Inlet

Repairs on a leaking undersea natural gas pipeline in Alaska’s Cook Inlet cannot begin until mid-March because of sea ice, tides and other conditions, pipeline operator Hilcorp Alaska LLC has told a state regulator.

The Alaska Department of Natural Resources (DNR) said there were no bids placed in an oil and gas lease sale for the Cook Inlet and the Alaska Peninsula on Thursday, marking the first time in state history that there were no bidders for the inlet.

The Alaska Department of Natural Resources (DNR) said there were no bids placed in an oil and gas lease sale for the Cook Inlet and the Alaska Peninsula on Thursday, marking the first time in state history that there were no bidders for the inlet.

A list of 13 candidates has been narrowed to two in the running to develop a project to deliver liquefied natural gas to Interior Alaska (see Daily GPI,Oct. 14), the Alaska Industrial Development and Export Authority said. Proposals bySalix Inc.(Avista Corp.) andSpectrum LNG LLCare the finalists. A final decision is expected early next year. The Salix proposal does not include transport but can accommodate either rail or truck transport from Cook Inlet. Spectrum provided two alternatives to source gas, North Slope and Cook Inlet, but did not provide for transportation, leaving it to the utilities that would be receiving the gas. Trucking is possible from both locations and rail is possible from Cook Inlet.

Cook Inlet Energy LLC was the successful bidder for an exploration license covering 168,581 acres of Alaska state land in the Iniskin Peninsula area of southwest Cook Inlet, the Alaska Division of Oil and Gas said Wednesday.

Independent Furie Operating Alaska LLC has secured funding for the installation of the first new offshore natural gas production platform in Alaska’s Cook Inlet since 2000.

Alaska’s Cook Inlet was thought to have been played out for natural gas development. However, recent promising producer activity there has moved the state to seek the reopening of a liquefied natural gas (LNG) export facility for fear that without it there may not be a market for the potential gas.

Canadian midstream operator Keyera Corp. has agreed to transport and process the Wapiti Montney condensate-rich natural gas production of NuVista Energy Ltd.

Not enough excess natural gas is available in Alaska’s Cook Inlet to support liquefied natural gas (LNG) exports to continue from the Kenai LNG Plant on the Kenai Peninsula, according to operator ConocoPhillips. The producer said it would allow the plant’s export license to expire on March 31. “For the future, ConocoPhillips will consider pursuing a new export authorization only if local gas needs are met, and there is sufficient gas for export,” the company stated. “ConocoPhillips still has the flexibility to resume operations and apply for a new export authorization if sufficient gas becomes available.” The plant was to be mothballed after selling LNG to Japan for more than 40 years, but operations were extended to meet the country’s increased demand for gas following the meltdown of the Fukushima Daiichi nuclear plant (see Daily GPI, Aug. 21, 2012). Separately, developing a large-scale LNG export facility is now a key component of Alaska’s plans to commercialize North Slope gas reserves (see Daily GPI, Dec. 12, 2012).