Pipeline companies:Alaskan natural gas is needed

Despite today's low natural gas prices, spokesmen for the two competing Alaskan natgas pipeline projects say that the state's bountiful gas resources will have markets ready to purchase it.

"That's the nature of the gas business - the price goes up and the price goes down," said Tony Palmer, vice president for Alaska development with the Alberta-based company, in a meeting with the Juneau Empire's editorial staff.

Dave MacDowell, a spokesman for the competing Denali project says his company also expects a pipeline to be viable:

"We wouldn't be doing what we're doing if we didn't believe there was a place for Alaska gas in the North American market," he said.

Gov. Sarah Palin told CNN's Wolf Blitzer in an interview last week:

"Demand for natural gas is increasing. In fact, by 2030 we'll probably see about a 40 percent increase in demand for natural gas."

TransCanada's Palmer explains that as prices plummeted due to the global economic recession, gas exploration companies quit drilling for new reserves. North America is using its gas reserves faster than they are being replaced, which is likely to increase prices in the future.

- JP