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ANGDA pushes for spur gas line

Posted: Wednesday, January 16, 2008

Even though the Alaska Natural Gas Development Authority's bid to build an Alaska natural gas pipeline was not accepted by the governor, ANGDA does not appear to think any less of its plan.

"We submitted applications to bring gas through Delta Junction or to Glennallen on the way to Valdez for an LNG project," said ANGDA Chief Executive Officer Harold Heinze on Tuesday in Kenai.

"Unfortunately our project did not go all the way to the North Slope so it was not in the (Alaska Gasline Inducement Act) process," he said.

Addressing the Kenai chapter of Alliance, Heinze said ANGDA's project, commonly called the spur line, would bring natural gas through a 20-inch line from Delta Junction to the Cook Inlet region, including the Kenai Peninsula industrial users.

Gov. Sarah Palin sought bids to construct a 48-inch line to bring North Slope natural gas to market.

Of five applications submitted, only one proposal from TransCanada Alaska Company LLC-Foothills Pipelines Ltd. satisfied all the mandatory requirements set out in AGIA.

Heinze said the open season provision of AGIA equates to an opportunity to bid on capacity in a pipeline to be built.

"If you do not participate, you are not at the table," he said, relating to gas deliveries once a pipeline is eventually built and online.

"All ANGDA can do now to participate is to educate the public," Heinze said.

"At this point, the AGIA process is moving forward. That's the good news," he said. "The bad news is there is only one (satisfactory) application, and it's not very competitive."

He said the process has moved to the evaluation stage, and currently is in a 60-day public comment phase.

"It would be a decade before gas is flowing," Heinze said.

Referring to an Alaska pipeline project timetable, he said the next couple of years would be spent deciding whether to build a pipeline.

Heinze also referred to a ConocoPhillips pipeline proposal rejected by Palin, saying, "ConocoPhillips is a very competent company with a good proposal."

"The AGIA process has resulted in one idea going to the Legislature (for approval)," Heinze said, adding it does not compare with the all-Alaska pipeline most Alaskans favor.

He said, "It's important we keep as open as we can to as many ideas as we can.

"All Alaskans agree, we want something to happen and we want a share in what happens," Heinze said.

Saying he sees "some very unclear debate ahead," Heinze said ANGDA "is your public corporation trying to get gas to you."

Phil Hermanek can be reached at phillip.hermanek@peninsulaclarion.com.



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