Alaska to Pay $5.75 Billion for Exxon LNG Project Stake

exxon-mobil_LogoAlaska plans to jump-start a $45 billion natural gas export project by pitching in more than 10 percent of the cost and joining Exxon Mobil Corp. (XOM), BP Plc (BP/), ConocoPhillips and TransCanada Corp. (TRP) as an equity partner.

The agreement between the state and the four companies outlines a framework in which Alaska would take as much as a 25 percent stake in a proposed gas processing plant, an 800-mile (1,287-kilometer) pipeline from Alaska’s North Slope and a liquefaction facility in the Kenai Peninsula.

Governor Sean Parnell has asked the Alaska legislature to approve the deal and give state agencies the ability to negotiate shipping and leasing arrangements, according to a statement released today by the Alaska Department of Natural Resources.

“This is the first time we’ve had all of the parties aligned on a path forward,” Joe Balash, the department’s commissioner, said in a phone interview today before the announcement. The deal gives the project a “good shot” at proceeding, he said.

Read more from this story HERE.