Federal official bullish on prospects for Alaska natural gas pipeline construction project

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Federal official bullish on Alaska gas pipeline

FAIRBANKS, Alaska — A top federal pipeline official says the time is right for an Alaska pipeline construction project.

Tom Barrett, the White House’s deputy pipeline coordinator, told members of the Greater Fairbanks Chamber of Commerce on Tuesday that the federal government likes the proposed pipeline that would span Alaska and much of Canada. He said labor markets need it, environmentalists can stomach it and North American natural gas markets can handle it.

“The biggest market for natural gas in the world is the United States,” Barrett said.

Two joint ventures are taking steps toward construction of the proposed line. One of them, led by TransCanada Corp. in partnership with Exxon Mobil Corp., is already soliciting potential customers. The other, involving BP PLC and ConocoPhillips, is nearing that stage.

Barrett suggested either proposal would need somewhere around $100 million in firm long-term shipping commitments for the developers to justify construction.

Congress created the pipeline office in 2004 to smooth federal permitting and aid the path to construction of a pipeline from the resource-rich North Slope.

Rep. Scott Kawasaki, D-Fairbanks, said he considers President Barack Obama’s decision to fold the pipeline office into the White House as a positive sign.

“I think that bodes well, really well, incredibly well, for Alaska,” said Kawasaki, who attended the luncheon.

Information from: Fairbanks Daily News-Miner, www.newsminer.com