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Alaskan gas: plans proceed amid doubts on pricing

Journal Article · · Energy User News; (United States)
OSTI ID:5213774
A 731-mile section of the 4800-mile Alaskan gas pipeline will be built by a group of natural gas companies in partnership with a unit of the Northwest Energy Co. Deliveries from the finished pipeline are scheduled to begin in 1983 at a rate of 2.6 billion cubic feet per day. Although the partnership was formed to provide financing to settle legal issues and obtain approvals, the primary concerns of price and distribution remain. Six of the partners will share equally in the pre-construction costs of $200 million and each will contract to transport gas volumes through the pipeline. Negotiations with several gas users are waiting for a wellhead price to be set before contracts can be signed. If a price is not set by Congress, the Federal Energy Regulatory Commission (FERC) will begin rate proceedings to do so. The questions of averaging Prudhoe Bay costs with those of less costly supplies and the size of the Canadian portion of the pipeline have not been resolved.
OSTI ID:
5213774
Journal Information:
Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 3:11; ISSN EUSND
Country of Publication:
United States
Language:
English