Alaska Signs Commercial Agreements for Alaska LNG Project
Posted on Jan 16, 2014 in LNG Exports, State and Local Issues | Comments Off on Alaska Signs Commercial Agreements for Alaska LNG Project
The Alaska Department of Natural Resources announced that it has signed a Heads of Agreement (HOA) with ExxonMobil, BP, ConocoPhillips, and TransCanada Corp., regarding the proposed Alaska LNG project and a Memorandum of Understanding (MOU) with TransCanada defining the pipeline company’s role in developing the pipeline portion of the project. Read more in the press release. According to a Bloomberg article, under the HOA, Alaska will acquire a 20 to 25 percent stake and would pay up to $5.75 billion for its share of the $23 billion liquefaction facility. Under the MOU, TransCanada would pay the state’s $5.5 billion share of the $22 billion gas processing facility and pipeline in exchange for a lower transportation rate.