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Lawmakers See Pipeline As A Victory For Alaska

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Lawmakers See Pipeline As A Victory For Alaska

Lawmakers gathered in the capital to discuss the new natural gas pipeline. File photo, Alaska Suerstation ABC®.

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Lawmakers responded to the BP and ConocoPhillips pipeline project. $600-million towards an open season is a clear indicator that the companies are serious about building a gas pipeline, said lawmakers.

Lawmakers also noted that the arrangement may make it possible for the state to avoid having to pay $500-million as an incentive to an AGIA bid-winner.

Governor Sarah Palin said she was aware of rumors that suggested the project was in the works. She said that she believe that the project will bring competition to the pipeline project."If this project as it is being progressed in conjunction with the AGIA applicant, if that results in, at the end of the day, of getting this gas line, that is in Alaska's best interest, this is a success, this is a victory.

Senator Charlie Huggins commented on the project, saying, "they have the money, they have the where with all and they are committed.... I think that is a victory for us."

Representative Les Gara seemed a little more skeptical, "I think until we see a real proposal for them.... Then my eyes are open."

Currently the only bid-winner under AGIA so far is the firm TransCanada, however at the moment their proposal is under review by the state.

BP and ConocoPhillips have both expressed in interest in getting the support of Exxon, whom the project was presented to prior to its announcement.

Lawmakers will still hold a special session on AGIA as planned.

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