Alaska Governor Sean Parnell (right) is calling on North Slope gas producers to reach agreement on studies into TransCanada’s proposed Alaska Pipeline Project (APP) or the state will consider other options.
Parnell said in his annual address to the Alaska legislature last week that he expects supermajors BP, ConocoPhillips and ExxonMobil to align under the Alaska Gasline Inducement Act by the end of the first quarter, which includes the possibility of a pipeline to Alaska’s coast to allow LNG exports overseas.
By the third quarter, he expects pipeline operator TransCanada and APP partner ExxonMobil to have concrete cost estimates for an LNG project as well as a work schedule.
“If these milestones are timely met, the 2013 legislature can take up gas tax legislation designed to move the project forward,” Parnell said.
The timeline the governor put forward reflects his frustration over continued uncertainty surrounding the project.
Up to now TransCanada has focused its efforts on securing precedent agreements for a line that would connect Alaska with the Lower 48 states via Canada.
However, it failed to secure shipper commitments after a 90-day open season in the summer of 2010.
Although this remains an option, the state wonders if shipping LNG to Asia-Pacific is the better solution.
“APP continues to have discussions with Alaska North Slope producers regarding an LNG alternative. Those discussions have not concluded,” said a spokesman for TransCanada.
Last month, Parnell met the chief executives of the three major North Slope producers in the hope of hammering out some of the issues impeding progress.
Discussions between the producers and the state continue but no agreement has been reached.
