Do Two LNG Pipeline Projects Make Sense?
Governor Walker has announced a plan to upsize Alaska's "Plan B" LNG project known as the Alaska Stand Alone Pipeline (ASAP).
This places the ASAP project in direct competition with the AKLNG project the Alaska Senate authored and passed last year with SB 138. The Senate Resources Committee recently heard testimony from enalytica consulting about the pluses and minuses of Alaska pursuing dual pipeline projects simultaneously.
This is the LNG project the Senate authored and passed in 2014. Hundreds of millions of dollars are being invested by the project partners this year to determine long-term economic viability.
This is Alaska's Plan "B". Going it alone with a smaller pipeline project to supply the pipeline corridor, including Fairbanks, with low cost natural gas and provide enough capacity to export LNG to foreign markets.
This is Governor Walker's approach: Create dual competing projects that proceed simultaneously. This chart illustrates that when both projects proceed at the same time, both are hurt.