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Northern Gas Pipelines, (Alaska Gas Pipeline, Denali - The Alaska Gas Pipeline, Mackenzie Valley Gas Pipeline, Alaska Highway Gas Pipeline, Northern Route Gas Pipeline, Arctic Gas, LNG, GTL) is your public service, objective, unbiased 1-stop-shop for Arctic gas pipeline projects and people, informal and rich with new information, updated 30 times weekly and best Northern Oil & Gas Industry Links on the Internet. Find AAGPC, AAGSC, ANGTL, ANNGTC, ANGDA, ANS, APG, APWG, ANGTA, ANGTS, AGPPT, ANWR, ARC, CARC, CAGPL, CAGSL, FPC, FERC, GTL, IAEE, LNG, NEB, NPA, TAGS, TAPS, NARUC, IOGCC, CONSUMER ENERGY ALLIANCE, AOGA,AOGCC, RCA and more... 2009 LINKS: FERC Reports to Congress, 1, 2, 3, 4, 5, 6, 7....; USGS Arctic Gas Estimates; MMS hearings: RDC, Our NGP, AJOC, DH, ADN, KTUU; Enstar Bullet Line: Map and News Links; ANGDA; Alaska Energy Forum; Prosperity Alaska 2008 LINKS: Shell Alaska OCS Study; Mackenzie Gas Project EIS; Join the Alaska Gas Pipeline Blog Discussion; Governor Sarah Palin's AGIA Links; 2007 ACES tax bill links; Department of Revenue 2007 ACES tax documents; 2007 ACES tax Presentations; 2007 ACES tax news; Alaska Gas Pipeline Training and Jobs; Gas Pipeline and Economic Development; Andrew Halcro; Bjørn Lomborg; FERC's Natural Gas Website LinksWASHINGTON: Alaska Natural Gas Pipeline Act; History of H.R. 4; DOE Energy Bill Position, 6-02; Daschle-Bingaman Energy Bill (Alaska, Sec. 1236 & tax credit, Sec. 2503 & H.R. 4 Conferees), Tax Credit; See amendments, "Energy Policy Act of 2002"; "Alaska Natural Gas Pipeline Act of 2001 (Draft)" & Background Paper, 8-9-01;Alaska Legislature Joint Committee position; Governor's position; Governor's 10-Point Plan; Anadarko Analysis; U.S. Senate Energy Committee Testimony, 10-2-01 - text version; U.S. Senate Energy Committee Testimony, 9-14-00; Report on the Alaska Natural Gas Transportation Act of 1971, prepared by staff of the Federal Energy Regulatory Commission, 1-18-01 ALASKA: 1-23-03, Governor Frank Murkowski's State of the State Speech; 2002 DRAFT Recommendations to 2003 Legislature; '02 Alaska Legislation; Alaska Highway Natural Gas Pipeline Policy Council; Joint Legislative Gas Pipeline Committee; 9-01 Alaska Models: Canadian Routes, LNG, GTL; HR 4 Story; Cook Inlet Supply-Demand Report: AEDC; Commonwealth North Investigation & Our Article; Report: Backbone; Legislature Contacts; State Gas Pipeline Financing Study; 5-02 Alaska Producer Update; Kenai: "Oil & Gas Industry Issues and Activities Report, 11-02"; Alaska Oil & Gas Tax Structure; 2-27-02 Royalty Sale Background; Alaska Gas Pipeline Office opens, 7-01, and closes, 5-02; Betty Galbraith's 1997-1998 Chronology. Our copy. CANADA: 1-10-03, "Arctic Gas Pipeline Construction Impacts On Northern Transp."-Transport Canada-PROLOG Canada Inc.-The Van Horne Institute;Hill Times Reports, 8-30-02; 9-30-02, Cons. Info. Requirements; CBC Archives, Berger Commission; GNWT Economic Impact Study, 5-13-02; GNWT-Purvin & Gertz Study, 5-8-02; Alberta-Alaska MOU 6-02; Draft Pan- Northern Protocol for Oil and Gas Development; Yukon Government Economic Effects: 4-02 & PPT; Gas Pipeline Cooperation Plan Draft & Mackenzie Valley Environmental Impact Review Board; Mackenzie Valley Pipeline MOU Draft, 6-01; FirstEnergy Analysis: 10-19-01; Integrated Delta Studies; National Post on Mackenzie Pipeline, 1-02;Northern Pipeline Act; Haida Nation v. British Columbia; Indian Claims Commission; Skeena Cellulose decision -- aboriginal consultations required, 12-02; Misc. Pipeline Studies '02 COMPANIES: Alaska Gas Producers Pipeline Team Newsletter, 7-27-01; APG Newsletter: 5-02, 7-02 & 9-02; ArctiGas NEB PIP Filing Background; NRGPC Newsletter: Fall-02; 