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APUC gives go-ahead to Alaska Intrastate Gas natural gas project Anchorage based company to provide 17 Alaska coastal communities with natural gas from Canadian suppliers Tom Hall PNA Reporter
Plans to purchase natural gas from Canadian suppliers in British Columbia and then have it barged to 17 coastal communities from Kodiak to Metlakatla came a major step closer to fruition on Dec. 31, when the Alaska Public Utilities Commission awarded Alaska Intrastate Gas Co. a Certificate of Public Convenience and Necessity. The APUC action concluded three years of review of the gas company1s application. A matter of logistics “We would provide natural gas service based on the production and distribution of liquefied natural gas from Canadian gas suppliers,” Alaska Intrastate Gas President Len Horst said in a Dec. 31 statement. When asked why they were buying Canadian rather than Alaska gas, Alaska Intrastate Gas CEO Frank L. Avezac told PNA that it was simply a matter of logistics. “Prince Rupert is closer,” said Avezac, and pointed out that most of the 17 target communities are situated along the Southeastern panhandle.
The APUC imposed certain conditions and filing requirements on the gas company’s certificate, most notably a requirement “to file proof of financial fitness and permanent financing for its proposed operations” by July 1, 2001. First phase has green light Despite the conditions, the certificate has cleared the way for the Anchorage-based company to proceed with the first phase of its South East and Gulf of Alaska gas project. In a prepared statement, Horst said, “With the approval of the APUC behind us, we can now get down to the serious work of building the infrastructure necessary to start natural gas service to these communities.”
The first phase of SEAGA is aimed at bringing service to Juneau, Ketchikan and Sitka before a July 1, 2001, deadline. The company must complete phases two and three by July 1, 2005, and July 1, 2010, respectively. Horst is confident that his company can meet those deadlines. “AIG expects to complete natural gas service throughout its service area well before the deadline of July 1, 2010 given by the APUC for initiating natural gas service to all 17 communities,” he said Dec. 31. 200 jobs for two years Horst estimates that construction of the infrastructure (gas storage tanks, natural gas delivery systems, LNG handling equipment and dock facilities) will create more than 200 construction jobs for at least two years. He also believes that AIG will eventually add 25 employees, and related businesses could account for another 50 new jobs. The company also estimates that consumers could save more than 25 percent by using natural gas instead of fuel oil, and more than 60 percent over propane or electricity.
The company outlined its plans Dec. 31: “A small peak shaving LNG plant is planned for construction in Prince Rupert, British Columbia. Argent Marine Operations Inc., under contract to AIG, would then transport the manufactured LNG to each community on specially designed and constructed barges. AIG would take control of the LNG in each community and store it in a bulk storage facility until needed by consumers.”
Avezac told PNA that the barges will carry four 250,000 gallon double-hulled tanks, sport bow and stern thrusters, and contain a specially designed notch in the stern for tugboats.
Avezac also said that each community will have enough storage capacity for a two month supply of natural gas. The ultimate goal, Horst said Dec. 31, is to provide the consumers of the 17 communities with “the same, on demand, natural gas service available to other Alaska communities” that have buried pipeline distribution systems.
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