PHOENIX - Alaska lawmakers have passed legislation appropriating almost $150 million for a gas pipeline project that Alaska Gov. Bill Walker has said will be key to closing the state's $3.5 billion budget deficit gap.
Senate Bill 3001 passed both the state House and Senate this week with overwhelming support to conclude the special legislative session Walker called a few weeks ago. The bill appropriates approximately $68.5 million to the Alaska liquefied natural gas project fund for the state to acquire the natural gas interests of private firm TransCanada. The bill also appropriates $75.6 million for the State's continued participation in the Alaska LNG project, and to fund the state's share of preliminary front-end engineering and design work for the project.
"With a $3.5 billion budget deficit, this gasline project is our number one get-well card," Walker said. "I applaud the legislature for coming together to help advance a project that best serves Alaska's future."
Walker has said repeatedly that Alaska needs to monetize untapped natural gas reserves at a time when low oil prices have badly hampered the state's revenues. The more than $45 billion Alaska LNG includes facilities for cleaning and liquefying natural gas as well as a roughly 800 mile pipeline. Last month Walker announced he had received written assurances from both ConocoPhillips and BP that they will make their share of Alaska's North slope gas available for the pipeline project.
"I will continue to work with the legislature and our partners to move this project forward and make sure Alaska gas is delivered to the global market," Walker said. "The most critical component of monetizing North Slope gas is making sure the gas is available. I appreciate the assurances we have received from the Producers thus far, and will remain committed to seeing the Alaska LNG project to fruition."
Alaska remains triple-A rated despite its budget woes, but analysts have said the state does need to find a way to close its budget gap.
