Japanese firm inks deals in pursuit of natural gas

Resources Energy Inc., the Japanese company interested in developing a large liquefied natural gas project, has signed several agreements to explore business relationships in Alaska.

The agreements are all nonbinding so far except for confidentiality provisions. They include two Alaska Native regional corporations, an Alaska telecommunications company and Cook Inlet natural gas producers, according to Mary Ann Pease, a vice president with Resources Energy Inc.

Agreements have also been signed, which are confidential, with Cook Inlet explorers and producers including ConocoPhillips, Cook Inlet Energy Inc., Buccaneer Energy and NordAq Energy, Pease said.

ConocoPhillips is currently producing gas in the Inlet and owns the LNG plant near Kenai, which is currently not operating, and is also a major North Slope gas owner. Cook Inlet Energy, Buccaneer and NordAq are exploring for gas, although Buccaneer has a small amount of gas production from onshore wells near Kenai.

An agreement has also been signed with Anadarko Petroleum, also confidential, under which REI and Anadarko will discuss gas prospects in the foothills region of the southern North Slope, where Anadarko is exploring.

A memorandum of understanding signed May 16 between REI and Calista Corp., the regional corporation for southwest Alaska, commits the Japanese company to work with Calista on in-state energy and the needs of Calista shareholders,
which are hard hit by fuel oil prices.

Calista president and CEO Andrew Guy signed the agreement for Calista. Shun-ichi Shimizu, REI’s president and CEO, signed for the Japanese company.

A similar agreement was signed May 17 with Cook Inlet Region Inc., to explore possible investments by CIRI in the LNG export project REI is proposing. Ethan Shutt, CIRI’s senior vice president, signed for the Anchorage-based corporation, and Shun-ichi Shimizu for REI.

An agreement was also signed by REI with Alaska Communications Systems Holdings Inc., or ACS, to explore possibilities for ACS to provide telecommunications services to REI’s project.

Anand Vadapalli, CEO and president of ACS, signed the agreement along with Shun-ichi Shimizu of REI.

The Japanese company recently completed initial feasibility studies for an LNG plant at either Valdez, the terminus of the trans-Alaska oil pipeline, or Nikiski, the location of ConocoPhillips’ LNG plant.

Toyo Engineering, Air Products Inc. and other firms experienced in LNG projects worked with REI on the feasibility study.

Shimizu, the company president, said that with the feasibility study complete REI’s next task is to assemble a group of Japanese investors in the project, most likely utilities with a need to import LNG.

The goal is to complete that by fall, Shimizu said in an interview.

Support from the State of Alaska for the project is essential in convincing major Japanese utilities to invest, he said.

Tim Bradner is a reporter for the Alaska Journal of Commerce.

More in News

Christie Hill prepares to play “Taps” during the 9/11 memorial service on Saturday. (Photo by Sarah Knapp/Homer News)
Homer honors lives lost during 9/11

The Homer-Kachemak Bay Rotary held a Sept. 11 memorial ceremony at the… Continue reading

Judith Eckert
COVID-19 patient says monoclonal antibody infusion saved her life

Antibody infusions highly effective in reducing risk of hospitalization, according to FDA trial ..

A sign flashing “Keep COVID down” also offers information on where to get testing and vaccines on Thursday, Sept. 2, 2021, on the Homer Spit in Homer, Alaska. (Photo by Michael Armstrong/Homer News)
SPH holding steady in COVID-19 surge

Despite hospital crisis in Anchorage, Homer’s hospital not impacted, spokesperson tells Homer City Council.

Brie Drummond speaks in support of mask mandates on Monday, Sept. 13, for the Kenai Peninsula School Board meeting at Homer High School in Homer, Alaska. During a work session before the meeting, the district presented revisions to its COVID-19 mitigation protocols. (Photo by Michael Armstrong/Homer News)
School district revises COVID-19 mitigation plans

The revisions come as COVID-19 cases continue to surge in Alaska and on the Kenai Peninsula.

A protester stands outside the George A. Navarre Borough Admin building in Soldotna on Tuesday, Sept. 14, 2021. (Camille Botello/Peninsula Clarion)
Parents square off over masks at school board meeting

Some parents said they will keep their kids home if masks are required, while others say they’ll keep their kids home if masks aren’t required.

Borough School Board election

On Tuesday, Oct. 5, elections will be held for Homer City Council,… Continue reading

Kenai Peninsula Borough Assembly election

On Tuesday, Oct. 5, elections will be held for Homer City Council,… Continue reading

Homer City Council election

On Tuesday, Oct. 5, elections will be held for Homer City Council,… Continue reading

Janie Leask, a Homer resident, spoke in support of the new multi-use community center during Monday night’s city council meeting, stating the need for community recreation is vital.
Council moves forward with HERC plans

After years of discussions and planning, the Homer City Council is quickly… Continue reading

Most Read