China’s largest oil company, Sinopec, signed a deal last week to explore the development of a massive $43 billion natural gas pipeline and LNG export terminal in Alaska. The project would carry natural gas from Alaska’s North Slope to its southern coast, where it would be liquefied and exported.
The announcement was one among a flurry of putative deals inked as part of U.S. President Trump visit to China. But despite the hype, it is merely a non-binding vague agreement that lacks details regarding financing, offtake agreements, or timelines. Without those hard contracts, it is highly questionable whether the project moves forward. “This is a typical announcement that comes out of these big summits,” Jason Feer of energy consultancy Poten & Partners, told Reuters. “You really can’t build, or get financing for a big project, unless all those pieces are in place.”
Full Article: https://oilprice.com/Energy/Natural-Gas/43-Billion-China-Alaska-Energy-Deal-Looks-Shaky.html