08 April 2005 19:31 [Source: ICIS news]
TORONTO (CNI)--The US might decide to build a liquefied natural gas (LNG) terminal in Alaska as an alternative to a proposed Alaskan natural gas pipeline if Canada “drags its heels” on the pipeline project, analysts said Friday.
In a research report, analysts with Toronto-based brokerage TD Newcrest said Canada’s government needs to “take a stance” on the Alaskan pipeline which would bring gas from Alaska’s Prudhoe Bay to markets in Canada and the US.?xml:namespace>
The analysts warned that should Canada not clarify the regulatory framework soon, the US might opt to build an LNG terminal at the port of Valdez in Alaska to transport gas to the US West Coast or Asia, bypassing Canada altogether.
While overall the LNG option would be a “sub-optimal economic outcome, in our view it could become reality,” they warned.
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TD specifically highlighted the importance of the Alaskan gas, which is rich in ethane feedstock, for
TD acknowledged that
According to TD, Alaskan gas could come to market around 2012-2015 at a cost of some $15bn-25bn (Euro11.7bn-Eruo19.5bn) depending to what extent the project can leverage on existing infrastructure in
But according to TD, TransCanada has an edge over Enbridge. TransCanada subsidiary Foothills was named in legislation in the 1970s, when the project was first proposed, as the company designated to build the Canadian portion. For another company to build the pipeline
Earlier this week Jeff Lipton, the chief executive of Calgary, Alberta-based Nova Chemicals cautioned that his company does need access to Northern gas if it is to expand and grow in
According to previous estimates by Canadian Chemical Producers Association (CCPA), gas from Prudhoe Bay, together with supplies from the Mackenzie Delta in Canada’s Northwest Territories, could provide some 100,000 bbl/day of ethane, enough to feed an additional world scale ethylene (C2) plant in Alberta.
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