Sempra Joins Alaska Pipeline Venture

By Published On: January 8, 2005

In another move to bolster its liquefied natural gas supplies, Sempra LNG linked up with the Alaska Gasline Port Authority, the state of Alaska, Bechtel, and Yukon Pacific to develop Alaskan North Slope natural gas. The fuel would be sold to Sempra, and the company will assist in advancing an all-Alaska pipeline and liquefied natural gas?related markets, the port revealed on December 20, 2004. ?It is important that the vast natural gas resources of Alaska be delivered to the U.S. market as quickly and as efficiently as possible,? stated Don Felsinger, Sempra chief executive officer and president. The move means the port could buy out existing permits held by Yukon for an 800-mile pipeline and liquefaction facilities from the North Slope to Valdez. LNG could be shipped out of Valdez. In addition, a natural gas pipeline could be built to Canada for Midwest gas supplies. According to the port, gas could flow as early as 2011. The port has allowance from the Internal Revenue Service to make the development exempt from federal tax. Meanwhile, early this week, Sempra entered into construction contracts totaling $670 million with an international consortium of companies to build its LNG terminal in Baja California. Sempra Utilities spokesperson Art Larson said that groundbreaking would start ?soon? and that construction would take about three years.

Share this story

Not a member yet?

Subscribe Now