Category Archives: Reference Documents

AGDC Presentation on China Agreements

Above is the slidedeck used by Alaska Gasline Development Corporation (AGDC) President Keith Meyer at the 38th Annual Resource Development Council (RDC) Alaska Resources Conference on November 16, 2017.

While the entire presentation is of interest, to us the most important part are slides 8-11, discussing the economics of the project.  Those economics are based on various assumptions, including, after financing most of the capital cost of the project, that China will be satisfied to continue to pay market price for the delivered LNG.  Usually in our experience, a purchaser is willing to bear a substantial part of the cost of a project only when it results in achieving a lower than market price or some other strategic objective, such as increased security of supply over other alternatives.  Otherwise, there is no additional benefit that justifies the commitment of their, ultimately limited capital to that project over others.

We intend to delve further into this project in the weeks ahead.  For now, however, we simply want to post these slides so that others can start to do so as well.

The slides also are available from the AGDC website, here.

Platts| Asia Pacific LNG production to outstrip demand into 2020: BG

Brisbane (Platts)–18May2010/544 am EDT/944 GMT — Production of LNG in the Asia Pacific region is set to outstrip demand well into the future, Catherine Tanna, managing director of Australia’s QGC, a subsidiary of the BG Group, said Tuesday. The supply of LNG from proposed new and expansion projects in the Asia Pacific and volumes from outside the region could amount to more than 250 million mt/year by 2020, Tanna told the Australian Petroleum Production and Exploration Association annual conference in Brisbane. But demand in the region not already satisfied by existing contracts would total only about 65 million mt/year then, she added.

(Read the full article at Asia Pacific LNG production to outstrip … (May 18, 2010))