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House strengthens prospects for LNG pipeline

LNG Industry,

The Alaska House has voted in favour of House Bill 132, to strengthen the State’s effort to secure an LNG project and the state with a backup project.

The House passed HB 132, sponsored by Mike Chenault and Mike Hawker.

Project progress

“We’re further delineating the policy we created last year and making sure the State doesn’t chase its tail with more studies or delays,” said Chenault. “Our action […] shows we believe the [Alaska] LNG Project is showing progress, the process is working and we shouldn’t compete with ourselves.”

The bill ensures that Alaska Gasline Development Corporation (AGDC) maintains its commitment to the Alaska LNG Project and does not embark on a duplicative, competing project, until the future of the Alaska LNG Project is more certain.

Other options

Under the bill, AGDC would be free to pursue other large, LNG projects at the earliest of three dates:

  • If a party to the Alaska LNG Project withdraws.
  • If the project proceeds into the FEED phase.
  • 1 July 2017.

Hawker added: “We’ve voted to give success a chance. HB 132 presents us with a fiscally responsible approach and protects our backup plan. We’re eliminating two fatal factors to the [Alaska] LNG Project: risk and uncertainty. My appreciation to our colleagues for their confidence, and we welcome action by the other body.”

HB 132 now moves to the Alaska Senate for consideration.

Adapted from press release by Katie Woodward

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