Alaska Buys TransCanada AK LNG Stake
The State of Alaska has finalized a deal with TransCanada to buy out the pipeline company's share in the proposed Alaska liquefied natural gas export project for nearly $65 million.
Alaska has completed the buyout of TransCanada’s interest in the Alaska LNG project, a $65 million expense that gives Alaska the same stake in the $55 billion effort as ExxonMobil, BP and ConocoPhillips (COP).
Gov. Bill Walker hailed the move as “historic," calling the gas line project the best “get-well card” for a state facing a $3.5 billion deficit.
Kenai Peninsula Borough Special Oil and Gas Assistant Larry Persily says the action doesn’t change the project schedule or cost, reports Radiokenai.
“It means that instead of just owning 25 percent of the LNG plant and marine terminal in Nikiski, the state now has a 25 percent stake in the entire project from the North Slope down to Nikiski. That means the state will have to put up more money during project development instead of sharing that cost with TransCanada and then if all works out we’ll make more money at the end,” Persily said.
Consultants of the Department of Natural Resources found that terminating the relationship with TransCanada will increase State revenue from the Project by up to $400 million annually when gas starts flowing.
