Alaska's unfolding political-corruption scandal deterred one energy company from submitting a natural gas pipeline proposal to the state, while uncertain economics precluded the proposal of another.
MidAmerican Energy Holdings Co. (MDPWN.OB: Quote, Profile , Research) and BG Group Plc (BG.L: Quote, Profile , Research), companies that had been expected to bid for a state license to build a long-awaited natural gas pipeline project under the new Alaska Gasline Inducement Act, said they declined to participate because of an unfolding bribery scandal and shaky economics, respectively.
"For a project of this magnitude to proceed, integrity must be the foundation upon which all project elements are based," MidAmerican Chairman David Sokol said a letter sent Friday to Alaska Gov. Sarah Palin.
"As you are painfully aware, the ongoing corruption investigations coupled with previous indictments, guilty pleas and convictions draw into question virtually every major Alaskan project participant and governmental levels from State to Federal," he said.
Two executives from Alaska's largest oil-services company have pleaded guilty to a variety of bribery and corruption charges resulting from the wide-ranging federal investigation. Three former state legislators have been convicted in trials held so far, and a fourth trial is pending.
BG's Managing Director Martin Houston said in a Nov. 29 letter to Palin that the company still hopes to participate in whatever gas project emerges.
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