The State of Alaska has hired Petrie Parkman & Co. of Denver to act as a financial adviser to evaluate the state’s potential participation in owning an interest in or financing a North Slope natural gas pipeline project. Last week, Alaska Gov. Tony Knowles proposed federal legislation that would mandate a natural gas pipeline along the Alaska Highway, and called for federal tax incentives to enable companies to bring North Slope gas to market (see Daily GPI, Sept. 4).

Petrie Parkman will assist the Alaska commissioner of revenue in preparing a comprehensive report addressing options for and analysis of the state’s potential participation in a gas pipe project. The assistance was provided under the authority of Alaska’s Senate Bill 158. The report, when completed, would be presented to the governor and the state legislature and would include an examination of each of the announced North Slope pipe proposals. The report also would analyze whether and how the state could take an equity ownership or other financial interest in the project.

“Current energy market conditions within North America indicate that one or more Alaskan pipelines may be economic,” said Tom Petrie, chairman. “It is paramount that the best course of action is determined by the state. An interesting opportunity exists to benefit both the citizens of Alaska and the interests of natural gas consumers in North America.”

Petrie Parkman is a specialized investment banking firm that focuses on energy issues and transactions. It previously advised U.S. officials about privatizing the Elk Hills Naval Petroleum Preserve.

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