Saturday, July 2, 2011

A message from Sen. McGuire; Alaska Gasline Development Corporation to Release In-State Gas Pipeline Report.

From Sen. McGuire's July 2, 2011 email newsletter to constituents. Alaska Gasline Development Corporation to Release In-State Gas Pipeline Report. Report explores opportunities and answers questions about development of an in-state gasline

Senator Lesil McGuire congratulates the Alaska Gasline Development Corporation (AGDC) on its announcement that it will release the initial report on an in-state natural gas pipeline on July 5th. "Dan Fauske and all of the staff at the Alaska Gasline Development Corporation deserve our thanks for the immense amount of work they have done on this project," said Senator Lesil McGuire, R-Anchorage. "I encourage all Alaskans to read the report AGDC is publishing next week."

The report to the Legislature was required by House Bill 369, sponsored by House Speaker Mike Chenault in 2010. The final version of House Bill 369 was the product of two bills, House Bill 369 by Speaker Chenault and Senator McGuire's Senate Bill 287. Key elements of the compromise were the addition of explicit project milestones like AGDC releasing this report and transferring the project from the Office of the Governor to a sub-corporation of the Alaska Housing Finance Corporation. Another factor was the inclusion of language from SB 287 expressing the Legislature's intent that the in-state gasline be "compatible not competitive" with other large natural gas export projects currently being pursued by the state.

"Opening the North Slope and getting gas to Alaskans is just the beginning," said Senator McGuire. "Alaska's future is dependent on a vibrant North Slope basin that gives companies the opportunity to develop both conventional oil and natural gas and ultimately unconventional resources like heavy oil and methane hydrates. Getting there will certainly mean exporting large volumes of gas, but the point of the language I pushed to include in House Bill 369 is that we need to get gas to Alaskans first."

The Alaska Gasline Development Corporation has been performing preliminary permitting and engineering work on an in-state natural gas pipeline since it was established by the Alaska Legislature in 2010. "This project presents an incredible opportunity for Alaska and the foundation for our economic future," said Senator McGuire. "I am confident the report will reflect the Legislature's intent that the project provides benefits to all Alaskans and not just those in the Railbelt."

House Bill 369 allowed ADGC to consider a broad range of issues, including value added opportunities like gas-to-liquids. The effort to develop an in-state gas line brought members of both parties in the House and Senate together in an In-State Gas Caucus that looked at the pipeline and other issues related to natural gas development. "Our work surrounding this project has always been a collaborative effort, with Representative Mark Neuman and I taking the lead on exploring gas-to-liquids and other value added opportunities, as have others like Senators Charlie Huggins, Bill Wielechowski, Joe Thomas and Joe Paskvan," said Senator McGuire. "That's what is so exciting about this project- the prospect of bringing North Slope gas to Alaskans brings people together in a bipartisan fashion to unlock economic opportunities that will diversify our economy and benefit generations of Alaskans."

In addition to House Bill 369, the Legislature also passed provisions in Senate Bill 220 (the Omnibus Energy Bill) that explore ways natural gas can be used throughout Alaska. A provision sponsored by Senator Fred Dyson required an analysis of the use of compressed natural gas in the state vehicle fleet by the Department of Transportation. Another provision created an Emerging Energy Technology Fund which has already received applications for pilot projects delivering natural gas to Bethel that could be a model for moving gas from an in-state line to rural communities.

The In-State Gas Caucus is currently working with AGDC to schedule a presentation of the report tentatively scheduled for later this month in Anchorage.

The Alaska Gasline Development Corporation report will be available July 5th.

For further information, please contact Michael Pawlowski in Senator McGuire's Office at (907) 269-0250.
Thank you for giving me the opportunity to serve you in our district.


Senator Lesil McGuire
716 W. 4th Ave
Anchorage, AK 99501
(907) 269-0250