Governor announces state to take equity position in gasline projects

I attended the Meet Alaska Conference Jan. 10, where Gov. Sean Parnell announced that “Alaska will control its own destiny” by pursuing an equity position in the Alaska light natural gas project via a formation of a subsidiary of Alaska Gasline Development Corp., and terminating the state government’s involvement with TransCanada under the Alaska Gasline Inducement Act.

“While most Alaskans have seen past efforts to develop a large gas project falter for various reasons, this time is different,” Governor Parnell said. “AGDC is our ‘ace in the hole,’ meaning we can still opt for the smaller volume ASAP project.”

He said that for the first time in state history, a framework is in place to build an all-Alaska gasline on Alaska’s terms and in Alaskans’ interests.

“Ownership ensures we either pay ourselves for project services, or negotiate and ensure the lowest possible costs,” he said. “We have all the necessary parties to make an Alaska gasline project go — three producers, a pre-eminent pipeline builder, an entity in AGDC that can carry Alaskans’ interests and state agencies responsible for the royalties and taxes.”

The governor said he expects a commercial agreement soon for the Alaska LNG project. Exxon, BP, ConocoPhillips, TransCanada, Alaska Gasline Development Corp. and the commissioners of the state Departments of Revenue and Natural Resources are expected to sign a “heads of agreement,” which will be subject to public review by the Legislature.

Governor Parnell said he also intends to introduce legislation addressing how the state will manage its gas resources by authorizing the Department of Natural Resources to modify certain leases, and enter into shipping agreements to move and sell the state’s natural gas.

Don Dyer is Economic Development eirector for the Mat-Su Borough and the Mat-Su representative on the Citizen Advisory Committee for Alaska Gasline Development Corp.’s ASAP gas pipeline project.