Producers Make Proposal To
Build Gas Pipeline
Negotiations ongoing with
several other groups
December 17, 2004
Alaska Governor Frank H. Murkowski announced Thursday that the
three major North Slope oil producers have submitted a unified,
joint proposal to Exxon to construct a gas pipeline from the
North Slope to southern markets. While the details remain
confidential by mutual
agreement, the governor
said both the state and the producers agreed that Alaskans should
know that the two sides had reached a significant milepost in
the long-sought project. Governor Murkowski said the state
received a proposal from BP, ConocoPhillips and Exxon to construct
a gas pipeline from the North Slope to southern markets.
Governor Frank H. Murkowski
displays a copy of a proposal from BP, ConocoPhillips and Exxon,
delivered to the state Wednesday, to construct a gas pipeline
from the North Slope to southern markets. Appearing with the
governor were (L-R) Labor Commissioner Greg O'Claray, Alaska
AFL-CIO Executive Director Jim Sampson, and Marine Exchange of
Alaska President Paul Fuhs.
Acknowledging the very significant
employment opportunities that a gasline project would provide
for Alaskans, Murkowski made his announcement during a press
conference at Anchorage's Gambell Job Center, highlighting administration
efforts to prepare Alaskans for good-paying jobs.
On Oct. 29, the state presented
its comprehensive proposal for the gas pipeline project to the
three major oil producers. "The producers came back with
a comprehensive, joint response to the state's proposal on Wednesday,
December 15th. We are particularly encouraged that their response
was unified among the three producers."
"This state has been talking
about marketing Alaska's gas for nearly 50 years. And for the
first time ever, we now have a detailed and specific offer from
a group to actually build the pipeline," Murkowski said.
Earlier this year, Murkowski
had announced his support for the concept of the state taking
an equity ownership share of the gas pipeline and sharing in
the shippers' risk in the project. The state's current Stranded
Gas negotiations involve those key elements. Equity ownership
could mean billions of dollars more to the state, said Murkowski.
First-Ever Gasline Proposal (77.2k mp3) - Governor Frank H. Murkowski announces
that the state has finally realized its dream of having a serious
gas pipeline construction proposal on the table from the North
Proposal (82k mp3) - Governor Murkowski says the producers'
response means the state can now initiate negotiations leading
to a contract for legislative consideration...
Creates Jobs (126k mp3) - Governor Murkowski says his top
priority is developing Alaska's natural resources to provide
jobs for Alaskans...
Led to Response (299.8k mp3) - Governor Murkowski describes
the progress of negotiations with producers the North Slope producers
on the gasline project, negotiations leading to the Dec. 15 delivery
of a unified joint response to the proposal...
Gasline Options Still Open (184.2k mp3) - Governor Murkowski
says that while the producers' response is the most significant
development in decades, the state is continuing to pursue other
opportunities to bring North Slope natural gas to market...
Holiday Announcement (93.8k mp3) - Governor Murkowski says
the state's significant progress forward on the gasline proposal
is a fitting holiday present to the state...
Thanks Governor (88.7k mp3) - Rep. Ralph Samuels of Anchorage
expresses the legislature's appreciation to Governor Murkowski
for his successful efforts in working to make the North Slope
producers' proposal a reality...
for Alaskans (137.9k mp3) - Attorney General Gregg Renkes,
who is among the commissioners working on the gasline project,
acknowledges the Department of Labor's efforts to ensure Alaskans
are trained and ready to fill the thousands of jobs the gasline
project will generate...
to Work is Working (186.8k mp3) - Health and Social Services
Commissioner Joel Gilbertson tells the governor that his efforts
as senator and governor have resulted in a 52 percent decline
in Alaska's cash welfare costs...
Alaska's Mariners (177.9k mp3) - Labor Commissioner Gregg
O'Claray describes how industry initiative and state cooperation
are combining to help Alaskans get trained in-state to fill the
many good jobs in the state's maritime industry...
Industry Critical (196k mp3) - Paul Fuhs, executive director
of the Marine Exchange of Alaska, describes how important oceangoing
shipping is to Alaska, and how the new state program will benefit
both his industry and the state economy...
Murkowski made the announcement
during a press conference at the Gambell Jobs Center in Anchorage
while kicking off the administration's newest initiative focused
on putting Alaskans to work.
Murkowski was joined by Health
and Social Services Commissioner Joel Gilbertson and Labor Commissioner
"The construction of a
natural gas pipeline will result in 8,500 jobs. And we're going
to fight to make sure those jobs go to Alaskans," O'Claray
said. "We are committed to putting Alaskans to work and
this pipeline will do that."
With the producers' latest
response, the state expects to negotiate the specific terms of
a Stranded Gas contract that Murkowski will submit to the Legislature
in the upcoming legislative session.
Murkowski said the state is
also pleased with the progress being made in negotiations with
Transcanada, which has filed a Right-of-Way and Stranded Gas
Act application and other groups interested in commercializing
Alaska natural gas.
"TransCanada has prepared
a very responsible proposal which we expect to present to the
Legislature this session," Murkowski said. "We are
also very pleased that the Alaska Gas Port Authority continues
to work on an 'All Alaska' project that is not exclusive and
could provide many benefits to the state."
"We will have a lot of
tough negotiating to do," said Murkowski. "But we are
committed to negotiating a contract that is in the interest of
the state and putting it before the Legislature this session."
The specific terms of the producers'
response are confidential. But a negotiated Stranded Gas contract
would become public when it is submitted to the Legislature.
To date only TransCanada and
the three producers are in negotiations with the state Stranded
Gas team. These are the only applicants who have signed the reimbursement
agreement required by the Stranded Gas Act.
The state is also talking with
MidAmerican Energy Holdings Company, the Alaska Natural Gas Development
Authority, the Alaska Gasline Port Authority, Embridge and Calpine
outside the framework of the Stranded Gas Act.
Source of News Release, Audio Clips & Photograph:
Office of the Governor
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