JUNEAU -- Gov. Sean Parnell says a bill aimed at building an in-state natural gas pipeline quickly is heading in the right direction.

Parnell says he wants to work with Republican Sen. Lesil McGuire on her bill to give responsibility for an in-state line to the Alaska Railroad Corp.

In a letter Thursday, Parnell said the bill's "on the right track" to codify work being done by his gas development team.

McGuire sees a smaller line as key to providing affordable, reliable energy to Alaskans. She hasn't given up hope for a major gas pipeline, which could come to fruition over the next decade, but she has said the state can't focus on just a big line.