JUNEAU — Alaska’s governor met for two hours Thursday with the chief executives of three major oil companies to discuss ways to advance a natural gas pipeline project in the state’s North Slope.
The meeting came three months after Gov. Sean Parnell invited Rex Tillerson, chief executive of Exxon Mobil, as well as BP CEO Bob Dudley and ConocoPhillips CEO Jim Mulva, to a “multi-party meeting of the gas commercialization stakeholders.”
Parnell said in October that he wants the companies to unite behind a project that would allow for liquefied natural gas to be shipped overseas. The governor would like them to do this under the framework of the Alaska Gasline Inducement Act, which gave TransCanada Corp. an exclusive state license to build the pipeline and up to $500 million in state incentives.
The Canadian company has been working with Exxon Mobil to advance the project but has yet to announce any agreements with potential shippers. While it has focused attention on a longer line that would deliver gas to North American markets by larger lines to Canada, it also has proposed a smaller line that would allow for liquefied natural gas exports.
A rival project, a joint effort of BP and ConocoPhillips that also would have gone through Canada, folded last year.
Dudley told reporters in Anchorage he thinks it would be possible for the companies to unite under terms of AGIA, even though it was some of the law’s provisions that led to the rival project. He said there would have to be adjustments to tailor it to a liquefied natural gas option, if that’s the route that’s ultimately chosen.
No firm commitments were made in Thursday’s meeting, but the companies are at least talking, and Parnell said Alaskans should take that as a positive sign.
The companies have insisted that their goal is to find ways to commercialize gas — a goal shared by the administration — and Dudley said the companies realize it’s time to begin thinking about what it will take for them to get behind a project.
That’s not to say it will happen; there are many factors to weigh, including the cost of the project and the potential markets.
“I’m not saying it’s impossible but I think the world economic conditions and the drivers of natural gas have changed,” Dudley said. “So I think what we’re talking about today is a way to further define how to take that resource to a market and it looks like the Pacific Rim has real potential.”
An Exxon Mobil spokesman, David Eglinton, said the parties are in “early discussions” and considering both the export option and the Canada route.
Alaskans have long hoped for a gas line as a way to shore up revenues as oil production declines, create jobs and provide more reliable energy.
Tillerson, Mulva and Dudley also attended a reception, which included current and former political leaders. It was closed to the public.
Comments (16)
Add commentLNG?
Why aren't they going to Valdez with it like Bill Walker campaigned for during the governor's election in 2010? Sounds like Walker was right after all. So why did we elect Parnell?
Stop whining
Its good we have a governor who wants to keep income flowing into Alaska. Natural Gas is the best alternative to oil today (I'm saying today, not the distant future). Why does big oil get involved? They'll put in all the infrastructure needed to build the pipeline. Communities along the way can tap into it. It would be nice to get off diesel and heating oil for clean burning gas.
Whats wrong with this
Whats wrong with this picture? Lets see, the only people in it are oil executives? Yep, and all the other stake holders, that would insure transparency and accoutability, are missing.
How in the world will Alaskans get good policy from a group like this? They won't.
It's nice
to have a Governor that is willing to discuss the negotiations rather than making deals behind closed doors. Thank you Mr. Parnell. Our last few Governors were so centered on advancing their own interests, the people really had no clue as to their dealings. Sarah was just creating material for her books and Frank was basically lining his own pockets with bribes, shady deals and kickbacks. Why aren't Lisa and Mark involved in these meetings and posing in the photo too? This was not important enough to them? Hmmm?
Do you ever wake up feeling
Do you ever wake up feeling that you lost control of your life?
You have.
The safeguards put in place by our democracy that work to protect our lives, the environment, your savings & retirement, are being dismantled by the 1%, by the political and financial elite in this country.
And right here in our state.
Dougres
I agree. Our elected representatives in the State Legislature have been debating many of these issues for a long time. Some seem to agree with the Governor, others disagree. The Governor can propose things, but in the end it is the Legislature that has to make the decisions for all the people they represent. I would like to have had some legislators, those who agree with the Governor and those who disagree, at least be in attendance in the discussions. With our Congressional delegation now on vacation, it would have been great to have them participate as well.
