Alaska Would Kick in $500 Million for Pipeline

The state of Alaska is sweetening the pot to get a multibillion dollar natural gas pipeline built.

Gov. Sarah Palin on Wednesday announced Alaska would kick in as much as $500 million from the state’s treasury to offset startup costs, like permitting fees.

“We need to progress this project. There are hungry markets for Alaska’s natural gas,” she said.

This perk will be part Palin’s Alaska Gasline Inducement Act, also known as
AGIA, which she plans to introduce Friday to the Alaska Legislature. Palin’s bill would set project criteria which energy companies must meet in exchange for inducement incentives from the state to build a pipeline.

Palin and Department of Natural Resources Deputy Commissioner Marty Rutherford said the half billion dollar incentive illustrates the state’s commitment to take on risk associated with a project that could take North Slope natural gas to Midwestern markets in the Lower 48.

Rigzone