Governor: ANS gas could flow by 2014
In an update on gas pipeline negotiations addressed to legislators, and released to the press Feb. 9, Gov. Frank Murkowski reviewed progress to date, said the state “has reached agreement with ConocoPhillips on gas fiscal certainty terms and is nearing agreement on similar gas fiscal certainty terms with BP and ExxonMobil.”
The governor said the final contract is expected to contain the same terms for all three companies. He said the Legislature is likely to pass a revision of Alaska’s existing oil tax system before it adjourns in May and those oil tax revisions will then need to be integrated into the proposed fiscal contract.
“Assuming the successful completion of contract negotiations in the first half of 2006 and their approval by the Alaska Legislature, the Producer Group will begin the planning and permitting activities necessary to commence actual construction.”
The governor noted that Canadian permitting and right-of-way issues still need to be resolved.
The governor concluded by saying: “Today’s best estimate is that the FERC ‘open season’ likely will take place in 2007, construction likely will commence in 2009-10, and the pipeline may well be in operation by 2014.”
—Petroleum News
|