Walker plans to recommend TransCanada buy-out in gas project

The proposed pipeline route for the Alaska LNG Project, a consortium of oil companies (Image courtesy of the Alaska LNG Project).
The proposed pipeline route for the Alaska LNG Project, a consortium of oil companies (Image courtesy of the Alaska LNG Project).

Gov. Bill Walker says he plans to recommend to legislators that the state buy out TransCanada Corp.’s position in the major liquefied natural gas project that Alaska is pursuing.

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Under an agreement that predates Walker’s administration, TransCanada would hold the state’s interest in the pipeline and gas treatment plant, with the state having an option to buy back a portion of that interest. It’s been cast as a way for the state to not have to bear as much in upfront costs as it would without TransCanada involved.

But the agreement also allows the state to terminate the partnership, though the state would have to reimburse TransCanada for its development costs.

Walker said the pipeline is an important piece, and the state needs to be more involved in that.