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Green light for Alaska LNG

LNG Industry,

The Alaskan Legislature has passed Senate Bill 138, a bill that will advance the Alaska natural gas pipeline and LNG project.

With the passage of this legislation, Governor Sean Parnell’s bill to advance a large-diameter Alaska natural gas pipeline project, Alaska is poised to become an owner in the Alaska LNG Project.

Historic moment

Parnell commented: “This is truly a historic moment for Alaskans. By passing Senate Bill 138, the Legislature has put Alaska on a path to controlling her own destiny by becoming an owner in the Alaska LNG Project. Alaskans have waited a long time for a gasline, and for the first time in our history, we have alignment, authorisation from the Legislature, and a clear path forward. The Alaska LNG Project has begun.”

The project will now move into the Pre-FEED (Pre-Front End Engineering and Design) phase to further refine the cost and engineering aspects of the project. Senate Bill 138 affirms the commercial agreement signed by the state, the Alaska Gasline Development Corporation (AGDC), the producers, and TransCanada to advance the Alaska LNG Project.

Pipeline and LNG

Passage of the bill also expands the role and mission of AGDC, enabling it to carry the state’s equity interest in the project’s infrastructure, particularly the liquefaction and marine facilities. AGDC will continue to pursue the advancement of the Alaska Stand Alone Pipeline (ASAP) Project parallel to the Alaska LNG Project.

“S[enate] B[ill] 138 is a huge validation of the Legislature’s decision to create an Alaskan-owned pipeline development company. AGDC will now lead the state’s participation in this exciting LNG export project, while continuing to advance ASAP, the smaller in-state alternative. The work we've done to date is of significant value to the Alaska LNG Project, and going forward, AGDC will leverage the work of both efforts until we've gathered the facts necessary to make the most informed decision. Ultimately, the goal is to sanction a project that is in Alaska’s long-term best interests. AGDC’s management and board recognise the tremendous responsibility we’ve just been given, and are ready to get to work,” AGDC President Dan Fauske said.

Gas for Alaska

Parnell added: “I want to really commend legislators for their hard work and thorough review of this legislation, especially Senator Anna Fairclough and Representative Eric Feige for carrying our bill in their respective bodies. Alaska’s future is bright, especially as it relates to getting Alaska’s gas to Alaskans. I look forward to working with legislators along the way to continue to advance the Alaska LNG Project and get gas to Alaskans.”

Adapted from press release by Katie Woodward

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