• Forecast
  • News Tip
  • Categories
Temperature Precipitation
Estimated read time
1m 40s

Agreement outlines new direction for Alaska LNG project

By Kirsten Swann 8:30 AM January 16, 2014

A 2013 study estimates the project could cost an estimated $45 billion and be completed by 2024.

ANCHORAGE – An agreement finalized Tuesday could move Alaska’s long-awaited liquefied natural gas project one step closer to completion.

The Heads of Agreement between the State of Alaska, the Alaska Gasline Development Corporation, BP, ExxonMobil, ConocoPhillips and TransCanada Corp. anticipates the state’s share in the energy project at 20-25 percent and outlines broad initial terms of the multi-billion dollar project.

It describes the regulatory and legislative issues pertinent to the project, and affirms the state’s central role in future development.

The agreement comes after decades of gas line talks and more than five years of fitful progress under the auspices of the Alaska Gasline Inducement Act.

After AGIA was signed into law in 2007, TransCanada was awarded a license to pursue development of a gas line and partnered with ExxonMobil to form the Alaska Pipeline Project. But last week, Alaska Gov. Sean Parnell announced the state was ending its arrangement with the Canadian corporation and would instead “partner with the company in a more traditional commercial agreement.”

Tuesday’s agreement focuses on development of a gas line with at least five offtake points statewide.

While previous plans called for a line to Alberta, the new agreement hones in on export opportunities stemming from an in-state line. The agreement details several components to the project: a gas line, an LNG plant, a gas treatment plant and transmission lines to Prudhoe Bay and Point Thompson. According to a November 2013 Black & Veatch study, the project would generate billions in state revenue.

The same study claims the completed project would cost at least $45 billion. The recent HOA estimates the next phase of project development – including preparing key project agreements, engineering studies and technical and commercial documents – will cost around $400 million.

Latest Stories

  • News

    UPDATE: Horseshoe Lake Fire reaches 25 acres

    by KTVA CBS 11 News on Aug 30, 15:51

    Crews are working to contain a fire, located off Millers Reach Road north of Big Lake. Early Sunday afternoon, authorities were alerted to the fire. Named the Horshoe Lake Fire, it has reached about 25 acres, as of 8 p.m. Sunday. Both helicopters and ground crews are assisting in the containment efforts, according to Norm […]

  • Crime

    Man stabbed in face after altercation in downtown Anchorage

    by KTVA CBS 11 News on Aug 30, 15:05

    Police say a young adult male suffered a severe stab wound to his face early Sunday morning after an altercation in downtown Anchorage. Around 2:40 a.m. the Anchorage Police Department received a report of a possible stabbing near Seventh Avenue and D Street. It was reported to police that a group of males got into a […]

  • News

    President Obama to announce renaming of Mount McKinley to Denali

    by Sierra Starks on Aug 30, 13:01

    During his trip to Alaska, President Barack Obama will announce that the federal government has officially restored the name of Denali to the mountain previously known as Mount McKinley. “Today, finalizing a process initiated by the State of Alaska in 1975, President Obama is announcing that the Secretary of the Interior Sally Jewell used her […]

  • Lifestyle

    1st weekend of Alaska State Fair kicks off with parade

    by Eric Ruble on Aug 30, 11:52

    The first weekend of the Alaska State Fair kicked off with a parade in downtown Palmer. Forty-five different floats traveled down South Alaska Street, each stopping for 30 seconds at the grandstand to be judged by a panel. Groups from around Southcentral Alaska created their own unique floats that were dispersed between tractors and dozens […]

  • Crime

    Man charged in East Anchorage double homicide

    by KTVA CBS 11 News on Aug 30, 10:37

    Anchorage police have arrested and charged a man in a double homicide that occurred in January. Michael Dorell Kelvin Reynold, 22, was taken into custody on Saturday in connection with the shooting deaths of 27-year-old Christian Haynes and 23-year-old Krystal Hawk, according to a release from the Anchorage Police Department. Haynes and Hawk, a couple, were […]

  • News

    Dillingham plans to voice erosion concerns during President Obama’s visit

    by Emily Carlson on Aug 29, 18:50

    When Dillingham residents are asked what their land means to them, the answer is simple — it’s home. Many fear that, due to erosion, they will not only lose their land but also the culture that’s been built upon those shores.

  • News

    Gov. Walker to fly with President Obama to Alaska

    by Associated Press on Aug 29, 13:15

    Gov. Bill Walker will fly to Alaska with President Barack Obama on Monday. Walker’s office announced in a release Saturday that Walker will accompany the president aboard Air Force One from Washington, D.C. The president will address a State Department global warming conference Monday afternoon in Anchorage. He also has visits planned in Seward, Dillingham […]

  • Crime

    UPDATE: Suspect sought in connection with 1 of the overnight shootings in Anchorage

    by KTVA CBS 11 News on Aug 29, 8:03

    Anchorage police say two men were injured in shootings that happened in the overnight hours between Friday and Saturday. APD is now seeking a suspect, Michael Sharp, in connection with one of those shootings. On Friday, officers went to two homes in response to a verbal altercation between three people, a 23-year-old woman, her 23-year […]