Pipeline no longer pipe dream

With crude oil prices passing $130 a barrel and still rising, developing more long-term energy solutions for Alaska and the United States should be a top priority, and Alaska is poised to be at the forefront of delivering those solutions.

Gov. Sarah Palin made an historic first step Thursday by recommending a proposal to tap into Alaska’s vast natural gas reserves. Her announcement that TransCanada Alaska Co.’s application under the Alaska Gasline Inducement Act “puts Alaskans first” is good news. With the Legislature set to meet beginning June 3 in a special session to hash out TransCanada’s application, it’s hopeful we’ll soon move past debating the issue toward actively working to make a gas pipeline happen.

The 1,715-mile pipeline from the North Slope to TransCanada’s hub in Alberta has the potential to be for Alaska in the 21st century what the oil pipeline was in the 20th century. We are also reassured by the state’s announcement that the pipeline will do more than simply transport all of Alaska’s natural gas out of the country. There are provisions to tie five local spur lines into the project to bring some of that natural gas to our local communities. That’s in addition to a Southcentral “bullet line.”

Palin goes so far as to call TransCanada’s application an “incredible proposal” and credits a competitive bidding process with other energy producers like BP and ConocoPhillips.

“TC Alaska knew that it had to create an attractive plan which was good for Alaskans in order to win the bid,” Palin said. “They succeeded. And it means that Alaska’s gas will make it into our homes and America’s homes sooner.”

Like the oil tax revenues the state and residents enjoy, the potential for an Alaska gas pipeline runs into billions of dollars. That’s more money for local residents, roads, infrastructure, education and our state’s future. With oil prices continuing to rise, the development of another abundant natural resource is necessary and worth the $500 million the state has pledged as an inducement to help cover costs associated with getting approval from the Federal Energy Regulatory Commission.

It’s now up to the Legislature to examine Trans-Canada’s application and the governor’s recommendation, and to set the wheels in motion. Lawmakers challenged the governor and her staff last year to solicit applications through the AGIA process. The Legislature has much work to do to make sure the TransCanada proposal will do everything Palin and her staff say it will. That Alaska and its interests are protected is the No. 1 charge for our state representatives. Whether the fine details of Palin’s proposal are truly best for all of Alaska will be revealed beginning June 3.

Until then, it’s exciting to know a gas pipeline is closer to being reality than a pipe dream.