Official: Alaska Looking at Equity Stake in Pipeline to Protect its Interests, Advance Project
Photo Credit: Arthur ChapmanAn Alaska official said Monday the state is looking at taking a multibillion-dollar equity stake in a major natural gas pipeline project as a way to protect its interests and help make the long-hoped-for project a reality.
Natural Resources Commissioner Joe Balash said Gov. Sean Parnell’s administration views a potential equity stake of 20 percent to 30 percent favorably. But he said any level of participation would depend on legislative buy-in and the terms the companies pursuing the project are willing to accept.
Assuming the project costs $45 billion — a figure at the lower end of the range previously announced by the companies — the state would be looking at $9 billion to $13.5 billion for such a stake.
Balash said he’s hoping that range narrows significantly over time as the idea gets more scrutiny.
The option stems from a report commissioned by the state to see how Alaska could protect its royalty interest and ensure it receives the maximum value possible for its natural gas.
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