JUNEAU, Alaska — An official says the state of Alaska is looking at a possible multibillion-dollar equity stake in a major natural gas pipeline project to protect its interests and help make it a reality.
The option stems from a report commissioned by the state to see how Alaska could protect its royalty interest and ensure it receives maximum value for its natural gas.
Natural Resources Commissioner Joe Balash said Monday that Gov. Sean Parnell’s administration views an equity stake of 20 percent to 30 percent favorably.
He says the level of participation would depend on the terms the companies pursuing the project are willing to agree on. In addition, buy-in would be necessary from the Legislature.
If the project costs $45 billion, as one projection indicates, the state would be looking at $9 billion to $13.5 billion for a 20 to 30 percent stake.