More liquefied natural gas projects are in the works.
A unit of Hondo Oil & Gas Co., Roswell, N.M., plans to lay a pipeline to transport natural gas from the McKenzie Delta area of Canada to Kenai, Alas., where it will be converted to liquefied natural gas for shipment to markets in the Pacific Rim.
And a multinational group plans to study the feasibility of a small LNG export project based in Trinidad and Tobago.
ALASKAN-MACKENZIE SYSTEM
Hondo unit Mackenzie Porcupine Pipeline Co. has filed a notice of intent with Alaska for pipeline right-of-way for the Alaskan-Mackenzie system, which will be designed to handle at least 2 bcfd.
Hondo said construction is targeted for later this year, with a goal of first gas deliveries in mid to late 1997.
The proposed pipeline will receive Mackenzie Delta gas at the U.S.-Canada border.
William Daily, vice-president of Hondo and Mackenzie Porcupine, said the pipeline is to follow Dempster Highway to the Arctic Circle, then run west to Circle, Alas., follow the road to Fairbanks and the railway corridor to Willow, across Cook Inlet to a point west of Fire Island, then down the Kenai Peninsula to a liquefaction plant at Kenai.
The Alaskan part of the project, including the liquefaction plant, is expected to cost $9-16 billion.
"The project has a number of components," Daily said. "We see a number of parties belonging to consortiums that would be formed for each aspect of the project.
"We see it as a major international project with a lot of participants."
Daily said the company envisions Canadian producers and pipelines supplying facilities to transport gas to the U.S. border. Dailey was in Calgary last week meeting with producers and said he received a very positive reception.
"Right now we are just laying all the groundwork," he said.
Daily planned to meet with Canada's National Energy Board Feb. 11 to start talks on several issues, including the need for an export permit.
Countries targeted for LNG sales are China, Taiwan, Japan, and South Korea.
Daily said he and Robert O. Anderson, president of Hondo and Mackenzie Porcupine, spent 2 weeks in the Orient at the end of December and had some "very good conversations with officials from all of those countries."
Daily envisions LNG buyers using their own tankers for transport to market, making Kenai the point of sale.
Hondo said the line is not intended to compete directly with the Trans-Alaska Gas System project, which is to deliver North Slope gas to Valdez, Alas., where it is to be liquefied for sale in Pacific Rim countries (OGJ, July 2, 1990, p. 34). Hondo contends construction of its Alaskan-Mackenzie pipeline could speed the date of North Slope gas delivery by opening new markets at an earlier date.
TRINIDAD AND TOBAGO
National Gas Co. of Trinidad and Tobago Ltd., Cabot LNG Corp., Boston, British Gas unit BG Trinidad Inc., and Amoco Trinidad signed a memorandum of understanding to study the feasibility of building a 300 MMcfd LNG plant in Trinidad and Tobago, with production targeted at markets in the U.S. Northeast.
LNG would be transported through a U.S. import terminal owned by Cabot LNG unit Distrigas of Massachusetts Corp. The companies said other potential markets include the Caribbean and western Europe.
The project would require an investment of about $1 billion and could be in production by 1997, the companies said.
The government of Trinidad and Tobago has given its provisional approval to using reserves from the East Coast Marine area for the project. If demand is large enough, liquefaction capacity would be added using reserves from the North Coast Marine area.
Trinidad and Tobago's proved gas reserves are pegged at 8.4 tcf, with probable and potential reserves totaling at least 12 tcf, the companies said.
The country's gas production has recently averaged 700 MMcfd and is expected to increase to 900 MMcfd by 2000, excluding the proposed LNG project.
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