1-13 Updates: 00:01, 00:17, 13:13, 13:28, 14:11 ET.  Inuvik, 1/9/03-In his address to the people here last week, Premier Stephen Kakfwi (Photo) set the theme for his 2003 administration: “Working together”.  “We cannot afford to miss a single opportunity, to be divided for a minute, or to pursue our own agendas,” he said. Kakfwi spoke of achievements to date: “In January 2001, I recall reporting to you that the Aboriginal Pipeline Group had signed the Memorandum of Understanding to build a pipeline down the Mackenzie valley (Photo-map),” he said.  “In January 2002, I remember reporting on the Hay River conference where the seeds were planted for the development of a Social Agenda.”  He said the NWT economy is in a boom phase, highlighting several statistics:  “Our Gross Domestic Product grew by 19.6% in current dollars in 2001…the highest annual growth rate in Canada.  By comparison, the Nation’s overall growth rate was 1.5% and Nunavut’s was 7.7%.  Our GDP, the indicator of economic growth, is over $3 billion dollars.  That is remarkable considering we only have about 41,000 residents…and our unemployment rate is the 4^th lowest in the country.  He spoke of the importance of caring for the environment while pursuing other objectives.  Turning to the future, he said: “I believe 2003 is to be the year in which an application will be made to build the Mackenzie Valley pipeline. The Aboriginal Pipeline Group, the producers and industry will continue to negotiate the pipeline project so it can proceed with support from everyone. We will also continue making our case in Washington concerning energy subsides and the protection of the porcupine caribou herd….”  -dh   (NGP is grateful to Debbie Baert-Reid for sending us the full text of the presentation, here.  See today's NNS article by Tara Kearsey.)  *     TODAY, the author is delighted to be addressing members of the Service High School Resource Development Club: "Seeing Northern Gas Pipelines Through a Service High School Lens".      

1-11/12 Weekend Updates: Fairbanks Daily News Miner-The guy with the gas line idea, Anchorage longshoreman Scott Heyworth (NGP Photo, 5-01) has approached Gov. Frank Murkowski with the expected follow-up question after the passing of Ballot Proposition 3 in November's election.  He is seeking $2 million to fund a new Alaska Natural Gas Pipeline Authority.  This newspaper came out against the ballot measure prior to the November election. We said to vote "no," but couched it with the admission that we knew it was going to pass because, hey, Alaskans have wanted to see construction of a natural gas pipeline since they finished building the oil pipeline back in the '70s.  (LNG links) 

1-10 Updates: 04:14, 04:50, 11:59, 12:25, 13:08, 14:00, 14:14, 14:23, 17:52 ET.      Introduced by acting president Lynn Johnson-l (NGP Photo with Alliance director Mark Huber-r), Alaska business consulting guru Jim Kohler (NGP Photo) addressed the Alliance at yesterday's breakfast meeting.  With a two and one-half minute daily business program broadcast on over two dozen radio stations throughout the state, Kohler's velvet voice is familiar.  But there is a professional mind behind that voice.   See our full story here.             *      NNS-Inuvik - The chair of the Aboriginal Pipeline Group says he is "90 per cent sure or better" that funding for the Mackenzie Valley natural gas pipeline will be secured this month.  Funding was the subject of private meetings in Calgary between Fred Carmichael and unnamed parties this week.  "We are looking at other options at this time. We're making good progress, and we hope to have an announcement sometime between the middle of January and the end of January that we have been successful in obtaining our financing to proceed with the pipeline.  "We're going to do it," he said. As soon as "the deal is completed" Carmichael said the people of the Northwest Territories will know.  The APG has been scrambling to find alternative funding sources since Natural Resources Minister Herb Dhaliwal said the federal government would not provide a loan guarantee for the pipeline group. Now Carmichael's outlook for 2003 is "very positive." He said he is confident construction of the pipeline will finally go ahead.  The entire project is expected to cost $4 billion. Carmichael said the APG needs $70 million for the project development phase and $300 million is required for the APG's equity share.  "And I don't see any problem raising that," he said.  "We're finally going to be able to create a lot of jobs and business opportunities for our people.  "I have a feeling 2003 is going to be a good year for all Northerners," he said.     *       Here is the EIA's Annual Energy Outlook 2003 with Projections to 2025 , released yesterday.  It  presents midterm forecasts of energy supply, demand, and prices through 2025, which are based on results from EIA’s National Energy Modeling System (NEMS).     *     A new lightweight, flexible drill pipe engineered from space-age composites rather than steel has passed an  important field test in a U.S. Department of Energy project and is now being readied for its first  commercial use.    *    On January 10, "Arctic Gas Pipeline Construction Impacts On Northern Transportation" was released by Transport Canada, Prairie and Northern Region. The work was completed by PROLOG Canada Inc. in association with The Van Horne Institute. Contacts: Transport Canada - Roy Matson - Regional Mgr Coordination & Policy - 780-495-3814; PROLOG Canada - Don Dean or Kells Boland - 403-294-1200; Readers may download this study by looking under "Canada" in the left margin.    *     Join us for these 2003 conferences: 1-24, Alliance's Meet Alaska Conference, "The Politics of Energy", Anchorage; 3-7/8, Arctic Gas Symposium, Calgary; 4-14/16,  2^nd Annual Aboriginal Oil & Gas Conf. , Edmonton; 6-18/19, 3rd Inuvik Petroleum Conference.  Also note: 4-28/30, Petroleum Institute for Continuing Education (PEICE) Leadership Conference -This 3-day conference, held in scenic Banff, Alberta, Canada, is designed for supervisors, managers, and executives wishing to maximize the performance and potential of latent talent within their organizations.    *    Current Natural Gas Prices

