Parnell Announces Change in course for LNG Pipeline Project
Updated On: Jan 10 2014 07:32:07 PM AKST
Ending an agreement with Canadian pipeline company TransCanada, Governor Sean Parnell says the state should join oil and gas producers and invest in building a gas pipeline.
After detailing the many missteps and hurdles in getting a gas pipeline built from the North Slope, Gov. Parnell announced in front of the Alaska Support Industry Alliance on Friday that Alaska should be a partner in the business of selling its gas.
Saying time has been a teacher, the governor said the state is moving away from its license agreement with TransCanada to build a gas pipeline. It's a move he says both parties have agreed to.
That agreement promises reimbursements of $500 million for planning, of which close to $300 million has already been paid.
The governor says he supports the sate owning a stake in a gas pipeline, along with other partners in the oil and gas industry.
A large-diameter liquefied natural gas pipeline from the North Slope to South Central Alaska is estimated to cost as much as $65 billion dollars.
“With Alaska as a partner, Alaskan's stand to gain more. Ownership insures we either pay ourselves for project services, or at the very least understand, negotiate and ensure the lowest possible cost,” said Governor Parnell.
Parnell also stated a document outlining the details of the partnership will be subject to public review by the Alaska Legislature this session.
Copyright © 2014, KTUU-TV