State shelves Alaska Stand Alone Pipeline project
Two days after Gov. Bill Walker announced plans for a special session on his natural gas pipeline project, known as AKLNG, the state put a smaller, competing project on hold.
The Alaska Stand Alone Pipeline (ASAP) was almost ready for construction after more than five years. At a board meeting Wednesday, members of The Alaska Gasline Development Corporation (AGDC) decided to shelve it, saying they didn’t want to run parallel projects. Instead, the agency plans to focus efforts and funding on AKLNG, the larger pipeline project that involves large oil companies like Exxon Mobil, BP and ConocoPhillips.
A report from the AGDC shows the state has already spent more than $125 million on the smaller pipeline project, which may never be finished.
“On the original schedule, we were ordering pipe in January of ’16,” said Dave Cruz, an AGDC board member. “So when we’re talking about shelving this, I want you all to understand how far advanced ASAP is.”
AKLNG is still in its planning stage. It’s not clear how big the pipe will be, how much it will cost or where the off-take point will be.
AGDC president Dan Fauske says those negotiations are slowly moving along. He says he doesn’t know what the governor is planning to present to legislators at a special session.
“A lot of these commercial documents have to be agreed to, and signed off on before the project can go forward,” Fauske said. “Legislators have said in the past they don’t want to see terms sheets or piecemeal, they want to see the deal, and we’re not there yet.”
The governor says he’s looking at buying out TransCanada Corporation’s share of the project, which could cost the state around $100 million. Fauske says he doesn’t know where negotiations stand on that.
Walker says he’ll release details about a special session later this week.