Maximum volume, maximum benefit.
That’s the philosophy behind the “MVP Plan” for an all-Alaska gas line. Developed by the Alaska Gasline Port Authority (AGPA), what we today call the MVP, or Maximum Volume Pipeline, Plan is an 800-mile, 48-inch-diameter high-pressure pipeline from Prudhoe Bay to tidewater in Southcentral Alaska. The MVP plan fulfills the wishes of Alaska voters who, in 2002, overwhelmingly voted in favor of a gas pipeline to tidewater, built, owned, and maintained by the State of Alaska. It has always enjoyed bipartisan support, with proponents including the late Alaska statesmen Gov. Bill Egan, Gov. Jay Hammond, Gov. Wally Hickel, and U.S. Sen. Ted Stevens.
The MVP Plan offers unique benefits that no other gas pipeline proposal can claim:
- More volume, more revenue. At 48 inches, the MVP pipe has a larger capacity than any other proposed gas line. A larger pipe means significantly more capacity for gas; more capacity means more revenue for Alaska.
- A steady stream of state income. Other pipeline plans don’t provide for Alaska’s economic security like MVP does. MVP is built, owned, and maintained by Alaska, and over its first 30 years of operation, it’s projected to generate between $2 billion - $24 billion per year.
- Affordable energy around the state. It’s not enough to bring clean, affordable natural gas to communities along the pipeline route. By including an LNG terminal, the MVP Plan will provide more affordable energy even to many other communities such as Bethel, where costs are expected to decrease by 25 to 65 percent.
Under the MVP Plan, natural gas will be shipped from the North Slope to Southcentral Alaska, where it will be cooled and condensed into liquefied natural gas (LNG) and loaded onto large LNG ships for export to Asia. Southcentral Alaska offers multiple possibilities for a gas line terminus, including one community with a deepwater ice-free port and another with an existing LNG facility. Off-take points along the pipeline will provide natural gas directly to some communities, and still more areas can receive natural gas via trucks or barge.
Benefits for all of Alaska
The MVP Plan is the only pipeline proposal that guarantees Alaska’s economic future. The key is getting Alaska’s gas to the international market. A 2011 report by world-recognized consulting firm Wood Mackenzie, commissioned by AGPA and based in part on data obtained from TransCanada's open season, found that the MVP Plan will likely yield between $220 and $419 billion in state royalties and taxes over its first 30 years. That revenue will help fund programs like education, public safety, transportation, healthcare, capital projects, and countless other programs and initiatives that improve quality of life for Alaskans in every region of the state.
Already, Asian buyers have expressed interest in purchasing a total of 5.5 billion cubic feet per day of LNG shipped through the MVP line. Alaska communities will use approximately 250 million cubic feet per day. Should demand increase, the MVP line can transport up to 5.9 billion cubic feet per day under maximum compression, ensuring Alaska can meet the ongoing demands of the world market for LNG.
In addition to revenue from taxes and royalties, MVP will create thousands of jobs—between 6,000 and 7,000 direct jobs during peak construction, and between 50,000 and 300,000 jobs due to indirect employment in fields such as transportation and logistics, food service, hospitality, and other support fields. It’s worth noting that construction of the Trans-Alaska Pipeline System in the 1970s created 21,000 construction jobs and 70,000 jobs in total.
The MVP Plan is the gas line solution Alaskans ordered back in 2002 when a resounding majority voted to build a state-owned gas pipeline to tidewater. More than a decade later, we’re still waiting for action while the Legislature wastes time with distractions like HB 4. Find out how you can take action to make Alaska’s MVP gas line dreams become reality.