4-02 ArctiGas Reduces Field Work; BP's Natural Gas Page; Enbridge Perspective; Foothills Perspective; Williams Perspective; YPC Perspective, 7-02 MEDIA REFERENCE: Alaska Journal of Commerce; Alaska Inc. Magazine; Anchorage Daily News; Canadian Broadcasting Corporation; Fairbanks Daily News Miner, Juneau Empire; Northern News Services; Oil & Gas Reporter; Petroleum News Alaska; Whitehorse Star, etc. EXTENDED CONFERENCE NEWS: Alaska Support Industry Alliance, Anchorage Chamber of Commerce, Canadian Institute, Insight Information, Inuvik Petroleum Shows, International Association of Energy Economists, Resource Development Council for Alaska, Ziff Energy Group
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Northern Gas Pipelines: Liquefied Natural Gas Projects (LNG) 1. Background 3. Status, 2001 6. Commentary: Mead Treadwell
1. Background. Phillips Petroleum Corporation launched the first U.S. LNG project with their Kenai plant (LNG: Liquefied Natural Gas, cooled to -260 and maintained under pressure with controlled release, or 'boil off' of vapors). The plant used natural gas from the Cook Inlet fields, discovered in 1957 and providing the economic momentum for achievement of Alaska's statehood in 1959. (NGP Photo right, Phillips Alaska's Cook Inlet Operations Manager, Steven F. Arbelovsky, describes LNG process, 5-01) So, for America in general and Alaska particularly, LNG was a proven concept. In the mid-1970s, El Paso Natural Gas filed an application with the Federal Power Commission to provide Alaska North Slope natural gas, then amounting to 26 trillion cubic feet (TCF) of proven reserves, to Lower 48 markets. The project envisioned moving ANS gas along a route roughly paralleling the Trans Alaska Pipeline System (TAPS), to the Valdez area, where it would be liquefied, loaded onto LNG tankers, and transported to California (i.e. which then posed no serious obstacles to LNG projects). El Paso then proposed to employ a "displacement" scheme, whereby pipeline flow in certain East to West pipelines could be reversed, thus providing Alaska volumes to points East. FPC Administrative Law Judge, Nahum Litt, supported El Paso only as a "back-up" to Arctic Gas' overland pipeline application on February 1, 1977. However, on May 1 of the same year, the four FPC commissioners provided their "Recommendation to the President" in which they gave equal weight to the Arctic Gas and Alcan overland systems, effectively denying El Paso's application. 2. Alaska Support. El Paso's Chairman, Howard Boyd, organized a diligent public relations program in support of his application. Retired BG John Bennett served as President of El Paso Alaska. Messrs. Boyd and Bennett engaged in debates with Arctic and Alcan nationwide in support of their "All American" concept. While they did not succeed in creating a foundation of national political support, they did win the Alaska public relations battle. They successfully argued that their project would provide maximum employment and value added benefits to the State. Governors Walter J. Hickel and William A. Egan were joined by most of Alaska's leaders in support of El Paso while groups such as the "Organization for the Management of Alaska's Resources" (now, Resource Development Council for Alaska), raised a large, donated war chest of funds and lobbied Washington D.C. and other important constituencies. 