3-7-18 Alaska has a deficit budget and fiscal crisis but pours money into socialized, uneconomic energy projects!

Government subsidized Fairbanks natural gas scheme plods on…

…with insufficient customer base, insufficient long term gas supply, high cost barriers to fuel oil/gas conversion.

This is one of two large,  socialized, Alaska energy projects that politicians continue to subsidize in the midst of a fiscal crisis highlighted by deficit budgets.  Neither the AGDC nor the IEP natural gas projects would now be burning cash if they were controlled by prudent, free market investors.  See references, below.  -dh

LNG tank construction a sign of progress for Interior gas project (IEP),  Alaskajournal.com,   Backhoes are back digging in south Fairbanks as construction work is again underway on the Interior Energy Project. Ground-turning work on the effort to expand the natural gas supply to the region had been on hold since the summer of 2015 as IEP leaders looked revise the scope of the project in the …

References: AIDEA, Petroleum News, Northern Gas Pipelines: 11-10-17, 11-9-1710-25-178-3-174-27-15, 4-3-15, 2-20-152-19-15, 2-24-1411-24-13


China Metal Tariff Spotlights Alaska LNG Scheme

Alaska’s Government Owned LNG Project Leaders Seek Chinese Government Support.

Factbox: Trump’s metal tariffs put spotlight on US-China commodity trade,  Platts.  During Trump’s China visit, Sinopec, CIC Capital Corporation, Bank of China, Alaska Gasline Development Corporation, and the state of Alaska agreed to develop the $40 billion, 20 million mt/year Alaska LNG project comprising three liquefaction trains at Nikiski in south central Alaska, an 800 mile gas …


Walker seeks to deepen trade ties with China.  KTOO.  Alaska’s Gasline Development Corporation (AGDC) is also seeking to partner with China. The state is working to develop a massive liquefied natural gas export project and hopes to partner with an investment bank, sovereign wealth fund and a China-owned oil company. Walker and AGDC head Keith …  A growing partnership – Mat-Su Valley Frontiersman.  Walker puts out call to join trade mission to China….


4 Comments

  1. Katherine Hicks March 7, 2018 at 3:20 pm - Reply

    Our Governor is out of his mind and, unfortunately, our Legislature seems to be enabling him. I can’t believe they haven’t cut his budget. It seems he has unlimited funds to give to his cronies to travel the world and make false promises. November can’t come quick enough for me. Get out and vote people. That’s the only way we can stop this mad man.

    • wpnorthern March 7, 2018 at 3:30 pm - Reply

      Your clear thinking in the midst of seeming chaos, Katherine, should be beneficial to our readers. Thank you for taking the time to comment. Dave

  2. Kaye Laughlin March 7, 2018 at 9:29 pm - Reply

    What do an uneconomic Fairbanks natural gas pipeline project and Governor Walker’s hometown have in common?

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About the Author:

Dave Harbour, publisher of Northern Gas Pipelines, is a former Chairman of the Regulatory Commission of Alaska, a Commissioner Emeritus of NARUC, NARUC's Official Representative to IOGCC and Vice Chairman of NARUC's Gas Committee. He served as Gas Committee Chairman of the Western Conference of Public Service Commissioners. He also served as commissioner of the Anchorage Bicentennial Commission and the Anchorage Heritage Land Bank Commission.He earned a Bachelor of Arts Degree: English, at Colorado State University, a Master of Science Degree: Communications-Journalism at Murray State University and graduated from Utility Regulatory School for Commissioners at Michigan State University. He served as a Vice President for Communications and Public Affairs at Alaska Pacific University, taught bank marketing classes at the University of Alaska and was an English teacher at Los Alamos High School.Harbour served in ranks of Private - Captain during a 4-year assignment with the Army in Korea, Idaho, Georgia and Fort Meade and received the Meritorious Service Medal among other commendations.Harbour is also a past Chairman of the Alaska Council on Economic Education, the Alaska Oil & Gas Association Government Affairs Committee, the Anchorage Chamber of Commerce, the Export Council of Alaska and the Department of Commerce's District Export Council. He is a past President of the Alaska Press Club, American Bald Eagle Foundation, Consumer Energy Alliance-Alaska and Common Sense for Alaska.Harbour was instrumental in founding the American Bald Eagle Research Institute (UAS), the Alaska Support Industry Alliance, the Downtown Anchorage Business Partnership, and Arctic Power.He also served as CEO of several small Alaska organizations, including the Anchorage Parking Authority and Action Security, Inc. Harbour is also Chairman Emeritus of the Alaska Oil & Gas Congress.Harbour's wife, Nancy, is a professional, performing arts administrator and his three boys, Todd, Benjamin and William work in the fields of environmental management, energy marketing and medicine.