We have seen many gas pipeline participants over the last year retire; still more have left government agencies due Administration changes; others have suffered layoffs in wake of Enron and energy sector malaise.  We urge all NGP readers in these categories to please keep us informed of their new pursuits so that gas pipeline project friends can keep in touch.  This week, we join PhillipsConoco's Bob McManus (NGP Photo-left, w/author) in celebrating his retirement but cannot help smarting from the loss of his intellect and solid reliability in the arena.  We wish him well as he moves from Anchorage to Austin...hoping he will return North someday.  -dh

on our purchasing officer reference page: IPSCO is a full service provider of large diameter line pipe used in such pipeline projects as are featured in Northern Gas Pipelines.  - Kelly Brossart

1-9 Updates: 00:10, 01:45, 12:55, 13:00, 13:06 ET.   ADN by Doug O'Hara-So how do you demonstrate the impact of global climate change on Alaska's roads, bridges, buildings and pipelines?  ..."The whole Alaska Highway from Northway to the border is coming apart...."          *      Gas Daily reported earlier this week on an interview with Proposition #3 proponent, Scott Heyworth.  The author also interviewed BP's David MacDowell.  Proposition #3, on Alaska's November ballot, created the natural gas pipeline authority, an LNG/pipeline project (See maps).   Earlier references.    *     CBC, Calgary - This could be a record year for oil well drilling in Alberta because of soaring international prices, an energy analyst says.  Wilf Gobert, with Peters & Co., says as prices climb to about $30 US a barrel, the local oil industry will be encouraged to drill more wells.   *   Washington, DC - Governor Frank H. Murkowski yesterday joined Secretary of the Interior Gale Norton at a signing ceremony at the Department of the Interior to renew the Trans Alaska Pipeline System right-of-way over federal lands (Photo-right). The signing of the Secretary's Record of Decision and eight separate 30-year right-of-way renewal agreements is the culmination of a 22-month long public process.  "This is a great day for Alaska and for the nation," Murkowski said.  "The TAPS pipeline today carries 17 percent of domestic oil production - and has flowed as much as 25 percent - as it has every day for the past 30 years, with no major incidents".  Murkowski said the oversight provided by the Joint Pipeline Office, a joint effort of 13 State of Alaska and federal agencies, has worked well. "The JPO provides efficient, effective oversight to make sure the pipeline is operated in a safe, environmentally-sound, and financially productive manner. The TAPS pipeline has carried more than 14 billion barrels of oil, generating more than $400 billion in economic benefit to the nation. So, the JPO's oversight is a cooperative effort of which we can justifiably be proud," Murkowski said. The TAPS pipeline crosses 600 streams and three major mountain ranges on its 800- mile course from Prudhoe Bay to Valdez. The State of Alaska on November 26 signed right-of-way renewals for that portion of the pipeline that crosses state lands.     *    ( ADN story.)   *   Calgary Herald by Chris Varcoe-TotalFinaElf SA, the world's fourth-largest public petroleum company, is contemplating construction of a regional heavy oil upgrader in northern Alberta as it joins the race to develop the vast Athabasca oilsands.

