Energy Holdings’ Chairman and CEO David Sokol, Pacific Star Energy President and CEO

laska has accepted two Stranded Gas Applications that will allow North Slope producers to enter into negotiations on terms to construct natural gas pipelines to the Lower 48. The applications, which suggest that the future for major pipelines to bring natural gas to the U.S. remains bright, also indicate the rising competitive interest in building such a pipeline. Alaska Gov. Frank Murkowski announced the applications filed by North Slope gas producers Conoco-Phillips, BP and ExxonMobil (Jan. 13) and MidAmerican Energy Holdings Company (Jan. 22), at two separate press conferences. At the first news conference, among others. Sokol said the Alaska portion of the pipeline would require $6.3 billion. At the Canada border, it would meet a pipeline built by TransCanada's subsidiary, Foothills Pipe Lines, Ltd., he said. No cost estimate was offered for the Canadian section. The producers have estimated that a complete pipeline from the North Slope all the way to Chicago would cost about $20 billion. " It is a great day for Alaska, " Murkowski said. " We have had a long and productive relationship with the North Slope producers in the oil patch, and it is heartening to have them take this significant step toward commercializing our natural gas. We recognize this is just one step in the right direction and there remains much work to be done. But it is a step in the right direction. " Murkowski seemed particularly pleased with the proposal put forth by the MidAmerican-led group and indicated that the next step would be to negotiate a draft contract with it. Once negotiations are complete, the contract will be submitted to the Legislature for its approval. He gave no indication where the application from the producer-led group stood. In his recent State of the State speech to the 23rd Alaska Legislature in Juneau on Jan. 13, Murkowski said, " It's time for our dream of a natural gas pipeline to become a reality. Development of a pipeline to get Alaska's gas to market is one of my administration's highest priorities. A gas line would develop our resources, create jobs for Alaskans and generate revenues for the state. It would supply the nation with environmentally friendly energy. We re-inject enough natural gas every day on the North Slope to supply all of the present demand in California and that is only a fraction of the supply. " MidAmerican is a privately held …