3. Status: 2001. Following El Paso Alaska's demise, local Alaskan and powerful "Outside" investors formed a successor group which believed that the true market for Alaska LNG would be the booming Pacific/Asia market; this project became widely known as the Trans Alaska Gas Pipeline System, or TAGS. CSX Corporation is the largest shareholder of Yukon Pacific Corporation, successor of this project. For the last several years, as gas prices began to improve, several other El Paso successors have considered competitive schemes for moving gas to Asia, Mexico and other destinations. These include: a. Alaska North Slope LNG Project. ARCO Alaska (a major North Slope gas owner, now Phillips Alaska, Inc.), Phillips Petroleum Corporation, Canada's Foothills Pipeline Ltd., and Marubeni Corporation (a major Japanese trading company), participate in a "sponsor group" dedicated to advancing a major North Slope LNG project (See Steve Alleman's 7-18 legislative testimony here). Yukon Pacific Corporation once owned about 12% of this consortium, but has withdrawn. b. The Alaska Gasline Port Authority proposes a route for ANS gas terminating in Valdez, with financing provided via a municipally owned "authority", with tax free municipal bonds. The "Sponsor Group" above has considered Valdez and Nikiski areas for a terminus, were an LNG project to be viable. 6/11/01 news feature. c. Cook Inlet Pipeline Terminus Group. This group takes a 'high road' when compared with some advocate groups. It says it is "PRO-Natural Gas Pipeline whichever routes are chosen". That said, it convincingly argues for a terminus in the Nikiski area currently hosting Phillips' LNG plant, Agrium's fertilizer plant, BP's new GTL laboratory and Tesoro Alaska's refinery. The "Sponsor Group" above has considered Valdez and Nikiski areas for a terminus, were an LNG project to be viable. d. North Foreland Facility and the Trans-Alaska Gas Pipeline. Tyonek Native Corporation, on the North side of Cook Inlet from Kenai, proposes an LNG terminus at their North Foreland Port Facility, but according to the Joint Pipeline Office, the project is relatively inactive as of 7-01. e. LNG advocate organizations (in
addition to those above) include many local governments and non-profits,
including but not necessarily limited to:
Backbone, Kenai,
"Our
Gas, Our Future" 4. Current LNG Events: Post-2001. 1-11/12 Weekend Updates: Fairbanks Daily News Miner-The guy with the gas line idea, Anchorage longshoreman Scott Heyworth (NGP Photo, 5-01) has approached Gov. Frank Murkowski with the expected follow-up question after the passing of Ballot Proposition 3 in November's election. He is seeking $2 million to fund a new Alaska Natural Gas Pipeline Authority. This newspaper came out against the ballot measure prior to the November election. We said to vote "no," but couched it with the admission that we knew it was going to pass because, hey, Alaskans have wanted to see construction of a natural gas pipeline since they finished building the oil pipeline back in the '70s. 1-4/5 Weekend Updates: Anchorage Daily News Editorial-It's a fair bet that a lot of Alaska voters didn't realize what they were doing when they overwhelmingly passed Prop. 3, the natural gas pipeline authority initiative. No doubt they wanted to send a strong message of support for a possible gas line, but in doing so, they authorized a risky and radical venture: giving state government the power to finance, build and operate a multibillion dollar pipeline to export liquefied natural gas. 1-2-03 Updates: 07:17 ET. Alaska Oil & Gas Reporter, by Tim Bradner-The chief backer of a new state natural gas pipeline authority is promoting a proposed work plan for the authority with a $2 million budget, but Gov. Frank Murkowski's new administration is being noncommittal. Scott Heyworth an Anchorage longshoreman who spearheaded the campaign for a ballot proposition creating the authority, presented his ideas to Murkowski and has met with Bill Corbus, the new Commissioner of Revenue, Heyworth said.
12-7/8 Weekend Updates: BALLOT MEASURE #3.
