NEWS BULLETIN

January 15, 2014 --- Vol. 20, No. 05January 2014

State signs agreements for Alaska LNG project

Alaska’s commissioners of Revenue and Natural Resources and the head of the Alaska Gasline Development Corp. have signed a “Heads of Agreement” for the Alaska LNG project with ExxonMobil, BP, ConocoPhillips and TransCanada.

“This agreement is essential to establishing the commercial structure of this project and will allow the project’s investors to move this project, so important to the future of all Alaskans and our broader economy,” Revenue Commissioner Angela Rodell said in a statement released early this afternoon.

“As an equity partner, the state will play a critical role in setting the terms for decades-worth of gas production from the North Slope. In setting these terms, our goal will be to maximize the royalty value of the state’s gas on behalf of all Alaskans,” Natural Resources Commissioner Joe Balash said.

AGDC President Dan Fauske said: “Today’s agreement reaffirms AGDC’s central role as Alaska’s gas pipeline company and further enables the corporation to explore every option for delivering gas to Alaskans at the lowest possible cost.” Fauske said AGDC is also “moving full-steam ahead” with the Alaska Stand Alone Pipeline, ASAP, project, “and on-track for an open season in 2015.”

Rodell and Balash also signed a memorandum of understanding with TransCanada defining the pipeline company’s role in developing the midstream portion of the project.

In announcing on Friday that the state and TransCanada had agreed to an amicable wind-down of the Alaska Gasline Inducement Act license, and that the state would move to commercial agreements for the LNG project, Gov. Sean Parnell said he expected signing of commercial agreements to occur very soon.

Parnell said he would be asking the Legislature to take up bills authorizing state participation in the upcoming session.

The documents are available online at www.dor.alaska.gov.

—KRISTEN NELSON

See story in Jan. 19 issue, available online at 11 a.m. Friday, Jan. 17 at www.PetroleumNews.com


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