1-8 Updates: 00:04, 00:19, 00:28, 01:18, 11:57 ET.  FARMINGTON HILLS, Mich. -- SEMCO ENERGY today announced that Arthur L. Pendleton, President and Chief Operating Officer of SEMCO ENERGY's energy infrastructure construction division, is no longer with the Company. Pendleton had been with the firm since February 2002. Until a successor is named, Marcus Jackson, Chairman, President and Chief Executive Officer, will lead the unit.  SEMCO ENERGY, Inc. is a diversified energy and infrastructure company that distributes natural gas to more than 377,000 customers in Michigan and Alaska.   The Alaska subsidiary, located in Anchorage, is ENSTAR (Photo).    *    Energy Pulse-For several weeks in a row, the weekly storage withdrawal figures reported by EIA have been far above the levels that might normally be expected for this time of the year – even after adjusting for weather....     *     Alaska producers seek 'fiscal certainty' in Canada and Alaska--even for an economically viable gas pipeline project.  That 'certainty' has not been fully defined, but unsettled claims contribute to the question.  See Landmark, volume 8, number 3, Fall 2002, courtesy of Manon Garret, Canada's Indian Claims Commission (613) 947-3939 (Logo Photo).  See our First Peoples site for further reference.   *   We would urge gas pipeline planners to cost health and absentees into projects anticipating spread of the West Nile Virus--in addition to covering security challenges arising from terrorism.   *    National Post-Natural gas futures tumbled 7.7 per cent, the largest decline in three months, on expectations that temperatures in the east and central United States won't be as cold as forecast last week.  (Kindly provided by Calgary reader, Peter Jalkotzy (NGP Photo), Serrano Strategic Environmental Management, Inc.) -dh   *  ADN by Liz Ruskin-Sen. Ted Stevens is sworn in for his sixth Senate term and as Senate president pro tempore - the presiding officer. The position puts Stevens third in line for the presidency. Sen. Lisa Murkowski, R-Alaska, takes the oath of office from Vice President Dick Cheney in a mock ceremony Wednesday in the Old Senate Chamber on Capitol Hill. Her husband, Verne Martell, holds the Bible.  (Reference)

1-7 Updates: 00:57, 01:23, 01:31, 11:04, 11:49, 12:32 ET.  ADN, Washington, by Liz Ruskin-Washington -- Sen. Lisa Murkowski (NGP Photo & story) will be sworn in today to a Congress that might -- maybe, possibly -- open the Arctic National Wildlife Refuge to oil drilling.  John Katz, director of the governor's Washington office, says the stars are in alignment like never before to let exploration begin in that corner of northeast Alaska.  "I think this is the best opportunity we've ever had," said Katz, who will soon retire after working on this issue for five previous Alaska governors. "But it's by no means a foregone conclusion, even now."  (See our earlier note re: Congressional Schedule)     *    CBC, Edmonton - Any provincial rebate to help consumers with the soaring cost of natural gas won't come until at least the end of February.  And even then, whether to give money back is entirely at the discretion of Energy Minister Murray Smith (NGP Photo, 11-01).  ... Under the Natural Gas Price Protection Act, Smith can recommend a rebate once the price hits $5.50 a gigajoule, which it did last month. This month the price is set to climb to $7 a gigajoule.    *     Calgary Herald,  (CP) - The cost of natural gas, though not in the global spotlight like the price of crude oil, has been steadily climbing lately due to cold weather and dwindling reserves.  Natural gas futures jumped more than 10 per cent Thursday and a further nine cents Friday to close the week at $5.34 US per million British thermal units on the New York Mercantile Exchange.   *  Globe & Mail By Lily Nguyen (NGP Photo, 3-02)- ... "There's no question that for natural gas, the supply-demand balance is quite tight," said Tom Ebbern, managing director of research with Tristone Capital Partners Inc. in Calgary.  "We're in for a fairly long series of highly volatile prices." ...  Brian Prokop, an analyst with Peters & Co., said gas exports to the United States are poised to shrink for the first time in history.  "For 16 years, we've had increasing exports and increasing gas production," he said. "This is the first year-over-year time we'll have a decrease in both."  That's a problem when gas demand, which has grown by 25 per cent in the key U.S. market from 1973 to 2001, is projected to grow by half again by 2020, according to the American Gas Association. The AGA said U.S. gas demand should reach 33 trillion cubic feet in 2020, up from roughly 22 trillion cubic feet in 2001.  The other factor is that regulations no longer require gas producers to maintain reserve life indices -- the length of time a petroleum pool is expected to produce for -- of 25 years or more. As a result, the typical reserve life has shrunk to 10 years, or even less. ... One of the biggest hopes for new supply comes from the U.S. and Canadian Arctic (underline added), where huge gas pools have been mapped out under the permafrost, and more are expected to be found.  But a pipeline or other conduit to transport that gas south is still years away. The Mackenzie Delta gas pipeline, which would carry gas from the Beaufort Sea in the Northwest Territories to Alberta and is considered the front-runner in Arctic gas projects, couldn't be built until 2007 at the earliest.      *     Join us for these 2003 conferences: 1-24, Alliance's Meet Alaska Conference, "The Politics of Energy", Anchorage; 3-7/8, Arctic Gas Symposium, Calgary; 4-14/16,  2^nd Annual Aboriginal Oil & Gas Conf. , Edmonton; 6-18/19, 3rd Inuvik Petroleum Conference.  Also note: 4-28/30, Petroleum Institute for Continuing Education (PEICE) Leadership Conference -This 3-day conference, held in scenic Banff, Alberta, Canada, is designed for supervisors, managers, and executives wishing to maximize the performance and potential of latent talent within their organizations.   *    Current Natural Gas Prices  

