Alaska officials presented a report to the Legislature on Tuesday outlining plans for a $7.5 billion, 700-mile natural gas pipeline.

The report by the Alaska Gasline Development Corp. laid out the early blueprints of the project that would take North Slope gas to Fairbanks, including how to finance it.

The cheapest way to pay for the project would be state ownership, according to the report, taking advantage of Alaska's top-notch credit rating by funding the majority of costs with cheaper debt. It also looked at using a public-private partnership as well as private development.

The pipeline will cost $7.52 billion to build in present value within a 30% below or above cost range, the report said.

In 2010, lawmakers asked the Alaska Housing Finance Corp. to research the pipeline. The agency then formed the AGDC.

To move ahead, the state would need to spend $210 million on the next phase of the project, while another $130 million would be needed to go forward with design before a final approval.

Moody's Investors Service rates the state's general obligation debt Aaa, while Fitch Ratings and Standard & Poor's each assign AA-plus ratings.

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