The Alaska Industial Development and Export Authority board unanimously agreed yesterday to enter into a contract to determine whether or not to become partners with Furie Operating Alaska on a project north of Nikiski.
The contract allows AIDEA to study the details of the roughly $300 million project that could tap gas from the Kitchen Lights Unit and determine whether it would benefit the state corporation to become an equity partner.
Rodvik: “And we are now entering into a cost reimbursement agreement with Furie Operating Alaska and basically what that does is that allows us to proceed with our evaluation in due diligence in the development of a fiancé plan with regard to our potential AIDIA participation in taking an equity stake in production facilities that will be required to develop and produce natural gas from the Kitchen Lights Unit to the northern portion of the Cook Inlet.”
Producible quantities of gas were discovered by Furie in the Cook Inlet in 2013.
The contract requires Furie to reimburse AIDEA for the cost of the review of the project up to $100,000 whether AIDEA invests or not.