The Valdez Star - Serving Prince William Sound and Copper River Basin

 
 

By Lee Revis
Editor, Valdez Star 

Itemized work on gas line confidential

AGIA dies but TransCanada gets millions in gasline funding

 


The Alaska Gasline Inducement Act has left the building.

The 2008 legislation backed by former Gov. Sarah Palin that awarded TransCanada an exclusive license and state-funded backing to study the feasibility of marketing Alaska’s vast natural gas reserves on the North Slope has been terminated according Gov. Sean Parnell.

That termination was negotiated in the memorandum of agreement between the Revenue and Natural Resources commissioners and TransCanada according to the Petroleum News.

Valdez officials had long panned the AGIA concept after the Alaska Gasline Port Authority said it was double-crossed by unnamed industry partners in the days leading up to the deadline to apply for the license and funding under AGIA.

The Port Authority had long fought to develop the gas by building a liquefied natural gas pipeline and export terminal in Valdez.

TransCanada was awarded the license, first with an eye towards building a gas line through Canada, then changed courses when the demand for natural gas fell in the Lower 48 but increased in Asian markets.

TransCanada and the state have formed new partnerships with Alaska’s major oil producers to develop and market the gas reserves under new legislation passed in Juneau the past two sessions.

The most current gas development project calls for a pipeline with an export terminal to be built in Nikiski.

The Associated Press reports that state reimbursements to TransCanada Corp. in pursuit of a natural gas pipeline are expected to total about $330 million. But the list of the itemized project work is considered confidential.

AP reporter Becky Bohrer reported that Natural Resources department spokeswoman Elizabeth Bluemink says the list contains competitively sensitive proprietary information.

Bluemink said by email that protecting “this commercially sensitive information continues to be in the state's interest,” given work underway on a proposed liquefied natural gas project.

She said state agencies working on the project have access to the information and related work products.

 

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