Alaska LNG partners pull out, support switch to state-led project

BP, ConocoPhillips (NYSE:COP) and Exxon Mobil (NYSE:XOM) tell state legislators that they will not proceed further with the Alaska LNG project as it is currently structured, saying they support a state takeover of the project.The companies say the project is still not economical even after cost estimates have been trimmed to the lower range of a previous estimate of $45B-$65B.Energy consultant Wood MacKenzie says the traditional model of a producer owned and financed gasline would be the least competitive of major LNG projects now being planned, although alternatives such as third party investors or full state ownership and tax-exempt status could make the project more competitive.The Department of Energy has issued a license to Alaska LNG to export up to 20M metric tons/year of liquefied natural gas, which would make it one of the world’s largest LNG projects.

https://seekingalpha.com/news/3205686-alaska-lng-partners-pull-support-switch-state-led-project