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Providing coverage of Alaska and northern Canada's oil and gas industry
May 2008

Vol. 13, No. 19 Week of May 11, 2008

ANGDA contracting for natural gas supply coordinator

Kristen Nelson

Petroleum News

The Alaska Natural Gas Development Authority is contracting for a gas supply coordinator.

ANGDA is a state agency established by a voter initiative. It has been focused on getting North Slope natural gas to in-state markets, and has a conditional right of way for a spur line from Glennallen to Palmer. Gas would ride the main pipeline from the North Slope — when such a line is built — to an off-take point connecting to a spur line to Southcentral.

ANGDA said in its May 1 request for proposals for a gas supply coordinator that its project “may broaden to cover a Delta Junction to Prudhoe Bay alignment and a Fairbanks to Wasilla (along Parks Highway) alignment,” pending capital funding appropriations. Fairbanks to Wasilla is an alternative spur line route to Southcentral. As for the Delta Junction to Fairbanks reference, there has been discussion in the state of how to bring gas south faster than waiting for a major gas sales pipeline — and also discussion of how to provide gas for in-state use in the event a project to major markets outside the state is delayed.

Work with utilities to continue

ANGDA has been working with Alaska utilities and other potential in-state users of natural gas to prepare for an open season for a main line, a North-Slope-to-market gas pipeline. In order to take natural gas off a mainline, those wanting to use gas in Alaska would have to participate in that mainline open season and commit to pay for space on the line to their in-state offtake point, as well as negotiate with natural gas producers to purchase the gas.

The gas supply coordinator sought in the RFP “will provide the direction and leadership of ANGDA’s work in support of Alaska utilities and other gas users to develop multi billion-dollar long-term commitments for purchase and shipment of North Slope gas.” The budget for the assignment is up to $175,000; the contract would run from June 5, 2008, to July 1, 2009.

The RFP lists a number of efforts the contractor selected will work on:

• The in-state open season process for North Slope natural gas, including regulatory approvals;

• Gas supply contracts including purchase of gas reserves;

• Gas shipping commitments to mainline in-state delivery points;

• Aggregate gas requirements of smaller utility and direct purchase gas users; and

• Financing and bonding of each of the items listed.

The RFP specifies 20 years or more of experience in natural gas contracting, management of gas transmission-distribution businesses and utility regulatory filings, with at least five years of the 20 years of experience in Alaska.






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