PHOENIX - Alaska Gov. Bill Walker said the state has acquired land it needed for a major pipeline project and signed an agreement with British Columbia that could also strengthen the state's economy.
Walker made the two announcements late last week in the midst of ongoing efforts to right Alaska's financial ship, which is suffering through an extended period of low oil prices that have sapped the state's revenues. Walker said the state has acquired private firm TransCanada's share of the Alaska LNG natural gas pipeline project, a key component of Walker's economic plan.
"Today is a historic day," Walker said in a statement. "As Alaska faces a $3.5 billion budget deficit, this gasline project is our number-one get-well card. By gaining an equal seat at the negotiating table, we are taking control of our destiny and making significant progress in our effort to deliver Alaska gas to the global market."
Last year, the state and TransCanada signed an agreement authorizing TransCanada to pay upfront capital costs and hold the state's 25% share of ownership in the gas treatment plant and pipeline. During the legislature's recent special session, Walker recommended abandoning that agreement so that it could directly participate in the project and get more for its investment. The legislature appropriated about $68.5 million to make the purchase. The state paid about $64.6 million to TransCanada.
"This termination will enable the state to have more direct input to the decision-making process, which will be important as this project is pivotal for the future of the state, both in terms of potential revenue and gas for Alaskans," said Alaska Department of Natural Resources commissioner Dan Myers.
Walker also announced that on Nov. 25 he and British Columbia Premier Christy Clark signed a Memorandum of Understanding and Cooperation. While the agreement is not a legally binding document, Walker said it is a firm commitment by the Alaska government and its Canadian neighbor to work closely together in areas of mutual interest such as transportation infrastructure, emergency response, natural resource development, and trade.
"As our next door neighbor, Canada plays a significant role in many Alaska industries, including trade, transportation, and tourism," Walker said. "As we work to improve our state's economy, it is important that we actively reach out and foster good relationships with our trading partners and neighbors with whom we share so much in common."
Alaska officials have also said they are further exploring ways to reclassify their financial assets in order to erase the budget deficit.
