WEB:The Oracle of Omaha- Warren Buffett: Alaska Gas Pipeline

» Q_out - Alaska Gas Pipeline

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A Berkshire Hathaway affiliate filed applications with the State of Alaska Department of Revenue for approval under the Alaska Stranded Gas Development Act for authority to negotiate tax and financial terms with the State of Alaska to facilitate the transportation of stranded Alaskan natural gas. The proposed 745-mile, $6.3 billion pipeline extends from the North Slope area near Prudhoe Bay southward to the Alaska-Yukon border near Beaver Creek.

The 48-inch diameter high-pressure natural gas pipeline would have an initial design capacity of approximately 4.5 billion cubic feet of gas per day. At the Alaska-Yukon border, the pipeline will interconnect with a new, companion pipeline in Canada. This line will be built either by TransCanada through its Foothills Pipe Lines Ltd. subsidiary, or others. The new pipeline could be an extension of the existing Foothills prebuild pipeline or may be developed by other entities. In either event, the new Canadian facilities would connect Alaskan gas for delivery into multiple existing downstream pipeline systems into virtually every market center in Canada and the lower 48 United States. Proven reserves of stranded gas on the North Slope exceed 35 trillion cubic feet.

MEHC Alaska Gas Transmission Company will be responsible for the Alaska segment of the project. MAGTC is pursuing project development in anticipation of a Dec. 31, 2010, in-service date.
http://biz.yahoo.com/prnews/040122/lath1...

Natural gas prices are expected to stay above $5 per million Btu for quite some time.

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DISCLAIMER: My words and observations are general in nature, and are not meant as specific investment advice. Individuals should consult with their own advisors for specific investment advice.

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