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Work continues on state’s future

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TOTAL PROJECT SUPPORT

By Mike Bradner

s a North Slope natural gas pipeline any closer to reality? Alaskans have hoped for years that the stranded gas resources of the slope—36 trillion cubic feet known now and it’s believed 100 trillion cubic feet or more eventually— can be brought to market. After many false starts over four decades, a large gas pipeline and liquefied natural gas (LNG) project seems to be moving forward. Finally, the gas producers—the companies that own lease on the slope—and the state appear to be working in tandem on a project. Additionally, the state is aligned with TransCanada Corporation, an experienced pipeline company. Having all the players together on one team is considered vital to the project because it creates an alignment where the risks, and rewards, are shared equitably, the producing companies have maintained. There are bumps in the road, however. Governor Walker announced in February that he would “scale up” an alternative pipeline the state has worked on independently as a “Plan B.” This is the Alaska Stand-Alone Pipeline, or ASAP, a smaller pipeline project intended to get gas to Alaska communities if the big project falters. The governor wants to increase the volume of gas, or “throughput,” to improve its economics. The North Slope producers, the state’s partners in the big project, were unsure at first how to interpret the governor’s announcement. They worried that Walker desires to develop a state-owned competing project. The governor has assured the companies, however, that he still supports the state’s partnership in the large project and that the alternative state-backed ASAP is still just an option, a fallback for the state. However, there are concerns that the scaling up of the state-backed pipeline risks confusion in the Asia market, where the companies and the state hope to sell North Slope gas. The confusion would be over which project the state really supports, the industry-led project in which the state is a 25 percent partner or the state-led ASAP where the state is majority owner. If this project www.akbizmag.com

r EQUIPMENT RENTAL/PROJECT SUPPORT COMPANY r SUPPORTING THE NORTH SLOPE & COOK INLET r HEATERS, GENERATORS, VEHICLES, MANLIFTS, LIGHT PLANTS r CAMPS & CAMP SERVICES r FULL PROJECT LOGISTICS SERVICES & STAFFING

Magtec Alaska, LLC (907) 394-6350 Roger Wilson, Prudhoe Bay rwilson@magtecalaska.com Skeeter Creighton, Kenai (907) 394-6305 skeeter@magtecalaska.com

truckwell.biz

5801 Silverado Way, Anchorage, AK 99518 | Tel. 907-312-1796

April 2015 | Alaska Business Monthly

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Profile for Alaska Business

Alaska Business Monthly-April 2015  

A rare view of Alaska. This NASA image was captured June 17, 2013 and shows a rare view from space of the entire state—not obscured by cloud...

Alaska Business Monthly-April 2015  

A rare view of Alaska. This NASA image was captured June 17, 2013 and shows a rare view from space of the entire state—not obscured by cloud...