State to Take Reins of Alaska LNG Project
Alaska Gasline Development Corp. President Keith Meyer says the Big 3 oil companies are cooperating with the state’s desire to take full ownership of the AK LNG Project.
He laid out an ambitious list of “to-dos” the state needs to check off if it is going to lead the $55 billion Alaska LNG Project to fruition at a board of directors meeting.
According to local media, ExxonMobil, BP and ConocoPhillips in recent months have signaled they may not all continue with the project amid the global slump in the price of oil and liquefied natural gas.
Now, the state and the oil companies are working "cooperatively" on a plan to turn over leadership of the project to Alaska, said Keith Meyer, president of the Alaska Gasline Development Corp. The state corporation represents the state's interest in the project.
The four partners — Alaska and the three oil companies — have spent more than $500 million on the project so far, most of that in the last two years, though the gas line may never be built.
The state has already spent $75 million and is expected to cover 25 percent of the costs.
Meyer has suggested an alternative approach to funding, hoping to line up commercial commitments with gas buyers in order to draw in outside investors.