1-6 Updates: 00:10, 02:05, 11:52, 12:34, 13:12 ET.  CBC, WHITEHORSE - Just after being elected in November 2002, Yukon premier Dennis Fentie (Photo-L) opened up a dialogue with the leaders of the Northwest Territories and Nunavut. This year he says he wants to get down to business with politicians in Alaska.  … Fentie and Alaska governor Frank Murkowski (NGP Photo-R) were both elected in November. … Both campaigned on a strong pro-development platform, and believe that resource development is best way to balance the budget.   John Manley (NGP Photo, L-below) is a spokesperson for Murkowski. He says the two leaders are a good match. … Both leaders support an Alaska Highway pipeline, a railroad through the Yukon and continued funding for the Shakwak highway project. … But Fentie says they don't agree on everything.  "When it comes to ANWR we agree to disagree with the governor. … Fentie wants to talk to Murkowski about common issues early this year.     *      NNS by Mike W. Bryant, Yellowknife (Jan 06/03) - It's been a long year for Premier Stephen Kakfwi (Photo-R).  He survived two confidence votes in the legislative assembly, presided over a government resting on pins and needles over uncertainties with the proposed Mackenzie Valley Pipeline, and a looming deficit in next year's budget. ... N/N: Are you still confident the pipeline will be developed? Kakfwi: Well, in January 2000, the aboriginal governments met and said that's what they wanted: a  pipeline.  As a premier, it's been one of my strongest, most confident messages -- taking that to industry and Canada -- and said, "We're ready for a pipeline, we're ready for development. All we want is some benefits."  My sense is that Ottawa has waited far too long to respond decisively. They've hummed and hawed, and been distracted by their own distant agenda.  I hope they don't miss the boat because, you know, aboriginal people have been united, and now it's (the pipeline) starting to unravel a bit.  So, Ottawa may have blown it. We might blow it ourselves if we can't keep it together and keep the level of optimism and confidence up that's required.       *      CBC, YELLOWKNIFE - It was a roller-coaster year for people involved in the pipeline business. Two rival projects– one down the Mackenzie Valley and one that would run through the Yukon from Alaska– vied for the hearts, minds, and pocket books of the big oil and gas producers.  While watching the vagaries of the world oil and gas markets, the project promoters also read tea leaves from the U.S. House of Representatives and Canadian Parliament for some sign of which multi-billion project would get the nod.  But the year was probably hardest for the Aboriginal Pipeline Group. …  Producers have offered aboriginal groups in the north a one-third ownership of the pipeline, but that means they have to share one-third of the costs of getting the project built. That means it has to raise about $70 million just to take part in the licensing hearings for the project.  In another display of its clout, the group hired former Alberta premier Peter Lougheeed in September to rustle up the cash. They looked to Ottawa for that money.  FROM October 1, 2002: Speech leaves pipeline group in limbo   In October, the Pipeline Group was snubbed in the Chrétien government's throne speech. Then in November, Natural Resources Minister Herb Dhaliwal said Ottawa wasn't in the business of providing loan guarantees for pipelines.  The Aboriginal Pipeline Group and industry said they were still confident the federal government's newly-appointed negotiator could work out a compromise. Fred Carmichael  the new head of the group, said he wasn't discouraged by the minister's remarks.   The group hinted it could also look to private pipeline companies for cash, something that was not rejected out-of-hand by the companies.  Enbridge's vice president of northern pipeline development, Wayne Sartore (Photo-R), said his company was waiting to see if it is needed.  "What it would take for us is for the APG and the other proponents is to express the need to us and we certainly haven't heard that yet," he says.  In December it looked like aboriginal support for a gas pipeline in the Mackenzie Valley was about to be further divided. ArctiGas Resources, which has a rival proposal to build down the Mackenzie Valley, confirmed it's close to signing another land corporation in the Sahtu to support its pipeline proposal.   Update: All through 2002 groups in the N.W.T. and Yukon received good news or bad, depending on which project they supported. Politicians sparred with each other over which project should be first to be built. But by the end of the year....     *    (Juneau) - Governor Frank H. Murkowski today appointed Sam Johnson, former base commander at Elmendorf AFB, as assistant commissioner for homeland security within the department of military and veterans affairs. The position is principally a liaison between the State of Alaska and the federal Department of Homeland Security, the White House, and among other departments of state government.  (See our earlier news & editorial on this subject.  -dh)    *     (Juneau) - Governor Frank H. Murkowski today announced the appointment of Tara M. Sweeney (NGP TV Photo, 4-02) to be a special assistant in his office for rural issues. Sweeney currently works as a government affairs officer for Arctic Slope Regional Corporation in Anchorage.    *     INAUGURAL BALLS.  While we will not post these on this web page, if any reader wishes, we'll be happy to send a schedule and contacts for attending.    *    Whitehorse Star-For Sgt. Preston's modern gas pipeline fans, here's your history link.

