Alaska buys TransCanada LNG stake

The US state of Alaska has completed a purchase of TransCanada’s 25-percent stake in the Alaska LNG project.

The state spent $65 million to acquire the share, which the Canadian company had held during a phase of upfront investments that began last year.

Alaska now holds an interest equal to those of BP, ExxonMobil and ConocoPhillips.

The development, dubbed a “gigaproject” due to its size, is scheduled to come on line in 2025 with an investment of up to $65 billion. It involves the construction of a gas liquefaction plant for LNG exports, as well as a 1,300-kilometre, 42-inch pipeline beginning at an Arctic Sea port and crossing the state southwards to the plant.

The project marks the largest investment in the state’s history. Governor Bill Walker called the stake acquisition a “get-well card” for the Alaska’s ailing economy, saying it would eventually bring in $400 million per year in revenues.