Alaska Paves the Way for Natural Gas Project

JUNEAU, Alaska (AP) — Both houses of the Alaska Legislature on Friday approved a bill establishing a path for a multibillion- dollar natural gas project designed to tap a huge heating fuel supply and transport it to the rest of the country.

The bill, called the Alaska Gasline Inducement Act or AGIA, will now go to the Senate Finance Committee to work out slight differences in versions passed by the Senate and House.

Under AGIA, producers and independent pipeline companies can vie for rights to build the pipeline that lawmakers hope will ship trillions of cubic feet of North Slope natural gas to market.

The bill is designed to stimulate competition through inducements, but also has requirements that BP PLC, Exxon Mobil Corp. and ConocoPhillips opposed.

The three major oil companies had warned they would not submit a bid unless such stringent requirements were removed.

Newly elected Republican Gov. Sarah Palin held firm, saying this week if lawmakers watered down her bill, she’d veto it.

(c) 2007 Deseret News (Salt Lake City). Provided by ProQuest Information and Learning. All rights Reserved.