Nikiski

Alaska Republican House Speaker Rep. Mike Chenault of Nikiski on Tuesday introduced legislation aimed at consolidating and advancing efforts to develop an in-state gas pipeline to commercialize North Slope reserves and get much-needed gas to the state’s residents. The project also would support exporting liquefied natural gas (LNG).

With its Alaska business forever tied to the possibility that natural gas supplies could be curtailed, Agrium Inc. plans to switch its Nikiski nitrogen plant in Kenai, AK, from gas to coal. A final decision on coal plant construction is scheduled for 2008, and if it moves forward, the revamped plant would be operational in late 2011, company officials said.

Agrium Inc., which has been searching for more than a year for ways to secure natural gas supplies for its Nikiski nitrogen plant in Kenai, AK, said Thursday it has begun a detailed feasibility review on the proposed Kenai Blue Sky Coal Gasification Project. If the project is completed, it could be operational by 2011.

Agrium U.S. Inc. is teaming up with Alaskan officials to evaluate the potential use of coal gasification as a feedstock for its Nikiski fertilizer plant in Kenai, AK, which is slated to close in 2006 when natural gas supplies run out. If a feasibility study proves coal gasification would work, Agrium said the gasification facility could be in operation as early as 2011.