Alaska to Assess Incentives for LNG Exports From the North Slope

Alaska plans to spend as much as $800,000 to evaluate exporting gas from its North Slope, including financial incentives for participating companies.

The state is seeking bids from contractors to help its Department of Natural Resources develop fiscal policies affecting leaseholders in the north Alaskan gas fields, according to a request for proposals distributed April 26.

Exxon Mobil Corp. (XOM), BP Plc (BP/), ConocoPhillips (COP) and TransCanada Corp. (TRP) are considering a gas pipeline from Alaska’s North Slope to a terminal further south, where fuel would be liquefied for export. The companies reported to Alaska Governor Sean Parnell in February that they had completed the “concept development” for their proposed liquefied natural gas project.

“The project definition, commercial structure, equity participation, the state’s fiscal terms and ownership rights, and risk allocation are just now starting to take shape and are far from being fully defined,” Alaska’s natural resources department said in the request for proposals. “The state needs to be prepared to offer additional inducements.”

Alaska plans to issue a contract by June 12 for the study to be completed by Oct. 15, according to the request.

To contact the reporter on this story: Jacob Adelman in Tokyo at jadelman1@bloomberg.net

To contact the editor responsible for this story: Alexander Kwiatkowski at akwiatkowsk2@bloomberg.net

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