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Parnell Administration Gives Pipeline Project Overview

Published On: Jan 27 2014 12:48:00 PM AKST
JUNEAU, Alaska -

Revenue Commissioner Angela Rodell says an agreement to advance a liquefied natural gas project represents a "groundbreaking achievement" for Alaska.

The project, however, is far from a done deal, with several decision points ahead.

Administration officials on Monday gave lawmakers an overview of the agreement, which includes the state, oil companies, TransCanada Corp. and the Alaska Gasline Development Corp., or AGDC.

Gov. Sean Parnell has introduced legislation setting general take terms and allowing the project to move to preliminary engineering phase expected to cost more than $400 million among the parties, with Alaska's share potentially up to $90 million.

The fiscal note estimates $75 million would go into a new fund and be drawn on from by a subsidiary of AGDC that would carry Alaska's interest in liquefaction facilities.