State legislators are poring through copies of an instate gasline report released Tuesday, but it will be some time before the project gains or loses approval.
The report, authored by the Alaska Gasline Development Corporation, indicates that building a pipeline to carry North Slope natural gas to the state’s Southcentral region can be done at a cost of seven and a half billion dollars.
The line would follow a Parks Highway route south from Fairbanks, according to Alaska Gasline Development Corporation President Dan Fauske, who delivered the report to legislators in Anchorage. Fauske said the project is commercially feasible, would lower consumer costs substantially in Fairbanks, and would pose an alternative to importing liquid natural gas to Southcentral to offset natural gas shortages there.
Governor Parnell told the group via teleconference that the report is a positive step forward and that it merits review.
House Speaker Mike Chenault chaired the meeting.
Bill Stoltze, co-chair of the House Finance Committee, said Fauske’s address is encouraging. Stoltze said that Matanuska Valley constituents are face to face with looming energy shortages
Fauske said the instate gasline project would not compete with the much larger AGIA project, which would bring gas to the lower 48. But Anchorage Representative Les Gara has concerns about moving ahead with the instate project
Fauske said the instate natural gasline would carry 500 million cubic feet of gas a day. He envisions project completion by 2018, with first gas by 2019.
Fauske recommends the state appropriate $210 million next session to complete the next phase of the project design.