Wednesday, March 19, 2008

Bradwood LNG: A Billon Cubic Feet Per Day!!

A Billion Cubic Feet of Regasified LNG, ready to be pumped into the pipeline, is what Bradwood Landing LNG Transfer/Storage Terminal is rated at per day.

A reasonable, projected cost and this may vary one way or the other, to get this LNG from the well to the terminal tank in Bradwood will be about $3.10 per One Thousand Cubic feet.

A reasonable, projected Gross Margin(Bradwoods Mark-Up Profit/Operating Costs) could be about $3.30 per One Thousand Cubic Feet.

(Note, these numbers are guesses on my part and are not qualified but I believe are very close with a few statistics following. As of Monday, quotes were AECO-C at $8.95MCF. To get gas from Alberta to Malin, OR, which is the only info I have, costs an additional $.35MCF. It's costing Canadian gas producers about $6MCF at the well head (some of the worst escalation in energy project cost worldwide is in that province; nat gas producers are having to pay costs influenced by the oil sands development. That means an LNG operator, right now, is looking at a gross margin of $3.30 at most. To be competitive, they have to make their project work within that amount.)

Ok, so lets dump the cost and deal with Gross Margin.

I billion(1,000,000,000) cubic fer per day divided by 1000 cubic feet equals 1,000,000 x $3.30MCF = $3,300,000.00 per pumping day.

Now, let's just say the we(Clatsop County) decided that, since our community is going to be subject to the mass impact on our infrastructure, life quality, and genreal public safety, we decide to negotiate a 2 cent ($0.02) per thousand cubic foot residual(This in addition to the projected property tax), taking 2 pennies out of their Gross Margin per 1000 cubic feet and equal $20,000 per pumping day x say, 260 pumping days a year, added to a county fund to "OUR", the citizens of Clatsop County's benefit.

Well, that would be an additional $5,200,000 a year revenue just for the privilege of using us and our assets to their benefit.

Add to this another $0.01 per 1000MCf ($0.01/2 for the property owner, $0.01/2 for the county the land is in) 24 hours a day for those property owners whose land those pipeline traverses. Can you imagine this number but, why not allow that pipeline the privilege as well for a little residual?

Now, when Oregon LNG/Pipeline raises its ugly head, they can play to the same deal so, double it all.

Now we have one sitting, and incredibly controversial County Commissioner who touts his private business acumen and four others, presumbaly with some leadership ability that continues to ignore this option as well as a bumbling Port Commission comfortable with a $39,000 a year lease for 65 years on a 90 acre piece of "OUR" land blind to it as well?

These people want to tamper with our lives and future, this is the least deal we should accept....The Least.

Would it make LNG a little easier to swallow

I invite these Energy Speculators to respond to this....Please!

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