An in-state Alaska natural gas pipeline from the North Slope to markets in the state’s gas-hungry Southcentral region could cost up to $11 billion and the state would have to foot some of the bill through subsidies or partial ownership, a task force examining such a project told state lawmakers Monday.
“There will need to be some type of equity infusion or some type of subsidy based simply on the numbers of people we have and the construction costs we’re looking at,” said Dan Fauske, chief executive of the Alaska Housing Finance Corp., as reported by the Anchorage Daily News.
A report by the Alaska Gasline Development Corp. said the cost of transporting gas from the North Slope to Anchorage could result in prices that are twice what Anchorage-area customers currently pay.
The in-state gasline panel was assembled by lawmakers to examine the feasibility of such a line as a backup to the much larger desire for a pipeline from the North Slope to serve Canada and Lower 48 markets with Alaska gas (see Daily GPI, Aug. 4). Even if such a line is developed, along with offtake points to serve in-state needs, it won’t be developed in time to meet the needs of Alaska residents, backers of an in-state line say.
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