Celtic Diva's Blue Oasis: Exxon's in charge????? I feel dirty...

Monday, August 04, 2008

Exxon's in charge????? I feel dirty...

...and used...and duped...

...by our "buddy," Hal Kvisle.

VANCOUVER — TransCanada Corp. has won support from Alaska to build a $26-billion natural gas pipeline, but ground won't be broken until Exxon Mobil Corp. signs on, says TransCanada chief executive officer Hal Kvisle.

Calgary-based TransCanada, which secured Alaska's official backing Friday, is in competition with BP PLC and ConocoPhillips Co. to build a pipeline that would connect large untapped gas reserves on the north slope of the state to consumers in the continental United States.

But Exxon, the company that controls the most gas in Alaska, hasn't yet backed either of the competing proposals, though it has an active Alaska team monitoring the pipeline race.

"Nothing goes ahead until Exxon is happy with it," Mr. Kvisle said in an interview yesterday.

So, we'll be waiting until all of their other pipelines are done, until about 2015 and it will depend upon the say-so of Exxon, the company that's fighting in court NOT TO PAY INTEREST on the money they've owed Alaskan fisherfolk for over 15 years.

Didn't Wally Hickel warn us?


Alaska House Speaker John Harris (R-Valdez) springs into action and launched THIS LETTER asking for clarification.

In it, he also reminded Kvisle that they haven't agreed to the $500 million dollar "inducement".

***UPDATE 2***

Per Andrew Halcro's Blog:
Wasn't being independent of Exxon and other producers the exact reason why we went through this expensive and time consuming exercise called AGIA?

In addition, under AGIA, TransCanada has committed to holding an open season in 2010 to attract gas shipping commitments from the producers. The competing Denali project being managed by BP and ConocoPhillips, has also scheduled an open season for 2010 as well.

However, Kvisle stated that in his interview that it would be unlikely there will be two open seasons conducted.

Labels: , , , , , ,


Anonymous Polarbear said...

TransCanada is a service company. TC provides natural gas transportation. Exxon/Mobil is a natural gas producer company. TC sells their services to Exxon/Mobil. Hal Kvisle is wooing Exxon/Mobil's business, exactly what he should be doing at this moment. Kvisle has adopted a service tone, publicly underscoring the private conversations occuring in the background. "We understand you and your needs. We are very good at what we do. We are the best in the world at it. You can rely on us. We want your business. Tell us what you would like to accomplish." That is a service conversation. What else would we want our pipeline business partner to tell Exxon/Mobil? Whether Alaska builds its own gas line, or TC builds it, this conversation still has to occur. It is a much more effective conversation with a gas transporter company between Alaska and Exxon/Mobil. And yes, we have to hold our nose, Celtic.

With regard to the 2018 date, that has always been the date in the Transcanada talks, from the start. Indeed, other pipeline projects are already in the TC queue and will emerge before the TC Alaska line. Perfectly normal. Ten years from today to Alaska gas emerging into the TC North American network is a realistic date. After all, it is the largest construction project ever undertaken in North America.

John Harris is the typical Reudrich Republican, predictably trying to make cheap political points at the expense of the bipartisan coalition of Democrats and Republicans that supported the TC proposal. There is a great deal of progressive Democratic political capital tied up in the TransCanada license. The AGIA model may be used again, to cause stubborn projects to move forward in a manner where Alaska gets to set out the required values for the project, first, accompanied by some capital to show we are serious. AGIA is a progressive approach, and we ought to support it.

Your faithful reader...

8/04/2008 5:23 PM  

Post a Comment

<< Home