Timeline extended for state takeover of Alaska LNG project

Alaska Gasline Development Corporation President Keith Meyer, Alaska Gov. Bill Walker and Department of Natural Resources Commissioner Andy Mack discuss meetings with potential buyers of Alaska’s LNG during a press conference on Friday Sept. 30, 2016 in Anchorage, Alaska. (Photo by Rashah McChesney)
Alaska Gasline Development Corporation President Keith Meyer, Alaska Gov. Bill Walker and Department of Natural Resources Commissioner Andy Mack discuss meetings with potential buyers of Alaska’s LNG during a press conference on Sept. 30, 2016, in Anchorage. (Photo by Rashah McChesney/Alaska’s Energy Desk)

The Alaska Gasline Development Corporation is still trying to broker a deal to take over the Alaska LNG project, but it will not happen by its self-imposed end-of-the-year deadline.

This is the second deadline the project has missed in its timeline for taking over the massive $45 billion-plus Alaska LNG project.

The state has been working toward a takeover since BP, ConocoPhillips and ExxonMobil balked at pursuing the project after prices for oil and liquefied natural gas fell worldwide.

Corporation President Keith Meyer told board members on Wednesday that the transition agreements have taken months to finish. He says there are four things that need to be done to take over the project.

So far, AGDC has gotten the rights to all of the information developed by the project so far. It has also sent notice to the Federal Energy Regulatory Commission that it will go through the permitting process alone.

But that still leaves the question of what will happen to a big chunk of land on the Kenai Peninsula. The project bought 630 acres to house a natural gas liquefaction plant at the end of the pipeline.

Additionally, the corporation has not yet taken over a Department of Energy license that would allow the state to export LNG to non-free trade agreement countries.

Meyer told the board the negotiations on those points were still in progress, but agreements would not happen until next year.

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