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Why not build the All-Alaska pipeline? Alaska

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  • Why not build the All-Alaska pipeline? Alaska

    There are a number of reasons but the primary one is that the Alaska Highway project has the best economics of the pipeline projects under consideration and gives Alaska the best opportunity to get a pipeline project. Overall, Alaska makes more money and the Alaskan economy generates more jobs through construction of the Alaska Highway project. (see side by side comparison of projects from Fiscal Interest Finding)

    The All-Alaska pipeline is not an accurate description of the LNG project. In order to access the markets in the Lower 48 that need our gas, new pipeline investments will need to be made in both Canada and the Lower 48 for a large-scale LNG project as well.

    The LNG project economics would definitely improve with the Alaska Highway project proposed by the Governor and the Producers, since the mainline goes through Delta and the shipping distance from Delta to Valdez is much less than from Prudhoe Bay to Valdez. As a result, a smaller scale LNG facility in Valdez or even an expanded facility at Nikiski could happen under the expansion provisions and offtake points built into the pipeline contract.

    The producers rejected the LNG project as sub-optimal in their previous feasibility studies. This would make getting the gas to make this project subject to lengthy and extensive litigation with the lessees.