1 / 11

Arctic Resources Company Northern Gas Pipeline Project Forrest E. Hoglund

Arctic Resources Company Northern Gas Pipeline Project Forrest E. Hoglund Chairman & Chief Executive Officer. Arctic Gas Pipeline. Most important energy project for North America – 44Tcf Two competing pipeline proposals – just like 1975 Politics make Florida in November look like kids play.

duncan-shaw
Télécharger la présentation

Arctic Resources Company Northern Gas Pipeline Project Forrest E. Hoglund

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Arctic Resources Company Northern Gas Pipeline Project Forrest E. Hoglund Chairman & Chief Executive Officer

  2. Arctic Gas Pipeline • Most important energy project for North America – 44Tcf • Two competing pipeline proposals – just like 1975 • Politics make Florida in November look like kids play

  3. Comparison of Options • Two Pipeline Option – ANGTS through Alaska plus Mackenzie Valley Pipeline • “Over the Top Route” – Prudhoe Bay to Northern Canada and up the Mackenzie Valley to Alberta – One Pipeline

  4. ANGTS & Mackenzie Delta Pipeline Routes Zama Boundary Lake

  5. ARC’s Northern Gas Pipeline Route

  6. Economic Comparison 2 – Line ApproachOver the Top ANGTSMackenzieTotalNorthern Route Capital Construction Cost ($ Billion): 10.0 + 3.5 = 13.5 7.8 Capacity (after ramp up) (BCFD): 4.0 + 1.2 = 5.2 5.2 Length to Edmonton, AB (± Miles): 2,140 + 1,350 = 3,490 1,700 Mountains to Cross (± Miles): 900 + 0 = 900 0 Wellhead Netback (Mcf): $0 to $0.20 $0 to $0.10 $0.75 to $0.90 (at $2.50/Mcf into Chicago)

  7. Politics Alaska Aggressively Supports 2 Pipeline Approach • Jobs, gas for Alaska, state pride • Passed State Law prohibiting the “Over the Top” pipeline route • Passed ban on “Over the Top” in House Energy Bill • May try same effort in Senate

  8. Problems with Alaskan Approach • ANGTS route uneconomic today w/o large subsidies • Result will be to make reserves low to no value and may cause stalemate like in 1975 • State makes $100 mm plus per year more with “Over the Top” route • Two pipeline approach causes conflict between U.S. and Canada • Alaska actions are a direct challenge to Canada, ANGTS can lower value of Canadian reserves

  9. Canadian Implications • Canada strongly interested in an economic route – Over the Top • Alaskan moves seen as threatening • Canada will have major say where pipeline goes – NEB hearings • Canada and U.S. interests are clearly aligned – one economic project

  10. Arctic Resources ApproachLowest Tariff – Fewest Obstacles • Best route – Best economics • Significant Aboriginal involvement • 100% Ownership • ARC is Program Manager • 100% Debt Financing • Consortium runs project

  11. ARC Approach • Obtain Aboriginal support • Canadian Aboriginal and Alaskan Municipal Entity files project with respective Canadian and U.S. regulatory authorities • U.S. and Canada come together on what the best project is • Major companies finally back most economic route • Consortium fully formed to carry project forward

More Related