JUNEAU, Alaska (AP) — Limited funding is causing delays for an in-state natural gas pipeline, a leader behind the group promoting the project said Tuesday.
Dan Fauske, president of the Alaska Gasline Development Corp., or AGDC, said the timeline for the project has probably been pushed back a year due to limited funding from the Legislature. Lawmakers had previously set aside $200 million for the project but Fauske said they didn't pass legislation this year that would allow AGDC access to that money.
He said AGDC pledged to do "meaningful" work with the $21 million it got in the capital budget but that amount falls short of what is needed for engineering and design work to take the project to open season.
An open season is a period of courting producers and seeking shipping commitments. AGDC hoped to hold one next year but that has been pushed back.
The project is not, however, at a standstill, with work toward permits and environmental analysis continuing, he said.
Lawmakers frustrated with the pace of progress on a major natural gas line capable of exports have pushed an in-state line as a way to help meet energy needs for Alaskans.
They have not cast the projects as competing but rather seen the in-state line as an option to keep open — and keep pursuing — in case a big line falters. It is hoped that an in-state line could be incorporated into any major line that moves ahead.