AIDEA, MWH sign North Slope LNG deal

The Alaska Industrial Development and Export Authority (AIDEA) has signed a Concession Agreement with MWH, a move which represents clear progression in the Interior Energy Project. The agreement creates the legal framework for the ownership, development, financing, construction and operation of an LNG plant on Alaska’s North Slope, and allows the parties to move forward on completing the final design of the plant and the financial structure of the project, based on a public-private partnership. This also allows for the parties to gather the information and data needed for a financial close of the project.

Under terms of the agreement, AIDEA will own the plant and MWH subsidiary, Northern Lights Energy, LLC, will build, operate and maintain the facility. Northern Lights will also have the right to sell LNG the plant produces. Under the Concession Agreement, AIDEA and Northern Lights will move forward with development of the plant and a structure for financing the project using a mixture of AIDEA and private funds. The signing gives Northern Lights the authority to move forward with negotiating gas purchase agreements with the Interior utilities.

In addition to signing the Concession Agreement with MWH, AIDEA accomplished another significant Interior Energy Project milestone this month: completion of the 15.4 acre gravel pad for the LNG plant. This project, located just south of Flow Station 3 in the Prudhoe Bay Unit, required more than 211 000 cubic yards of gravel material that was hauled using more than 4000 truckloads. Construction began in early August and final inspection was held on 8 September.

The Interior Energy Project was introduced by Governor Sean Parnell in the 2013 legislative session. The 28th Alaska Legislature advanced the project with the passage of SB 23, which contains a financing package that enables AIDEA and the private sector to partner in the construction of an LNG facility on Alaska’s North Slope, and a natural gas distribution system in Fairbanks and North Pole.

Adapted from press release by Ted Monroe

Read the article online at: https://www.lngindustry.com/liquefaction/22092014/aidea-and-mwh-sign-north-slope-lng-deal-1436/