ADN by Larry Houle (NGP Photo,
2-02)- 11-22-02 Updates: 01:15, 01:44, 13:27, 13:36 ET. BALLOT PROPOSITION 3. Valdez Star by Pat Lynn--In a strange turn of events, the Alaska Gasline Port Authority, which was formed to build a natural gas pipeline from the North Slope to Valdez, contributed $15,000 toward an effort to defeat that same measure at the polls Nov. 5. 11-15-02 Updates: 00:01 ET. ALASKA LNG PROPOSAL. Entitled, "What’s next for Ballot Measure 3?", Anchorage Chronicle Business Editor Rose Ragsdale (NGP Photo) has produced in this in-depth article outlining the possible courses of action flowing from voter approval of a state owned Authority to build and operate a gas pipeline. "The day after the Nov. 5 election, Scott Heyworth (NGP Photo) sat down with members of Gov.-elect Frank Murkowski’s transition team," the article begins. “It’s wasn’t anything formal, more like scribbling on cocktail napkins,” recalled Heyworth, the chief proponent of the All-Alaska Gas Line Initiative. “My task now is to convey to the governor-elect’s transition team the important things. I wanted them to know that we are eager to work with the Murkowski administration and that we have ideas for how to proceed.” NGP readers may download the complete article here. Here is Scott Heyworth's Op-Ed piece also appearing in the Chronicle. Heyworth was the chief sponsor of Ballot Measure 3. NGP readers may review our earlier reports here, including downloads of the proposition and the law its passage approves. 11-12-02. CBC-Whitehorse, Yukon - Alaskans have voted overwhelmingly in favour of an initiative that could be the end of any hopes for an Alaska Highway Pipeline. 11-10-02. Voice of the Times. An all-Alaska, state-owned gas pipeline may sound good, but it would almost certainly be a financial nightmare. 11-5-02 (Election Day). How horrified will voters be when we wake up Wednesday morning and learn that a well intended vote on an apple pie issue produced an unwanted law on Tuesday? Ballot Proposition #3 is well intended. Like apple pie, its steaming aroma is intoxicating. Who could not want an Alaska gas pipeline, new jobs and new industry? I’ll vote for that! Unlike a piece of fresh, warm apple pie, Prop 3 offers more than meets the eye. Those who patriotically vote for it could unknowingly be approving about 10 pages of new law that isn’t on the ballot.... (Complete editorial here.) Here are other supporting and opposing views. 11-2/3-02. Fairbanks Daily News Miner: ON TUESDAY, ALASKA VOTERS WILL DECIDE WHETHER TO CREATE A GOVERNMENT AGENCY TO OWN AND OPERATE A NORTH SLOPE GAS PROJECT INVOLVING LNG ... NOT CANADA. LNG DEMAND WORKS AGAINST ALASKA'S PROPOSITION #3. On 10-24, Jane Lee of Bloomberg News Service reported from Jakarta that Indonesia will sell LNG at prices about 25% lower than Japan is presently paying ($3.60-3.80MMBtu). China will buy the LNG at about $2.40/MMBtu (add $.30-.40MMBtu transportation), linked to a formula based on $20Bbl oil. A proposed Alaska Gasline Authority is on the ballot for voter approval in November. Ballot Proposition #3 would create a government agency responsible for building and operating a gas pipeline/LNG project, adding Alaska natural gas to a growing Pacific Rim glut of new supply chasing lackluster demand. A private sector investor, gas seller or gas buyer has yet to exhibit confidence in the economics of such an Alaska North Slope pipeline/LNG project though a majority of hopeful voters-at-large seem prepared to authorize public support for the concept. -dh (Further reference to Ballot Proposition #3. Scott Heyworth's latest arguments supporting the proposition. See today's AP story by Mary Pemberton; we first covered this story on 10-24. ) 11-1-02 Updates: 00:01, 11:13, 12:54, 13:13, 13:28 ET. Anchorage Daily News-Former Gov. Walter J. Hickel (NGP File Photo) endorses Ballot Proposition #3, creation of an Alaska Gasline Authority. Other reference. 10-28 Updates: 00:24, 01:00, 01:32, 01:50, 02:10, 11:20, 11:35, 11:44, 12:10, 12:36, 14:05, 14:18 ET. Comment on stories below: Passage of Alaska's Ballot Proposition #3 could work against passage of H.R. 4 gas pipeline incentives. Canada's approval of Kyoto Protocol requirements could add uncertainty to northern gas pipeline planning. These late arriving variables added to existing gas pipeline trade and competition issues give weight to our earlier suggestions for action at the highest level before chaos determines the outcome of northern gas pipelines. -dh 10-28-02. Scott Heyworth's latest arguments in favor of Ballot Proposition #3.
