New pipeline could put state in the middle of an economic boom
By Duggan Flanakin, Real Clear Wire
Summarized by Jennifer Rae Vliet, News Editor for The Plain Truth, based on commentary by Duggan Flanakin, distributed by RealClear Wire and published at WND. Additional project background is linked below.
The proposed Alaska LNG pipeline could help launch a new chapter in the state’s economy. By carrying North Slope natural gas to Alaskan customers and a planned export terminal, the project offers the prospect of new jobs, business investment and overseas energy sales. However, those opportunities depend on turning development plans into a completed, commercially viable project.
What would the Alaska LNG pipeline do?
According to the project’s developer, the first phase would build a 739-mile pipeline to supply natural gas for Alaska’s domestic needs. A second phase would add liquefaction and export infrastructure at Nikiski, bringing the pipeline’s total length to 807 miles.
Liquefied natural gas, or LNG, is natural gas cooled into liquid form for transport by ship. The proposed terminal would allow Alaska to sell that fuel to overseas customers while the pipeline also serves users within the state.
Why supporters see an economic opportunity
In his commentary, Duggan Flanakin describes the possibility of another Alaska “gold rush,” this time driven partly by natural gas development.
Supporters argue that the project could create construction jobs, attract industries and expand energy options for Alaskan communities. In addition, overseas sales could give the state another way to develop its North Slope resources.
The opportunity extends beyond exporting fuel. A pipeline serving domestic customers could also support businesses that need a dependable natural gas supply. Still, projected benefits should be understood as goals rather than guaranteed results.
What still needs to happen?
Foreign interest does not automatically mean financing is secured. Investment announcements, preliminary agreements and completed contracts represent different stages of a project’s development.
Before an economic boom can follow, developers must assemble financing, secure the necessary commercial agreements and carry out construction. Therefore, readers should distinguish between enthusiasm for the proposal and commitments that make it possible to build.
From Seward’s purchase to a new energy chapter
The proposal also invites a look at Alaska’s history. In 1867, Secretary of State William Seward negotiated the purchase of Alaska from Russia for $7.2 million.
Critics mocked the acquisition as “Seward’s Folly.” Later resource discoveries helped change that reputation. Today, the Alaska LNG pipeline raises another question about the state’s future: can its natural wealth support a new era of opportunity?
Read Duggan Flanakin’s original commentary at WND.
Additional background: Official Alaska LNG project overview and the State Department’s history of the Alaska Purchase.