Alaska natural gas may never reach the Lower 48 if the price is too high

Journal Article · Sat May 09 04:00:00 EDT 1981 · Natl. J.; (United States)

OSTI ID:6348619

Corrigan, R

Unless construction financing can be found for the 745-mile Alaska link of the gas piepline, the delivered price may be too high for the market. Northwest Energy Co. and 10 other gas-pipeline companies continue to negotiate, but they have been unable to raise construction funds. They are hoping producers will participate in the financing, but the producers will also want to share in the ownership. Although construction on the two legs of the pipeline is progressing, the Canadian government wants assurances that the Alaskan section will be built so that Canada will not become an energy farm for the US. If private financing is not forthcoming, the companies will ask for government help in the form of loan guarantees. The Reagan administration, however, insists upon private financing. Construction timing has been delayed during the regulatory negotiations, which began during the Carter administraton. Some involved in the pipeline are confident that neither the US nor Canada will forego construction even if government assistance is required. (DCK)

• OSTI ID: 6348619
• Journal Information: Natl. J.; (United States), Journal Name: Natl. J.; (United States) Vol. 13:19; ISSN NAJOD
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
032000 -- Natural Gas-- Transport
Handling
& Storage
29 ENERGY PLANNING, POLICY, AND ECONOMY
294003* -- Energy Planning & Policy-- Natural Gas
ALASKA GAS PIPELINE
CONSTRUCTION
ECONOMICS
FINANCIAL ASSISTANCE
FINANCIAL INCENTIVES
FINANCING
GOVERNMENT POLICIES
INDUSTRY
NATURAL GAS INDUSTRY
PIPELINES