Peninsula Clarion
By Mary
Pemberton,
10-18-02 Updates: 02:10, 03:00, 03:15, 03:37, 11:16, 12:51, 13:12, 13:20, 13:53, 14:16, 15:53, 19:38, 21:32 ET. Please see our expanded report/photos of IAEE's Prop #3 forum here; also, our editorials on this subject: Anchorage Chronicle and Canada's Far North Oil & Gas Review. See our report: Yesterday's Alliance meeting addressed by ConocoPhillips Alaska's President...significant gas pipeline related comments. 10-16-02 Updates: 00:17, 00:29, 11:17, 13:05, 13:29, 15:07 ET. Yesterday in Anchorage, the International Association for Energy Economists presented an outstanding forum on Ballot Proposition #3, the “All-Alaska Gasline Initiative”. Roger Marks, Department of Revenue economist (NGP Photo-right), introduced the program, moderated by Rose Ragsdale (NGP Photo-left), Anchorage Chronicle. Speakers included Scott Heyworth (NGP Photo-left, middle), proposition sponsor; Rep. Jim Whitaker (NGP Photo-right, middle), Fairbanks; Larry Persily (NGP Photo-left, below), Alaska Department of Revenue; and, George Findling (NGP Photo-right, below), ConocoPhillips. (See earlier Prop. #3 reports, Alliance and Chamber). Don't miss our complete report, photos and downloads TOMORROW, followed by editorial comment. (Ref. ADN story by Wesley Loy) * CBC-Whitehorse, Yukon - ... Devon Energy Vice President Michel Scott says Devon has cancelled plans for drilling and seismic work in the Yukon for this winter. 10-11-02 Updates: 01:45, 02:37, 11:03, 11:26, 11:51, 12:45, 20:20, 22:46 ET. MOST IMPORTANT, CURRENT, IN-STATE, ALASKA GAS PIPELINE POLICY ISSUE-Yesterday's Alliance breakfast in Anchorage featured a review of Ballot Measure 3 (BM3), the Alaska Natural Gas Authority. Alliance President Jack Laasch (NGP Photo) introduced General Manager Larry Houle to describe BM3 and Roger Marks, Alaska Department of Revenue discussed policy implications and implementation of a law which passage of BM3 would create. PLEASE SEE OUR COMPLETE REPORT AND EVENT PHOTOS HERE. 8-13-02: Anchorage Daily News, Op-Ed by Nels Anderson (Photo), Independent Party Candidate for Governor-My goal as governor will be to energize Alaska, energize our economy, energize our education system. Energize Alaska. I will introduce the necessary legislation that will expedite the construction of an all-Alaska gas pipeline (Other references). If the initiative to build an all-Alaska gas pipeline is approved, I will announce my selections to the governing board and have them begin their work as quickly as possible. Yukon Pacific Corp. demonstrated that an all-Alaska gas pipeline is feasible. The oil and gas industry will never produce our stranded North Slope gas until it is in their best interests to do so. Alaska must take its gas from the North Slope and build a gas pipeline through Alaska down to tidewater. I would like to see that gas brought down through the Railbelt and have that gas and its derivatives used to bring down the cost of energy in all of our communities in Alaska. I am concerned about Anchorage's energy needs when the gas reserves in Cook Inlet are exhausted. We need to find a long-term source of energy; the North Slope stranded gas is the answer. I will introduce legislation that will place a tax on our stranded gas on the North Slope.... (Note: Highlights of candidate's candidacy: New, undefined legislation to promote an LNG project; Gas reserves tax on industry; Cut government spending; Embrace Cremo plan; Alternative energy. No mention of ANWR, Federal gas pipeline legislation or Alaska gas pipeline incentives. -dh) 7-15-02: Yukon Pacific Corporation (YPC), promoter of a Trans Alaska Gas System (TAGS) and LNG project changed management last year. YPC's Project Development Director, Ward Whitmore (NGP Photo-right), has produced a revised proposal for TAGS. Readers will find an abstract of the new Executive Summary below. The full Executive Summary will be provided here when it is released. -dh The TAGS project can be configured as a spur line from an Alaska Highway/Canadian pipeline project, or as a stand-alone project from the North Slope to Valdez. YPC is evaluating two stand-alone configurations: a Reference Case, incorporating an enriched natural gas that provides for value added options, and a Lean Gas Case, in which the value added options are reduced or eliminated. The TAGS Reference Case would supply the following six markets: 7.4 MTA (million metric tons per annum) of LNG to North America; 4.7 MTA of LNG to Asia; 60,000 bpd (barrels per day) of ethane for feed to an in-state petrochemical industry; 100,000 bpd of propane as LPG to Asia; 50 mmscfd (million standard cubic feet per day) of utility grade natural gas for in-state use; and