Alaska

A subsidiary of Hilcorp Energy Co. has filed plans with the Interior Department for its proposal to build a manmade island six miles offshore atop North Slope oil targets in Alaska’s Beaufort Sea, and a subsea pipeline connecting the island to the mainland.

A list of 13 candidates has been narrowed to two in the running to develop a project to deliver liquefied natural gas to Interior Alaska (see Daily GPI,Oct. 14), the Alaska Industrial Development and Export Authority said. Proposals bySalix Inc.(Avista Corp.) andSpectrum LNG LLCare the finalists. A final decision is expected early next year. The Salix proposal does not include transport but can accommodate either rail or truck transport from Cook Inlet. Spectrum provided two alternatives to source gas, North Slope and Cook Inlet, but did not provide for transportation, leaving it to the utilities that would be receiving the gas. Trucking is possible from both locations and rail is possible from Cook Inlet.

ConocoPhillips Alaska Natural Gas Corp. (CPANGC) has filed with the U.S. Department of Energy (DOE) to extend exports of liquefied natural gas (LNG) from its terminal at Kenai, AK.

Alaska House and Senate lawmakers have approved a bill (SB 3001) to facilitate the buyout of TransCanada Corp.’s stake in the Alaska LNG project to pipe, liquefy and export North Slope gas to global markets.

After securing pledges of commitment to the Alaska LNG project from North Slope producers BP plc and ConocoPhillips, Gov. Bill Walker has dropped his plan to introduce legislation to create a reserves tax during a special session of the state legislature now in progress.

The Obama administration on Friday imposed more barriers to explore for oil and natural gas offshore Alaska, angering state officials, legislators and industry groups, but the Department of Interior indicated that it hasn’t ruled out future exploration activity.

Developers of competing projects to serve Interior Alaska natural gas demand with liquefied natural gas (LNG) now have the option of shipping by rail as the Alaska Railroad Corp. has been cleared by federal regulators to carry containerized LNG.

Alaska Gov. Bill Walker plans to introduce legislation that would include a tax on North Slope natural gas reserves that lie fallow. It is intended to spur producers to commercialize the reserves, but the move has antagonized Republican state lawmakers.

The Obama administration’s proposed expansion of the scope of the federal Clean Water Act went into effect last Friday in the 37 states not covered by a North Dakota federal district judge’s preliminary injunction against the regulation, the U.S. Environmental Protection Agency (EPA) indicated.