The Alaska Industrial Development and Export Authority Interior Energy Project team evaluating proposals for providing a liquefied natural gas supply for Fairbanks favors a plan by Salix Inc. to build an LNG plant in the Cook Inlet region, the team told the AIDEA board today. LNG would likely be transported to Fairbanks by truck, although shipment on the Alaska Railroad is also a possibility.
The AIDEA team had narrowed the LNG options to the Salix proposal and to a proposal by Spectrum LNG for an LNG plant on the North Slope. The team said that both companies had presented strong proposals but that the decision to pick the Salix option was based on a unanimous vote by team members after a careful evaluation of both concepts. Selection criteria included cost; the risk associated with low gas demand scenarios; and LNG transportation costs.
The team must now conduct some further work on some details of the Salix proposal before putting its recommendation to the AIDEA board for a decision on whether to proceed with the Salix plan. The objective is to establish a viable, expanded supply of natural gas to Fairbanks for heating buildings and generating electricity.
- ALAN BAILEY
See story in March 13 issue, available Friday, March 11 at www.PetroleumNews.com
