Legislator pleased, but wants future guarantees that Alaskan gas goes to Alaskans first

Today, Representative Pete Petersen (D-Anchorage) released the following statement upon news that the Cook Inlet Natural Gas Storage Alaska (CINGSA) and Marathon Oil Company have resolved their dispute over gas supplies for the Kenai gas storage facility.

“I’m pleased that Marathon and CINGSA resolved their dispute, but this whole issue shows how important it is that we have guarantees that Alaskan gas goes to Alaskans first,” said Rep. Petersen. “It’s important Alaskans have firm commitments that our gas will be there to meet our energy needs first so we can grow local businesses and plan household budgets with confidence.”

Rep. Petersen and six other Democratic legislators have called consistently for the Parnell administration to require firm commitments to meeting in-state gas needs first as a condition of state support for future exports. The state required and received such commitments from 2008 through 2010, but the Parnell administration declined to renew them for 2011 to 2012 saying the companies’ history of supplying local gas made the binding commitments unnecessary.

Last week, the same seven legislators, Rep. Petersen, Representative Chris Tuck, Representative Les Gara, Representative Berta Gardner, Senator Bill Wielechowski, Senator Hollis French and Senator Bettye Davis (all D-Anchorage) called on the governor to require binding commitments to meet local gas needs before the producer begins to export gas as a condition of future state support for a Cook Inlet gas producer’s application to export gas.