The line, which would carry gas south from the Prudhoe Bay oil fields in northern Alaska, would be the state's largest project since the Alyeska oil pipeline was built in the 1970s, setting off a Northwest boom and transforming Alaska's economy.
Though the line's route is still uncertain and construction might not start for five years, companies here already are preparing to tap the expected gusher of investment flowing north.
"It would have a huge impact on the Pacific Northwest," said John Parrott, a vice president at Totem Ocean Trailer Express Inc., which is based in Tacoma. "The pipeline is just breathtaking, how much money we're talking."
Joe Balash, special assistant to Alaska Gov. Sarah Palin, said two routes are under review: an 800-mile, $10 billion gas pipeline to Valdez, where crude oil currently is loaded aboard tankers; and a 2,100-mile route connecting with existing gas pipelines in Alberta, Canada, that would cost $20 billion to $25 billion.
Since the ports of Seattle and Tacoma are primary gateways for nearly every product that goes to Alaska, Northwest transportation companies and suppliers likely would reap much of the business generated by the project.
In early July, Palin re-invigorated interest in the pipeline by offering $500 million in state money to help build it. Her office has since extended its original Oct. 1 deadline for proposals to Nov. 30, in response to requests for more time from some would-be bidders.
The finished pipeline will tap 35 trillion cubic feet of proven natural gas reserves, with more in the field. Much of the gas has come to the surface with crude oil from the Prudhoe Bay oil fields, and then been re-injected into the ground to maintain oil field pressure and to preserve the gas for later sale. Now, with North Slope oil flow through the existing pipeline down to 800,000 barrels a day, or just 38 percent of the 1989 peak, the industry is turning to the state's gas fields to bring revenue again.
The Northwest already is a major supplier to Alaska, with two ocean carriers sailing out of Tacoma, and a variety of barge services leaving from Seattle. But shippers say they'll need a lot more capacity if the pipeline project goes ahead.
To meet the need, Totem Ocean Trailer Express, or TOTE, is holding onto an aging 790-foot cargo ship no longer needed for normal cargo service, because the ship's capacity would be essential if construction on the pipeline were to start. This is in addition to another ship the company already keeps for emergencies.
"We've always said we were going to keep one ship at least, with the promise of a pipeline," said Parrott. "We feel the pipeline project is another 10 years of business. They would be perfect ships to cover expansion through the building up of the pipeline."
TOTE expects to move lots of supplies, though it probably won't move much of the pipe. "It's all the other stuff that goes with it," Parrott said.
