ANGDA has placed bid
While TransCanada will not announce bidders in the Alaska Pipeline Project open season until after precedent agreements are signed, one entity said it put in a bid for capacity for in-state gas transportation requirements of the Railbelt electric utilities.
The Alaska Natural Gas Development Authority said in a July 30 statement that should the project go forward, it has secured a 30 percent discount for transportation costs on the line for the Railbelt electric utilities.
“Securing this placeholder at a discounted rate for gas transportation in the Alaska Pipeline Project is aimed at providing Alaskan consumers a significant long-term benefit,” ANGDA CEO Harold Heinze said in a statement.
He said the ANGDA board had directed him to submit a bid for a volume of gas consistent with the in-state gas study that was done as a part of the open season.
“I expect additional negotiations over the next several months will be necessary as we see how the APP project unfolds,” he said.
Heinze also said the board had directed that he submit a bid for the Denali line; that open season closes Oct. 4, and he said, “Details of the ANGDA capacity bid will not be released until after that date, to assure that the maximum benefit to Alaskan consumers is maintained thru this competitive commercial process.”
Bid authorized in JuneThe ANGDA board authorized Heinze to submit the bids at a June 23 meeting. Heinze told the board that as far as he knew, ANGDA “may be the only ones from the state’s point of view having done the work to participate” in the open season. He said that by participating in the FERC-sponsored open season, ANGDA can lock up the ability to take gas off in-state.
Heinze said at the June 23 meeting that ANGDA didn’t yet have a source of gas, although there have been good active discussions with three suppliers. He said he wouldn’t submit a bit without some encouragement that ANGDA had a gas source, but also said he had a gut feeling that somebody was going to be interested in being the in-state gas supplier.