Economics of Alaska North Slope gas utilization options Page: 17 of 253
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Conclusions
At this point in time, if the assumptions for the economic variables are valid, both the LNG and the
GTL option can be considered as economically promising and warrant consideration in the decision-making
process. (Although the variables are subject to normal levels of uncertainty, we believe they are valid based
on the public information available to us.) However, it is not possible to conclude that one option is
significantly better than the other.
This evaluation does, however, answer the specific question it was directed to address, namely: Is
GTL conversion a feasible alternative for bringing ANS natural gas to market? The conclusion from this
assessment is that state-of-the-art GTL conversion technology appears to be feasible and could be deployed
within a meaningful time frame to sustain ANS and TAPS oil operations for 20 or more years beyond what
might be anticipated without GTL.
Placing the issue of GTL feasibility aside, this ANS gas utilization assessment is not expected to be
the last of what has been a number of studies focused on the marketing of Alaska's large, and potentially
much larger, remote natural gas reserve. Alaskans face difficult gas development and marketing decisions
in the near future, and need to develop the most complete understanding of the options possible. This is
particularly so with respect to likely requests for State tax incentives and other actions that might be desired
to move private commitments forward.
Recommendations
To assist in responding to such requests and other decisions that must be made to implement the sale
of ANS gas, this report concludes with a number of recommended follow-up analyses that interested
industry, State and federal parties may wish to pursue in a timely manner:
1. Existing Infrastructure Savings-The economics of both of the options could benefit through the
utilization of portions of the infrastructure existing at Prudhoe Bay and along the TAPS pipeline. These
possibilities should be examined on a site-specific basis, not only for a GTL plant that would be built on the
North Slope, but also for the LNG gas pipeline and prospective Valdez liquefaction and shipping facilities.
(YPC reports that basic engineering and design have been completed, but it is likely that further engineering
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Thomas, C. P.; Doughty, T. C.; Hackworth, J. H.; North, W. B. & Robertson, E. P. Economics of Alaska North Slope gas utilization options, report, August 1, 1996; United States. (https://digital.library.unt.edu/ark:/67531/metadc678645/m1/17/: accessed March 18, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.