Oregon asks for forum to discuss its energy needs, Alaska LNG

Larry Persily, Petroleum News Juneau correspondent

Oregon needs a steady supply of natural gas at affordable prices, and an energy analyst for that state believes a forum with Alaska would be a good way to consider the two states’ common interests.

Oregon’s senior energy analyst has asked the Alaska Natural Gas Development Authority to participate in a forum in Oregon this fall, “to explore needs, opportunity, roles and capabilities” to supply that state’s natural gas needs.

“It has come to our attention that your board has authority to encourage development of Alaska’s natural gas resources,” Mark Kendall of Oregon’s Office of Energy wrote in an Aug. 18 letter to the Alaska gas authority. “Your role and our need create common interest.”

Harold Heinze, chief executive officer of the Alaska gas authority, presented the letter to his board Aug. 25, and explained he would try to set up a forum in Oregon for October. The Alaska gas authority, set up just two months ago, is investigating the possibility of a state-owned pipeline to Valdez to bring natural gas to tidewater for liquefaction and shipment to U.S. West Coast markets.

Kendall said his agency does not have any statutory authority to buy gas or promote a supply contract, but is responsible to Oregon consumers to help identify new energy resources.

“We would be remiss if we did not introduce to Oregon retailers a low-cost, easily accessed (gas) supply,” he said.

“Oregon residences and businesses face unprecedented increases in natural gas price due to diminishing continental North American supply,” Kendall said in his letter to Heinze. “We understand Alaska’s abundant North Slope gas resource may be developed and available as liquefied natural gas.”