The Legislative Budget and Audit is listening to the analytical data company for the Alaska LNG Project in regards to Governor Bill Walker’s proposed legislation a TransCanada buyout.
Enalytica’s Janak Mayer says TransCanada’s current role in the Alaska LNG Project is to act as a loan.
Mayer: “There are a whole bunch of other things that one can assign value to that TransCanada brings to this arrangement, but broadly speaking from a financial perspective, having them involved means there is less capital committed up front by the State of Alaska in the early years of the project when it’s going under construction and less cash flow in the later years as the state pays TransCanada a tariff as their way of paying back TransCanada for having committed that capital.”
He said throughout today’s meetings, Enalytica will attempt to address questions regarding Alaska potentially buying the controlling share.
Mayer: “How much does the state save up front? What are the implications of that on the state’s credit rating, on the balance sheets? Is that a real impact or not? What’s the best way of thinking about that? What’s the best way of thinking about the subsequently lower cash flows later in the project life.”
The budget and audit committee is scheduled to meet until 5 pm tonight.