Alaskan gas competitive, officials say

JUNEAU, Alaska, Nov. 19 (UPI) -- Natural gas from Alaska is a competitive source for markets in the Lower 48 despite shale deposits and other obstacles, state officials said.

Former Republican Gov. Sarah Palin advocated the Alaska Gasline Inducement Act to bring in millions of dollars of investments for a natural gas pipeline for markets in the Lower 48.

TransCanada and Exxon Mobil are working together on a project under a state license while BP and ConocoPhillips are moving forward with an independent effort.

AGIA opponent and former Gov. Frank Murkowski said Palin's decision to invite market forces into the gas debate left Alaska divided and subsequently stalled on the project, the Fairbanks Daily News-Miner reports.

Alaska Gov. Sean Parnell said he would continue the advocacy campaign for the TransCanada pipeline when he took the reins from Palin in July.

New technologies to unlock gas from shale deposits from the Lower 48 and declining energy prices, meanwhile, cast doubts over the development of the Alaskan pipeline.

Nevertheless, Tom Irwin, the resource commissioner for Alaska, said long-term demand for gas makes state resources viable despite emerging options.

"Our gas competes," he said.