1-4/5 Weekend Updates:  Anchorage Daily News Editorial-It's a fair bet that a lot of Alaska voters didn't realize what they were doing when they overwhelmingly passed Prop. 3, the natural gas pipeline authority initiative. No doubt they wanted to send a strong message of support for a possible gas line, but in doing so, they authorized a risky and radical venture: giving state government the power to finance, build and operate a multibillion dollar pipeline to export liquefied natural gas.  (Earlier story and LNG news links)

1-3-03 Updates: 12:34, 17:44 ET.  Inuvik, NWT, hopeful of hosting a Mackenzie Valley Pipeline, is prospering.  NNS by Terry Halifax, Inuvik - Inuvik saw a great deal of change over the past year, with many new construction projects started and some completed.  Infrastructure was upgraded and there was much work done in the areas of recreation.  Inuvik's mayor, Peter Clarkson (NGP Photo), said last year, as with the previous year, the town issued about $30 million in building permits. ... "There are more things that we are doing together and Aboriginal Day was a good example of that," Clarkson said.    *    CBC, Calgary - Gas prices in the city have shot up about 12 cents a litre, jumping from about 60 on Thursday to almost 72 cents on Friday.

1-2-03 Updates: 07:17 ET.  Alaska Oil & Gas Reporter, by Tim Bradner-The chief backer of a new state natural gas pipeline authority is promoting a proposed work plan for the authority with a $2 million budget, but Gov. Frank Murkowski's new administration is being noncommittal.  Scott Heyworth an Anchorage longshoreman who spearheaded the campaign for a ballot proposition creating the authority, presented his ideas to Murkowski and has met with Bill Corbus, the new Commissioner of Revenue, Heyworth said. John Manley, Murkowski's press secretary, said the state attorney general's office is still examining the ballot language creating the authority and the administration has not yet developed a position.   Murkowski favored the authority during the campaign, "and I believe he even voted for it," Manley said.  The plan developed by Heyworth includes $350,000 for an executive director and two secretaries, $150,000 for travel, $80,000 for office rent, $60,000 for expenses of its board of directors, and $800,000 for consultants.  ... In a letter to Murkowski, Heyworth urged the governor to appoint a point person in the administration to develop a policy for the authority, and suggested either Lt. Gov. Loren Leman, who supported the initiative, or Anchorage businessman Bill Noll, who is on the Murkowski transition team and who is familiar with Asia and the gas project.  As for potential board members, Heyworth suggested himself; John Kelsey, a Valdez businessman; Ken Thompson, a retired oil executive; Anchorage Assemblyman Dan Sullivan; former Alaska Permanent Fund director Dave Rose; and Max Hodel, a retired businessman who served in the Hickel administration.....  (ADN/AP story)

January 1, 2003: Happy New Year!