State considers buying ConocoPhillips LNG facility in Nikiski
Last updated at 4:27 p.m. on Tuesday, Jan. 24
The Alaska Gasline Development Corporation (AGDC) isn’t reaching its hand out to lawmakers for new money on the state’s liquefied natural gas (LNG) pipeline project — known as AKLNG — but it is looking at taking on a new facility.
In a presentation before the Senate Resources Committee Monday, AGDC confirmed it is in discussions with ConocoPhillips about purchasing the oil company’s liquefaction plant in Nikiski. ConocoPhillips announced in November it was looking to sell the asset.
“Whether it’s on the table or not, there are some positives as well as some different things that we can look at,” said Rosetta Alcantra, an AGDC spokeswoman. “The state is looking at every viable option we have available.”
Alcantra said the ConocoPhillips facility could potentially replace a larger LNG facility that would have to be built under original AKLNG project plans. Alcantra said she didn’t have information regarding how much the ConocoPhillips plant would cost or where money for the purchase would come from.
“That’s a detail that would need to be ironed out,” she said. “It would be something, maybe there would be opportunities through other partnerships that would make it more realistic.”
Amy Burnett, a spokesperson for ConocoPhillips, said it was too soon discuss the potential cost of the Nikiski facility or possible buyers.
“We are in the early stages of a marketing the plant. We opened a virtual data room on January 10,” she explained. “The data room includes items like asset financials, contracts, photos, permits and other operations-related data. This is standard industry practice and will provide critical information to help potential buyers assess the asset and determine if they are interested in submitting a formal bid to purchase.”
Burnett said the company is not currently in negotiations with anyone and would evaluate bids as they were submitted.
“We anticipate receiving bids later this year,” she said in an email.
Frank Richards, senior vice president program manager for AGDC, told lawmakers the corporation has $104 million left in funding for AKLNG. Total cost estimates for the gas project tally between $45 billion and $65 billion.
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