Weather
Early Reaction Favorable On Parnell's Shift to Liquefied Natural GasApparently no one saw this coming.A day after Governor Sean Parnell's speech on the natural gas pipeline, legislators are calling it a game-changer on how to commercialize Alaska's untapped resource. There now appears to be new momentum for an all-Alaska gas line -- providing gas in-state, as well as exporting it to Asian markets, rather than the Lower 48. Apparently no one saw this coming. Parnell had been standing by the project pursued by Transcanada and ExxonMobil under the Alaska Gasline Inducement Act. The governor isn't abandoning AGIA as a framework, but now he says the pipeline route and marketing strategy probably should shift. And he's getting a good bipartisan response. Parnell told the Alaska Oil and Gas Association an abundance of shale gas in the Lower 48 market, along with a post-tsunami collapse of Japan's plans for more nuclear power plants, means the market for Alaska's gas has shifted. "If TransCanada, ExxonMobil and other potential major shippers get better alignment under AGIA over an LNG line to tidewater in this state, we are going to be flexible." With that, Parnell might have jump-started the once prominent but lately dismissed project for liquefying natural gas in-state and then shipping it abroad. Says Sen. Bill Wielechowski, D-Anchorage: "This is the first time, I would say, that we've seen that from someone in the governor's office. Governor Knowles, Governor Murkowski, Governor Palin, Governor Parnell all were very heavy on pushing the gas line down to the Lower 48. Maybe this is a recognition that the Lower 48 is not the market we need to be; the Asia market is where we need to be." For Bill Walker, whose campaign against Parnell in the 2010 republican primary was focused on the so-called all-Alaska line, the governor's speech was a welcome development. "I'm just very pleased that the governor has acknowledged the market shift and recognizing that we also have to shift as Alaska." Originally, AGIA did contemplate the possibility of taking gas to tidewater and shipping it to Asian markets. But now that TransCanada has the license, is it simply a matter of the legislature changing the law? "I don't know if TransCanada would agree with that, because I think they probably do have a market in Canada for our gas," said Sen. Kevin Meyer, R-Anchorage. A company spokesman declined an interview, issuing this statement: "TransCanada, as the AGIA licensee, has regular conversations with different levels of the state administration on matters pertaining to the Alaska pipeline project. Those discussions are held in confidence under the terms of the license. Transcanada is continuing its efforts to advance the Alaska pipeline project to successfully transport North Slope gas to market." ConocoPhillips and BP also issued similar boilerplate statements. Walker wants the state to stop trying to attract companies to the gas line project and instead build the infrastructure itself. "If we're going to be an owner state, we need to act like owners. And owners don't sit back and hope somebody goes out and harvests their wheat and takes it to a market." The governor's speech shook things up. But the dust could be a long time settling. A big question in the next legislative session is whether gas line issues can be separated from the governor's strong push for a reduction in oil production taxes. The senators I spoke to hope they can address each on their own merits, but they acknowledge that might not happen. The conflation of oil and gas issues in 2006 contributed to then-Gov. Murkowski's failure to get the Legislature to consider a contract for the gas line. |
This content requires the latest Adobe Flash Player and a browser with JavaScript enabled.
Click here for a free download of the latest Adobe Flash Player.
|
You have indicated this comment should be removed.
The comment has been submitted for review. Thank you .
you can count on thomas said on Saturday, Nov 12 at 10:47 PM
What if we took care of our own state, investing and re-investing in our basic systems making profits on real property as opposed to froth in the financial blenders on wall street. When my grandson is a grandfather, living in the remote village, would it not be nice and proper not to think twice when baby turns up the thermostat because it wants to be hot. Our current investments enable only frugal's the like of Newt Gingrich to spend their way to heaven on earth while mom has only 2.5Kg rice to feed the babies for the month. What's the best way to invest our inheritances, brick and mortar here in Alaska for Alaskans or a pipe to Chicago so they can burn gas from Alaska and the mid-west at the Alberta tar sands rather than a home and business on the Yukon or Bristol Bay and everywhere else an Alaskan lives and excellent life. Something like that...
76843894AKLAWDOG said on Saturday, Oct 29 at 10:24 AM
That is because there are court dates coming up and Captain Zero doesn't want to have to tell the judge that the HUGE Trust Fund was transferred to Trans-Canada by Failin Palin and then went back to England upon the royal visit to Canada...but hey what do I know... Guess we will find out in court hu Captain Zero
76046529Add a comment
Most Popular