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This
initiative has been launched by the principal of Alpha Genesis with a
more altruistic goal in mind. However, there are good signs that it can
also become such a profitable venture that it might culminate into the
creation of a company which will be separate from Alpha Genesis and with
a broader shareholder structure.
The
initial altruism was simple: in a world where energy plays a primary
role in shaping economic and security policies we need to find realistic
long-term solutions that match the interests of the major buyers and
suppliers of energy. The cornerstone of such a solution lies in a closer
cooperation between the United States and Russia. And the best kept
secret: Liquefied Natural Gas (LNG).
Given
today’s data, Russia holds more than 30% of the world proven gas
reserves. These reserves are bound to expand since the vast Siberian
plateaus are still practically unexplored. The discoveries in Sakhalin
and the investments from U. S. companies there should not be considered
as an adequate step in exploiting this niche of the energy market. We
can do a better match, if we consider the following facts:
U.S. companies have the
leading technologies in the construction of liquefaction and
regasification facilities.
LNG is not a fuel that
is prohibitively dangerous to be used even for energy production at the
major urban centers of the U.S. Northeast. The experience of Japan
demonstrates that LNG can be a relatively secure energy solution.
LNG is the
cleanest-burning fossil fuel.
A liquefaction facility
in the Western part of Russia can provide a supply center to the United
States that is closer than even Nigeria.
THE
INITIATIVE:
There
is a substantial interest from both American and Russian firms to
exploit LNG, but they are inhibited from the political uncertainties and
the expected bureaucratic red-tape that relates to the significant
capital investments required for the facilities / other infrastructure
at both the supply and receiving sides. Practically, to move forward we
need a political embrace from both the government of both the United
States and Russia.
Alpha
Genesis is doing what it can to rally for this cause. It does not just
make good business sense, it is also an imperative for a more secure
world in which the U.S. will have a more diversified supply of energy.
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