Alaska completes LNG stake buyout

The State of Alaska on Tuesday completed a US$64.6 million deal to buy TransCanada Corp.’s stake in the proposed Alaska LNG project.

The deal was recently approved by Alaska Gasline Development Corporation (AGDC). Under the agreement, AGDC will assume TransCanada’s interest in the project’s 800-mile pipeline and North Slope gas treatment plant giving the state a 25 percent interest in the entire integrated LNG project.

“By gaining an equal seat at the negotiating table, we are taking control of our destiny and making significant progress in our effort to deliver Alaska gas to the global market,” Governor Bill Walker said in a statement.

“The state looks forward to working with our partners at BP, ConocoPhillips and ExxonMobil to make AKLNG a reality,” he added.

The Alaska liquefied natural gas project is expected to cost about $45-$65 billion.

The three-train liquefaction plant will be located in the Nikiski area on the Kenai Peninsula. It is expected to produce up to 20 million mt of LNG per annum.

LNG World News Staff; Image: Alaska LNG Project