Port angles to be gas line terminus

WASILLA — Mat-Su Borough Port Director Marc Van Dongen said he hears people planning gas pipelines in the state talking primarily about lines running from the North Slope to either Valdez or Nikiski.

It’s easy to understand why. Valdez is where the oil pipeline ends and where oil is loaded onto ships for export. Nikiski has a natural gas liquefaction plant that could serve the line.

Port MacKenzie is always on the list as a potential terminus, but Van Dongen said he thinks it should be high in the rankings.

“We do have some significant advantages at Point MacKenzie,” Van Dongen said.

First, there’s the space. The port has lots of land that could be used to build a gas plant on. The port also has a deepwater dock and is working on getting a permit for a second one.

“I expect I will have it by the end of the year,” he said.

The port also is close to Ted Stevens Anchorage International Airport. He said there’s even talk of donating land for a plant.

“I don’t see anyone else making that kind of offer,” he said.

But there are some concerns.

Monday afternoon at its regular meeting, the borough’s Port Commission heard from Brad Keithley, an independent oil industry consultant who was there to talk to them about natural gas.

Keithley said that when he hears Port MacKenzie discussed as a potential terminus, he hears three concerns: ice, the deepness of the water there and habitat concerns for the Cook Inlet beluga.

Van Dongen said the depth of the water has proven not to be an issue even with large ships coming in and out of the port. And, he said, the beluga issue is going to be a problem for any community on Cool Inlet.

“The biggest issue is probably the ice,” he said.

But that can be overcome, either through storing enough gas on the other end so the customer doesn’t even have to bother with shipping in the winter, or through taking extra precautions in bringing ships into port.

Keithley said his sense is that customers would opt to keep a ship moving continuously rather than storing gas on the other end. In natural gas markets, the name of the game is reliability and making sure there is no risk of depleting your stockpile with no ability to replenish it.

But, Keithley said, whether Alaska enters this market at all is a big uncertainty. In attempting to sell gas to Asia, the state is entering a crowded market, he said.

Australia and Qatar are producing gas for export and British Columbia seems poised to jump in.

“Lots of suppliers are trying to gear up and compete in this market,” he said.

And Alaska is looking at a large, world-class project when it comes to a pipeline able to export gas.

“The world market is in flux. It’s changing. Alaska can play a role, but it’s by no means certain,” he said.

Borough Manager John Moosey said the borough is working to market its port to the oil and gas industry. He said he and his economic development director met with representatives at the Petroleum Club in Anchorage. Moosey said they are setting up a tour of the port to show the industry what the borough can offer.

“We’re starting to take those steps,” he said.

Contact Andrew Wellner at 352-2270 or

andrew.wellner@frontiersman.com.