Fairbanks cooperative, BP, sign natural gas deal

FAIRBANKS (AP) — Golden Valley Electric Association says it has agreed on a contract with BP to purchase North Slope natural gas.

The power cooperative serving rural Fairbanks customers will now decide whether it's financially viable to truck liquefied gas south for power generation and distribution to homes.

Association CEO Cory Borgeson tells the Fairbanks Daily News-Miner (http://bit.ly/OZKtcA) the contract would provide enough gas to meet Golden Valley's needs for electrical generation and the space heating needs of nearly 100,000 interior Alaska residents.

The owner of the North Pole Refinery, Flint Hills Resources, and GVEA are pursuing a trucking plan.

Borgeson says work is starting on engineering plans for infrastructure, including a North Slope plant to liquefy the gas and a facility to turn it back to gas in North Pole.


Information from: Fairbanks Daily News-Miner, http://www.newsminer.com