approximately 17,000 bpd of NGL (natural gas liquids) tendered to TAPS. The Lean Gas Case is essentially the same as the Reference Case except that the ethane and NGL are eliminated, the propane is reduced to 76,000 bpd and the LNG production is increased by approximately 1 MTA. In both cases, the average flow of natural gas entering the TAGS pipeline on the North Slope, including fuel, is 2.2 bscfd (billion standard cubic feet per day). This new TAGS configuration is essentially a 12.1 MTA LNG project that generates revenues from 17.3 MTA of total hydrocarbon sales. Additionally, the non-LNG products are extracted prior to liquefaction, thereby minimizing the size of the capital intensive liquefaction facilities. Project revenues are further enhanced because a portion of the hydrocarbons is sold as LPG that historically has demanded a premium price relative to LNG. Economic analyses show that merits of both the Reference and Lean Gas cases are sufficiently strong to warrant consideration by entities interested in commercializing North Slope natural gas. The TAGS project provides access to natural gas, LPG and/or LNG to supply energy needs within Alaska. 7-13/14-02 Weekend Updates: Sat. 13:55, 13:58. Dillingham-Alaska Independence Party Candidate for Governor Nels Anderson (Photo) issued a press release today addressing Alaska's fiscal crisis and gas pipeline issues. Anderson's platform involves establishment of a gas reserves tax sufficient to generate $500 million/year, offsetting half of the state's current $1 billion/year deficit. He focuses additional attention toward support of an LNG project for movement of North Slope gas to Lower 48 and Asian markets. Anderson said in the release that, "The Yukon Pacific Corporation demonstrated to the legislature what the All Alaska Gas Pipeline would cost and how it would be financed. YPC also identified markets that would be ready to take our gas once the All Alaska Gas Line was operational. At hearings in Juneau this spring, YPC made it clear that an All Alaska gas pipeline is not only feasible but that the entire gas pipeline could be owned by the state of Alaska." Anderson criticized statements of several industrial and political leaders and said, "42,000 plus Alaskans signed a petition to build an All Alaska Gas Pipeline. That is now an initiative on the November ballot. If we build the All Alaska Gas Pipeline," he continued, "we will have a project on line within seven to eight years. This would get much needed new revenue to our state treasury, employ our Alaskans, and provide a source of low cost energy to all of our communities throughout Alaska. 2-6-02: Opinion, by Scott Heyworth-The All-Alaska route to Valdez down the existing TAPS corridor is a cheaper, quicker, more beneficial route for Alaska at about $8Billion, including that big gas conditioning plant, 3 compressor stations, pipeline, and LNG facilities/terminal in Valdez, and it needs no Federal help whatsoever.
The Citizens Initiative for the All-Alaska Gasline Friday announced they had surpassed their goal of gathering 40,000 signatures for the November 5, 2002 General Election Ballot. In a release, the group said that this weekend it will deliver 42,105 signatures to the state Division of Elections in Anchorage. According to initiative sponsors, the Initiative creates a State Gas Authority which would oversee the construction by the private sector of a 800 mile gas pipeline parallel to the TAPS oil pipeline using the existing corridor. The Authority would buy the gas at the wellhead, construct the pipeline and compressor stations, build an LNG facility at Anderson Bay in Valdez and ship the gas to multiple markets along the West Coast of America, the Pacific Rim and also provide in-state gas to Alaskan Residents. Cost of the project would be about $8 Billion. The project would be financed by private investors, possibly including some percentage of ownership by the State of Alaska. The majority of the debt would be financed by long term revenue bonds issued by the Authority. By initiative law, in a section titled “Credit not Pledged to the State”, the Authority would not be indebted to the State or encumber the Permanent Fund. The gas markets would determine the project’s viability, supporters said. (Further reference here.) 10-12: ANCHORAGE DAILY NEWS, by Tony Hopfinger-After 19 years of trying to build an 800-mile pipeline to move liquefied natural gas from the North Slope to Valdez, Yukon Pacific Corp. is downsizing its staff and cutting its charismatic chief executive. Jeff Lowenfels (NGP Photo right, left-right: Frank Peake, Vice President & General Manager, CSX Lines-Alaska, Snow, Former Governor Walter J. Hickel, and