The Alaska State Senate passed a bill on Tuesday to buyout TransCanada’s interest in the Alaska LNG project.
Senate Bill 3001, requested by governor Bill Walker, appropriates $158 million to acquire TransCanada’s share of the project, approve a work plan and budget, and to pay for supplemental costs for state agency work, according to a statement by senator Anna MacKinnon.
The option for the state to buy out TransCanada’s interest in the project was a provision made in Senate Bill 138, which created the framework for the Alaska LNG project.
As a result of acquiring TransCanada’s interest, the state will be taking the vote on December 4, 2015 to approve the work program and budget for 2016, the statement reads.
Following the decision to buy out TransCanada’s interest in the project, the state could pursue alternative project financing and save up to $400 million per year, according to financial analysis by the administration’s consultant.
Under the previous arrangement, TransCanada paid for the state’s portion of the upfront costs of the project, which it would have to repay in addition to a 7.1 percent interest rate.
Image: Alaska LNG