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Australia reaches milestone with 1st Gorgon cargo; Alaska scrambles to close oil-fueled $3.8B budget gap

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Australia reaches milestone with 1st Gorgon cargo; Alaska scrambles to close oil-fueled $3.8B budget gap

Australia's LNG industry reaches milestone with first Gorgon cargo

The -led Gorgon LNGliquefaction and export project, one of the largest in the world, recently shippedits first cargo to Japan's Chubu ElectricPower Co. Inc.

The threetrain facility will have a combined capacity of 2.1 Bcf/d. To date, it is the world'smost expensive LNG export project, with capital costs growing to $54 billion by2013, according to the U.S. Energy Information Administration.

"Includingthe first train from Gorgon, Australia's LNG export capacity currently stands at6.2 Bcf/d," the EIA said in a March 31 update. "If the additional LNGcapacity currently under development is fully operational as planned by 2019, thecountry's LNG export capacity would likely increase to the largest in the world,at 11.5 Bcf/d, equivalent of one-third of global LNG trade in 2014."

Alaska officials squabble over ways to close oil-fueled $3.8B budgetgap

Morethan any other state in the union, Alaska is dependent on state revenue from oiland gas production. With the commodity price collapse well over a year old, thestate is now facing a budget deficit approaching $4 billion while the governor andlegislators argue over how to approach the issue.

Alaska'sbudget deficit sits at $3.8 billion and will continue to climb unless prices reboundquickly or major changes are made to the budget, said Grace Jang, communicationsdirector for Gov. Bill Walker. And the fate of the state's budget is inextricablylinked to its huge supply of hydrocarbons.

How tofix the deficit has become a source of contention between Walker, an independentelected with Democratic backing, and the Republican majority that comfortably controlsboth houses of the Legislature. Walker and the Legislature have already clashedover the fate of the Alaska StandAlone Pipeline, which the governor championed, and the Alaska LNG pipeline,which the state bought a 25% interest in for more than $64 million in 2015. The two sides are preparingto square off again.

Bear Head LNG reaches agreement to buy land to expand Nova Scotia exportproject

subsidiary Bear Head LNGCorp. has reached an agreement to buy more land from Nova Scotia Business Inc. so it can expand its in RichmondCounty, Nova Scotia, according to a March 29 news release.

Underthe agreement, Bear Head LNG will add 72 acres of land adjacent to its existing255-acre site on the Strait of Canso, according to the release.

The proposedexpansion is expected to boost capacity from 8 million tonnes per annum to 12 Mtpain 2024, a plan that has been approved by Canada's National Energy Board, Bear HeadLNG President Maurice Brand said in the release. With the recent , all initialfederal, provincial and municipal regulatory approvals required to start with constructionhave been obtained.

Report: Japanese diplomat warns Pacific NorthWest delays could cost Canadafor decade

Delaysin Pacific NorthWest LNG'sC$36 billion export project could lead to a missed opportunity for Canada, the Japaneseambassador said, according to a Canadian Press report March 22.

KenjiroMonji in a letter to the Canadian Environmental Assessment Agency, or CEAA, saidCanada must act promptly to develop the PetroliamNasional Berhad-led LNG project or have to wait as long as a decadefor the same access to Asian buyers, the report said.

The ambassador'scomment came after the minister of environment and climate change declared March19 that it extended the time limit for the environmental assessment decision forthree months as a response to the CEAA's request for additional information fromPacific NorthWest.