Loan guarantee wouldn’t apply to LNG line - January 15, 2012

Providing coverage of Alaska and northern Canada's oil and gas industryJanuary 2012

Vol. 17, No. 3

Week of January 15, 2012

Loan guarantee wouldn’t apply to LNG line

An Alaska natural gas pipeline project that would serve overseas markets seemingly wouldn’t qualify for a loan guarantee under federal law.

The Alaska Natural Gas Pipeline Act contains incentives aimed at speeding a project. But Larry Persily, federal coordinator for Alaska gas transportation projects, notes that a qualified project under the law is one that would bring gas from Alaska’s North Slope to the continental United States.

Market changes in the years since the law’s passage have given rise to concerns that there will be little demand for Alaska gas in the Lower 48.

Gov. Sean Parnell has asked the slope’s major players to get behind a project that would allow for liquefied natural gas exports to the Pacific Rim if the market has truly shifted from the Lower 48.

—Associated Press

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