This week's headlines

New harbor takes

steps forward

Sledders rescued after clouds close trail

Battle to bring natural gas to Valdez rages on

Quest for info leads officials to China

By Lee Revis

Editor, Valdez Star

Governor Sarah Palin will announce – and make public – her administration’s much anticipated findings on TransCanada’s proposal to build a natural gas pipeline from the North Slope to Canada under the terms of the Alaska Gasline Inducement Act sometime during the week of May 19 according to Sharon Leighow, the governor’s deputy press secretary.

“The information will be released,” during that week, said Leighow in a telephone interview Tuesday morning.

The pending announcement is weighing heavy for members of the Alaska Gasline Port Authority, which is still fighting to put its competing proposal for a natural gas pipeline to Valdez alive.

Curiosity spread deeper after Bill Walker, the group’s spokesman who is also city attorney for Valdez, announced that the governor’s findings would not be officially transmitted to the legislature until June 3, the date the state legislature has set for the beginning of a special session to address AGIA.

Leighow says Palin’s findings – whether to proceed with awarding a contract to TransCanada or not -  will not be officially transmitted to the legislature until June 3 for practical reasons.

“It’s all about starting the clock,” she said. If the findings recommend that the legislature proceed with awarding a contract to TransCanada, the legislature will still have 60 days to study the issue before making its final decision.

Under the terms of AGIA, the legislature will have the final say on whether or not the state will proceed in awarding an exclusive contract to export the state’s natural gas to outside markets.

The Port Authority, still stinging from the rejection of its proposal to build a gasline to Valdez for eventual export by way of liquid natural gas tankers, has been somewhat successful in its efforts to get the attention of state legislatures, who may still consider the Port Authority’s proposal outside of the bounds of AGIA if the TransCanada proposal is rejected.

Numerous other proposals to develop the states largely untapped natural gas reserves have surfaced before the legislature after the AGIA process began.

ConocoPhillips and BP teamed to present a joint proposal, as have a few prospects for smaller “spur lines” to bring gas to the energy thirsty areas of Anchorage and Kenai.

In a further twist, international LNG importers Mitsubishi and the Chinese owned Sinopec, have indicated great interest in buying liquid natural gas from Alaska, which would have to be shipped by way of LNG tankers from Valdez. Their interest – if it bears fruit – would provide an instant customer base for exported gas – an important component to any natural gas export project.

Representative John Harris, Speaker of the Alaska House, is visiting Beijing, along with other elected officials from Alaska, to investigate the potential.

Bill Walker is also on his way, according to colleague Craig Richards, who sat in for Walker at Monday night’s Valdez City Council meeting.

“He’s on his way to Beijing,” he told the council during Monday night’s meeting.

Walker will then travel to Tokyo courtesy of Mitsubishi to further the Port Authority’s efforts.

“We are certainly hoping that it will pan out,” said Richards. 

“There is this competing battle,” over who will develop the states natural gas reserves, noting Walker in an address to the council two weeks ago. “The gasline will probably be fairly high profile in the coming elections.”