The Plan to Build a 1,700-Mile Pipeline Carrying 4.5 Billion Cubic Feet Per Day of Natural Gas Faces Significant Choices, Potential Obstacles
August 20th, 2008
Declaring a natural gas pipeline project proposed by TransCanada Alaska Co. and Foothills Pipelines Ltd. should be the choice because it “puts Alaskans first,” Alaska’s governor and other state executives have signaled their strong preference for that plan rather than an alternative gas pipeline proposed by BP and ConocoPhillips. Alaska Governor Sarah Palin, Department of Natural Resources Commissioner Tom Irwin, and Department of Revenue Commissioner Patrick Calvin said they have concluded the natural gas pipeline project as proposed by TransCanada Alaska Co. (TC Alaska) “merits issuance of the Alaska Gasline Inducement Act (AGIA) license because it maximizes the benefits to Alaskans.”
…
However, to get the gas pipeline built, she will need Exxon to commit its portion of the gas in Prudhoe Bay. Thus far, the Texas company has refused to do.
Exxon is the lone holdout. Its Prudhoe Bay partners, ConocoPhillips and BP PLC, earlier announced they would begin planning for a pipeline. Moreover, the state legislature, with the support of Palin, is currently meeting to determine whether to back a competing pipeline proposal from TransCanada Corp.
“Exxon has made billions of dollars off our North Slope oil. What we must demand in return is to be treated fairly,” said Ethan Berkowitz, the Democratic candidate for Alaska’s seat in the U.S. House of Representatives.
Click here to read the full story.
