Senate Majority Applauds Signing of LNG Trucking Project
Financing package includes loans for natural gas facilities and distribution system
FAIRBANKS–Tonight, Governor Sean Parnell signed legislation to provide energy relief for Alaskans by trucking liquefied natural gas (LNG) and propane from the North Slope to the Interior. Senate Bill 23 provides tools for the Alaska Industrial Development and Export Authority (AIDEA) to put together a financing package to provide low interest loans to build an LNG facility on the North Slope and start building out a distribution system for natural gas in Fairbanks and surrounding communities.
“Legislatively we've picked the lock on gas from the North Slope," said Senator Pete Kelly, R-Fairbanks. "But now it's time to go from words on a page - which are very important- to gas in our furnaces- which will save Fairbanks."
The funding for the project would be through a combination of AIDEA bonds, general funds and natural gas storage credits passed last year by the Legislature.
"I think it's a positive first step forward- this bill signing tonight-bringing affordable energy to Interior and Rural Alaska,” said Senator Click Bishop, R-Fairbanks. "I would to thank all my colleagues in the House and the Senate who supported the bill."
The project is estimated to be up and running by mid-to-late 2015 and is expected to reduce the cost of heating in the Fairbanks area by about 40-percent for those who convert from fuel oil to natural gas.
“The governor put together a good plan to start with and gave the Interior Delegation something great to work with,” said Senator John Coghill, R-North Pole. “And thanks to Legislators around Alaska helping out, it's actually starting to become a reality.”
The proposed North Slope LNG plant will also be capable of producing propane as a by-product of the liquefaction process. Early estimates indicate up to 5-percent of the plant output will be propane, totaling 10,000 gallons a day, which could serve up to 1,800 homes in the Interior and Rural Alaska.
"Even though many of us are from SouthCentral, we know how much Fairbanks and Rural Alaska need this relief, said Senate President Charlie Huggins, R-Wasilla. "This is a great step towards solving Alaska's energy needs and I am proud of the unified effort that made this happen."
For more information, please contact Senate Majority Press Secretary Carolyn Kuckertz at 907-748-7714.