Senate Applauds News of AKLNG Officially Moving Forward
Formal agreement signed between State, BP, ExxonMobil, ConocoPhillips, and TransCanada
ANCHORAGE - Members of the Alaska Senate Majority say they are pleased to learn a formal commercial agreement has been signed between the Alaska Gasline Development Corporation (AGDC), BP, ExxonMobil, ConocoPhillips, and TransCanada to advance the Alaska LNG Project (AKLNG).
Today’s news means the AKLNG project, which was authorized by the Legislature in Senate Bill 138, is now moving into the Pre Front End Engineering & Development (Pre-FEED) stage. This ensures the State of Alaska is officially a full partner at the table through AGDC and it signifies on paper that all parties are in alignment. It also means the project moves from negotiations to field work and it’s the furthest Alaska has ever reached on a large-diameter natural gas pipeline project.
As Chair of the Senate Resources Committee, Senator Cathy Giessel (R-Anchorage Hillside/Turnagain/N. Kenai) held hours of committee meetings on the AKLNG project.
“I am very encouraged and optimistic about this LNG opportunity for Alaskans,” said Senator Giessel. “Affordable natural gas, abundant job opportunities, and prospering families-It's a bright future!”
So far, hundreds of millions of dollars have been committed and summer field work is on track. The Department of Energy (DOE) export license will be pursued shortly and permitting work with continue with the Federal Energy Regulatory Commission (FERC).
Senator Anna Fairclough (R-East Anchorage/Eagle River) led the efforts for the AKLNG project in the Senate Finance Committee and carried SB138 on the Senate Floor.
"This announcement continues to bring Alaskans excitement and optimism for development of this world-class project,” said Senator Fairclough. “We are another step closer in this long process to deliver affordable energy to Alaskans. I appreciate the collaboration and hard work by all parties to work on behalf of the people of Alaska and continue to move this important project forward."
"I couldn't be more pleased with the Governor's leadership with this project and this milestone. It’s breaking news that is good for Alaska generally and Fairbanks specifically," said Senate Majority Leader John Coghill (R-North Pole).
SB138 also included a section introduced by Senator Lesil McGuire (R-Anchorage) known as ‘Pick.Click.Invest’ which would direct the DOR to work with the Securities and Exchange Commission (SEC) to create the best way for Alaskans to use their PFDs to invest in the gasline. The Senate Finance Committee later added a provision to require that the DOR’s plan for Alaska ownership must include ownership opportunities for municipalities and for Native corporations.
“I believe this will get Alaskans reinvigorated about our robust oil and gas industry by allowing them the opportunity to have an equity share in the project, or, in other words, own a piece of the pipe,” said Senator McGuire. “This amendment would essentially allow Alaskans to buy stock in the pipeline and earn interest on their investment. Today is truly the next step forward in making the dream of a gasline finally come true.”
To read more information about the AKLNG project, please click here.
Posted: July 8, 2014