Wouldn't it have been fantastic if at least the discussions were televised on public television so we could all have shared the information??
We expect, or at least hope, that our legislators are well-informed, but if they are left out of the discussions and do not share the information the Governor received, we end up with the same old problem of the Governor and some of the Legislature at loggerheads because one group or the other says "I have information you don't have."
Its just my opinion.
Shale Natural Gas
I am not sure that this is the time to abandon the TransCanada Line, this shale natural gas may start contaminating the drinking water down south and you will see a quick halt to any more shale operations.
It sure would be nice to have a Govenor that lived in the Capital and worked here with all of his Department Heads.
I totally disagree with your man Sean giving those three oil companies back billions in tax relief with no commitments from them to drill for more oil and put people in Alaska to work.
Keegan
Just a simple question. From reading your comment I don't know if you live in Alaska or elsewhere. In Alaska, we know that some department heads live in Anchorage, not Juneau.
The Governor does indeed live here.
I enjoy and read comments, but at times, I wonder who is making those comments. I agree that anonymity in comments is important, but when I see certain comments, I just don't understand from whom, by whom from where, the comments are being made.
Fly on the wall
"Sure, Governor, we'd be more than happy to consider the gasline project. Now, about that $2 billion you promised us in tax cuts...the sooner that happens, the sooner we could think about getting on board with AGIA...I don't see how we could even consider moving forward without $2 billion tax cuts annually. That's only $20 billion over a decade and Alaskans won't miss that. What's a few billion between friends, huh? Need some KY for your palm? How about we remodel your house for you?"
The Most Important Unasked ?
In my opinion I think the most important question shouldn't be how we can get a new natural gas pipeline for Alaska... I think the question should be, WHY DOES ALASKA HAVE THE HIGHEST GASOLINE PRICE IN THE COUNTRY per capita??!?!? If they want to build a new pipeline, then guarantee reduced fuel and gas costs for the region or Alaskans in general....
They are here to make BILLIONS
They are here to make BILLIONS off Alaska.
New York and Maryland have now banned "Fracking" because an increasing number of people are finding the toxic Fracking fluids used in this "new" process in their drinking water supply across the county.
the people in this picture here buy off our politicians, our governors, our legislators, for their votes, as a way to stop any regulation interfering with their path to making billions as they pollute our water, kill our wildlife, and burden future generations to come.
These companies quietly come in here snap up leases, foster good will by donating to civic groups, they create obligations by giving to the right political players by the time people realize whats going on, gas is flowing..
This is why Parnell is pushing tax cuts - he sold our state out
I paid $97,000. for less than
I paid $97,000. for less than an acre in Juneau.
People in this picture pay what $30 dollars, or less, for an acre in Alaska then they make billions from that acre and pollute our water, kill our wildlife...
Then they sell and go do it some where else.
Dont vote for anyone that takes money from these people and vote out those that do, because they work for these people.
The sky is falling, the sky
The sky is falling, the sky is falling....
dougres writes - "I paid $97,000. for less than an acre in Juneau. People in this picture pay what $30 dollars, or less, for an acre in Alaska then they make billions from that acre and pollute our water, kill our wildlife..."
This train of thought is what the rest of us common sense voters are up against. Have you ever read a more ridiculous statement?
dougres = kate troll?
Thank goodness there are some adults in charge of the decision making. Thank you Gov. Parnell for moving forward. And no, everybody and his uncle don't have to be involved at every level of discussion. Parnell will let you know when he has something of substance to report.
Fracking is the new bug-a-boo of the enviro freaks. Most of them couldn't begin to tell you the first thing about it. They just start spouting the rhetoric they've been fed through the progressive pipeline.
Their favorite line of bs is to show tap water being lit on fire. The more drama the better with this bunch.
Keep it up, Frenchie
Every time you and your wingnut pal Maddy endorse Parnell, he loses more votes. I'd be surprised if he doesn't have a contract out on you.
Calypso says....
"This train of thought is what the rest of us common sense voters are up against. Have you ever read a more ridiculous statement?"
Did you mean, beside the one you just made...or generally?
rest of us common sense voters....good one!!!