Alaska gas authority will be dealt with before end of session

Kristen Nelson, Petroleum News editor-in-chief

The Alaska Natural Gas Development Authority, approved by 61 percent of Alaska voters in November, “is still alive. It's still before the Legislature,” Alaska Gov. Frank Murkowski said at a press briefing March 28.

The authority approved by voters would construct a liquefied natural gas project: a gas pipeline from the North Slope to Valdez and an LNG plant, with LNG to be sold to Pacific Rim markets.

The Legislature funds the authority, which would be in the Department of Revenue. The governor appoints a seven-member board of directors who are confirmed by the Legislature.

The governor said the administration is going to get further evaluation of the economics of the project.

The state doesn't “have any real hard evidence that suggests that we can be competitive with stranded gas that's available throughout the world,” Murkowski said.

There is a lot of stranded gas in the world, he said, and there are questions as to whether this route is competitive and whether there are “any buyers that will commit to buying it at what we'd have to have for it to basically develop that alternative.”

He said the administration hasn't received any proposals “from solid customers who are willing to pay what the price of that gas would have to be to move it through the pipeline.”

Murkowski said the administration will talk with leadership in the Legislature about the all-Alaska gasline authority.

“Very frankly, it's one of these things we haven't done,” he said.

The administration has not proposed a budget for the authority to the Legislature.

Murkowski said a few people have been considered for appointment to the board, but no appointments have been made.

“We will address it before the end of the session,” the governor said.