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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

jpg pipeline

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.
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.

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.

 Audio Clips

mp3First-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 Slope producers...

mp3Concrete Proposal (82k mp3) - Governor Murkowski says the producers' response means the state can now initiate negotiations leading to a contract for legislative consideration...

mp3Development Creates Jobs (126k mp3) - Governor Murkowski says his top priority is developing Alaska's natural resources to provide jobs for Alaskans...

mp3Negotiations 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...

mp3Other 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...

mp3Fitting 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...

mp3Legislator 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...

mp3Jobs 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...

mp3Welfare 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...

mp3Training 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...

mp3Marine 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 Greg O'Claray.

"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
Web Site


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