Alaska Calls for North Slope Pipeline Tenders

The US state of Alaska says it is ready to roll up its sleeves and get to work on a new pipeline which will bring the state's North Slope gas to market.

Alaskan Governor Sarah Palin invited companies to lodge applications for an exclusive licence to build the pipeline, and establish pipeline-related careers in the state, from financing to engineering, construction and operations.

She also released the Alaska Gasline Inducement Act (AGIA) the document which sets out strict policy guidelines for applying contractors.

"The purpose of the AGIA is to encourage expedited construction of a natural gas pipeline that will commercialise North Slope gas, promote exploration and encourage North Slope leaseholders to commit to ship their gas down the gasline," Palin says.

The multi-billion dollar gasline is important for future power supplies to North America but doubt has been set on the short time frame for tender.

Applicants for the exclusive licence have until October 1 this year to submit proposals, after which date a 60-day review over applicants will take place. The chosen licensee will then be approved following a further 60-day decision made by the commissioners of the Department of Natural Resources.

A pipeline provider will be selected on grounds of economic benefit to Alaska and the greatest likelihood of completing the gasline, according to Palin.

Palin says the pipeline will not only benefit the contractor and consumers in North America – local businesses will get to see a piece of the pie as the project ramps up with pipeline-related and other energy industry services.

by Penny Jones