ANGDA issues RFP for business plan

The Alaska Natural Gas Development Authority has issued an RFP for the development of a business plan for an authority-proposed spur line to deliver North Slope natural gas to Southcentral Alaska. Proposals need to be submitted by April 20.

Angda, a public corporation of the state of Alaska, is in the process of applying for a state right of way for a spur gas line between Glennallen and Palmer. That spur line would eventually connect to a main gas export line from the North Slope.

The authority’s CEO, Harold Heinze, told a Republican open caucus of the Alaska House on March 23 about the complex business issues surrounding the delivery of gas to Southcentral Alaska.

There are several possible pipeline routes for bringing North Slope gas to Southcentral Alaska — in addition to the authority’s Glennallen proposal, Enstar Natural Gas Co. is investigating a spur line route paralleling the Parks Highway from Fairbanks; some people have suggested a direct “bullet” line from the North Slope.

And, with concerns about the ability of Alaska businesses to bid for intra-state gas (that is, gas for use in Alaska) during a FERC open season for a main North Slope gasline, Angda sees a possible future role for itself as a coordinator for the delivery of intrastate gas (see “Clock ticks for Alaska gas” in the March 19 edition of Petroleum News).

“We have a business plan RFP that was issued Monday,” Heinze told the caucus. “We will be hiring a contractor here within a month to look at all these issues and what the different opportunities are in terms of lowering the cost of service to Alaskans and helping move this thing forward in a very positive way.”

According to the RFP document, the business plan for the authority will include cost estimates for various pipeline routes; a financing plan and five-year pro forma financials; market analysis; and a pipeline tariff determination. The plan will also address the authority’s future role and business activities; potential partners and/or collaborators; regulatory issues; and schedules for an Angda-proposed spur line to reach full commercial operation.

The authority anticipates that work on the business plan will start in May 2006 and finish in September 2006.

—Alan Bailey