Our commentary:The question is, how do the producers monetize Alaska North Slope gas reserves. The answer revolves around Alaska natural gas pipeline planning, for the most part. Two consortia have conducted ‘open seasons’ to determine the market demand for a major gas transmission system supplying the Lower 48 states. So far, the results of that effort have lacked luster and speculation abounds on what "Plan B" alternatives may be around the corner. Part of the answer also involves Alaska’s investment climate policy, now being debated by the Legislature in Juneau. A hostile federal government is also contributing to the answer by taking actions every week that result in less and less access to Alaska’s on- and off-shore natural resources–a key consideration for gas pipeline planners since more reserves than the current 35 Tcf are required to support the economies of scale of a 2500 psi, 48 inch gas pipeline.
A state sponsored study to define alternative ways of supplying some of the Alaska North Slope’s life-sustaining natural gas to the most populated areas of the state is underway, under the stewardship of Alaska Housing and Finance Corporation CEO, Dan Fauske (NGP Photo).
On another front, the Alaska Natural Gas Development Authority (ANGDA) has created a partial answer to the question of monetizing ANS gas–removing liquid propane from the gas stream and transporting it throughout the state–principally to rural areas now dependent on heating oil for space heating and local power generation. The University of Alaska completed a 2009 study on the subject. Later this month, ANGDA will sponsor an Alaska North Slope Propane Conference that should attract a wide array of interest throughout North America. Spearheaded by ANGDA consultant, Mary Ann Pease (NGP Photo), the project would serve and employ Alaskans but could tap Canadian expertise. For complete registration and exhibitor information, the agenda and answers to every question, contact Leah Burkes at (907) 269-6504. -dh See agenda below: