Reality check

Finally, a reality check. Gov. Bill Walker says waning optimism for the massive Alaska LNG Project may be its demise next year.

He told a crowd at a Resource Development Council meeting he has doubts about how much longer the Legislature will continue to fund the project that carries with it a price tag of somewhere between $45 billion and $65 billion.

The state earlier had partnered with ExxonMobil, BP and ConocoPhillips on the project, but they bailed out after spending about $500 million and finding, they said, the project did not pencil out. Alaska assumed control of the project and now is spending $100 million or so trying to win Federal Energy Regulatory Commission approval.

The project for the time being is going ahead with money already set aside, but Walker told the meeting he would be hard-pressed to ask the Legislature for more money.

“I don’t allow myself to get optimistic anymore, I’m hopeful. And I am hopeful. But can we continue on after this funding? I’m – I’m doubtful honestly if we could,” Walker said. “If there’s a customer out there willing to take long-term contracts which would underpin the long-term financing, then there will be a project. If there is not, then there won’t be of that nature.”

To date, there are no customers and no contracts for the project. All the state has so far are nonbinding memorandums of understanding and nonbinding letters of intent. Seeing the handwriting on the wall at this point is a good thing to do as Alaska runs is running chronic multibillion-dollar budget deficits and Walker wants an income tax and use of the Permanent Fund to make ends meet.

Alaskans may not like reaching deeper into their pockets to fund a pipe dream.

 

 

 

 

One Response to Reality check

  1. Marlin Savage September 10, 2017 at 7:42 am

    Reality? Reality is the Billion+ $$$$ down the drain……….

    Reply

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