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Parnell Announces New Agreement With TransCanada

By | June 18, 2014 - 5:28 pm

The State and TransCanada Corp. have formally ended their relationship under terms of the Alaska Gasline Inducement Act. Governor Sean Parnell shared the news in an address to the Fairbanks Chamber of Commerce on Tuesday. ”I’m pleased to announce here today that we have terminated the license with TransCanada under AGIA and have now completed a traditional precedent agreement,” he said.

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Governor Sean Parnell signed in-state gasline legislation at the Pipeline Training Center in Fairbanks on May 8. Pictured: Representative Jay Ramras, Representative Mike Chenault, Governor Sean Parnell, Senator Lesil McGuire, and Scott Heyworth (Photo from Governor’s Office press release)

TransCanada had state support under AGIA to pursue a gasline to serve North American customers, but the project has shifted focus to overseas markets. State lawmakers approved state participation in the new North Slope to Nikiski gasline this spring, setting the stage for the updated agreement with TransCanada. Governor Parnell says the new arrangement, which also includes North Slope producers, puts the project on a more standard track.

“It’s a more traditional structure then what we had before. It’s a structure that banks and financial institutions are used to providing financing for and that markets are used to seeing,” he said.

Parnell says joint venture agreements between the state and the companies are the next step to move the gasline project forward.

Governor Parnell signed several bills into law while in Fairbanks, including one authorizing $157.5 million in bonding authority for University of Alaska Fairbanks to finance replacement of its aged-out coal fired power plant. State funding will fill out the rest of the tab for the $232 million project.

Parnell also signed a bill that adds “Big Bull Moose” derbies to a list of charitable games the state can license. The derby allows hunters to buy tickets and win a cash prize if they kill the biggest moose. It was forwarded by Representative Tammie Wilson of North Pole on behalf of the Tanana Valley Sportsman’s Association and the UAF Rifle Team, which want to use a moose derby to raise money for their programs.

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