The Williams Cos. plans to increase its efforts to pursue Arctic gas and liquids development, according to Cuba Wadlington Jr., president of Williams Gas Pipeline. The company is also commencing a study of the feasibility of new petrochemical investments in Alaska. "Williams has been very active in the development of Alaska's energy resources for more than a generation," Wadlington told Gov. Tony Knowles' Alaska Highway Gas Policy Council in Anchorage. "We were deeply involved in the Alaska North Slope gas project when it was first discussed in the 1970s. We currently have approximately 500 employees in the state. Williams is initiating a process to substantially accelerate efforts to participate in the development of a pipeline that will bring North Slope gas to market." He indicated that producing this gas also brings the potential for new natural gas liquids investments, such as petrochemical development, in Alaska. "We will begin the process of reviewing the many options available and are kicking off a feasibility study to evaluate the opportunity for such value-added investments," Wadlington said. In 1977, Salt Lake City-based Northwest Energy Corp. proposed constructing a gas pipeline from Prudhoe Bay to Fairbanks, then continuing it southeast alongside the Alaska Highway to a point where it would connect with interprovincial systems in western Canada that could be extended to U.S. markets. The project fell victim to depressed gas prices in the early 1980s, about the time Williams acquired Northwest and turned it into one of its interstate gas transmission divisions. Wadlington explained that Williams is dedicating a full-time team of crossfunctional employees to the project. The creation of the multidisciplinary team will allow the company to consolidate its knowledge and experience in gas pipelines, gas liquids extraction, value-added manufacturing, energy marketing and trading and regulatory affairs in both the U.S. and Canada. The team will be charged with conducting an extensive assessment of the numerous opportunities surrounding an Arctic gas pipeline, according to Wadlington. Ultimately, it will assist in the development of a solution for moving Arctic gas and liquids to market that optimizes the interests of all stakeholders, he said. With an extensive infrastructure already in place, Williams currently has more than $340 million in fixed assets in Alaska, Wadlington pointed out. The company owns and operates a 200,000-barrel-per-day refinery, petroleum terminals, convenience stores and 50% of an air cargo terminal in the state. In Canada, Williams owns 14.6% interest in the Alliance pipeline system, which delivers 1.5 billion cubic feet (Bcf) per day of wet gas from western Canada to the Chicago area. Williams also has acquired extensive gas processing and natural gas liquid production, fractionation and storage capacity in British Columbia and Alberta, Wadlington added. Meanwhile, Natural Resource Group Inc. (NRG), a Minneapolis environmental consulting firm, was awarded a contract to conduct U.S. feasibility studies for a potential natural gas pipeline from the North Slope to the Lower 48. The award came from the Alaska Gas Producers Team, a coalition of BP, Exxon Mobil and Phillips Petroleum. NRG said the team currently is evaluating alternatives to determine the most efficient way to Prudhoe Bay gas supplies through Canada to the Lower 48 states. Partnering with URS Corp., NRG will conduct a series of environmental studies, including wetland and cultural resource surveys. The firm also will prepare all federal license and permit applications for the proposed project, including the application to the Federal Energy Regulatory Commission. NRG specializes in environmental permitting and compliance for natural gas and oil pipelines. Since it was founded in 1992, the firm has successfully obtained permits for more than 7,000 miles of pipelines throughout the U.S. -Nick Snow

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