|
AIDEA, MWH sign concession agreement
The Alaska Industrial Development and Export Authority signed a concession agreement with MWH Sept. 19, creating the legal framework under which AIDEA will own and MWH subsidiary Northern Lights Energy LLC will build, operate and maintain a liquefied natural gas plant on the North Slope.
The AIDEA board passed resolutions Aug. 25 to move the LNG project forward, one authorizing AIDEA to spend $1.6 million, in addition to an existing commitment of $4.5 million, for early procurement of long lead-time items needed for the plant and the other resolution approving an agreement for construction and operation of the plant by Northern Lights Energy.
These efforts are in support of the Interior Energy Project, a plan to construct a 6 billion cubic-feet-per-year capacity liquefaction plant on the North Slope. The LNG would be trucked to a storage and regasification facility in Fairbanks.
The Interior Gas Utility, owned by the Fairbanks North Star Borough, hired MWH Americas in January to help manage the project to bring natural gas to residents. IGU was certified by the Regulatory Commission of Alaska in December, and is working to deliver gas to residents and businesses in the borough at $15 per thousand cubic feet or cheaper by 2020.
The Legislature authorized funding and bonding by AIDEA and MWH is working with the agency as a private-sector partner.
Pad and access road construction for the LNG facility on the North Slope have been completed.
AIDEA to own plant AIDEA said in a statement that under terms of its concession agreement with MWH, AIDEA will own the plant, which will be operated by MWH subsidiary Northern Lights Energy, which will also have the right to sell LNG produced by the plant.
Under the agreement AIDEA and Northern Lights “will move forward with development of the plant and a structure for financing the project using a mixture of AIDEA and private funds,” AIDEA said. “The signing also provides Northern Lights the authority to move forward with negotiating gas purchase agreements with the Interior utilities.”
The Interior Energy Project was introduced by Gov. Sean Parnell in the 2013 legislative session and with the passage of Senate Bill 23 a financing package was authorized, enabling AIDEA and the private sector to partner in the construction of an LNG facility on the North Slope and a natural gas distribution system in Fairbanks.
- Kristen Nelson
| 