State House Speaker Mike Chenault, R-Nikiski, is laying groundwork to advance an in-state natural gas pipeline, an old concept given new life after Gov. Sean Parnell's announcement last week in support of an Alaska route to tidewater instead of through Canada to the Lower 48.
Chenault plans a media conference call Friday. He will talk about three bills supporting a pipeline that passed the House last session. They await approval in the Senate and, among other things, would establish a pipeline fund to help pay for such a project.
TransCanada Corp. said Tuesday it continues eyeing the $41 billion international route through Canada to the gas-abundant Lower 48 market, an option spelled out under the Alaska Gasline Inducement Act, which provides $500 million to reimburse the pipeline company for its efforts.
TransCanada seems to be looking to the producers -- BP, ExxonMobil and ConocoPhillips -- for guidance, one sign that despite the wishes of the governor and legislators, oil companies that generally control access to the natural gas are in the driver's seat. But the in-state line -- a line to Valdez is described as a second option under AGIA -- appears to be gaining momentum.
Still, huge questions remain about the concept, Chenault said in a recent interview with Alaska Dispatch, including whether the state should invest in the project. If so, how much? Where will it get the cash, from the Alaska Permanent Fund or elsewhere?
"I've always thought Alaska should own a piece of the pipeline, because if it's profitable, which it will more than likely be, than Alaska receives the benefit from being part owners," he said.
Chenault's office also mentions that the Alaska Gasline Development Corp. was created by a Chenault bill to study an in-state "bullet" line to the Cook Inlet area. That raises another question. With a large-diameter instate pipeline back on the table, is the prospect of a "bullet" line to Cook Inlet dead?
Contact Alex DeMarban at alex(at)alaskadispatch.com