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Resources Energy Inc. to export Alaska Cook Inlet LNG to Japan

REI Cook Inlet project to feed Japan LNG Terminals

2B1st_Project_Smart_Explorer_Sales_Pursuit_ToolThe Japanese Alaska-based Resources Energy Inc. (REI), in joint venture with the Alaska Industrial Development and Export Authority (AIDEA), is planning series of projects to export Alaska liquefied natural gas (LNG) from the Cook Inlet Basin to Japan LNG import terminals.

Leading to the City of Anchorage in Southcentral Alaska, the Cook Inlet appeared on the early 1950s as a major natural gas reserve.

But the low gas prices and the distance from any significant consumers market left Cook Inlet undeveloped until recent years.

Resources-Energy_Cook-Inlet_LNG_Plant_MapThe interest for Cook Inlet natural gas resources came up in parallel to Canada west coast LNG projects because of Southeast Asia looking for competitive gas sourcing to substitute long term oil indexed gas supply contracts.

In March 2011, Fukushima disaster boosted this process justifying Resources Energy Inc. to establish a sustainable channel of supply from the gas-rich Alaska to Japan.

Immediately the Cook Inlet Basin appeared to REI as the best opportunity to support this project because of its:

 – Proximity to Japan compared with any other potential country

 – Deep water access in the sea water inlet

 – Existing infrastructures such as the Enstar gas pipeline

 – Oil and gas and condensate resources

In 2011 the US Geological Survey study estimated Cook Inlet in-place reserves to 19 trillion cubic feet (tcf) of natural gas from which 2.7 to 3.1 tcf are categorized as proved and probable (2P) reserves.

Resources Energy to phase up Cook Inlet LNG project

Resources Energy Inc. is planning to phase up Alaska Cook Inlet LNG project in order to align the export LNG plant capacities with upstream natural gas production one the supply side and with Japan import LNG terminals storage and gas distribution infrastructures to be leverage on the demand side.

Resources-Energy_Cook-Inlet_LNG_Plant_Port-MacKenzieIn Cook Inlet LNG first phase, REI would build 1 million tons per year (t/y) LNG plant in front of Port MacKenzie in the Matanuska-Susitna Borough by 2020.

This first phase would also include a gas-fired power plant to run the LNG trains

With Cook Inlet LNG second phase, REI will add LNG trains to ramp up the production to 3 million t/y of LNG by 2023.

Then in the third phase, REI Cook Inlet LNG project should change scale in jumping to 20 million t/y of LNG by 2026.

For its Cook Inlet Phase-1 project, Resources Energy Inc is planning to invest $1.35 billion capital expenditure for the facilities and $1.5 billion for the gas supply and infrastructures.

On the Japanese side, Resources Energy Inc identified three location on the west coast where the seismic risks are minimum to build three LNG import terminals along with the development phases of the Alaska Cook Inlet LNG Plant project.

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