Persily Paints Picture Filled With Competing Gas Markets

Dan Bross, KUAC – Fairbanks

The Federal Coordinator for Alaska Natural Gas Transportation Projects has laid out factors working for and against development of line from the North Slope.  Larry Persily addressed the Fairbanks Chamber of Commerce this week, painting a market picture filled with a lot of competing gas, including major projects overseas.

Given all the worldwide competition, and relatively low gas prices, Persily said an Alaska project should focus on the Lower 48, the world’s biggest gas market.   Two proposed Alaska gas line projects to feed North American markets completed open seasons this summer, and there are also smaller proposed projects to meet in state demand.  Persily said an instate line isn’t a good economic choice.

Persily said a large diameter line to the Lower 48 also has the advantage of several federal benefits including an investment tax credit for a North Slope gas processing plant.  Persily said the next step toward development of a large diameter North Slope gas line hinges in part on the state and industry hammering out tax issues.

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