The US state of Alaska has made a $64.6m deal to buy out TransCanada’s stake in the Alaska LNG project which would transport natural gas by pipeline to a coastal liquefied natural gas (LNG) conversion and export plant at Nikiski.
The shipment of LNG by sea is expected to be a boom business in coming years although currently it’s lost some of its gloss because of the very low price of oil.
TransCanada is a major energy infrastructure firm headquartered in Calgary, Alberta. It is especially known for its huge oil and gas pipeline network in North America.
Nikiski is in Alaska’s Kenai Peninsula. The Alaska LNG terminal has yet to be approved for construction and wouldn’t start commercial shipments before 2023.
Alaska’s stake makes it quarter owner in the project, along with ExxonMobil, BP and ConocoPhillips.
This stake commits the state to contribute to the estimated cost of between $45 billion and $65 billion for the whole project.
Alaska calculates that by buying out TransCanada now it will reap much greater benefits in future when the profits start flowing.