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Pipeline Opportunities Conference Draws Record Crowd
He said, “I testified last summer for 59 days before the Alaska legislature. At that time, natural gas prices were $10 to $12 and rising. Today, prices are around $4 and appear to be falling. This is a project that will come into service, in the best case, in 9½ years and then be in service for 25 to 50 years beyond that. Clearly, natural gas prices over a six month period will not determine the fate of this pipeline project.
“We will have to be aware of that but that is not what drives this project.”
He also spent time discussing the $12 billion Keystone Pipeline TransCanada is building to move more than a million barrels of oil from western Canada to Cushing, OK, that will be completed in about a year.
A second phase expansion will bring oil all the way to Houston and be complete by 2012.
“That is a 4,000 mile oil pipeline,” he said, “which is more than double the distance of Alaska Pipeline from Prudhoe Bay to Alberta.”
“I don’t mean to diminish the scale of the Alaska Gas Pipeline project,” he said. “It is massive, but it is not unprecedented for our company.”
Harold Heinze, CEO, Alaska Natural Gas Development Authority (ANGDA), discussed the challenges of meeting future energy demand and the importance of the proposed Alaska Gas Spur Line connecting the Cook Inlet natural gas infrastructure with a supply coming off the North Slope via the much larger proposed TransCanada pipeline.
Also in the session, Drew Pearce, director, Federal Office Alaska Natural Gas Pipeline and Mark Myers, coordinator, Alaska Gasline Inducement Act, discussed the need for and challenges of getting Alaska’s North Slope natural gas to market.
Other highlights at the conference included an entertaining and informative discussion by Mark Mercer, vice president, T.G. Mercer Consulting Services Inc., that focused on the importance of pipe arriving on time. Also, Chris Larsen, Industrial Development, NGSF Railway and Curt Gauthe, managing director, Cooper Consolidated, gave thought-provoking discussions on this timely subject.