Saturday, April 5, 2008

AGIA Dead or New Life for LNG?

The AGIA process failed to produce any real competition. The All Alaska Pipeline, an LNG option didn't make it past the first round of completion.

The State was left with the TransCanada proposal that is burdened by numerous conditions.

Things are looking dim as the Alaska Daily News reports this week that the mood in Juneau is growing openly hostile.

Folks in Fairbanks are finding their voice and airing concerns about the high cost of fuel oil for home heating. Talk of a bullet line is gaining traction as the probable failure of AGIA takes hold.

But is the glass half full?

The Alaska Journal reports some cryptic remarks from Alaska Department of Natural Resources Commissioner Tom Irwin: "If the TransCanada proposal doesn't go to the Legislature the state will stay within the AGIA process and work on LNG, or liquid natural gas, options".

It's not clear how the AGIA goes into overtime, but it's good to hear that the State is not 100% joined at the hip to TransCanada. For now let's hope the glass is half full and that reason prevails.

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