What others say: Another try for a gas line

  • By Fairbanks Daily News-Miner Editorial
  • Sunday, November 19, 2017 7:58pm
  • Opinion

Alaskans can perhaps be excused if they happen to have a muted response to Gov. Bill Walker’s signing of an agreement Thursday in Beijing regarding construction of an 800-mile natural gas pipeline from the North Slope and the sale of most of that gas to China.

Alaskans have been hearing about a North Slope natural gas pipeline for more than four decades.

Nevertheless, the agreement between the state of Alaska and Alaska Gasline Development Corp. and the government-owned petroleum company Sinopec, China Investment Corp. and the Bank of China — signed in the presence of President Donald Trump and Chinese President Xi Jinping — does renew hope for this long-sought project.

ADVERTISEMENT
0 seconds of 0 secondsVolume 0%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:00
00:00
 

The agreement is, in reality, a framework in which the parties agree to work toward the possibility of building the pipeline.

Gov. Walker touted the agreement in more definite terms, saying it “will provide” Alaska an economic boom comparable to that of the development of the oil pipeline in the 1970s.

But the caveats were clear in statements of AGDC President Keith Meyer and the official statement of Sinopec.

Mr. Meyer said the agreement “brings the potential customer, lender, equity investor, and developer together with a common objective of crafting mutually beneficial agreements leading to increased LNG trade between Alaska and China.” Note the word “potential.”

And this from Sinopec: “Sinopec is interested in the possibility of LNG purchase on a stable basis from Alaska LNG.”

The bottom line is that the parties are going to work together to see if they can get a pipeline built and gas produced in a manner that benefits all sides.

That’s good. And seeing progress of most any sort is what Alaskans should want.

But numerous questions remain and many details have yet to be worked out in the $43 billion non-binding agreement.

For example, is it smart to lock up 75 percent of the gas supply with a single customer, in this case China?

Is China just trying to play Alaska against Australia, which has sharply increased its natural gas production through several projects.

Is it, from a national perspective, wise to provide such a massive amount of a U.S. natural resource to a nation that increasingly sees itself as supplanting the U.S. as a world leader?

And, perhaps the biggest of all: Will the oil companies that hold the North Slope leases find it in their best financial interest to develop and sell the gas?

Remember, BP, Conoco Phillips and ExxonMobil haven’t shown much interest lately in developing the North Slope. It was during the administration of former Gov. Sean Parnell, whom Gov. Walker defeated in 2014, that the three companies seemed ready to build the pipeline on their own.

Back then, momentum toward a pipeline seemed great. The state government, the oil companies and pipeline builder TransCanada were all in agreement. Preliminary engineering work was underway and a decision on whether to build was set for 2019.

Gov. Parnell issued an exuberant statement stating that, “For the first time we have alignment among the necessary parties … for a project that will create thousands of jobs and provide fuel to Alaska homes and businesses for decades.”

Nothing came of it, which is why Alaskans might be skeptical of this week’s news about an agreement with China.

Even so, and although many questions remain and much work lies ahead, it is encouraging to see that Alaska officials remain committed to getting the North Slope natural gas into the market and into the hands of anxious customers.

— Fairbanks Daily News-Miner, Nov. 12

More in Opinion

(Juneau Empire file photo)
Opinion: Life is harder when you outlive your support group

Long-time friends are more important than ever to help us cope, to remind us we are not alone and that others feel the same way.

A silver salmon is weighed at Three Bears in Kenai, Alaska. Evelyn McCoy, customer service PIC at Three Bears, looks on. (Photo by Jeff Helminiak/Peninsula Clarion)
Opinion: Will coho salmon be the next to disappear in the Kenai River?

Did we not learn anything from the disappearance of the kings from the Kenai River?

Jonathan Flora is a lifelong commercial fisherman and dockworker from Homer, Alaska.
Point of View: Not fishing for favors — Alaskans need basic health care access

We ask our elected officials to oppose this bill that puts our health and livelihoods in danger.

Alex Koplin. (courtesy photo)
Opinion: Public schools do much more than just teach the three Rs

Isn’t it worth spending the money to provide a quality education for each student that enters our schools?

Gov. Mike Dunleavy speaks to reporters at the Alaska State Capitol on Thursday, April 17, 2025. (Jasz Garrett / Juneau Empire file photo)
Letter to the Editor: Law enforcement officers helped ensure smooth, secure energy conference

Their visible commitment to public safety allowed attendees to focus fully on collaboration, learning, and the important conversations shaping our path forward.

Laurie Craig / Juneau Empire file photo
The present-day KTOO public broadcasting building, built in 1959 for the U.S. Army’s Alaska Communications System Signal Corps, is located on filled tidelands near Juneau’s subport. Today vehicles on Egan Drive pass by the concrete structure with satellite dishes on the roof that receive signals from NPR, PBS and other sources.
My Turn: Stand for the community radio, not culture war optics

Alaskans are different and we pride ourselves on that. If my vehicle… Continue reading

U.S. Sen. Dan Sullivan (R-Alaska) delivers his annual speech to the Alaska Legislature on Thursday, March 20, 2025. (Jasz Garrett / Juneau Empire file photo)
Opinion: Sullivan, Trump and the rule of lawlessness

In September 2023, U.S. Sen. Dan Sullivan established his own Alaska Federal… Continue reading

UAA Provost Denise Runge photographed outside the Administration and Humanities Building at the University of Alaskas Anchorage. (courtesy photo)
Opinion: UAA’s College of Health — Empowering Alaska’s future, one nurse at a time

At the University of Alaska Anchorage, we understand the health of our… Continue reading

U.S. Rep. Nick Begich III, R-Alaska, address a joint session of the Alaska Legislature on Thursday, Feb. 20, 2025. (Mark Sabbatini / Juneau Empire file photo)
Opinion: A noncongressman for Alaska?

It’s right to ask whether Nick Begich is a noncongressman for Alaska.… Continue reading

Boats return to the Homer Harbor at the end of the fishing period for the 30th annual Winter King Salmon Tournament on Saturday, March 23, 2024 in Homer, Alaska. (Delcenia Cosman/Homer News)
Opinion: Funding sustainable fisheries

Spring is always a busy season for Alaska’s fishermen and fishing communities.… Continue reading

Gov. Mike Dunleavy holds a press conference on Monday, May 19, 2025, to discuss his decision to veto an education bill. (Jasz Garrett / Juneau Empire file photo)
Opinion: On fiscal policy, Dunleavy is a governor in name only

His fiscal credibility is so close to zero that lawmakers have no reason to take him seriously.