Alaska needs a dose of optimism — and dedication to gas line

I'm an optimist. Anybody who knows me knows that.

After arriving in Anchorage in 1972 short on cash but long on dreams, my optimism helped me achieve success over my 45-year business career in Alaska. It sustained me during several terms as Anchorage mayor, and inspired me to start the Big Brothers/Big Sisters Program, Bridge Builders and our Olympic bid.

Today, Alaska is a tough place for an optimist. Our state is in the midst of a serious economic slump due to a sharp drop in global oil prices. Unemployment is tops among all 50 states. Our state GDP is in decline. Our elected leaders are struggling to adjust to the new fiscal realities.

As a state, we're hunkered down waiting for the tough times to pass instead of building a future out of opportunities that are out there. We need a good dose of old fashioned optimism to get us back on track and drive success for our state.

I believe the Alaska natural gas pipeline is a long-term investment that can give us that hope for the future.

For decades, Alaskans have sought to bring our vast supply of natural gas to market. Reliable scientific estimates indicate Alaska has the largest supply of natural gas in the Western Hemisphere.

The good news is global demand for "clean" natural gas has risen dramatically in recent years as an environmentally healthy source of power.

[State gas line agency applies for permission to build LNG project]

Now — and I mean right now — the window of opportunity is in Asian countries, including South Korea, Japan and China. Our Asian-Pacific neighbors need natural gas within the next 10 years, and Alaska offers competitive advantages that make our gas attractive to them, including:

• Proximity to Asian markets.

• Ability to guarantee a long-term stable gas supply.

• Political and regulatory stability.

• Existing energy production infrastructure.

• Proven history of federal, state and local government support.

Since taking the lead on the gas line project, the Alaska Gasline Development Corp. has been working to ensure Alaska gas can be marketed competitively in the face of global competition. Commercial and marketing efforts are beginning to show more promise. From the outside looking in, AGDC seems to be headed aggressively in the right direction.

It is exciting to see how far and how fast AGDC has moved in the last year. Just weeks ago, AGDC signed a significant memorandum of understanding with the largest Korean utility company and days later received notice the IRS had granted the project tax-exempt status, meaning AGDC will not have to pay federal income tax and it can issue tax-exempt debt, like bonds, to help finance the project.

There are hurdles ahead, but these critical developments mean we are moving ever closer to the Alaska LNG project becoming an economic reality.

The benefits of an Alaska LNG project for Alaska and Alaskans are exactly what we need now:

• Up to 12,000 construction jobs and 1,000 full-time legacy jobs.

• Billions of dollars in new state revenue, royalties for the Permanent Fund, and revenues for local governments.

• New opportunities for local businesses and contractors.

• Natural gas for in-state use that will support growth and a more diverse economy.

In short, unlocking Alaska's vast natural gas resources will also secure a bright new future for our entire state and usher in a new era of economic prosperity.

The optimist in me fully appreciates what the Alaska LNG project could mean for Alaska — how it can lift us out of the doldrums where we now find ourselves. The Alaska LNG project could be the catalyst that gets Alaskans to start believing in ourselves and the state's future when we need it most.

Rick Mystrom is a longtime Anchorage businessman and civic leader. He served as mayor of Anchorage from 1994 to 2000.