This is an excerpt from EERE Network News, a weekly electronic newsletter.

January 28, 2004

Energy Companies Propose Alaska Natural Gas Pipeline

In late January, after years of discussions about a pipeline to carry natural gas from Alaska's North Slope to the lower 48 states, Alaska Governor Frank Murkowski announced that two groups of companies have separately applied to build it. On January 22nd, Governor Murkowski announced that a group led by MidAmerican Energy Holdings Company applied to build a pipeline, and on the following day, the governor announced that the three major North Slope oil producers had also applied to build a pipeline. "It has long been Alaska's dream to see commercialization of our vast gas reserves, believed to be well over 100 trillion cubic feet," said Governor Murkowski. The state will now enter negotiations with the two proposing groups. See the governor's press releases from January 22nd and January 23rd.

MidAmerican proposes to build a 745-mile, $6.3-billion pipeline from the North Slope near Prudhoe Bay to the Alaska-Yukon border. According to MidAmerican, another company will build a companion pipeline in Canada to carry the natural gas to Canadian and U.S. markets. The company plans to place the pipeline in service by the end of 2010. See the MidAmerican press release and accompanying fact sheet (PDF 524 KB). Download Acrobat Reader.

In the latest energy outlook from DOE's Energy Information Administration (EIA), the availability of natural gas from Alaska is considered part of the necessary expansion in U.S. natural gas supplies needed to meet the anticipated growth in demand. The EIA projections assume that the Alaska natural gas pipeline will be completed in 2018. The EIA recently finalized its Annual Energy Outlook 2004.