About the Issue

Phillips Alaska Inc., BP Exploration, Foothills Pipeline Co. and Marubeni Corporation have joined together as the Alaska North Slope LNG Project to explore the possibility of building a natural gas pipeline. They have just completed a $20 Million feasibility study and have narrowed potential terminus sites to Nikiski on Cook Inlet, and Anderson Bay near Valdez. The companies, who are natural gas owners, natural gas producers and natural gas marketers, have worldwide project experience. They continue to work for cost breakthroughs to make the project economically competitive. They hope to choose a terminus site soon, and have solicited input from local communities.

Alaskans have a great deal at stake; our Anchorage, Mat-su and Peninsula supplies of natural gas are in decline. Without the natural gas pipeline from the North Slope, we may face a serious shortage by 2010. New supplies are needed to continue to produce electricity, for industry and for heating. If the pipeline route to Cook Inlet is chosen, we will continue to enjoy plentiful natural gas. In addition, the Cook Inlet route will provide natural gas to new areas.

If the pipeline branches off to Canada without an instate pipeline or goes to Valdez, South Central utility consumers will have to foot the bill for a Multi-Million Dollar spur line. Alaskan natural gas should fuel Alaskan business and warm Alaskan homes.

Source: Kenai Borough