
Luke Saugier
13:57 - 14:31
"we estimate the cost to sell Phase 1 gas into a pipeline would be, we think, less than $50 million"
“we estimate the cost to sell Phase 1 gas into a pipeline would be, we think, less than $50 million”
And that reinjection for gas and for water is very important because it maintains the reservoir pressure, serving to help maximize the ultimate oil recovery for the working interest owners and for the state of Alaska. Because of that, because of what we already do, we estimate the cost to sell Phase 1 gas into a pipeline would be, we think, less than $50 million. $50 Million cubic feet a day. I'm sorry, less than $50 million. And that's, you know, of course it always depends where that takes place and things like that.
Three major North Slope producers told the Alaska Senate Finance Committee they signed gas sale precedent agreements for Alaska LNG Phase 1 and will sell at the lease line. That structure means midstream pipeline and treatment costs won't be deductible against oil production tax.
