Groups Push Competing Proposals for the Alaska Natural Gas Pipeline

January 12, 2005

After years of inaction on a proposed natural gas pipeline to bring natural gas from Alaska's North Slope to market, a number of competing proposals are now in the works. In December, Alaska Governor Frank Murkowski announced that the state had received a proposal from BP, ConocoPhillips, and Exxon, while it continues to negotiate with TransCanada on a separate proposal. Although those are the only applicants who have signed an agreement under the state's Stranded Gas Act, the state is also talking with MidAmerican Energy Holdings Company, the Alaska Natural Gas Development Authority, the Alaska Gasline Port Authority, Embridge, and Calpine outside the framework of the Stranded Gas Act. See the governor's press release.

One of the competing plans is the Mackenzie Gas Project, which aims to develop a 760-mile pipeline from the North Slope into Alberta via the Mackenzie Valley in Canada's Northwest Territories. The developers of that project, a number of oil companies, submitted regulatory application in October. In contrast, the All-Alaska Gas Pipeline Project aims to build an 800-mile pipeline from the North Slope to Valdez, where the natural gas would be converted to liquefied natural gas (LNG) for export. In December, the Alaska Gasline Port Authority (AGPA), which is spearheading the All-Alaska Gas Pipeline Project, announced that it had entered into a development agreement with Sempra LNG to assist in the project and market the LNG. The AGPA also announced it has been granted the option to purchase rights of way and associated permits from Yukon Pacific for building the gas pipeline, which will run parallel to the existing Trans-Alaska oil pipeline. See the Mackenzie Gas Project Web site and the AGPA press release (PDF 68 KB). Download Acrobat Reader.