Alaska Attorney Lawyer

A construction company hopes that Alaska, in close cooperation with major Chinese energy companies Sinopec gas in a pipeline in Alaska, a stage, others are likely to arouse interest in the use of liquefied natural gas as an alternative to any - Country-Pipe Line.

Dominic Lee, President of Little Susitna Construction Co., held a conference in the Senate Resources Committee Jan 4 He said, Sinopec is primarily interested in buying a LNG project in Alaska, and help finance the project and manage the construction.

The proposal is 48-inch pipeline in the North Slope and Valdez an LNG plant in Anderson Bay in Prince William Sound. The project would have 4.5 billion cubic feet of gas per day from the North Slope, but must be designed, it can be extended to 7 billion cubic feet per day.

The project will be approximately 20 new LNG tankers are built with a total cost of $ 7 billion. Sinopec, to build and operate them, said Lee.

The Little Susitna / Sinopec proposal was rejected, four by the State on January 4 as a non-compliance with the conditions of a State’s response to gas proposals. The Senate Resources Committee, maintenance of all companies interested in the project, including requests rejected, “said chairman Senator Charlie Huggins, R-Matsu.

Sinopec has significant resources that could benefit from a gas project in Alaska, said Lee. The company is the New York Stock Exchange, had a value of $ 155 billion in the year 2006 with a profit of $ 4.2 billion, said Lee.

The Chinese company is concerned not only for the possession or operation of the pipeline or LNG and would have left it as a business in Alaska, Lee said the Committee.

Two branches of Sinopec are involved in Lee’s proposal. ZPEB Sinopec is the design, engineering and construction division of the company, and would be regarded as general contractor as part of Alaska, owners of the project, said Lee.

Sinopec International Partners sign a long-term contract for the purchase of LNG, he said.

Lee said an agreement was signed between the grouping Snooped ZPEB and Little Susitna Construction management support. Sinopec International have signed a separate declaration of intent for the purchase of LNG.

Lee strengthened, which is part of the Committee Jan 2 BG Group, United Kingdom with a large established company, revenue from the Alaska’s gas production would be larger by sales of LNG in Asia than on mainland the USA by a pipeline.

This is because the LNG in Asia at a price equivalent values in the fields of energy, oil, while the national gas markets in Alaska to be sold in competition with other gas price lower. The cost of North Slope natural gas in the continental USA pipeline would also be greater than the LNG project, and several gas consumed for fuel compressor stations.

Lee said more than 20 percent of gas consumed is used as fuel for the entire path of Chicago. As Alberta, consume more than 8 percent of the gas.

The partnership with Sinopec offers several important advantages, “said Lee. One is that Chinese companies, in cooperation with China-based steel producers to ensure that X-70 steel wire for 800 miles of pipeline is punctual.

Both Sinopec and Bo The Steel Co., one of two major steel suppliers in China are mostly held by the Chinese government, so that the government is able to guarantee the extradition of steel, said Lee.

However, the availability of steel for a distance of all countries of the pipeline from northern Alberta or Slope of the Midwest USA is a challenge for projects proposed by competitors and TRANSCANADA ConocoPhillips, said Lee .

Sinopec is also ready, financing and guarantees for the LNG project-removing the need to focus on a federal $ 18 billion of loan guarantees made available to Congress for a project in Alaska. Alaska’s congressional delegation has objections against the granting of loan guarantees for a project to export LNG, rather than a project will provide gas to domestic markets.

Lee said that the USA have good reasons to support such a project. Sales of LNG from Alaska to China would help preserve the balance huge trade deficit between the two nations. The USA buys a lot of goods from China, but not enough, it will sell. More than 30 years, the LNG project are needed around $ 800 billion to 900 billion dollars on trade deficits.

“Trade is not a one-way street, it’s good for the USA, it will help make our country strong,” said Lee, was originally from China, but it was a American citizen and entrepreneurs for years.