just in-state use of gas. The low flow
amount makes for a high tariff added on to gas cost for
Alaskan consumers.
The 42-inch pipeline
would export 20 MTPA (metric tonnes per annum) = moving about 3
BCF/day
Large amounts of gas
needs to be exported before price of gas really becomes lower for
Alaskans.
Phase 2 (LNG plant) has
to be built, and large exports are required, to reduce in-state gas
price below the imported gas price of about $9.80/MMBtu (BRG report
for ENSTAR, pg 49)
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