The outlook for the Alaska Gas Pipeline has looked pretty grim lately. The slow economy, low natural gas prices, maxed out storage, the shale gas bonanza and floods of LNG seem ready to extinguish plans for an Alaska Gas Pipeline.
An yet there are long term fundamentals that will continue to propel this project forward if and only if policy makers work hard and work smart. An example of working smart is Alaska Governor Sean Parnell's stance on fiscal certainty and the idea of working together for one pipeline.
Alaska Gov. Sean Parnell said Thursday he's not going to negotiate with the oil companies over how much the state taxes natural gas until they unite behind a gas pipeline project and can prove they need the help in order for construction to start.Resolving the tax issues is the final link needed to get this project moving. Everybody knows that two pipeline projects is a non-starter. The major producers are on board, AGIA and TransCanada are still in play, and even ExxonMobil might be happy.
Parnell told a Resource Development Council gathering in Anchorage that "once they've come together on a project, then come talk to me" about taxes. (LINK).
The time is right, the Governor is right, it's time to unite.