Alaska to pitch in $5.75B for LNG export project stake

Alaska plans to jump-start a $45B natural gas export project by pitching in more than 10% of the cost and joining Exxon Mobil (XOM), BP, ConocoPhillips (COP) and TransCanada (TRP) as an equity partner.

The agreement between the state and the four companies outlines a framework in which Alaska would take as much as a 25% stake in a proposed gas processing plant, an 800-mile pipeline from the North Slope and a liquefaction facility in the Kenai Peninsula.

The state would pay as much as $5.75B for its share of the $23B liquefaction facility, which would be capable of shipping 18M metric tons/year of liquefied natural gas; the producers would pay the remaining portion of the $45B total project cost.

Alaska Gov. Parnell has asked the state's legislature to approve the deal and give state agencies the ability to negotiate shipping and leasing arrangements.

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Comments (14)
  • bobby44
    , contributor
    Comments (502) | Send Message
    One jurisdiction. Multiple high quality companies. State partnership. Great value added for Alaska. More resource income to the treasury. Local property and business tax revenue.
    This one could go!
    15 Jan 2014, 06:35 PM Reply Like
  • Michael Fitzsimmons
    , contributor
    Comments (11693) | Send Message
    Couldn't agree more bobby44. The positive changes in Alaska is why the state was one of my 5 reasons to own COP for the long-haul:

    15 Jan 2014, 06:37 PM Reply Like
  • horseman
    , contributor
    Comments (228) | Send Message
    There is a positive and pragmatic consciousness going on here that is non-existent in the gulf. Hail .... wild salmon!
    15 Jan 2014, 07:03 PM Reply Like
  • cfg3450
    , contributor
    Comments (86) | Send Message
    Alaska should keep the tax-payers money at home.
    Then they should help the Oil Companies bring this
    project to completions without redtape and within budget.
    The State Bureaucrats can be very helpful in getting all the
    permits which save time and money big time.
    The Oilmen are businessmen who are very savvy doing
    these projects.
    The five oil companies, XOM - BP - COP and TRP are all top rated.
    15 Jan 2014, 07:36 PM Reply Like
  • Ruffdog
    , contributor
    Comments (3695) | Send Message
    Alaska knows how to get thing done! Hopefully DC will not screw it up!
    15 Jan 2014, 08:49 PM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (2087) | Send Message
    All this does is promote business, profits, jobs, personal security and happiness, and if we tell Obama about it he can stop it before all this sanity gets a foothold. I mean why would we do something that is not giving to the poor or socialistic?
    go Alaska!
    Capt. Brian
    The Lost Navigator
    15 Jan 2014, 09:40 PM Reply Like
  • fafatooey
    , contributor
    Comments (435) | Send Message
    The American way. I miss it.
    16 Jan 2014, 03:10 AM Reply Like
  • jumpnjoey77
    , contributor
    Comments (1222) | Send Message
    The government using tax payer money to speculate?
    16 Jan 2014, 09:45 AM Reply Like
  • User 3950401
    , contributor
    Comments (556) | Send Message
    jumpnjoey77 - a good question for all the 'diehard' capitalists on this site - government supporting business??? Government taking tax money to HELP private sector firms build infrastructure for a private venture??? Say it ain't so!
    20 Jan 2014, 07:32 PM Reply Like
  • Ramon Vredeling
    , contributor
    Comments (584) | Send Message
    Global investment in natural gas is really picking up lately. This week Gazprom, through subsidiary Gazprom Neft, started exploration under its JV with Shell to tap shale oil in Bazhenov, the world’s single biggest shale oil play covering half of western Siberia.


    U.S. EIA estimates Bazhenov's technically recoverable shale oil resource at approximately 75 billion barrels, more than the 58 billion barrels held by the U.S., but many are saying there could be more than 100 billion barrels in Bazhenov alone. As incentive the government will apply a zero rate MET to Bazhenov and another play Abalak Khadum.


    For more information on Gazprom, published an article yesterday
    16 Jan 2014, 03:57 AM Reply Like
  • SaltyDog62
    , contributor
    Comments (838) | Send Message
    Now we know why Buffett recently purchased shares of XOM!
    16 Jan 2014, 06:55 AM Reply Like
  • berloe
    , contributor
    Comments (2217) | Send Message
    Whoa! Has Russia come back to Alaska?
    16 Jan 2014, 10:25 AM Reply Like
  • mjmcfp
    , contributor
    Comments (3) | Send Message
    jumpnjoey77, it's trickle down all the way.
    16 Jan 2014, 12:08 PM Reply Like
  • Lionel Yeo
    , contributor
    Comments (418) | Send Message
    That's big thinking. Honestly the best idea with the state leading the push.
    Jobs, happiness. I'll like to see more states and countries getting into the private public partnership to get these projects running. The reason why energy is not as developed elsewhere is the attitude where countries sit on their arse and demand money from oil companies to do all the work; take all the risk.
    16 Jan 2014, 10:03 PM Reply Like
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