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$1.2 Billion Cut from Projection of In-State Gas Pipeline CostProject has been simplified, agency saysRelated ContentANCHORAGE - The state agency working on an in-state natural gas pipeline says a re-design of the project means lower projected costs for consumers. The Alaska Gasline Development Corporation reported to legislators today that it has simplified its project. The biggest change: The corporation no longer proposes to ship natural gas liquids, or NGLs, through the pipe, because the economics no longer support it. "Everyone's heard of the impact of shale gas on natural gas prices in the Lower 48, and there's been a similar impact on NGLs in the Lower 48,” said Daryl Kleppin, commercial manager for the corporation. “If you look at the literature in the last year or two, they reference an NGL glut in the Lower 48." Leaving the liquids on the North Slope means the project shaves off $1.2 billion in costs for various facilities to handle them, thus reducing the tariffs paid by consumers. Some legislators obviously were energized by the report. "We have elevated the energy security for the state of Alaska to a priority state mission," said Representative Mike Hawker, R-Anchorage. But the gasline development corporation said it needs more assistance from the Legislature, including $400 million in additional funding in the coming session, as well as more authority in the law. "The confidentiality challenges that we've had in order to be able to talk to potential clients, producers, has made it difficult for us because we aren't able to have those meaningful conversations because we are subject to the open records act," said Frank Richards. Corporation officials acknowledge the in-state line would be unnecessary if the North Slope producers and TransCanada move forward quickly on the proposed project to tidewater for exports of liquefied natural gas, which would include gas take-off points for Alaskans. But for some, patience has worn thin. Hawker said, "If that fork is a dead end, we've got an agency that with our backing and a minimal amount of funding we are able to move forward to an open season and move Alaska’s gas forward at the direction of the legislature." It has shaped up as one of the biggest issues of the legislative session that starts next month. The corporation's timeline calls for an open season in 2014, in which gas producers would buy space in the line, and then first gas flowing through the pipeline in 2019. |
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Anonymous said on Thursday, Dec 27 at 12:17 PM
hurry Sean divert funds before they catch us with our hands in the HUGE cookie jar...oh too late...
110079091jmacinak said on Thursday, Dec 20 at 11:45 PM
"If that fork is a dead end, we've got an agency that with our backing and a minimal amount of funding we are able to move forward to an open season and move Alaska’s gas forward at the direction of the legislature." First you all need to decide that very issue (whether AGIA is a dead end) before you go spending half a billion dollars of our money. Hawker and Chenault and Governor give-away are out to undermine AGIA and the benefits it brings to Alaskans with the "must-haves", while Parnell "spins" it otherwise. We need to watch our wallets folks. Two billion a year here, half a billion to this, half a billion for that, all without a dimes worth of return to the people of the state or a commitment. Vet AGIA Mr Hawker, before you go spending half a billion of our dollars on another HB9 look-alike.
109719376so said on Thursday, Dec 20 at 8:05 PM
if we need the gas to keep the pressure up in the oil wells so we extract oil at 100 a barrel, are the going to take the cheap gas at the expense of oil?
109710665Mike J said on Thursday, Dec 20 at 7:52 PM
How much more talk before something actually gets built?
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