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FEDC forms in-state natural gas task force Fairbanks Economic Development Corp. applies think-tank approach; one goal to be sure Fairbanks has a voice in decisions Stefan Milkowski For Petroleum News
The Fairbanks Economic Development Corp. is applying the same think-tank approach to in-state natural gas as it did last year to the cost of energy in Interior Alaska.
At a preliminary meeting Oct. 22 in Fairbanks, FEDC Chief Executive Officer Jim Dodson, said a new task force would be established within FEDC’s Interior Issues Council to focus on the various proposals to provide natural gas for instate use.
“As we look at some of the projects moving forward, we want to make sure that Fairbanks has a voice in those projects,” he said.
Dodson said the group was not meant to advocate for any specific plan.
Fairbanks North Star Borough Mayor Jim Whitaker, who also spoke at the meeting, said Fairbanks has struggled in the past to ensure that its voice was heard.
“As individuals have thought about public policy and statewide policy, most of that thought has emanated from our friends to the south — from Anchorage,” Whitaker said. “And therefore we’ve had Anchorage-centric solutions that have been ... imposed upon Fairbanks and the rest of Alaska.”
Whitaker stressed the need to focus on two key goals identified last year by the cost of energy task force — reduce and stabilize the cost of energy and decrease the emission of small particulate matter in accordance with federal regulations. High energy costs are drawing large amounts of money out of the community, he said, and particulate pollution jeopardizes a potential expansion at the Fort Wainwright Army Post.
Options have challenges Whitaker described the various gas delivery options as promising but not without challenges.
Large-scale projects like those pursued by TransCanada, Denali, and the Alaska Gasline Port Authority are subject to market forces and have unfavorable timelines, he said.
Fairbanks Natural Gas’ plan to bring liquefied natural gas from the North Slope to Fairbanks faces supply limitations, Enstar’s proposal to build a “bullet line” from the North Slope foothills to Southcentral faces an uncertain timeline, and the Alaska Natural Gas Development Authority’s proposal to bring gas north from Cook Inlet would not meet Fairbanks’ gas needs, he added.
Whitaker described ANGDA’s plan as well-intentioned but geared toward addressing Southcentral gas supply issues. The proposal would bring gas only as far as Golden Valley Electric Association’s North Pole power plant.
“What is being proposed doesn’t meet our imperatives,” Whitaker said.
Taskforce deadline Jan. 1 According to Dodson, the taskforce will be open to anyone interested in participating. The group will have a deadline of Jan. 1 to complete its findings, a deadline Dodson said was set with the expectation that in-state gas issues will be considered during the legislative session beginning Jan. 20. In light of the short timeline and complexity of the issue, a manager will be hired to chair the group.
Dodson said in an interview Oct. 20 that FEDC’s push for natural gas would not interfere with the group’s pursuit of a large-scale coal- and biomass-to-liquids project aimed at providing jet fuel, heating fuel, and electricity for the area.
“I don’t see any energy project as competing because we are in such dire need of good energy projects,” he said. “We’re trying to take a good, hard look at all of them.”
About 50 people showed up for the preliminary meeting in Fairbanks, including state lawmakers, legislative candidates, and representatives from Enstar, Anadarko and Fairbanks Natural Gas.
Enstar president Colleen Starring said her company was committed to its bullet line project and planned to spend up to $20 million on it next year, in addition to the $5 million spent this year.
“It’s simple,” she said. “We need the gas, just like you do.”
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