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State LNG Project Costs Could be $4.6B to $11.4B

Published On: Jan 30 2014 12:10:46 PM AKST
Updated On: Jan 30 2014 12:10:52 PM AKST
State LNG Project Costs Could be $4.6B to $11.4B
JUNEAU, Alaska -

Alaska's contribution toward building a liquefied natural gas project could range from $4.6 billion to $11.4 billion, depending on the equity stake and whether the state has a partner.

An agreement to advance the project anticipates a state interest share of about 20 to 25 percent. Alaska's participation rate would be established through tax and royalties and the state would be responsible a commensurate level of construction costs.

Natural Resources Commissioner Joe Balash told lawmakers Wednesday the state's total capital investment without a partner for the gas treatment plant, liquefaction facility and pipeline would be $9.1 billion with a 20 percent stake and $11.4 billion at 25 percent.

With TransCanada Corp. as a partner, the state's share for the liquefaction would be $4.6 billion or $5.8 billion.