Only one of five applications to build an Alaskan natural gas pipeline will move on to a public comment period, Gov. Sarah Palin said Friday.
The application from pipeline giant TransCanada met or exceeded all the state's requirements for the massive project, Palin said, while applications by Chinese firm Sinopec, a small California firm called AEnergia and two Alaska government groups were deemed incomplete.
"We have long stated that it only takes one good application," Palin said. "We're thrilled to have a project sponsor willing to build a pipeline on terms that benefit all Alaskans."
The state is still reviewing a pipeline proposal made by Houston-based ConocoPhillips outside the formal bid process.
It was publicized the same day in November the bids were due to the state, "but it is not being considered under this process," Palin said at a news conference.
A 60-day public review of the TransCanada proposal began with Friday's announcement. At the end of that period Palin may submit the bid to the state Legislature, which begins its session Jan. 15.
A project to bring the North Slope's natural gas to market has been discussed since 1977, when crude oil began flowing on the Trans-Alaska Pipeline. The North Slope has proven gas reserves of 35 trillion cubic feet, or about 13 percent of known U.S. reserves, according to Department of Energy data. But geologists say there could be as much as 200 trillion cubic feet of undiscovered gas in Alaska.
In 2006, the three largest Alaska producers — ConocoPhillips, Exxon Mobil Corp. and BP — negotiated a pipeline deal in private with then-Gov. Frank Murkowski, but it was thrown out after Palin beat Murkowski in the 2006 GOP primary.
When Palin took office last year, she created an open bidding process for companies to receive state-backed incentives — the Alaska Gasline Inducement Act. The winning bid will get $500 million in state money for the project and a promise of fixed tax rates for 10 years.
The application from pipeline giant TransCanada met or exceeded all the state's requirements for the massive project, Palin said, while applications by Chinese firm Sinopec, a small California firm called AEnergia and two Alaska government groups were deemed incomplete.
"We have long stated that it only takes one good application," Palin said. "We're thrilled to have a project sponsor willing to build a pipeline on terms that benefit all Alaskans."
The state is still reviewing a pipeline proposal made by Houston-based ConocoPhillips outside the formal bid process.
It was publicized the same day in November the bids were due to the state, "but it is not being considered under this process," Palin said at a news conference.
A 60-day public review of the TransCanada proposal began with Friday's announcement. At the end of that period Palin may submit the bid to the state Legislature, which begins its session Jan. 15.
A project to bring the North Slope's natural gas to market has been discussed since 1977, when crude oil began flowing on the Trans-Alaska Pipeline. The North Slope has proven gas reserves of 35 trillion cubic feet, or about 13 percent of known U.S. reserves, according to Department of Energy data. But geologists say there could be as much as 200 trillion cubic feet of undiscovered gas in Alaska.
In 2006, the three largest Alaska producers — ConocoPhillips, Exxon Mobil Corp. and BP — negotiated a pipeline deal in private with then-Gov. Frank Murkowski, but it was thrown out after Palin beat Murkowski in the 2006 GOP primary.
When Palin took office last year, she created an open bidding process for companies to receive state-backed incentives — the Alaska Gasline Inducement Act. The winning bid will get $500 million in state money for the project and a promise of fixed tax rates for 10 years.
TransCanada's plan calls for a 48-inch pipeline to run 1,700 miles from Prudhoe Bay to the Canadian province of Alberta. From there it would tie into existing pipelines to reach U.S. markets. It could cost $26 billion to $35 billion and could begin shipping gas in 2017.
ConocoPhillips' proposal was similar, but price estimates ranged from $25 billion to $42 billion. ConocoPhillips officials said Friday they believe their proposal "has the best chance of leading to a successful Alaska gas pipeline project and we look forward to working with the administration and the legislature as we move into the public process stage."
Brian Wenzel, ConocoPhillips vice president of Alaska North Slope Gas Development, has said the company would be willing to work with a firm like TransCanada on the project.
TransCanada spokeswoman Shela Shapiro said the company has had ongoing discussions with all the North Slope producers for several years.
"It has been our long-standing position that an alignment of the state, the ANS Producers and TransCanada is the optimal path to a successful project," Shapiro said.
Details of why the other four applicants didn't move on to the next stage, as well as the state's comments on ConocoPhillips' proposal, will be posted online later, Palin said.
ConocoPhillips' proposal was similar, but price estimates ranged from $25 billion to $42 billion. ConocoPhillips officials said Friday they believe their proposal "has the best chance of leading to a successful Alaska gas pipeline project and we look forward to working with the administration and the legislature as we move into the public process stage."
Brian Wenzel, ConocoPhillips vice president of Alaska North Slope Gas Development, has said the company would be willing to work with a firm like TransCanada on the project.
TransCanada spokeswoman Shela Shapiro said the company has had ongoing discussions with all the North Slope producers for several years.
"It has been our long-standing position that an alignment of the state, the ANS Producers and TransCanada is the optimal path to a successful project," Shapiro said.
Details of why the other four applicants didn't move on to the next stage, as well as the state's comments on ConocoPhillips' proposal, will be posted online later, Palin said.
Via: Herald Chronicle | By TOM FOWLER
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