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Stevens switches position to support in-state gas line

March 13, 2010
  • Sen. Ted Stevens says Alaska doesn't need any more open seasons or periods for analysis -- it needs action. (Rich Jordan/KTUU-DT)
Sen. Ted Stevens says Alaska doesn't need any more open seasons or periods for analysis -- it needs action. (Rich Jordan/KTUU-DT)

by Ashton Goodell
Friday, March 12, 2010

ANCHORAGE, Alaska -- Former Sen. Ted Stevens spoke out on the future of Alaska's natural gas at a speech to industry leaders Friday. In a surprise twist, he says he's changed his mind on how to tap the state's gas resources.

Stevens says the state is losing focus, but he says he's honed in on some ideas that need changing.

"I tried to do everything I could to accelerate the pipeline through Canada to those states," Stevens said. "I've now changed that position."

Stevens is now voicing his support for an in-state gas pipeline and the bullet line. Stevens previously spoke out in favor of the Alaska Gasline Inducement Act's planned pipeline through Canada.

"Our state has the power to set aside AGIA and become -- and decide to encourage the development of the bullet line as soon as possible," Steven said. "I believe emergency power should be given to a special coordinator to devise ways to get the main pipeline from the North Slope to Valdez built in record time."

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Stevens thinks the state should compete in growing liquefied natural gas markets along the Pacific Rim. He points out that demand for gas in the Lower 48 is expected to drop in the coming years, while the Asian market has a gap to fill.

"Let's move ahead," Stevens said. "We don't need any more open seasons, we don't any more periods for analysis -- we need an emphasis on getting the job done."

But state lawmakers say he's just another naysayer who's trying to pull the plug on the AGIA project.

"You know, you can not change your mind every day about how you are going to build a gas line," said Rep. Les Gara. "We've set on a course, it makes sense, we are closer than we've ever been to building a gas line, and when people say, ‘No, let's do this instead' every single week, you lose all the credibility in the world."

Bud Fackrell, the president of the Denali pipeline project, acknowledges the volatile market in the Lower 48, but says the group will have a better idea of what customers want after AGIA's open season.

"Our objective is to try to monetize the gas," Fackrell said. "Our plan is through a big pipeline, but there are some things that are outside our control. One of them is what is the market going to be in the Lower 48."

Stevens says he's not speaking on anyone's behalf, but is looking to change minds. He says there's been a lot of talk already about options for a natural-gas pipeline, but now is the time to do something about it.

"To build a gas line will be the largest project underway in Alaska -- in the United States if it's undertaken," Stevens said. "It will represent Alaska's contribution to job creation and economic recovery in our nation."

Gov. Sean Parnell's spokesperson, Sharon Leighow, says the state is staying on course.

"An in-state gas pipeline remains a priority of the Parnell administration," Leighow said in a statement. "We continue to believe that a pipeline to bring gas to the Lower 48 is the best and fastest way to develop Alaska's North Slope gas resources for the benefit of all Alaskans. An LNG plant at Valdez remains an option at the upcoming open season."

Contact Ashton Goodell at agoodell@ktuu.com

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