Jeff Lowenfels), Yukon Pacific Corporation President said he will leave his post today and become a part-time consultant for the Anchorage company as Yukon Pacific's work force shrinks from about a dozen positions to just a couple. ... Yukon Pacific, owned by Virginia-based transportation giant CSX Corp., has done nearly everything it can to make the multibillion-dollar project happen, he said. It secured most of the permits needed to build the pipeline, and it has received preliminary orders from some Asian gas buyers. ... Now the little company that got its start in 1982 under former Govs. Wally Hickel and Bill Egan faces a fuzzy future. It plans to relocate its downtown offices to Midtown and keep on only a few part-time engineers. Other employees are being retained as consultants. ... "If the company is for sale, somebody could buy the permits and put the project together," said Scott Heyworth, an advocate for the LNG project. But some analysts said the idea is too risky, even if a gas company were in charge. Low gas prices and limited markets in Asia don't support the huge upfront costs -- estimated at $8 billion to $10 billion -- that would come with an 800-mile pipeline and chilling plant to convert the gas to liquid. "It has become incredibly obvious that there are lots of places that could get lots of gas to market at lower prices," said Roger Marks, a state petroleum economist. ... As for what's next, friends have suggested Lowenfels run for public office. He said he's keeping all options open. 9/5/01:
Press Release
For Immediate Release
September 5, 2001
10:45 am ADT
Citizens for the All-Alaska Gasline Initiative
Lt. Governor Fran Ulmer has certified the Gasline Initiative calling for a State Authority to
acquire North Slope gas, build, maintain, market, ship, and own all or some portion of a LNG gasline to Prince William Sound (Valdez). It also calls for building a spur line from Glenallen to the Sutton area to tie into the existing South-central gas distribution grid.
Yesterday's Division of Election's decision to approve our initiative to put a state-owned all-Alaskan, multiple-markets gas pipeline on the ballot is an important step toward regaining control of our vast quantities of North Slope natural gas.
Polls show that the vast majority of Alaskans favor the Prudhoe Bay to Valdez option for commercializing our gas. Of all the proposals, it has the best economics, will provide the most revenues for Alaska, and the most jobs for Alaskans.
"Now all we have to do is gather the signatures of about 30,000 registered voters in the next four months. Now is the time for Alaskans to take action and sign the petition," said Scott Heyworth, Chairperson for the Initiative Campaign.
Piping our gas to Valdez gives us access to multiple markets on the U.S. West Coast and in Mexico, Japan, Korea, Taiwan, and China. The Valdez option is the only project that guarantees access to gas for Alaskans; this is critical because we're rapidly running out of gas in Cook Inlet. Finally, the Valdez route is almost fully permitted with near-investment grade cost-estimates. In other words, it's virtually ready to go.
"For some reason," notes Mike Macy, another of the Initiative's co-sponsors," the Governor has never given serious consideration to the Valdez option, leaving us with no recourse but put the issue directly before Alaska's voters, where it rightly belongs anyway, as the Alaskan people own the gas and should have the final say in its disposal."
The Lt. Governors number in Juneau is 465-3520 although she is in Anchorage today and this week. The person in charge of printing the booklets for DOE is Mike Mathews at 465-4611.
6-4. Alaska LNG Advocates release poll with favorable public opinion indications. 5. Commentary: Mead Treadwell (Originally submitted to the Alaska Business Monthly for publication.) North Country Strategies: Alaska Natural Gas in International Politics "Every Which Way But Loose" by Mead Treadwell (NGP Photo-right) Remember the refrain, "Every
which way but loose..."? discovery in 1968 and
completion of the TAPS oil pipeline in 1977. But to all points of the compass,
it is yet to Mead Treadwell is Managing
Director of the Institute of the North, founded by former Governor Walter J.
Hickel at Alaska Pacific University. He was Vice President and Treasurer of
Yukon Pacific Corporation from 1982-1989, |
Upcoming Conferences: IOGCC, 5/11 -13; Newspaper Front Pages--WORLDWIDE Our view of South Central Alaska's imminent Energy Crisis Founding Publisher's 2002 Editorials and 2001; magazine & newspaper articles; Seattle Chamber of Commerce Speech, 5-8-02, CBC Interview
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