The Alaska Department of Natural Resources (DNR) has agreed on a right-of-way (ROW) for a proposed pipeline to carry natural gas from the North Slope to the state’s Cook Inlet region.

The Alaska Gasline Development Corp. (AGDC), a subsidiary of Alaska Housing Finance Corp., is promoting its plan for the 737-mile pipeline to supply the state’s Southcentral region, which many believe will run short of gas supply in a year or two (see Daily GPI, July 7). This is far sooner than a Lower 48 gasline being considered by TransCanada Corp. and ExxonMobil could be online (see Daily GPI, May 18).

AGDC was created by House Bill 369 and tasked with developing a plan for the Alaska Stand Alone Pipeline (ASAP) project. The legislation requires AGDC to work toward developing an in-state gas pipeline as a viable alternative if a large-diameter North Slope gas pipeline project does not move forward.

The in-state project plan involves transporting gas and natural gas liquids from the North Slope via a 24-inch diameter pipeline, with the intent of supplying gas to Fairbanks and Southcentral. AGDC submitted a right-of-way lease application to the State Pipeline Coordinator’s Office (SPCO) last March.

Upon receipt of the completed application, the SPCO issued an ROW lease, which was accepted and signed by Dan Fauske, president of AGDC. “This state right-of-way lease is a major milestone in the work completed and the progress made on the ASAP project this past year,” said Fauske.

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