Work on the Alaska LNG project has continued throughout the summer. The state administration is hoping to have an announcement regarding progress soon, prior to the legislative special session. The planned session was set for early September, but it might be bumped back into October.
There have been some shifts in the Governor’s stance on how much of the project the state should own. Originally, the Governor wanted the state to own at least 51 percent of the project so that industry would not have control over the project. Recently he has said that he would accept the current structure of 25 percent if there were an agreement in place to assure the project would continue if one party failed to move forward. This type of agreement is common in large, complex projects.
There are multiple issues being discussed about the project. The Governor’s plan to increase the size of the pipe to handle more capacity; whether the state will be allowed to purchase the TransCanada share of the project; the route for the Cook Inlet crossing; and who will pay for spur lines to Fairbanks and Mat-Su.
The crossing is extremely important because of the considerations of construction methods and the most efficient route. Cook Inlet provides many challenges for a pipeline. The Alaska LNG project is working to minimize issues presented by Beluga whale critical habitat, salmon fisheries, 40-foot boulders, 15-foot tall sand waves on the ocean floor, strong currents, shallow water close to shore and ice that could expose or damage the pipeline. The current preferred route is almost 30 miles long and the pipeline will have to withstand strong currents and tides that can vary up to 25 feet between high and low levels. This is not the first pipeline to be safely constructed in Cook Inlet, but the Alaska LNG project is larger than any other pipeline currently running through Cook Inlet.
The Alaska LNG project is moving forward and we should see movement on key issues from the Governor and Legislature during the upcoming special session. Updates will be given as new developments arise.
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