Governor Bill Walker’s most recent statement of potentially finding an alternative option for the Alaska LNG Project if agreements are not reached may make some Kenai Peninsula residents uneasy.
Larry Persily, Special Oil and Gas Assistant with the Kenai Peninsula Borough, says at this point, there are no deadlines for the project that have been missed.
Persily: “It’s nothing new that if we’re going to stay on schedule, have a special session, or have issues before the legislature, it’s got to be done before they meet later in the year. As to the governor’s expression of his frustration sending another letter to legislators, well, I’m not sure I see where that helps the situation but a lot of letters have gone back and forth, the project moves ahead, and hopefully this too will resolve itself.”
Persily says the timeline for the 800-mile gasline is an intricate web with two parallel tracks: the engineering, environmental, and federal regulation work with all the partners is proceeding on schedule…
Persily: “The parallel track is the negotiations between the project partners on fiscal terms, on tax, royalty conditions, leases, on the operating agreements, the fact that there’s no agreement on those issues falls to all the parties.”
Governor Walker recently said he was happy with gas availability agreements from BP and ConocoPhillips Alaska, and that Exxon’s statement that they will provide gas to the project is just fine.
The governor has repeatedly comforted Kenai Peninsula residents that Nikiski will be the southern processing facility and marine terminal.
